Forever: de Beers at the Millennium

In: Business and Management

Submitted By mmehta66
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Forever: De Beers at the Millennium – Study Questions

1. Who writes the rules of the international diamond market? How are they enforced?

* De Beers and the other diamond companies of the their time and specifically the Central Selling Organization (CSO) and the government partners where they are mining (?) * Their sorting process and the which went through many different grades that measured the 4 Cs: carat, color, clarity, and cuttability (?)

2. How has De Beers structured its relationship with the U.S. diamond dealers and the U.S. government? Are these relationships sustainable?

* Most expensive stones were cut and polished in New York. The U.S. was the biggest market for De Beers. The Gemological Institute of America (GIA), the largest, most respected nonprofit institute in its field, had developed the widely-used D-Z color scale and the Flawless-I3 clarity scale for polished diamonds. De Beers had irked U.S. authorities by failing to appear, in 1994, in a suite by the Department of Justice alleging price-fixing in industrial diamonds in which it was a co-defendant along with General Electric. And socially, the diamond industry began to be criticized for dealing in “conflict diamonds” from African countries. (?) * These relationships cannot be sustainable (?)

3. What should the U.S. government do about the flow of diamonds from Angola, the Congo and Sierra Leone? What should De Beers do?

* Continue the fight started by the NGOs and demand that they diamonds be tracked and have to become certified as either “clean” or “conflict.” They should not intervene in the actual conflicts that are happening in the African industries, rather place harsh penalties on companies that don’t follow a strict guideline to ensure the source of the diamond is clean. * De Beers should evaluate their options and see if there are…...

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