Box l.

l Mini case
The global diamond market
Diamond mining and distrlbrrtion ae big business. Among the world's biggest produc-
ers are Russia, Botswana, and Australia, each of which produces over 20 billion carats
(a carat is a weight of 0.2 grammes) a year. It takes considerable investment: tn"li*"
taken between discovering a diamond deposit and opening a mine is typicary eight yean.

Mining is just the start, however. Before they can be sold to a distributor or dealer,
diamonds have to be cleaned and sorted: only about 20% actually go on to be
used in
jewellery manufacture, and thence down the marketing channel
to retailers and the end
consumer.
Organizational use takes up 80% of diamond production. The main industrial uses of
diamonds include cuttinglools, abrasives, and powder for grinding and polishing. Even
though diamonds are expensive, the material is so long-lasting thit it is
-ottrr tie cosi
to the buying firm. lndustrial diamonds are sold to companies working i" til;;;;:
ceramic, metal, and conffete industries. Diamonds are also used by manufacturers of
pistonsforalrrminium.alloycarengines,computerchips,andsurgicalblades,
Thus, although marketing (via retailers) to consrrmers can be Jn important pan of a
diamond disnib.utgT:s role,(e.g. the famous 'a diamond is forevCr, advertising slogan,
used by De Beers), knowing how to purchase and then resell the right sorts of diamonds
from mining producers to,satisfy the needs of a huge variery of organizational customersl
is actually a r-rudt more important set of activities for fiost dtsuibuton ,fheir:busjiiresg
customers ar far less,likely persuad"o,tv slylish pmmotionat messee than ise,
!o be
"
h 'VanderAaS (WAi;uwutdcbercgnup;tbm til,

Box 1.3 Mini case

Ice-cream machinery
The Italian firm, carpigiani, manufactures ice-cream-making machinery for organiza-
tional customers in over 100 countries. These include fast-food chains like Hzza Hut
and MsDquc=ld'$ as well as several large francNse chains such as Cold Stone, which runs
nearly 1,5fi) stores in America and East Asia. Carpigiani claims to have around half the
global market for ice-cream makers, $ving it profits of 163 million in 2006. It employs
500 people. The MD believes that this success iC do-WR tS a reeent focur on customer
service, quality, and new product development. pointedly, he has stopped television
advertising, seeing it as what he terms 'an extravagance' for a machinery manufacturer.
The firm uses outsourcing and its four factories are essentially assembly lins_s sinee
few parts are made 'in-house'. An emphasis on Research aqd Development (R&D) has
been especially important since poor materials from suppliers had caused pmblems in
the past. This is vital in meeting the strict regulations for food-making machinery in
countries like the US.
Solrlte: The fuoramist (2NZ ) ; wuru.mrpigiani.cvm

Box l.tO Mini case

A car manufacturer partnership in China
General Motors (GM) hf agreed to a 2 biltion yuan joint venture with thc chfurc.se
stateowned carmaker, FAW, to manufactwe light trucks and vans. The vehkles wiD be
produced at existing FAW facilities in the cities of changchun and Harbin,
f[
chinese
marketplace offers great potential to GM, which sold over 900,000 vehiclcs there in
the first half of 2m9. Demand was especially strong for its minivans it5 other small
vehicles, GM's mana$ng daector of chinese opffations said, 'For us iu china, this is
an important iomplement to the rcst of our portfolio. wb {ft well established in pas-
senger vehicles (i.e. mainly B2c goods, but also bought by bueinesses rnd govemnent
officials) and mini commercial vehicles (i.e. entirely B2B goods) and we haven't had a
presence in the truck segment,' a part of the B2B market that the partnership with FAW
is clearly aiming for.
Soarce: BBC Naw (2dD)