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Title Institutions and strategy in dynamic markets: the case of Vale in Mozambique
Full text http://upetd.up.ac.za/thesis/available/etd-02242013-112512/
Date 2013
Author(s) Nupen, Stewart Robert Quentin
Contributor(s) Dr L White
Abstract Vale, a Brazilian-based, multinational mining company is used as a case study to investigate the impact of institutions on company strategy in dynamic markets. The research focuses on Vales exploration and development of the coal deposits of Mozambique, a country in which the institutional environment was decimated by war between 1964 and 1992.The objective of the research is to investigate how using the theory of institutions, as articulated in international business and corporate strategy literature, could be useful in understanding how firms make strategic choices and seek to gain competitive advantage in dynamic markets. In addition, the research provides a case study based in an African market, which will add to the material available for teaching general management principles in dynamic markets.The research demonstrates the importance of the link between Brazils foreign policy between 2000 and 2010, and Vales expansion strategies in Africa at that time. It highlights the institutional deficiencies in Mozambique at the time of Vales entrance, such as the limited rail infrastructure and weakly developed mineral rights legislation; and shows how Vale has been able to turn these deficiencies into competitive advantage, and has developed a dominant position in an internationally significant coalfield.In this way, the research supports the institutional-view of strategy, as articulated by Peng, Wang and Jiang (2008) and positions the role of institutions as being at least as important as industry and company resource factors in determining company strategy in dynamic markets.The challenge presented to readers of the case is to describe the institutional landscape in Mozambique and assess Vales response to it, using Khanna, Palepu and Sinhas (2005) framework; to assess the merit of Peng et al.s (2008) strategy-tripod when considering dynamic market strategy; and to consider the economic, political and social context facing Vale in trying to maintain and grow their competitive position.© 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. Please cite as follows: Nupen, SRQ 2012, Institutions and strategy in dynamic markets: the case of Vale in Mozambique, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-02242013-112512/ > F13/4/245/zw
Subject(s) Gordon Institute of Business Science
Language en-uk
Publisher University of Pretoria
Type of publication text
Format application/pdf
Source http://upetd.up.ac.za/thesis/available/etd-02242013-112512/
Rights unrestricted; I hereby certify that, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report (
Repository Pretoria - University of Pretoria, Theses and Dissertations
Added to C-A: 2017-03-10;15:13:06