METHODS FOR DEVELOPING STRATEGIC ALTERNATIVES IN THE MINING AND METALS SECTOR: A CASE STUDY OF NORNICKEL

• Published in: Север и рынок: формирование экономического порядка
• Main Authors: Alexander E. Nevolin, Aleksey E. Cherepovitsyn, Victoria M. Solovyova
• Format: Article in Journal/Newspaper
• Language: English; Russian
• Published: The Russian Academy of Sciences, Federal Research Centre Kola Science Centre 2023
• Subjects: mining and metals companies; strategic alternatives; planning and management; matrix-based methods; nornickel; arctic zone; Social Sciences; H; Arctic
• Online Access: https://doi.org/10.37614/2220-802X.3.2023.81.003; https://doaj.org/article/e3e28ff5a6dd490ea38443cb68ab67aa

At present, the growth of the mining industry is influenced by a high degree of uncertainty in macroeconomic parameters and geopolitical factors. To mitigate potential risks in the current environment, it is important to focus on the development, justification, and selection of strategic alternatives that enable organizations not only to grow over the medium and long term but also to adapt to changes in the external environment. In science, a substantial methodological foundation has been laid for strategic management and corporate planning. However, prevailing methodologies and tools, such as the extended SWOT analysis method, the Boston Consulting Group (BCG) matrix, the GE-McKinsey matrix, the ADL/LC matrix, and the Ansoff matrix, fail to account for the unique characteristics of companies operating in the mining and processing sectors. This study aims to assess the applicability of matrix-based analysis methods in identifying and developing strategic alternatives for mining and metals companies. It undertakes a comprehensive review of methodological approaches to identifying business development strategies and discusses the advantages and disadvantages of existing methods and tools. In pursuit of practical validation, matrix methods are applied to the task of developing strategic alternatives for a company operating in the Arctic region, specifically, Nornickel. The study illuminates the potential and limitations associated with employing these methods to solve management problems. The article gives methodological and practical recommendations aimed at enhancing the utility of matrix-based methods for their effective application in the development of corporate strategies in the mining and metals sector.