You are on page 1of 3

Strengths

Very successful: American Mining Company was one of the leading coal mining company in America for a long period of time and it was among the top 300 largest private companies in America before it shifted to Colombia. American Mining Corporations objective is to be the acknowledged leader in the exploration and development of U.S. base and precious metals by utilizing premium Industry experience with advanced technologies and proven efficiencies. Our goal is to elevate standards of responsible practices for the Resource Industry while building a profitable business. Gary MacDonald, President, CEO. With this statement, we can understand the goal of AMC. American Mining Corporation ("AMC) is a production oriented Mineral Exploration and Mine Development Company that explores, acquires, and develops advanced stage properties throughout the western United States. With an accredited technical management the company operates from an advanced business model which it has developed for the purposes of reducing the financial risks commonly associated with exploration and mining.

High rated company: American Mining Company is one of the highest rated companies in the world. American Mining Company provides high quality coal. They also provide excellent quality to their customers. The Companys focus begins on gold and silver, however, base metals are also among supplementary economic objectives. It is the Companys opinion that in todays natural resource world the utilization of advanced techniques and technologies are major components for building a successful exploration and mining business. American Mining Corporation is committed to environmental responsibility, safety, health, and forthright practices while providing a rewarding work environment. Thats why they AMC is one of the most high rated companies in the world.

Connection to the US government: AMC has a connection with the US government. It is really important to have the support of their countries. United States of America is the most powerful country in the world. So, it is an advantage for the American Mining Company. Connection with the Colombia government: Colombia has 3rd largest coal reserves of the world. High quality coals are found in Colombia. So, it is a good thing to have a connection with the Colombian government. Colombian government has offered many lucrative propositions to AMC.

Experience: AMC has vast experience in mining business. They have experience of more than half century in this business. Experience is an important thing for the business. It has value in the market and everywhere. Natural resources: Colombia has the natural resources. It has the 3rd largest coal reserves in the world. The coals produced in here are the best quality thermal coals.

Colombia is the world's tenth largest producer of hard coals and the fourth largest exporter of coal, based on 2009 data. The U.S. Geological Survey states that Colombia is the largest coal producer in South America and has the largest reserves in the region. It also states that coal mining for export is booming in Colombia, with production having increased by 80% since 1999.

The majority of Colombia's coal exports are shipped to European markets due to shorter distances and lower freight costs compared to the rapidly growing Asian markets. Colombia is considered to be a low-cost producer with its coal highly sought after due to its low sulfur content.

Provider of high quality coal: AMC enjoyed a reputation of providing high quality coal, trustworthy delivery, and outstanding service, worldwide so this is also strength for the management team to achieve success easily in a country like Colombia. American Mining Company is one of the topmost level companies. The company is also good with their machineries. Moreover the company is efficacious and assertive which is dynamic forward. American Mining Company has started its journey from America and now they are trying emerging their business in Colombia. AMC has earned a lot of success and achieved a reputation of top private level company in America. In Colombia, they would find high quality coal which will be better for their clients. It will also increase their reputation in the market as the high quality coal producer.

Weaknesses
Internal conflict: AMC had some internal conflict with their employees in the USA. They were not happy with the decision to move AMCs operation to Colombia. AMC told their employees that they would not transfer their operations to other countries. So, it created problem for the AMC. Many employees lost their job because of this move.

Safety: AMC wanted to transfer their operation to Colombia, because they will have higher profits. There are risks too involving the decision. Colombia was in political disharmony at that time. Many factions like FARC, ELN, AUC, created problems for the foreign companies. They kidnapped many employees and workers. Certainly, safety is a big issue. AMC faced several problems during establishing its business in Colombia. Colombia was the one of the worlds most volatile regions. A retable group called AUC killed several union leaders of AMC. In 2001, the AUC stopped an AMC company bus transporting mine workers to their village. Two leaders of AMCs mine union were taken off the bus and killed execution style. AMC requested increased protection from the Colombian government, but President Pastranas response was constrained by a lack of trained soldiers and the rough, isolated terrain. AMC failed to protect their employees and workers which was a big concern for them.

Low morale among the workers: AMC workers were in secured about their jobs. In last 5 years, AMC shut down 9 mines. They fired over 5000 workers. This has created insecurity among the workers. If there is insecurity among the workers, then they are not likely to perform better in the workplace. They will always think that they can be fired at any time.

Imbalance in the management of AMC: Although AMC was operating in Colombia, the top positions of AMC were held by the Americans. As the company was operating in Colombia, they should have had some Colombian nationals in the top positions. It would have been better for the company, because Colombian nationals know about their country better than the Americans. So, it created an imbalance in the management of AMC. Less control over the workers: AMC could not handle their workers very well. Employees and workers were kidnapped and murdered. Workers demanded to provide housing in the mines. But, AMC refused to provide that because the mine was not equipped to house its workers. So, the workers
went on strike for 3 days which hampered their production. If they had much control over the workers, then these things would not have happened.

You might also like