Case Study THE UPPER BIG BRANCH MINE DISASTER Strategic Management By Group 7 Johni Purwantoro - 2401150024 Melva Irene Damanik- 2401150017 Nurwulansari - 2401150025 Siti Aisyah - 2401150031 Background Introduction to massey energy • • • • Founded in 1920 Don Blankenship became presindent in 1990 23 Mine Location in WV, KY, VA Case Fact • Who is Don Blankensip?? Case Fact Importance in WV • Shaped the state of WV • One of the primary economic resources • Employs 20.000 west virginians • 3.5 billion a year in economic impact Case Fact Upper Big Branch Mine Disaster Upper Big Branch Mine • Located in Montcoal, WV • Owned by performance coal company, Subsidiary of Massey • Buat Peta : Montcoal, WV Case Fact Minning Disaster • April 5 2010 3:02 pm • 29 miners killed, 2 injured • Coal dust explosion started by methane ignition Case Fact What went wrong? leadership from begining • typical practices and procedures • factor specifically contributing to mine explosion Conclusion Leadership Decision • • • • Coal Production Before Employee Health Examination of mine conditions hazard correction equipment inspections Recommendation Stricter enforcement MSHA use power to enforce existing regulations: More frequent & detailed inspections increase budget Surprise checkups MSHA in closer contact with miners MSHA reps working at company to act as and support whistle blowers Recommendation new regulations or laws Change the mentality of the company Help subsidize the proper safety equipment Harsher laws and greater penalties Give incentives to change Meetings/mine tours every quarter Improve Law system Shorten the appeal process Recommendation change industry culture Unite miners across to prevent another tragedy Annually/semi annually conference with union reps from all over the country Closer ties to union (UMWA) Increase exposure of current issues Ads Social media PROBLEM ANALYSIS Potential Entrants Suppliers Industry Competitors Buyers Rivalry Among Existing Firms Substitutes Porter’s Five Forces Model Relative Power from other Stakeholder SWOT Analysis • SWOT