The Diamond Purchasing Process and Its Flaws

In: Social Issues

Submitted By scihighguy
Words 1291
Pages 6
From Dirt to Distribution: The Diamond Purchasing Process and its Flaws
Gregory Greenberg
SCM 302
Sullivan University
Fall 2013

Abstract:
The diamond industry has often time been at the center of controversy due to the way that diamonds are excavated, refined and purchased. The term “blood diamond” is often applied to those stones which are mined in area’s of Africa that suffer from civil war due almost entirely to bloodshed over diamond mine rights. In response the diamond industry enacted the Kimberley Process in 2003. This process basically now requires all major diamond distributers to purchase diamonds from legitimate channels. This paper will discuss the process beginning at diamond excavation all the way to final distribution and the serious ethical issues and controversies that are hidden inside.

From Dirt to Distribution: The Diamond Purchasing Process and its Flaws In order to understand the process and appreciate the work and time that goes into diamond distribution it is best to start right off with a visual aid. The following is a step-by-step process from taking a diamond from dirt to distribution (Oriana, 2012):
ORIANA DIAMONDS (SURAT) PRODUCTION AND TECHNOLOGY

Rough purchases Worldwide

Oriana Diamonds Surat polish factory

Weight Check and Sorting Varieties Head Loupe, Loupe, Lights, Scale

Sorting by purity and shape Head Loupe, Loupe , Light, Sieves

Separating each stone in individual packets

Blocking 4 Auto Blocking machines (Sahajanand) and Hand Blocking

Bruting by Machine/ Traditional Bruting 7 Ezi/Parth Bruters 1Laser Bruter

Check Laser Cut, Clean and Weigh Loupes, Metler Scales

Laser Cutting 4 Laser Machines (Raj, Sahaj, Photon, Sahjanand)

Plotting/ Planning/Mapping and Label Printing 10 Sarin/Ogi Machines and GIA Software

Cleaning and recheck

Remapping and analyze 10 sarin/ogi and…...

Similar Documents

Diamonds as an Alternative Investment

...| Are diamonds investor’s best friend? | Study on polished diamonds as an alternative investment. | | Presented by:Daria GoldobinaStudent number:080006193Supervised by:Anh L. TranIn partial fulfilment of the:BSc Business Studies, Cass Business SchoolDate:24th March 2011I certify that I have complied with the guidelines on plagiarism outlined in the Course Handbook in the production of this dissertation and that it is my own, unaided work.Signature:__________________________________________ | | This work is dedicated to the memory of my beloved grandfather Ivan Smolin. He was a sweet, kind and sensitive man who devoted his life to studying precious stones and metals. He enriched my life with passion to beauty. If God wanted us to bend over he'd put diamonds on the floor Joan Rivers Contents Acknowledgements 3 Executive summary 7 I Introduction 10 Ground for discussion 10 Objectives 10 Methodology 11 II Literature review and hypothesis development 12 Overview 12 Introduction 12 History of diamonds 12 Industry structure 13 DeBeers cartel 15 Diamond valuation 16 Diamond valuation process 16 Determinants of diamond prices 18 Diamond as an investment 19 Types of investment 19 Problems associated with investing in diamonds 20 Benefits associated with investing in diamonds 20 Alternatives to investing in diamonds 23 Hypothesis development 25 III Methodology 26 Data collection 26 Primary......

Words: 19903 - Pages: 80

Blood Diamonds

... Diamond Road Assignment 1. Rebel forces control areas and often through the forced labour of people, they produce stones that are known as blood diamonds. These rebels oppose the government, and use the money from the diamonds to purchase weapons and fund their military actions. Blood diamonds are also known as conflict diamonds. 2. If the natives own the land, they rent it to diamond companies, which will agree to leave everything like it was once they are done, Example: they will put all the fish back in the water. The natives then grow prosperous from the mine and the diamond companies are able to rent a piece of land until they no longer need it, which benefits them because they will not have to purchase it which relieves them of any long term commitment. 3. This situation benefits the natives because they are able to rent their land to the diamond companies, which will pay them and also keep the land well maintained. The diamond companies have respect for their land which is important to the natives and they leave everything like it was untouched. This situation benefits the diamond companies because they are able to mine diamonds, without the hefty cost of purchasing land. They are able to use the land for as long as they need and give it back to the natives, which save them a lot of money. 4. You are able to find a copy of the Rappaport report online at: www.rappaportdiamondreport.com. Usually, only subscribers to their magazine have access to......

