De Beers Strategic Management & Hybrid Matrix Restructuring Analysis

COURSE/UNIT INFORMATION
Course MBA UCAM
Course Level Postgraduate
Module Name Strategic Management and Leadership
Awarding Body CIQ/UCAM
Module Code CIQGM705
Faculty
ASSIGNMENT INFORMATION
Full/ Part Assignment Full
Assignment brief IV by Dr. Vivek Mohan
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Assignment due date
TO BE FILLED BY THE STUDENT
Student Name
Student ID
Email ID
Date Submitted

ASSESSMENT FEEDBACK

TO BE FILLED BY THE ASSESSOR
NB: Learners DO NOT need to generate the turntitin report. The assessment team will generate the Turnitin report.
Assessment type Marks Marks Awarded
Task 1: Report 70
Task 2: Organizational Redesign 30
Overall Marks achieved
GRADE ACHIEVED
Summative Feedback by Assessor for further improvement

Comments for REDO submission (If applicable)

GRADE DESCRIPTORS

70% and above
(Distinction) The assignment evaluated is of a high to exemplary standard. The work addresses clearly and articulately the assignment requirements and thus meets and satisfies all the learning outcomes (either well or in an exemplary way). The work demonstrates: clear knowledge; references to appropriate academic literature; analysis; critical evaluation; and originality of argument. It is structured and presented to a high (or exemplary) standard. Referencing conventions are fully observed.
60 to 69%
(Merit) The assignment evaluated is of a good to a high standard. Substantial knowledge, comprehension and analysis is evident throughout. Arguments presented are clear and focussed with a logical structure in place. There is clear evidence of critical evaluation of a wide range of theories/perspectives from academic literature and some independent thought. The work is well-written and addresses well all of the learning outcomes. Referencing conventions are fully observed.
50 to 59%
(Pass) The assignment evaluated is of a fair to good standard. Adequate knowledge, comprehension and analysis is evident throughout. The arguments presented have a logical structure and show some critical evaluation in places, although there may be limited evidence of an independent perspective. There is evidence of some good engagement with some of the appropriate literature. Learning outcomes have been largely met and to an appropriate degree. Referencing conventions are observed.
40 to 49%
(Fail/Redo) The assignment evaluated is of a basic standard. The arguments presented have some logical structure and are supported by academic literature in most cases. The academic literature used is outside of the suggestions made in the module guide but remains limited. Little critical evaluation is evident, and the work tends more widely towards a descriptive style. Learning outcomes have been addressed in a basic but satisfactory way. Referencing conventions are mostly observed.
Fail Grades
30 to 39%
(Module retake) The assignment evaluated is of a limited standard. Limited use of academic literature and as such knowledge and argument is very weak. A simple descriptive style with no evidence of critical evaluation throughout. Over-reliance on simplistic, limited sources. Referencing conventions may not be observed. Some learning outcomes met but in a weak and simplistic way. The work is needs to be developed in greater depth and detail to move to a passable standard at this level of study
29% and Below
(Module retake) The assignment evaluated is of an unacceptable standard. There is little or no evidence of knowledge and understanding that is required at this level. Referencing is inadequate or non-existent. The learning outcomes have not been addressed fully and the work requires significant modification to bring it to a passable standard.

STRATEGIC MANAGEMENT AND LEADERSHIP

Module Description

This module is designed to help students understand and evaluate various aspects of Strategic Management in a global context. The module explores theories, models and frameworks to provide insight on how an organizations life cycle evolves through various stages to achieve excellence. The module helps students to evaluate the relationship between organizational strategies, performance and stakeholder expectations.

Learning Outcomes

LO1. Analyse the concepts and theories of strategic management and critically evaluate the relationship between strategy, stakeholder expectations and organizational performance.
LO2. Evaluate the impact of current and emerging Economic, Political and Cultural factors on strategic management in an International context.
LO3. Formulate business strategies under challenging circumstances of Innovation and Change and evaluate those that contribute to the success of a particular organization.
LO4. Develop plans for the implementation of business strategies and enhance Stakeholder Expectations.

Expectations

? Materials Access
All learning materials are provided in the form of a module kit and can be accessed from the Learning Management system (LMS)

? Learning Hours
Students need to be aware of their commitment requirements in regard to study time. In order to give you an indication of that, we have based the following information on the United Kingdom (UK) Higher Education Quality Assurance Agency guidelines. The notional learning hours associated with qualifications, programmes and individual units of study are based on a broad agreement across institutions that students can expect to spend 10 hours learning on average in order to gain one academic credit unit (QAA 2006).

? Re-sit
If you do not secure a pass, please read closely the feedback and speak with your Course leader(s) or faculty. After consulting the feedback, close attention is essential to rework on the areas of weakness, and then resubmit the work at the next opportunity. As per the QAA requirements, only one REDO is allowed where the marks will be capped at a Pass.

? Plagiarism
All forms of plagiarism are taken seriously, and any suspected cases will be investigated thoroughly. If a case is found proven, then the work will be graded as a fail and the case will be reviewed by the academic committee.

? Student appeals
There are no re-evaluations as the marks are graded and internally verified before release. However, as per our appeals policy, a student can make an appeal to the course leader which will be then reviewed by the academic committee (please check our academic policies and procedures manual for more information)

? Assignment submission extensions
Students can apply for extensions via the LMS based on extenuating circumstances (if any) with evidence (proof) as per our extensions policy.

