Marketing

CASE 3
CODELCO
ANSWERS
a) CODELCO is the largest producer of copper in the world and also owns nearly ten percent of the world reserves of copper. The company carries out its operations through six divisions plus mining Ventanas Smelter and Refinery, owned by CODELCO since May 2005. Its corporate strategy is coordinated from the headquarters located in Santiago de Chile. Competitors:Various mining companies, highlighting the multinational Freeport McMoran (believed to displace CODELCO copper world production). In Chile's main competitors are BHP Billiton, Anglo American, and Antofagasta Minerals.

b) COLDECO is the most important company of the copper industry in Chile, is considered the world's largest exporter, so that innovations have positively affected CODELCO industrytherefore the Chilean economy, the production and the costs that have affected by this because the price depends on the market fluctuation, which is why we were created strategies to improve the industry and the economy as COLDECO is considered a mainstay of the nation.

c) It had high costs, lacked technology, machinery, so it was necessary to create efficient plans to have an added value,have the best mining methods to increase production at lower costs, this would result a competitive advantage.

d) Villarzu believed to have a competitive advantage was a need for new technology both as mineral extraction processes, obtain equipment and meet environmental standards, achieving this was based phases which were created a strategic alliance between COLDECO managers and miners, inorder to have a better working relationship, Villarzu believed that if they had better working conditions with technology infrastructure and new employees would conduct a better job causing a reduction an increase in costs of production.

The second phase was to reorganize the company with new business units as well as redefining the value chain, with an optimization in search of the mineralextraction process, and the sale of this, which is also copper refining. The new organization had a Corporate Center that focused on creating strategies, different operating divisions, in order to have a centralized supply management, IT (Information Technology) and control features, this had new technologies and digital COLDECO.

e) The advantage is that you might have for new projects shouldbe to discover new deposits in Chile has the largest reserves of copper, so that the government gives permission to perform these activities himself to optimize management operational and competitive bidding is required for the generation of projects are supported by the government in addition to a portion of the profits are returned to the government, so that helps the economy and job creation, isCODELCO within government programs that support small businesses promoting technologies as electronic invoices that add value, so it is now important to make use of technology to compete against other companies.

Public ownership in Chile has created new competitive projects such as ports, with the improvement and introduction of new technologies in the ports, it will have a greater export ofcopper, which is one of the major industries that support the economy country, opposite the concerns are the economic crisis in the U.S. and has the euro zone.

f) . Copper was naturally embedded in igneous rock (formed when magma solidified), called ore, and had to undergo several steps to be extracted into its metallic form. Copper was mainly found embedded with sulfide minerals, but alsowith oxide minerals, in what were known as porphyric mineral deposits. Copper ore was extracted from two types of mines through a combination of digging and blasting. Open-pit mines were used to extract copper deposits near the surface of the earth; deposits occurring in rock veins deep below the earth’s surface required a series of underground tunnels to access the material. The...