Words: 709 - Pages: 3

Blood Diamond

...of “Blood Diamond,” an exceptionally thriller starring a most excellent Leonardo DiCaprio, want you to know there may be blood on your hands, specifically your wedding finger. The story involves so-called conflict diamonds, illicitly mined stones that have been used to finance some of the most vicious wars in Africa. If films were judged solely by their good intentions, this one would be best in show. Instead, gilded in money and dripping with sanctimony, confused and mindlessly contradictory, the film is a textbook example of how easily commercialism can trump do-goodism, particularly in Hollywood. The 2006 movie (Blood Diamond) was recently seen by me, this is an American political war thriller film produced and directed by Edward Zwick, starring Leonardo DiCaprio, Jennifer Connelly and Djimon Hounsou. The title refers to blood diamonds, which are diamonds mined in African war zones and sold to finance conflicts, and thereby profit warlords and diamond companies across the world. During Sierra Leone Civil War in 1996–2001, the film shows a country torn apart by the struggle between government soldiers and rebels. It also portrays many of the atrocities of that war, including the rebels' amputation of people's hands to discourage them from voting in upcoming elections. The film's ending, in which a conference is held concerning blood diamonds, is in reference to an actual meeting that took place in Kimberley, South Africa in 2000 and led to the Kimberley Process......

Words: 749 - Pages: 3

Conflict Diamonds and the Kimberley Process

... A symbol of prestige and love around the world has caused horrific violence across the diamond-rich nations of Africa. Diamonds, the hardest and most powerful substance known to man, are mined or stolen to fund armed conflict by rebel groups seeking to overthrow West African governments. During the 1990s diamonds obtained by rebel groups, conflict diamonds, made up twenty percent of the diamond market. After a decade long battle, the diamond industry, national governments and civil organizations collaborated to combat the illicit trade of conflict diamonds with the Kimberley Process. Sector Interest In this case, the diamond industry; countries with legitimate diamond businesses and retail operations; and nongovernment organizations collaborated as major sectors to end trade of conflict diamonds. The diamond industry’s main interest in the Kimberley Process was to develop a certification scheme that guaranteed customers that diamonds were conflict-free. Countries with legitimate diamond businesses and retail operations were concerned that economies would be affected and retail sales would decline. Nongovernment organizations called for an end to the violence and civil war. Collaborative Partnership for Problem Solving The major sectors in this case concerned with conflict diamonds could not have resolved the issue unilaterally because of individual weaknesses. Experts...

Words: 416 - Pages: 2

Diamond Ethics

...Diamond Ethics Blood Diamonds, also referred to as conflict diamonds, are diamonds that derive from areas controlled by forces or sections opposed to lawful and internationally recognized governments, and are used to fund military action in resistance to those governments, or in breach of the decisions of the Security Council. These radicals sell these diamonds, and the money is used to acquire weapons or to fund their military actions, and used to bribe foreign officials. Blood Diamonds are often created through the involuntary strained labor of men, women and children. They are also stolen during delivery or stolen by attacking the mining operations of lawful manufacturers. These assaults can be on the extent of a large military operation. The stones are then smuggled into the international diamond trade and sold as legitimate gems. These diamonds are often the main source of funding for the radicals, however, weapons businesses, smugglers and dishonest diamond traders enable their actions. Vast amounts of money are at stake and kickbacks, intimidation, torment, and murder are methods of maneuver. This is why the term "blood diamonds" is used. That diamond tainted and terminated many lives and the report of that stone bears a strong ethical significance. Angola Angola gained independence from Portugal on November 11, 1975. Although independent, the Popular Movement for the Liberation of Angola (MPLA), the National Union for the Total Independence of Angola (UNITA), and...

Words: 1514 - Pages: 7

Report on Argyle Diamonds and the Diamond Industry

...Report on Argyle Diamonds and the Diamond Industry 1 INTRODUCTION India was the only known source of diamonds before the eighteenth century when diamonds were discovered in Brazil. The modern diamond industry was born in 1867 when diamonds were discovered in the Kimberley region of South Africa. The De Beers mining company was formed and they controlled 80-90 per cent of the rough diamonds entering the diamond market. The De Beers share of the diamond market fell in the 1990’s when the Soviet Union moved to a free market economy as Russian diamond mining companies were selling their diamonds on the open market. The Central selling Organisation (CSO) controlled by De Beers is responsible for regulating the price of diamonds on the market and marketing a large percentage of the world’s diamonds. The CSO protected the dominance of the diamond cartel but this monopoly was challenged by Argyle Diamonds when they refused to renew their marketing contract with De Beers. Argyle has been characterised by low value coloured diamonds, however their highly sought after pink diamonds has successfully differentiated their products from other diamonds the in the market (Vinciullo, Annear and Disbury, Not dated). 1.1 AIM OF THE ASSIGNMENT The aim of the assignment is to research and analyse the diamond industry and to evaluate Argyle Diamonds’ strategic position in the diamond industry. 1.2 OBJECTIVES OF THE ASIGNMENT • To research and evaluate competition in the......