General Guidelines

? Complete the To be filled by the student section in the cover page.
? All assignments must be submitted as an electronic document in MS word via the LMS (Use 12 Times New Roman script with 1.5 spacing between lines)
? The results are declared only if the student has met the mandatory attendance requirement of 75% and/or minimum 50 % under extenuating circumstances approved and ratified by the academic committee and the examination board.
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? Submit the assignment in MS word document with the file name being:
First Name Last Name _ Module Code
Example: John Smith_GM705

Checklist

I have filled the student Information on the cover sheet as given in the start of the document
The content of the assignment are purely my own work and I give the assessors a right to run It through any plagiarism check
I have strictly followed Harvard Referencing Style and Citations.
I acknowledge and adhere to the institution's AI Policy Statement, ensuring the ethical and responsible use of AI tools, and confirm that all my submissions will reflect originality and integrity.
I declare that all websites and AI tools utilized during the preparation of this assignment comply with the AI Policy.

ASSIGNMENT TASKS

NOTE: All claims and arguments must be substantiated using a minimum of 15 high-quality academic references, including peer-reviewed journal articles, scholarly books, and reputable research publications. Non-academic sources such as commercial websites, blogs, or Wikipedia are not considered appropriate for Masters level references.

Assignment Task 1: Prepare a Strategic Report on Strategic Management & Leadership Practices in De Beers [70 Marks-Max 3000 words]

Established in 1888, De Beers Group is the worlds leading diamond company with expertise in the exploration, mining, marketing and retailing of diamonds. Together with its joint venture partners, De Beers Group employs more than 20,000 people across the diamond pipeline and is the worlds largest diamond producer by value, with diamond mining operations in Botswana, Canada, Namibia and South Africa. Innovation sits at the heart of De Beers Groups strategy as it develops a portfolio of offers that span the diamond value chain, including its jewellery houses, De Beers Jewellers and Forever mark, and other pioneering solutions such as diamond sourcing and traceability initiatives Tracr and Gem Fair. De Beers Group also provides leading services and technology to the diamond industry in the form of education and laboratory services via De Beers Institute of Diamonds and a wide range of diamond sorting, detection and classification technology systems via De Beers Group Ignite. De Beers Group is committed to Building Forever, a holistic and integrated approach for creating a better future where safety, human rights and ethical integrity continue to be paramount; where communities thrive, and the environment is protected; and where there are equal opportunities for all.
(https://www.debeersgroup.com/media/company-news/2024/spotlight-on-de-beers-presentation-sep-2024)
Go through the provided link for detailed insight of the company (https://www.debeersgroup.com/~/media/Files/D/De-Beers-Group-V2/documents/company-news/spotlight-on-de-beers-presentation-slide-deck-sep-2024.pdf)

The purpose of this assignment is to conduct a thorough study of the above organization and analyse that how strategic management and leadership practices are implemented in a real-world organization. You will critically analyse the organizations strategic leadership decisions, evaluate its effectiveness, and identify potential areas for improvement.

Report should include the following:

Executive Summary [5 marks]

? Introduction: Give a brief introduction to the organisation, location and sector. How did De Beers' leaders shape its strategy, business model, and market dominance? What was their role in rebranding and promoting ethical diamonds? [10 marks]

? How did De Beers transition from a monopoly to a competitive market and shift from mining to retail in the 2000s? How did leadership manage internal resistance, and what change management lessons emerged? [10 marks] ]
? How did Porters Five Forces shape De Beers strategy regarding supplier power and synthetic diamond threats? How did leadership balance cost control (supply dominance) with differentiation (branding)? What was its global expansion approach in markets like China and India? [10 marks]
? How did De Beers counter synthetic diamonds' threat, and how effective were these strategies in preserving market share? What benefits or drawbacks emerged from its partnerships with other miners? [10 marks]
? How did De Beers leadership build global reputation while balancing consumer demands, shareholder value, and CSRespecially in African operationsamid rising ethical and sustainability expectations? [10 marks]
? How has De Beers fostered innovation (e.g., blockchain via Tracr), ethics (conflict diamonds, community impact), and transparency in a traditionally conservative industry? [10 marks]
? Recommendation & Conclusion [5 marks] ]
Summarize the key findings from your fieldwork and their implications for the organizations strategic management and leadership practices.

Instructions:
? Data Presentation: Include relevant charts, tables, and figures to support your findings. For example, if conducting interviews, you can summarize key responses or create thematic analysis tables.
? Citations and References: Ensure that all sources of information (interviews, surveys, company reports, academic literature) are properly cited and referenced in Harvard style.

Assignment Task 2: Strategic Management & Leadership Organizational Restructuring for Innovation and Collaboration [30 Marks-Max 1500 words]

Title: Organizational Restructuring for Enhanced Innovation, Collaboration, and Coordination- location- organization and sector
Task Overview: In this assignment, you are required to develop and present a strategic restructuring plan for an organization. The goal is to enable the organization to overcome current challenges, improve innovation, enhance collaboration, and strengthen coordination across various departments. The report should include an analysis of the current organizational structure, a proposed new structure, and a critical evaluation of the restructuring plan. Include the following guidelines in your plan:

? Analysis of the Current Organizational Structure and Need for Restructuring
[15 marks]
? Assess the current structure's effectiveness in achieving objectives, especially for innovation, collaboration, and coordination. Identify its limitations in supporting new strategies.
? Attach current org chart. Explain how restructuring enables the new strategy by addressing current barriers to growth, agility, and innovation.
? Design new structure (include org chart). Justify changes and highlight expected gains in agility and cross-functional teamwork.

