Freeport Stakeholders 1-14-08-1

Freeport Stakeholders 1-14-08-1 - Description of...

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Unformatted text preview: Description of Stakeholder: Buyers of the Extracted ore This group consists of companies that purchase the ore sold by Freeport to manufacture other commodities and has the opportunity to purchase copper and gold ore from other producers around the world Freeport’s Major Customers and Attributed % Revenues 1994 1993 1992 Long-term Contracts: Japanese companies 19% 33% 34% Swiss firm 10% 10% 34% Other 57% 49% 19% Spot sales 14% 8% 34% Scale (1-5) relative strength of Buyers over Freeport 4 The Buyers do have a relatively strong hold over Freeport Power to terminate contract and find new supplier or extend/expand contract with Freeport Buyers could use their purchasing power to alter Freeport's destructive practices and increase environmental mitigation Buyers can negotiate with Freeport for lower prices and pressure Freeport to find ways to cut costs (decreasing social/ environmental budget) Buyer may exert pressure on production capacity through level of demand Scale (1-5) relative strength of Freeport over Buyers 2 In general, Freeport needs their buyers more than the buyers need Freeport Freeport’s can only influence buyers through price, quality of product, quality of service, and possibly their image Freeport could create interruptions in the supply...
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This note was uploaded on 08/06/2008 for the course ESM 286 taught by Professor Cerf during the Winter '08 term at UCSB.

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Freeport Stakeholders 1-14-08-1 - Description of...

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