In the years since independence, tiny, landlocked botswana has gone from being one of the worlds poorest nations to becoming a stable, prosperous sta. Like many natural resources, most of the major sources of rough diamonds are located in developing countries. Through this analysis, students must resolve two apparent paradoxes present in the diamond industry. This case highlights the role that foreign direct investment fdi has played in this success, as well as how strong local institutions have helped to harness the benefits that the. Case hbs case collection march 2003 revised november 2005.
The africa portal is a research repository and an expert analysis hub on african affairs. Oct 28, 2014 botswana, africas diamond, risks losing its sparkle. Due to botswana s heavy reliance on diamonds, strong global demand is vital to the health of the economy. Nearly 3,000 workers in botswana are cutting and polishing diamonds to export. Pdf case study analysis the diamond industry shailendra. A diamond in the rough harvard case study solution and hbr and hbs case analysis clients who bought this case solution also bought. Challenges facing the botswana diamond industry inn. From then, diamonds became very much famous by the enhancement in the supply as well as the advanced technology which enabled the diamond cutting, shaping, polishing as well as finishing. For the people of botswanathe batswanathe stakes are high. This case emphasizes the role that foreign direct investment fdi has played in this success, along with how. From his early 20s in africa and later in belgium honing his expertise in forecasting the value of polished diamonds by examining rough diamonds by hand, till today four decades later, as chairman of his international diamond businesses spanning mining, exploration, rough and polished diamond valuation, trading. Only the cullinan diamond 3106,75 carat exceeds the rough diamond found in botswana. Dec 02, 2008 debeers presentation slides rough business 690 case study presentation san francisco state university.
Since independence, the tiny, landlocked botswana has moved from being one of the poorest countries in the world to become a stable and prosperous state, assigned with the highest sustained growth rate in the world. Headlines about the african country have focused on the british royal family, sales dynamics and of course the largest. This case shows that healthy economic gains can be achieved by a mixture. A worker at the botswana diamond valuing company displays a rough diamond during the sorting process. The main pit of the jwaneng diamond mine in botswana, november 2015. They expect the changes will stimulate the growth of diamond trading and rough diamond manufacturing, jewelry manufacture, related businesses, and other sectors of their economy. Pest analysispolitical factorsamendment on diamond laws by southern african countries focus on supporting and building local diamond relatedindustries such as cutting and polishing. Macroeconomic analysis and implication of the diamond industry. Jun 05, 2017 through this analysis, students must resolve two apparent paradoxes present in the diamond industry. Brilliant earth goes above and beyond the current industry standards to offer beyond conflict free diamonds tm with a listed origin of canada, botswana sort, or russia. A rough diamond changes hands at least five times before it reaches the cutting wheel, an industry veteran explained.
Scott beaulier scott beaulier is the dean of the north dakota state university college of business. A diamond in the rough case solution from its independence up until the present day, botswana has evolved from being among the worlds poorest co. When botswana sells its big diamond, who will benefit. A diamond in the rough case study solution, botswana. This case highlights the role that foreign direct investment fdi has played in this. Diamond mining in botswana has gained increasing attention in recent times. The consultancy and contract work company provides a wide range of services to companies interested in investing or developing within the diamond industry in botswana. Rough diamonds during their sorting process are seen at the botswana diamond valuing company in gaborone.
Dec 03, 2015 inside the worlds richest diamond mine. Jun 29, 2016 the largest diamond found in a century comes from botswana. Diamond industrialist ehud arye laniado is a man passionate about diamonds. Between 2000 and 2005, world production of diamond rough grew 31% by volume and 70% by value, highlighting the upward trend of diamond prices figure 1 and 2. Since independence, the tiny, landlocked botswana has moved from being one of the poorest countries in the world to become a stable and prosperous state. In january, the press reported that diamond cutters motiganz and leo schachter had laid off 150. Diamond in the rough a case analysis, diamond in the rough a case study solution, diamond in the rough a xls file, diamond in the rough a excel file, subjects covered corporate governance crisis management entrepreneurial finance entrepreneurship stock offerings by thomas j. A diamond in the rough harvard case study solution and hbr and hbs case analysis. He was previously the executive director of arizona. A diamond in the rough case solution from its foundations as a new sovereign and independent country up until to this day, it has evolved from being one of the poorest countries to becoming a secure, comfortable state, blessed with the highest sustained growth rate on the planet. The government organized a competition where the citizens of botswana could make a proposition for the name. Mar 24, 2010 thus botswana has not grown because of, but rather despite, its diamond wealth.