? Critical Evaluation of the Restructure Plan. [15 marks]
? Critically evaluate the proposed restructuring plan, addressing potential issues and negative consequences that may arise because of the restructuring.
? Identify possible challenges, such as employee resistance, disruptions to workflow, or potential costs associated with the transition to the new structure.
? Propose strategies and solutions to overcome these challenges and mitigate the risks associated with the restructuring. Explain how you would manage the change process to ensure a smooth transition, with a focus on maintaining employee engagement and minimizing disruptions to daily operations.

Instructions:
? Charts: Include current and proposed organizational charts to support your analysis and restructuring plan.
? References: Cite relevant academic and industry sources to support your arguments and strategies. Use Harvard referencing style.

(START WRITING YOUR ANSWER FROM THE NEXT PAGE)

Strategic Report: De Beers Group's Strategic Management and Leadership Practices

Executive Summary
The De Beers Group is the largest diamond-producing company in value operating in the world, founded in 1888, with the current market share standing at about 18 per cent of the world's rough diamonds in 2023. This report is a critical review of how De Beers management has managed to execute a transformational change from a monopolistic approach and market share (90% in the 1980s) to a demand-based approach in competitive markets. Providing an analysis of strategic management theories such as Porter's Five Forces, stakeholder engagement models, and the Change Management Model developed by Kotter, the report will help to prove that De Beers owes its success to the conscious leadership decisions concerning the ethical branding, innovation through blockchain technology (Tracr), and community investment. Noteworthy results indicate that although the firm successfully addressed the synthetic diamond menace by differentiating and market segmenting, it is currently experiencing new threats of lab-grown diamonds (LGDs) and geopolitical sanctions against Russian rivals. It suggests increased digital innovation, further expansion into Asia-Pacific and ecosystem-wide adoption of blockchain as recommendations to maintain a competitive advantage in the face of a structural decline in supply and changing consumer trends towards sustainability.

Table of Contents
Task 1 16
1. Introduction: De Beers' Strategic Evolution and Leadership Impact 16
2. Transition from Monopoly to Competitive Markets and Leadership Change Management 17
3. Porter's Five Forces and Strategic Positioning 18
4. Countering Synthetic Diamond Threats and Strategic Effectiveness 20
The Strategic Threat of Lab-Grown Diamonds (LGDs) 20
Early Strategic Response: Underestimating Disruption (2012-2017) 20
Lightbox Strategy: Category Separation and Its Limits (20182023) 21
Vision 2024: Strategic Pivot to Industrial Applications 21
Evaluation of Strategy Impact 22
Implications and Lessons Learnt 22
5. Leadership, Reputation, and Stakeholder Management Amid Ethical Expectations 22
Past Ethical Issues and Increasing Pressure of Stakeholders 22
Strategic Leadership Response/Reputation Rebuilding 23
Openness, Technology and Ethical Innovation 23
Social Responsibility and Environmental Impact 23
Reputation Outcomes and Strategic Tensions 24
6. Innovation, Ethics, and Transparency: Fostering Industry Change 24
Innovation of Strategy to Be Transparent 24
Competitive and Strategic Advantages 24
Restrictions and Implementation Problems 25
Storytelling and Leadership in the Industry Ethically 25
7. Recommendations and Conclusion 26
Task 2 27
1. Current Organisational Structure Analysis and Future Restructuring Requirement. 27
Present Structure Evaluation. 27
Effectiveness Limitations 28
Barriers to Strategic Objectives: 29
Rationales of the Proposed Restructuring. 30
Expected Gains: 31
2. Critical Evaluation of the Restructuring Plan 32
Possible Obstacles and Adverse Implications. 32
Challenge 1: Dual Authority and Role Ambiguity. 32
Challenge 2: Delays and Conflict in Decisions. 32
Challenge 3: Resistance and Change Fatigue by Employees. 32
Challenge 4: Costs and overhead expansion in coordination. 33
Change Management Approach and Mitigation Strategies. 33
Strategy 1: Bound Role and Decision Rights. 33
Strategy 2: Strong governance and conflict management. 33
Strategy 3: Full Change Management and Communication. 33
Strategy 4: Implementation Planning and Pilot Testing. 34
References 34

Task 1
1. Introduction: De Beers' Strategic Evolution and Leadership Impact
De Beers Group is active in the entire diamond value chain, including Botswana (50% joint venture) in the field of exploration, Canada, Namibia, and South Africa up to retail in the brands of De Beers Jewellers, Forevermark and Lightbox. The group, with more than 20,000 employees in the world, made nearly USD 1.5 billion EBITDA in 2023 (De Beers Group, 2024). In the past, visionaries created the Central Selling Organisation (CSO), whose supply control was achieved by stockpiling, but at the same time, its demand was created by the well-known campaign known as A Diamond is Forever, making diamonds a symbol of love and status (Spar, 2006).
Between 1960 and 1989, the Oppenheimer family that was in charge of De Beers ensured market dominance by managing supply and vertically integrating the company. However, in the 1990s, this monopoly was divested by new Russian (ALROSA) and Canadian (Rio Tinto, Burgundy) producers, and De Beers had fallen down to a 35% share by 2018. The executives, such as Gareth Penny, realised that monopolistic power was not sustainable. The company reinvented itself from a supply of non-ethical diamonds into a lifestyle and ethical leader, selling conflict-free diamonds through the Kimberley Process Certification Scheme (99.8% coverage by 2023) and introducing community-orientated projects under the "Building Forever" as the integrated sustainability framework provided by De Beers (CSR Journal, 2020; Adams 2011; Agarwal 2025).
Era Period Strategic Focus Market Share
Monopoly Control 18881999 Supply control via stockpiling 8590%
Demand-Driven Transition 20002018 Branding, Supplier of Choice 3540%
Ecosystem Leadership 2019present Tracr, Origin Story, Asia-Pacific 18% (2023)
This rebranding served to respond to the growing expectations of stakeholders. NGOs, consumers, and governments were demanding ethical sourcing in response to blood diamond controversies, shifting competitive advantage towards supply control rather than brand equity and transparency. As of 2024, CEO Al Cook orientated De Beers via the "Origins Strategy", which focused on profitable growth, innovation (Tracr blockchain for traceability) and retail expansion in high-growth markets such as India.

