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Subject Business Communications

Teacher: Gloria Melgar


Case Study 6: Winton Carter Mining
Student: Atzin Alcaraz
Id number: A01566057

Winton Carter Mining: REPORT

Executive summary

The company WCM has mining interest in Africa and it has been highly successful
in exploiting copper, cobalt and bauxite. This company only has industries in
politically stable countries and for this we need to evaluate the risk and benefits of
the new project.
After all the discussion, the board opinion is that the better option is setting up a joint
venture with ATZ with some specifications.

Introduction

The information of ATZ


The risk of the new joint venture
The benefits of the new joint venture
Recommendations for our company

Findings

1- ATZ is the state-run mining of Africa, and this company is offering a joint
venture with WCM, they want that we work together to achieve the major
benefit of the mining industry.
2- Right now, Africa is suffering a period of political instability, for example
Congo still struggling to recover from civil war, and in some countries, such
as Guinea, soldiers killed 157 demonstrators last week.
This can affect the interests of our company, because we need a stable
environment to work.
The main risk for the company is the security risk, because the country has
been unstable for many years and there have been civil disturbances in the
area.
Other is the financial risk because WE have to invest in more machines and
employees.

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3- The benefits of a joint venture are that under the jungles of this countries lie
some of the richest unexploited mineral deposits, Africa have abundant
reserves, and we can be the only foreign company in this continent.
Also, the labor is very cheap and we save a lot of money in this.
The government offer support in case of that the company need it.

Conclusion

Although of some risk that this new project can cause we think that is a good idea
setting up a joint venture with ATZ, we can get many benefits and expand our
industries.

Recommendations

1- After some of the risk we think that we need security in the industry.
2-We can sign a deal for only 6 months and if everything results well we can renew
it.
3-Don't forget our current industries.

Atzin Alcaraz
Member of the board
3 October