variety of problems. The completion of the conversion of the opera tional process to a high tonnage conversion of medium to low grade ore activity from a low tonnage conversion of high grade ore was certainly a pressing problem. Of evengreater importance, however, was financial restructuring of the company in such a way that (a) the firm could continue in existence, and (b) would continue to maintain a viablephysical resource base. 3
4. Industry and Competitive Analysis
a. Industry Situation AnalysisBy late 1981, precious metals were entering a period of decline. The market for the metals would remain viable; however, a recovery of gold prices to level attained in the late 1970s was unlikely for the next five years, and a recovery of silver prices to the level attained when the Hunt brothers attempted to manipulate the market was unlikely to ever occur.
b. Competitive Situation AnalysisThe company required the operational capacity to pro cess low grade ore productively to remain competitive. While high grade ore deposits were available in some parts of the world, Dickenson did not possess the capital resources necessary to acquire them, and, further, such deposits were not located in Dickenson's North American base region.
a) A well conceived strategy for precious metals
mining, processing, and marketing.
b) Access to economies of scale.
a) A deteriorating competitive position. b) Obsolete facilities with respect to the avail
c) Poor track record in strategy implementation.
d) Plagued with internal operating problems.
e) Vulnerable to competitive pressures.
f) Severe liquidity position.
Dickenson's principle opportunity was that of the potential exploitation of its existing ore depo sits. Although the firm's ore deposits could no longer be classified as high quality, they s...