2. Transition from Monopoly to Competitive Markets and Leadership Change Management
The renouncement of monopoly to competition in the sphere of De Beers in 2000-2020 is a critical example of strategic change management. The monopoly period was based on the cartel-like Central Selling Organisation that dominated about 80 per cent of the rough diamond distributions around the world through a few 90 sightholders licensed buyers that bought fixed amounts quarterly (Bergenstock and Maskulka 2001). De Beers experienced existential pressure when the supply control collapsed because of Russian and Canadian competition. Conventional leadership had no intention of leaving stockpiling, but CFO Mark Cutifani was the leader of Supplier of Choice (2001) as the value proposition evolved and was no longer dependent on monopolistic pricing but was determined and returned to reliability, quality certification, and partnership (De Beers Group, 2024).
Deb Beers exhibited textbook implementation in several aspects by using the Eight-Step Change Model by Kotter in 1995(Westover 2024). First, leadership generated urgency: competition and market share loss brought the realisation that monopoly strategies were no longer effective. Second, they had constituted a guiding coalition of visionary executives and advisors who promoted demand-based strategies. Third, they expressed a powerful vision, such as being a custodian of supply to a leader of demand through reports to shareholders annually and through industry involvement (Hussain et al., 2016). Fourth, De Beers made a move to action through redesigning incentive structures, shifting salaries that are based on volume rewards to brand equity and customer satisfaction measures. Fifth, they created short-term victories: the Forever mark brand (2000) took off in retail, and it proved that branded diamonds would sell at 20-30% premiums over generic stones (De Beers, 2024). Sixth, the company had to overcome internal resistance by the traditionalists; it was able to do this through open communication. De Beers released business case studies that indicated that profitability would increase with branding, compared to losses incurred with liquidation of the stockpiles.
There were, however, difficulties during the anchoring phase. De Beers bought out rival retailers (e.g., The Zales Group in North America) and confused itself as a no-go supplier and drove away independent diamante who were terrified of vertical integration and monopoly strategies. In order to institutionalize change, De Beers created the Institute of Diamonds (to educate), GemFair (to help the miners of the artisan), and open pricing systems, a long-term commitment to ethical supply chains (CSR Journal, 2020). These lessons would pay off in 2024, as despite COVID-19 shocks and Russian sanctions, De Beers would have 85?ITDA margins compared to competitors
3. Porter's Five Forces and Strategic Positioning
The Five Forces model will be a good framework through which one can analyse the way De Beers has positioned itself in a growing, disrupted and competitive diamond industry. The decisions of leadership demonstrate a prudent compromise, especially with regard to cost-effectiveness, differentiation, and managing the stakeholders.
Supplier Power High
The 50:50 joint venture that De Beers has had with the Government of Botswana provides access to some of the most lucrative mines in the world, including Orapa and Jwaneng. Although this arrangement can guarantee supply, it brings onto the table supplier power because Botswana can renegotiate. In 2023, Botswana used this status to obtain a new long-term mining licence and create a USD 50 million Diamonds for Development Fund (De Beers Group, 2024). Cost leadership, whose most effective application De Beers contributed to cost leadership by keeping its cost at the industry-leading C1 of USD 40-60 per carat, and geographical diversification to Angola and South Africa to avoid overdependence on a specific supplier country mitigated this risk.
Competitive Rivalry High
Competition in the industry is also high, especially by ALROSA and Rio Tinto. Despite the fact that sanctions by the G7 on Russian diamonds curtailed supply and supported prices, globally, the prices of rough diamonds dropped dramatically between 2021 and 2023 because of oversupply (Rodrigues et al. 2024). De Beers countered with more differentiation in its Origin Story and Tracr blockchain platform, which allowed provenance-sourced premiums of 1520 per cent and reasserted brand-based competition over price wars.
Risk of Substitutes Very high.
The greatest threat to the company is lab-grown diamonds (LGDs), whose prices are falling sharply, and the US market share is growing. This threat was first divided by De Beers through Lightbox through the fashion jewellery that LGDs represented. In 2024, it changed direction once more as leadership moved out of LGD jewellery and put the emphasis of synthetics on industrial use and solidified natural diamonds as luxury items (De Beers Group, 2024).
Buyer Power Moderate to High
The consolidation in the retail world has augmented the power of buyers. De Beers has responded to this by selective vertical integration, flagship retail stores and strategic alliances with major retailers to create a shared value and charge premium prices.
Threat of New Entrants Low
The entry is discouraged by high capital intensity, regulatory barriers and complexity. Informal mining is dealt with via GemFair, which incorporates and does not marginalise the marginal producers, enhancing the supply chain legitimacy.
Porter's Force Intensity De Beers' Response Effectiveness
Supplier Power HIGH Cost leadership; exploration diversification ModerateBotswana leverage increasing
Rivalry HIGH Brand differentiation; supply segmentation Highmargin leadership sustained
Substitutes (LGDs) VERY HIGH Market segmentation; Lightbox ? industrial pivot ModerateLGD displacement accelerating
Buyer Power MODERATE-HIGH Vertical integration; partnership models Highpremium capture via Origin Story
New Entrants LOW Capital barriers; informal competitor integration Highstable competitive landscape

