Strategy Paper on a Coal Mining Firm

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  • Topic: Coal, Coal mining, Supply chain management
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  • Published : March 26, 2012
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MSc. in Supply Chain Management
Supply Chain Strategy

Assignment: Strategy Development Report
Submitted in Partial fulfillment of the requirement for the Masters Degree in Supply Chain Management

TABLE OF CONTENTS

1.0 INTRODUCTION5
2.0 THE COMPANY BACKGROUND7
3.0 REVIEW OF MAAMBA’S BUSINESS STRATEGY9
40 PESTLE AND SWOT ANALYSES RELATING TO MCL 13
5.0 REVIEW OF MCL COMPETITIVE FORCES USING PORTERS FIVE FORCES18 6.0 MCL CUSTOMER REQUIREMENTS USING ORDER WINNERS AND ORDE22 7.0 REVIEW OF MCL COMPETITORS PERFORMANCE IN THE SUPPLY CHAIN23 8.0 REVIEW AND DESCRIBE MCL’S CURRENT SUPPLY CHAIN26

9.0 RECOMMENDATIONS FOR A REVISED SUPPLY CHAIN STRATEGY28
10.0 CONCLUSION29
11 REFERENCE31

TABLES OF FIGURES
FIG.1 LOCATION OF MAAMBA COLLIERIES LIMTED
FIG. 2 PROCESSED COAL AT MAAMBA COLLIERIES LIMITED
FIG.3 STRATEGIC DIRECTIONS (ANSOFF MATRIX)
FIG.4MAAMBA COAL PROCESSING PLANT
FIG.5 MICHAEL PORTER’ FIVE FORCES
FIG.6 ELECTRIC FURNACE FOR MOPANI COPPER MINES
FIG.7 CHAMBISHI METALS ELECTRIC FURNACE
FIG. 8 ELECTRIC FURNACE FOR KONKOLA COPPER MINES
FIF.9ORDER WINNER/QUALIFIER MATRIX
FIG.10 SHOOTING AT COLLUM COAL MINE
FIG. 11 SOCIAL RESPONSIBILITIES AT HWANGE COLLIERY IN ZIMBABWE.

.Introduction
The main purpose of this assignment is to develop a deeper framework of the Supply Chain Strategy under Maamba Collieries Limited (MCL) from the initiation up to the ultimate point of implementation by: MCL is a company that produces coal. A member of issue will be analyzed basing on company business strategy. Environmental factors under PESTLE will be analyzed together with the treats and opportunities that would offer survival to the company. A number of new supply chain strategies will be taken into consideration as they help the company to realign its profits margins.

2.Maamba Collieries Limited (MCL) and Supply Chain background 2.1.The Company background
Maamba Collieries Limited (MCL) is the oldest, largest and private Coal mining company in Zambia with estimated coal reserves of 65 million tones. It is located 352 kilometers by road, from Lusaka, in the Southern Province of Zambia under Sinazongwe District. (Source: www.maambacoal.com)

Fig.1 Location of Maamba Collieries Limted
2.2. The Maamba Collieries Operations

2.2.1 Mining of Coal
The main business for Maamba Collieries Limited is the mining of coal. Coal is being processed in the Coal Preparation Plant (CPP) is one of the key facilities of MCL for processing the raw coal from the mine into Clean coal consisting of peas and nuts to meet the needs of the customers. MCL also mines magnetite ore at Namantombwa near Mumbwa for use in coal washing:

Fig. 2 Processed Coal at Maamba Collieries Limited (Source: www.maambacoal.com)
2.3.Supply Chain background
MCL started managing inventory and was engaged in procurement way back since it was founded. The company has developed has not been consistent in maintaining senior members of supply chain making it difficult for it to appreciated. MCL has gone into problems of inventory management and order processing. The MCL shares the market with other mining companies in Zambia. 2.4.Customers for Maamba Collieries Limited

MCL mines and sells of coal to major industries in Zambia and neighbouring countries used for Copper mining companies in the smelters, chemicals processing plants, Cement manufacturing plants, breweries Companies, textiles industries and various foundry companies. 3.Review of Maamba’s Business Strategy

3.1 Strategic Directions
In order for MCL to remain and or grow in business, the company is becoming committed to engaging Strategic Directions in line with “The Ansoff Product/Market growth matrix.” Main components of the matrix that MCL is employing are Market Penetration and Product Development as shaded in...
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