Botswana managed to avoid the worst effects of the resource curse by developing and managing its diamond resources with longterm development goals in mind. For the diamondcutting industry in botswana, the news last week could hardly have been much worse. Pest analysispolitical factorsamendment on diamond laws by southern african countries focus on supporting and building local diamondrelatedindustries such as cutting and polishing. The local diamond cutting and polishing activities have not achieved much financial success, as. As a result, batswana have enjoyed higher living standards. This case highlights the role that foreign direct investment fdi has played in this success, as well as how strong local institutions have helped to harness the. To be sure, botswana faces some serious challenges. The diamond industry has a complicated relationship with fluorescence. A diamond in the rough harvard business publishing. Diamond in the rough a case study solution, diamond in the rough a case study analysis, subjects covered corporate governance crisis management entrepreneurial finance entrepreneurship stock offerings by thomas j. Jun 24, 20 nearly 3,000 workers in botswana are cutting and polishing diamonds to export. Not all of the polishing operations are profitable, but many are and others have made great strides toward that goal.
Diamond in the rough case solution, in the years since independence is tiny, landlocked botswana being one of the worlds poorest countries, blessed to have gone to a stable, prosperous state. Diamond exports provide botswana s economy with strong supplies of foreign exchange and have offered a basis for industrial development and stimulated improvements in botswana s infrastructure. Diamond in the rough case study analysis, subjects covered developing countries economic development foreign investment by laura alfaro, vinati dev, faheen allibhoy, debora l. This case emphasizes the role that foreign direct investment fdi has played in this success, along with how powerful local. From the differences, the last section section 3 suggests some lessons learned and the way forward for botswana and sierra leone as well as other countries. To illustrate the challenge of sourcing diamonds from these countries, it is helpful to look at a profile of botswana, which accounts for more than 31 percent of. European centre for development policy management discussion. Botswana, africas diamond, risks losing its sparkle reuters.
A diamond in the rough case harvard business school. Diamond in the rough case solution and analysis, hbr. Botswana is a case of africans finding economic freedom on their own. Diamond exports provide botswanas economy with strong supplies of foreign exchange and have offered a basis for industrial development and stimulated improvements in. Botswana, africas diamond, risks losing its sparkle. Diamond in the rough case study solution, botswana. Diamond in the rough a case analysis, diamond in the rough a case study solution, diamond in the rough a xls file, diamond in the rough a excel file, subjects covered corporate governance crisis management entrepreneurial finance entrepreneurship stock offerings by.
The aims and objectives of this assignment is to provide solutions by applying strategic methods where included analytical justification in order to develop the global diamond market. Worldwide diamond manufacturers botswana wdmb was established in 2015 in botswana. Our select group of diamond suppliers demonstrate a robust chain of custody protocol for their diamonds and have the ability to track and segregate diamonds by origin. Headlines about the african country have focused on the british royal. The contribution of diamonds to botswanas development. Apr 16, 2020 diamond mining in botswana has gained increasing attention in recent times.
First, government spending as a percentage of gdp in botswana is too high and it has been growing rapidly. Diamond in the rough case study solution, since independence, the tiny, landlocked botswana has moved from being one of the poorest countries in the world to become a stable and prosperous state, a. Botswana diamond manufacturers association botswana. It will also be designed as a strategic report about world diamond. Due to its spectacular longrun economic performance and impressive. Looking forward, predictions for annual rough diamond price growth from the. Debeers presentation slides rough business 690 case study presentation san francisco state university. Consequently, a significant body of literature now recognises botswana as an example of how good political institutions and prudent economic policy can promote sustainable resourceled. Due to botswanas heavy reliance on diamonds, strong global demand is vital to the health of the economy.
The global diamond industry columbia business school. The largest diamond found in a century comes from botswana. Botswana diamond manufacturers association botswana diamond. Orapa, botswana cnn the worlds largest openpit diamond mine is as big as 52 football fields and more than 20 stories deep from top to bottom, its a.
Rough diamond production in 2000 by country is shown in figure. Botswana today, first began to show up in the 1940s. Rough diamonds during their sorting process are seen at the botswana diamond valuing company in. A diamond in the rough the harvard business school case study botswana. In the years since independence, tiny, landlocked botswana has gone from being one of the worlds poorest nations to becoming a stable, prosperous state, blessed with the highest sustained growth rate in the world. A study into the consequences and responses to the depletion of botswanas diamonds.
From its independence up until the present day, botswana has evolved from being among the worlds poorest countries to becoming a secure, comfortable state, blessed with the greatest sustained growth rate on the planet. This paper addresses the question of diamond beneficiation from the perspective of botswana and also the other diamond producing sadc countries. Over the past 40 years botswana has been subsaharan africas. Diamonds are the precious gems which are the sources of nature, diamond can be harmed by diamond itself and a very few other stones. Given the low transport costs relative to diamond value and the agreement to market all mine production through the dtc, local polishers do not even source rough diamonds from botswana.