Strategic Implication: The De Beers strategy is between cost leadership (upstream mining efficiency) and differentiation (branding, traceability, and ethical sourcing). The hybrid model maintains a competitive edge with existing intense competition and the threat of substitutes, creating resilience despite the industry compression of the EBITDA margin from 25 (2021) to 8 (2023) levels.
Global Expansion: The search for diamond demand in China and India can be used as a good illustration of De Beers' strategic adaptation to the forces presented by Porter. China has low per capita consumption of diamonds (15 per cent bride engagement rate in 2024 vs 79 per cent in the USA), equating to a USD 15+ billion growth opportunity in the TAM (De Beers, 2024). De Beers also penetrated through influencers (e.g., Cecilia Girls Talk, 1M followers) and the retailer (Chow Tai Fook, 180M consumers) by using digital marketing as a strategy to overcome the buyer power of large retailers. Forevermark also intends to establish 100 outlets in India by 2030, taking advantage of the increased wealth of the middle class (250m earners earning over USD 5,000 per annum). Tanishq (the jewellery division of Tata Group, with 1,100 stores) became a joint venture with De Beers, with capital risk minimised and existing distribution used. These measures minimised exposure to the mature North American markets (going down by 2?GR as Gen Z favours non-traditional jewellery) and maximised the new demand where supplier power (local partnerships) and buyer power (less consolidated retail) present better margins (De Beers, 2024; Diamond World News Service 2025).
4. Countering Synthetic Diamond Threats and Strategic Effectiveness
The Strategic Threat of Lab-Grown Diamonds (LGDs)
Synthetic diamonds are a disruptive technology that poses a significant threat to the value of the natural diamond business. Although LGDs have exactly the same chemical composition as natural diamonds, they are not geologically rare, which has led to a deflation of prices. Effective prices of LGD retail as of 2023 were approximately USD 400 per carat as compared to USD 1,500 to USD 3,000 per carat of natural diamonds of similar quality. This increasing price difference facilitated the acquisition of price-sensitive clients by LGDs, especially in engagement rings and fashion jewellery, increasing the process of substitution and destabilising the demand tendencies.
Early Strategic Response: Underestimating Disruption (2012-2017)
At first, the leadership of De Beers went against LGDs because they did not have an emotional and symbolic meaning. This was a false assumption which was proven to be strategic. The growth of LGD market share was at an impressive rate, which was facilitated by online retailers providing huge discounts via online channels (Davis, 2018). The market disintermediation resulting in that pushed the natural diamond premium positioning to the edge and proved that even culturally locked luxury markets could be disrupted through technological disruption. The slow reaction of leadership meant that first movers were able to set scale and awareness among the consumers.
Lightbox Strategy: Category Separation and Its Limits (20182023)
The introduction of Lightbox by De Beers was a strategic shift towards an intended process of market segmentation. The leadership intended to safeguard the natural diamond prestige by making LGDs affordable fashion jewellery instead of luxury icons and competing based on price transparency (DeMarco, 2025). On paper, this strategy was in line with differentiation and category management approaches.
Lightbox Strategy Outcomes (20182024)
Metric 2018 (Launch) 2023 (Peak)
Lightbox Revenue (USD m) 50 180
LGD Market Share (Lightbox) 12%
Inventory Losses (USD m) 50100
Consumer Confusion (%) 78%
Retailer Margin on Lightbox (%) -16?GR

Nevertheless, difficulties of implementation arose. An overproduction created a buildup of inventory, and the consumer behaviour was opposite to the strategic intent a significant number of buyers abandoned natural diamonds and purchased LGDs when price promotion was offered. Moreover, the incentives of the retailers were not in tandem with this, since the margins on natural diamonds were still higher, which encouraged replacement instead of segmentation.
Vision 2024: Strategic Pivot to Industrial Applications
De Beers has subsequently divested out of the LGD jewellery manufacturing sector altogether, redefining synthetic diamond potential to high-value industrial and technological uses, including optics and semiconductors. This twist is indicative of strategic realism: the division of LGD bifurcation is culturally displayed between high-end natural diamonds and low-end synthetics (Ghosal, 2025). Having used the available R&D and established technology alliances, De Beers moved out of the competitive consumer market into the industrial sectors where synthetic diamonds sell at premium prices and their brands are not tightly restrained.
Diamond Market Bifurcation (20182030)
Diamond Type 2018 2023 (Actual) 2030 (Forecast)
Natural Diamond Value (USD bn) 44 54 (adjusted) 5558
LGD Value (USD bn) <1>LGD Market Share (%) <0>Natural Avg. Retail Price $1,5003,000 $1,5003,000 $1,8003,500
LGD Avg. Retail Price $3,0005,000 $400800 $250500

