Canadian Organization: Agnico Eagle Mines LimitedCountry: South Africa,Johannesburg

The Strategic Purpose and Approach of an Organization

Overview of the Agnico Eagle Mines Limited:

 Agnico Eagle is one of the senior and renowned gold mining companies from Canada. The company is working since 1957 to produce different kind of precious metals. The company has its eight mine locations in Canada, Mexico and Finland along with mines in Sweden and United States. Different kind of exploration processes are handled by the company in these countries. The company is known to provide full exposure to prices of Gold to its shareholders, and ever since 1983, every year the cash dividend has been declared by the company. The company has enjoyed success over the years with its great planning and strategy (Agnico Eagle, 2019)

 It is important to identify their strategic purpose by examining their overall strategy. As per company’s website, they have defined their strategy as “Build a growing, high-quality, low risk, sustainable business”This line from the company is very much showing its strategic purpose that they want to manage a business, which does not grows with high quality, but it also has low risk as low as possible. Moreover, by doing so they are looking to achieve a sustainable business. To ensure their delivery of growth and performance expectations, the company is committed to make sure that their portfolio is able to fulfill expectations by great generation of free cash flow as well as lower risks with its operations(Agnico Eagle, 2019)

 The other main part of the strategy is to come upwith a project pipeline, which are of high quality in every aspect. They are committed to deliver high quality and best class of project pipeline so that mineral production and reserves can be replenished, and this process is done by maintaining higher standards of quality which can fit them

high-profile portfolio in future. The company also want to work in a way that they do everything be being socially responsible. They not only want to hold a great strategy for their shareholders, but they also look to maintain sustainability of their business to operate in a safe environment, which shows responsibility towards the society. The company is also very much aware of the fact that all of these strategic goals cannot be achieved without people. So, they have always followed a strategy, which not only provide great opportunities to grow for their people, but also help them to develop infrastructure with skills so that projects and operations can be run smoothly and as efficiently as possible (Agnico Eagle, 2019)

 The strategic purpose and existence of the company can also be analyzed through its mission statement. The mission statements from the company is stated as “Agnico Eagle’s mission is to build a high quality, easy to understand business – one that generates superior long-term returns for our shareholders, creates a great place to work for our employees, and contributes positively to the communities in which we operate”Now, it is important to look at different points of this mission statement so that strategic direction can be identified. They don’t want to involve in a business, which has complex strategic direction creating confusion for anyone. So, they want to keep their business as simple as possible, where roadmap to their strategy is simple and clear to follow. The strategic mission of the company talks about three main points; first one is to come up with great returns on long term basis; second is to make contributions for the society & community; and third one is to create a work environment, which is a great one for their employees to work. These elements also very much show their strategic purpose and existence in mining business (Agnicoeagle.com, 2019)

The main line of business for Agnico is its gold mining and mineral exploration around different locations in the world. The company is involved in exploration as well as identification to make sure that new development opportunity, mineral resources, and mineral reserves are found. They identify locations, which has the potential of gold production because this is their main line of business. They continue their underground operations in different exploration and projects’ sites so that they can continue to produce gold. It has been observed that 12.7 ounces gold is being produced by the company, which shows its great success and business sustainability for so many years. The company continues its business operations with units such as exploration, southern business as well as northern business (Reuters, 2019)

Apply Strategic Management Concepts and Theories on Agnico Eagle Mines Limited:

 The strategic HRM theory helps to understand the fact that human resource management of a company does make a considerable impact on performance of a company with the help of its employees. If employees will perform well enough with desired functions, then strategic HRM will come up with great results for a company.  It means that employees’ relationship with their company is a crucial part of their strategic HRM. So, companies apply this kind of theory to enhance the performance of their employees so that they can deliver great results for them. The employees are involved with different departments and when their individual performance is improved, the overall performance of the company does also improve significantly. So, if a company is trying to expand its business reach to international destinations, then they have to keep theory of strategic HRM in their planning to keep things on right track (Uysal, 2015)

Keeping this theory in view, it is important for Agnico Company that their expansion to South African gold mine business is managed through this theory, because it helps to develop processes, which are relevant to any kind of work force. The theory comes with strategic direction, which is crucial for them to continue their expansion across the world including South Africa. They must also understand the fact that gold output in South Africa has been on the lower side in recent few years, and trend is most likely to continue(Holmes, 2019). So, they should need great commitment and support from their employees to work day and night in South African business line so that company can continue its great success pattern, which started in Canada. They need to involve leaders and managers from Canada to work with local work force in South Africa so that strategic purpose of the company can be achieved.

 ReferencesAgnico Eagle Mines Limited

Agnico Eagle. (2019). About Agnico. Retrieved April 4, 2019, from https://www.agnicoeagle.com/English/about-agnico/default.aspx

Agnicoeagle.com. (2019). About Us. Retrieved April 4, 2019, from https://www.agnicoeagle.com/Home/default.aspx

Holmes, F. E. (2019). SWOT Analysis: Agnico Eagle Mines Is Forecasting Record Gold Output. Retrieved April 4, 2019, from https://www.kitco.com/commentaries/2019-02-19/SWOT-Analysis-Agnico-Eagle-Mines-Is-Forecasting-Record-Gold-Output.html

Reuters. (2019). Agnico Eagle Mines Ltd (AEM). Retrieved April 4, 2019, from https://www.reuters.com/finance/stocks/company-profile/AEM

Uysal, G. (2015). Stages, Content, and Theory of Strategic Human Resource Management (SHRM): An Exploratory Study. Journal of Modern Accounting and Auditing, 10 (2), 252-256.