Synopses of Barrick Gold

Running head: SYNOSES OF BARRICK GOLD CORPORATION

Synoses of Barrick Gold Corporation

MMPBL/590 - Strategies for Competitive Advantage

University of Phoenix�

Synoses of Barrick Gold Corporation

Remote Environment: Economic Factors

Economics factors are integral to every element of a company because the primary goal of all businesses is to generate profits for shareholders. These are a portion of the remote environment along with the social, political, technological, and ecological factors. "Economic factors concern the nature and direction of the economy in which a firm operates" (Pearce & Robinson, 2004, p. 79).

Current universal economic environment is firing up great optimism about gold. Many investors are predicting that gold prices may double - or even triple - because of uncertainty in financial markets. In this particular environment, Barrick management prefers to take a more conservative approach and expects increases similar to those experienced over the past decade.

Super Pit gold mine at Kalgoorlie in Western Austr...

Graffiti against Barrick Gold corp. (Barrick: irre...

African Barrick Gold

It believes that the fundamental trends are predictable even though unforeseen political and economic factors will undoubtedly cause short-term swings in the market. This opinion is based on the two most likely economic scenarios - a steady, universal recovery, or a sluggish and deteriorating global economy. Concerns about inflation in the first scenario will likely emerge increasing gold purchases; concerns about currencies in the second scenario will trigger the acquisition of the metal (Barrick Gold, 2010).

Gold has outperformed all major currencies - and virtually every other asset class as well - during the entire decade, and this is a very good reason to see further growth. The metal has traditionally been a refuge during economic despair, and investors turn to it preserve wealth (Barrick Gold, 2010).

Remote Environment: Ecological Factors

According to Pearce & Robinson (2004), "the most prominent factor in the remote environment is often the...