Evaluation of Strategy Impact
The synthetic diamond strategy of De Beers brought both positive and negative results. On the upside, Light box served to clarify the boundaries of categories, and core luxury brands like De Beers Jewellers and Forever mark were insulated. The purchase of LGD technology also lessened the reliance on external suppliers of synthetics and maintained optionality. But the strategy did not prevent market replacement, lost a lot of inventory and revealed a long-term mismatch between corporate strategy and retail incentives. Natural diamond demand was subjected to quantifiable displacement regardless of the efforts in segmentation.
Implications and Lessons Learnt
There are three important lessons that are emphasized in the Light box experience. To start with, they restrict strategic control, even among powerful incumbents, by entering disruptive markets late. Second, the power of the brand is less critical in commoditized digitally distributed products such as LGDs. Third, defensive protection through partnership with miners and sight holders had lower offensive power against synthetic disruption. All in all, the adaptive learning of De Beers leadership manifested as the discard of a failing strategy and the transfer of resources to the sustainable competitive spheres with the support of the strategic flexibility of the innovative markets
5. Leadership, Reputation, and Stakeholder Management Amid Ethical Expectations
Past Ethical Issues and Increasing Pressure of Stakeholders
Since the blood diamond scandals were discovered in the 1990s and early 2000s, especially in Sierra Leone and Angola, the leadership of De Beers has been under severe ethical scrutiny. These wars demonstrated the fact that diamond payments were used to fund violence and human rights abuse, which was essentially a destruction of the industry's legitimacy. Despite the fact that De Beers was involved in the Kimberley Process Certification Scheme (KPCS), the critics stated that the scheme was weak in structure. It allowed the entry of the diamonds of politically unstable countries like the Democratic Republic of Congo and Zimbabwe into certified supply chains and avoided major parts of the artisanal mining and alluvial mining, which is estimated to supply up to 60 per cent of the world's rough diamonds (Adams 2011). These weaknesses maintained reputational risk and increased expectations of stakeholders for greater reforms.
Strategic Leadership Response/Reputation Rebuilding
De Beers has become more proactive and strategic in its reputation management under the rule of Mark Cutifani (20132018) and, later on, Al Cook (20182019). In 2019, the debut of the Building Forever framework initiated a radical change in the approach to compliance as a reactive solution to integrated sustainability leadership. This framework balanced the strategic priorities with the stakeholder theory by directly tackling the interests of shareholders (long-term ESG-driven value), employees and local communities (especially in Botswana and Namibia), governments, and NGOs (ethical sourcing and governance), and the consumers, who are becoming more cautious on sustainability credentials (Cernansky 2022).
Openness, Technology and Ethical Innovation
The Tracr Project, a blockchain-based provenance platform that was launched in 2018 and operational by 2023, was one of the most successful leadership projects. Tracr provided traceability through registering a wide range of diamonds from mine to retail by placing the diamond on a secure ledger, responding directly to the requests of stakeholders to seek transparency. The resistance in the industry was reduced by the education (De Beers Institute) and economic incentives, e.g., 15-20 per cent higher prices of Tracr-registered diamonds. By 2024, the significant retailers, including Signet and Chow Tai Fook, demanded Tracr registration to sell the premium natural diamond and made transparency in the value chain institutionalised (De Beers, 2024).
Social Responsibility and Environmental Impact
De Beers has supplemented transparency in technology with heavy social and environmental investment. The company has spent more than USD 100 million in African societies and communities through programmes like Tokafala and Diamonds for Development to help entrepreneurs and skills development, especially among women. A promise to be carbon-neutral by 2030 supported environmental leadership, with SBTi-approved assistance being taken through carbon neutrality initiatives with renewable energy projects like Envusa and Debswana Solar. Although this approach dealt with the issue of increasing environmental requirements, the use of carbon offsets (about 15% of the target) was criticised by the sustainability movement ((Dargusch and Thomas 2012).
Reputation Outcomes and Strategic Tensions
Reputation management that was carried out by the leadership players delivered concrete returns. As a result of the willingness to pay ethical premiums displayed by the consumer, De Beers Jewellers reached the upper tiers of the luxury brand ranking, and Forever mark continued to grow tremendously in India (De Beers Group 2022; Cascavilla et al. 2025). Nevertheless, the tensions have not been resolved. The current delivery is being outpaced by the rising expectations of stakeholders, especially Gen Z, regarding regenerative sourcing and carbon-negative sourcing.
6. Innovation, Ethics, and Transparency: Fostering Industry Change
Innovation of Strategy to Be Transparent
De Beers has managed to achieve its status as a leader in the industry by making innovation, morals, and transparency part of its tenets. One of the flagship initiatives is the Tracr, a blockchain-based traceability solution created to address the growing levels of consumer and regulatory needs of ethical assurance. Tracr is a digital database of the provenance of a diamond, which has been mined and sold, using unchangeable identifiers and blockchain authentication. With rough and polished diamonds to the tune of 2 million being registered through the platform by 2024, the platform is signalling a substantial level of scale and adoption through a wide range of retail partners.
Competitive and Strategic Advantages
Tracr provides a number of strategic benefits. First, it facilitates differentiation, as the Tracr-verified diamonds are selling at 15.20 per cent higher, since the consumers put value on the certified ethical sourcing (De Beers Group 2022). Second, the system has a risk mitigation benefit in that it allows the quick identification and segregation of conflicting or misstated stones and preserves the brand image. Third, by selling partial ownership to institutional investors in 2023, De Beers made Tracr an open industry platform by reducing opposition by the competitors and promoting broader adoption. Lastly, Tracr enhances consumer confidence: it has been demonstrated that 78 per cent of consumers are ready to pay higher prices for ethically verified diamonds, which justifies the business rationale of transparency-based innovation.
Restrictions and Implementation Problems
In spite of the strengths, Tracr has significant weaknesses. Independent diamantaires developed friction in their adoption of traceability as intrusions, which caused De Beers to spend on incentives, training, and education, which increased the cost of implementation. There is also imperfect coverage: artisanal mining, which supplies a large part of the world, is mostly not covered by Tracr since informal documentation systems are used. Also, although Tracr relies on fairly low-energy block chain mechanisms, it is still possible to be concerned about the environmental impact of the digital ledger technologies.
Storytelling and Leadership in the Industry Ethically
In addition to Tracr, De Beers created Origin Story, which is a consumer-facing project that connects provenance, geological rarity and sustainability into a captivating story. Combined with Tracr, Origin Story will abandon the competition on the price level, in which lab-grown diamonds are in the first place, for meaning and authenticity. The ethical behaviour of the industry is strengthened by other initiatives like GemFair and the De Beers Institute of Diamonds, which are not only educating a large group of people but also artisanal miners.

