a) Key Areas of Concern from the Employee Satisfaction Survey and Their Impact on AML’s Competitive Advantage. The employee satisfaction survey conducted by AML identified challenges in job security, career progression, and employee welfare, which are crucial for retaining skilled labor and sustaining productivity in a competitive mining industry. Two key areas of concern include:

1. Career Development and Promotion Opportunities (2.5 marks)

• Survey Concern: Employees feel limited opportunities for career advancement, affecting motivation and long-term retention.
• Impact on AML’s Competitive Advantage:
• High turnover of skilled mining engineers and technical staff could lead to operational inefficiencies.
• Competitor firms may poach AML’s top talent, reducing institutional knowledge and weakening AML’s market position.
• AML’s ability to innovate and adopt new mining technologies could be compromised if employees lack long-term career growth incentives.

2. Work Environment and Employee Welfare (2.5 marks)

• Survey Concern: Employees raised issues regarding working conditions, safety protocols, and access to benefits such as healthcare and housing.
• Impact on AML’s Competitive Advantage:
• Poor workplace conditions can lower morale and productivity, leading to reduced operational efficiency.
• Negative employee experiences can harm AML’s reputation, making it less attractive to top talent in the mining industry.
• Regulatory risks may increase if safety and welfare concerns are not addressed, leading to fines or shutdowns. Recommendation for AML: To maintain a sustainable competitive advantage, AML should:
• Introduce structured career development programs, including mentorship and leadership training for employees.
• Enhance employee welfare initiatives, such as health and housing benefits, to improve engagement and retention.
• Invest in safer work environments by improving mine safety measures and compliance with global safety standards. (5 marks)

b) Akosa Minerals Limited (AML) has expanded into Mali and Burkina Faso, but Ghana remains its core operational base. To sustain its competitive advantage in the global mining industry, AML must analyze external factors affecting Ghana’s competitiveness as a mining hub. Porter’s Diamond Model provides a framework to assess national competitiveness by evaluating key factors that determine an industry’s global success. The four key factors that influence Ghana’s mining sector include:

1. Factor Conditions – Ghana’s Abundant Natural Resources and Skilled Workforce

• Definition: Factor conditions refer to a country’s natural resources, infrastructure, and skilled labor availability.
• Ghana’s Competitive Advantage:
• Rich mineral deposits, including gold, bauxite, manganese, and lithium.
• Experienced mining workforce with technical skills supported by institutions like KNUST and UMaT (University of Mines and Technology).
• Well-established mining infrastructure, including ports and transport systems.
• How AML Can Leverage This:
• AML should continue to expand mining operations in Ghana to capitalize on rich gold and lithium reserves.
• Investing in workforce training programs ensures AML has highly skilled labor for its gold and lithium divisions.

2. Demand Conditions – High Global Demand for Gold and Lithium

• Definition: Demand conditions refer to the strength of local and international markets driving industry growth.
• Ghana’s Competitive Advantage:
• Ghana is Africa’s largest gold producer, benefiting from strong export demand.
• Growing global demand for lithium for electric vehicles (EVs) and renewable energy storage.
• Rising foreign investment in Ghana’s mining sector due to its stable economy.
• How AML Can Leverage This:
• AML should expand gold production while investing in lithium processing facilities to serve the EV battery market.
• Develop strategic partnerships with global technology and energy firms seeking sustainable lithium sources.

3. Firm Strategy, Structure, and Rivalry – Strong Corporate Governance and Competitive Mining Industry

• Definition: This factor assesses how companies are structured, their level of competition, and governance standards.
• Ghana’s Competitive Advantage:
• Ghana’s mining industry is highly competitive, with companies like Newmont, Gold Fields, and AngloGold Ashanti driving efficiency.
• Robust corporate governance frameworks, with oversight from the Ghana Minerals Commission and SIGA.
• Government incentives to attract foreign direct investment (FDI) in mining.
• How AML Can Leverage This:
• AML must strengthen corporate governance to maintain investor confidence.
• Invest in modern mining technology to compete with multinational firms in efficiency and sustainability. (5 marks)

c) Explanation of the Five Strategic Approaches and Their Relevance to AML Akosa Minerals Limited (AML) has undergone modernization, diversification, and international expansion, requiring different strategic approaches to remain competitive in the mining industry. Below is an explanation of the five strategic approaches and their relevance to AML:

1. Systems-Based Approach (2 marks)

• This approach views an organisation as a complex system where different units (e.g., finance, operations, HR) must work interdependently to achieve corporate objectives.
• Relevance to AML:
• AML has multiple business units (Gold and Lithium divisions) operating across Ghana, Mali, and Burkina Faso.
• Implementing integrated operational and governance systems ensures seamless coordination between its mining sites, processing plants, and international business units.
• AML’s adoption of automated monitoring systems for safety and compliance exemplifies a systems-based approach to risk management.

2. Resource-Based Approach (2 marks)

• This approach emphasizes leveraging internal resources and capabilities to gain a sustainable competitive advantage.
• Relevance to AML:
• AML has rich mineral reserves (gold and lithium), giving it an advantage in the mining industry.
• The company has invested in cutting-edge mining technologies to improve efficiency.
• AML’s long-term partnerships with the Ghanaian government ensure continued access to high-potential mining concessions, strengthening its resource-based strategy.

3. Core Competencies-Based Approach (2 marks)

• A core competency is a unique strength that differentiates a company from competitors.
• Relevance to AML:
• AML’s expertise in gold mining and expansion into lithium extraction has positioned it as a key player in Africa’s mineral industry.
• The company has developed a strong ESG (Environmental, Social, and Governance) framework, making it attractive to sustainable investors and international mining partners.
• AML’s research and innovation partnerships with institutions like KNUST give it an advantage in developing sustainable mining solutions.

4. Rational Strategy

• The rational approach involves structured decision-making based on detailed market analysis, feasibility studies, and financial projections.
• Relevance to AML:
• AML’s decision to diversify into lithium was backed by global market demand for electric vehicle (EV) batteries, showing a rational approach.
• The company conducted feasibility studies and pilot projects before launching full-scale lithium operations in 2020.
• AML’s stock market listings on the Ghana Stock Exchange (GSE), Johannesburg Stock Exchange (JSE), and New York Stock Exchange (NYSE) indicate long-term financial planning and rational strategy execution.

5. Adaptive/Emergent Strategy

• This approach focuses on responding to changing market conditions and evolving strategies dynamically rather than following rigid plans.
• Relevance to AML:
• AML has adapted to shifts in global demand, pivoting from gold-focused operations to lithium mining, a critical mineral for the EV industry.
• The company has responded to environmental regulations by introducing sustainable mining practices and water recycling programs.
• AML’s international expansion into Mali and Burkina Faso demonstrates its ability to adjust strategies based on regional opportunities and risks.

Summary of Relevance to AML