7. Recommendations and Conclusion
Digital Acceleration of Asia-Pacific.
Forevermark ought to expand direct-to-consumer digital platforms (Instagram, TikTok, WeChat) in India and China to Gen Z. Influencers and social commerce are a USD 50m (20252027) investment that can overcome the effects of retail consolidation and become a leading driver of online growth.
Tracr Ecosystem Expansion:
An expansion of Tracr to lab-grown and recycled diamonds would make De Beers a nonpartisan intercessor of the industry, despite fostering less resistance to industry regulators and commanding network effects based on data.
Portfolio Rebalancing
The capital should be reimbursed towards low-margin North American retail, high-growth Angola exploration and India retail, and enhanced returns and reduced commodity exposure.
The leaders of De Beers have managed to overcome the turbulence of the industry, shifting their leadership models away to the ecosystem approach that is based on brand equity, innovation, and ethics. Although synthetic diamonds, fluctuation of prices and geopolitics are still there, transparency, sustainability and engagement through the use of technology can provide resilience. The future benefit will be long-term, grounded in becoming a purpose-driven ecosystem in which the stakeholders actively co-create value, making De Beers an orchestrator and not just a diamond supplier.

Task 2
1. Current Organisational Structure Analysis and Future Restructuring Requirement.
Present Structure Evaluation.
De Beers Group is a traditional divisional organisation (Figure 1) that is structured into five core divisions: upstream (mining operations Botswana, Canada, Namibia, and South Africa), midstream (rough diamond trading through the sightholder network), downstream (retail De Beers Jewellers, Forever mark, and Lightbox), technology and innovation (Element Six and Tracr blockchain), and regional unit (Americas, EMEA, and Asia-Pacific). All the divisions are vertically reporting to the divisional heads, who report to the Chief Executive Officer (Al Cook) (De Beers Group 2025). This is a hierarchical model that puts a high emphasis on the control of operations and financial responsibility but generates serious obstacles to market responsiveness and innovation.
Figure 1: Current Divisional Structure
(Source: Self-illustrated)

Effectiveness Limitations:
? Silo Mentality: Mining and retail divisions make their own decisions, and they lack cross-functional input. An example is that Lightbox jewellery production decisions (2018-2024) included Retail and Technology and Innovation divisions but no integrated perspectives on the Midstream (Trading) of market bifurcation trends or consumer preferences that downstream had identified. This isolated decision-making added to USD 50-100 million of inventory losses prior to the 2024 strategic shift (De Beers Group 2024).
? Long Innovation Cycles: Blockchain Tracr was developed in three years (2015-2018) to be commercialised despite being technologically feasible, which was partly because of the delays in the coordination across divisional boundaries. The result was the lack of systematic incorporation of consumers' visits to downstream retailers with the technology and innovation development roadmap, which led to resistance to adoption by diamantaires (Danziger 2017).
? Regional Unresponsiveness: The Asia-Pacific Regional Unit is not responsive to the downstream (retail) strategic decisions, which makes it unaligned to the global brand strategies (De Beers Jewellers, Forevermark) and local market activation. The goals of expansion (100 Forever mark stores by 2030) in India are not coordinated with the midstream supply chain and leverage local knowledge about product customisation and local partnership opportunities (De Beers Group 2024).
? Complexity in Governance: The decision-making is centralised at the CEO level with the necessity to escalate the cross-divisional problems (e.g., the production capacity needs versus retail demand forecasts). This vertical decision-making slows down market responses; the 2024 Russian sanctions that are affecting them have taken two months to have all divisions coordinate to update the supply plan (Petropoulos et al. 2025).
Barriers to Strategic Objectives:
? The strategic priorities of De Beers are accelerated Asia-Pacific digital business, Tracr ecosystem development, portfolio rebalancing (Angola/India), and carbon leadership, which should be implemented in a coordinated effort across divisions that are currently working in silos:
? Digital Commerce: Necessitates the incorporation of downstream marketing knowledge, technology and innovation digital capacity, midstream supply prediction, and regional implementation, which are currently divided to function under five different divisions.
? Tracr Expansion: Requirement Technology and Innovation, Midstream (supply chain visibility), and Downstream (retailer adoption) collaborating with each other; existing divisional independence slows the scaling of the platform.
? Rebalancing of Portfolio: Requires coordination between upstream exploring (Angola investment choices), midstream supply-chain repositioning, and downstream retail expansion priorities, which are now independently made by the divisional heads.
Rationales of the Proposed Restructuring
A hybrid matrix organisational structure (Figure 2) combines the element of divisional accountability and cross-functional coordination mechanisms to solve the existing barriers and yet keep the discipline in operations. The matrix combines:
? Functional Verticals (retained): Mining, Trading, Retail, Technology and Innovation, and Regional Units not only keep having divisional reporting lines and P&L responsibility.
? Horizontal Cross-Functional Teams (new): There are four strategic initiatives, Digital Commerce & Consumer Engagement, Innovation and Supply Chain (Tracr, synthetics), Sustainability and Community Impact, and Asia-Pacific Excellence, which work across divisions with dedicated leadership and resources.
? Dual Reporting Structure: The employees who work on cross-functional teams report to the divisional heads (operational accountability) and to the cross-functional team leads (strategic initiative execution). In the case of a retail diamond designer, a retail diamond designer would report to the downstream vice president (functional accountability) and the digital commerce and consumer engagement team lead (innovation project accountability).
? Centres of Excellence: EMEA (London), Asia-Pacific (Singapore/Mumbai) and Americas (New York) are regional coordination points, where global strategy is converted into local implementation and market feedback to central strategy is fed back.

Figure 2: De Beer Proposed Hybrid Matrix Structure
(Source: Self-illustrated)

Expected Gains:
? Agility: Cross-functional teams allow quicker market-facing decisions to be made (e.g., expansion into Asia-Pacific) without going through headquarters.
? Innovation Acceleration: Horizontal collaboration can accelerate the cycle of such initiatives as Tracr implementation (3 years to approximately 18-24 months) and the establishment of digital commerce.
? Stakeholder Alignment: Regional centres can allow a closer interaction with the local retailers, governments, and communities and increase responsiveness to the expectations of CSR.
? Resilience: Regional teams have the ability to make the decision quickly, thereby responding to the sanctions or production disruptions due to resilience (as in the 2024 Russian sanctions response).

2. Critical Evaluation of the Restructuring Plan
Possible Obstacles and Adverse Implications
Although the suggested matrix structure is supposed to minimise silos in organisations, there are various risks emanating from the implementation of the structure which have to be mitigated proactively.
Challenge 1: Dual Authority and Role Ambiguity
The employees are put under competing demands in the matrix structures. As an illustration, a retail diamond designer who reports to downstream retail leadership and the Digital Commerce and Consumer Engagement can be in tension over priorities of flagship store operationalization and digital campaign designing. Such ambiguity may result in role conflict, low productivity and job satisfaction unless there are clear prioritisation mechanisms. According to Galbraith (2009), role confusion of 40-60 per cent of matrix employees leads to 15-25 per cent productivity loss within the first 12-18 months. With an estimated 500-800 employees in the matrix role, the loss of productivity at USD 2040 million might be the case with De Beers.
Challenge 2: Delays and Conflict in Decisions
The dual reporting line usually delays the decision-making process where the divisional and cross-functional leaders differ in their distribution of resources. These conflicts often need mediation at the senior level, which prolongs the decision-making process by 2-4 weeks relative to the conventional seniority structure (Rispens et al. 2020). In high-paced markets like the jewellery market in India, the first-mover benefits may be lost because of a delayed digital campaign launch, which would cost De Beers USD 10-15 million in first-year digital revenues.
Challenge 3: Resistance and Change Fatigue by Employees
Since 2018 and 2024, De Beers has been implementing various strategic plans, such as Lightbox, Origin Story and Tracr blockchain integration. Further reorganisation will cause change fatigue simply because it is believed that Lightbox has been a failure in consumer markets. Ec (2024) discovers that 60 per cent of the workers that experience recurring restructurings in a span of five years exhibit lower engagements and increased turnover. In the case of De Beers, a turnover of 10 per cent in vital positions may cost the company USD 15.25 million in recruiting, training and lost productivity.
Challenge 4: Costs and overhead expansion in coordination
Matrix structures require a lot of coordination, which adds to the administrative overheads. An approximate cost per annum is four cross-functional team leads (USD 1.62-2.4M), three regional centre directors (USD 1.05-1.5M), and a governance office (USD 0.61-1.2M), amounting to USD 3.2551M per annum. This has the potential to reduce EBITDA margins by 0.25-0.35 per cent, which partially compensates innovation acceleration gains.
Change Management Approach and Mitigation Strategies
Strategy 1: Bound Role and Decision Rights.
Time allocation between functional and cross-functional roles, as well as the rules of escalation of various types of decisions, is to be stipulated in a formal Role Clarity Matrix. Ambiguity would be minimised by written job descriptions that specify reporting expectations and measures of performance. This strategy will aim at the accomplishment of 80-90 per cent of role clarity in a six-month period, minimising productivity loss to 3-5 per cent.
Strategy 2: Strong governance and conflict management
A CEO-led Strategic Coordination Council (Biwkely) should solve resource conflicts and make sure they are aligned. The Portfolio Management Office (PMO) will be in charge of monitoring initiatives, dependencies, and collaboration health. An obvious escalation policy that includes the CFO and COO within 48 hours would also reduce the decision time to 5-7 business days.
Strategy 3: Full Change Management and Communication
Organisational listening would be indicated by pre-launch stakeholder interviews and a clear Change Readiness Report. Town halls that are conducted by the CEOs should freely discuss the lessons of previous restructuring, and the trained Change Champions would assist employees in the initial implementation. Psychological safety would be strengthened by the presence of continuous feedback mechanisms that would minimise resistance.
Strategy 4: Implementation Planning and Pilot Testing
It would be possible to pilot the matrix on Digital Commerce and Asia-Pacific teams to learn early and achieve quick wins and then refine and roll out gradually. This gradual implementation reduces risk and creates organisational confidence prior to full implementation.

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