Words: 2594 - Pages: 11

Purchasing Process

...Purchasing process The buying proses depend of the consumer needs. From the different consumer needs the proses make differently. When my headphones were broken it became my big problem that created new needs to buy another headphones. I didn’t know anything about the different kind of headphones I decided to make a research, because I am the person who thinks that the price should be equal to quality of the good. First of all before buying anything I try to find more information about the product in the social media, like blogges, facebook, google and read the comments of different people. After all I asked my friends’ advice what kind of good I suppose to buy. From the all our conversation and the information from the social media I made a conclusion about what brand and type is better. After that I went to big technical stores in order to try and test the product that I prefer. There I didn’t only test the product and also I knew about other type of goods and brands. I was interested in the quality of the headphones’ sound an also I would like it to be comfortable for me to wear it. On the other hand I didn’t care about their brand, color, design, ads and ctr. After the whole testing proses I choose three types of the headpones and I make a research about it price through the internet. Then I call to different stores where this type of the product does exist and chose the better price for me( the cheapest one) and I go there and I buy it or if its possible I......

Words: 284 - Pages: 2

Consumer Purchasing Decision Process

...Consumer purchasing decision process Table of Contents A. Introduction 4 1. Steps in purchasing decision 4 1.1 Problem/Need Recognition 5 1.2 Information Search 5 1.3 Alternative Evaluation 7 1.4 Purchase 7 1.5 Post Purchase Evaluation 8 2. Analysis of computer industry business trends in SA 9 2.1 Industry overview (South Africa) 10 2.2 Market analysis 10 2.2.1 Supplier Power 11 2.2.2 Buyer Power 11 2.2.3 New Entrants Threat 11 2.2.4 Threat of Substitutes 12 2.2.5 Rivalry 13 2.2.6 Opportunities 13 3. DELL’S online only strategy in the 80s and 90s analysis 14 3.1 Dell’s online strategy 14 3.2 Online business value 15 3.3 Online Sales Growth 16 3.4 Convenience 16 3.5 Consumer behaviour intelligence 17 3.6 Was online only strategy suitable for under and developing nations? 17 4. Proposed Channel Strategy for Dell to be Market Leader In SA 18 4.1 Marketing Channel Selection 18 4.2 Market Research and Analysis 18 4.3 Distribution Channels 18 4.4 The Internet and disintermediation in the distribution channel 19 4.5 Channel Length 20 4.5.1 Consumer Channels 20 4.5.2 Business-to-Business Channels 21 4.6 Overcoming Limitations of shop floor space 21 4.7 Conflicts 21 4.8 Supply Chain 22 4.9 Distribution intensity 22 4.9.1 Selective Distribution 23 5. Conclusion 23 B. List of References 25 C. ANNEXURE 1 27 A. Introduction This report examines the consumer......

Words: 7406 - Pages: 30

Purchasing

...Evolution of PURCHASING YEAR II SEMESTER I INETRNATIONAL TRANSPORTATION MANAGEMENT AND LOGISTICS BATCH (08) * SUBJECT NAME - INTRODUCTION TO LOGISTICS * ASSIGNMENT - EVOLUTION OF PURCHASING * GROUP NO - (04) * GROUP MEMBERS - SACHINTHA SIRIWARDENE (0021) UJITH PRAMODA (0022) SANDESHA KATIPEARACHCHI () HESHAN WIJETHILAKA () GIHAN FERNANDO () NILANKA DILSHANI () CONTENT (1.0) What is purchasing? (2.0) Purchasing Process. (3.1) Recognizing a need (3.2) Identifying a Supplier (3.3) Qualifying and Placing an order (3.4) Monitoring and managing the delivery process (3.5) Evaluating the purchase and the supplier (3.0) History of Purchasing. (4.6) Origins of purchasing/Procurement (4.7) Procurement developments in ancient history. (4.0) Purchasing Goals. (5.8) Broad purchasing goals (5.9) Different purchasing goals and their priorities (5.0) Importance of purchasing for an Organization. (6.0) New Trends in purchasing. (7.10) e-Purchasing (7.11) Values of e-Purchasing (7.12) Procurement outsourcing (7.13) Values of Procurement outsourcing (7.0) Conclusion. (1.0) What is Purchasing? For most organization purchasing means buying goods to resell or carry out operations or to manufacture products. “Purchasing......

Words: 1395 - Pages: 6

Purchasing

...Electronic procurement (e-procurement) is the process of electronically purchasing the goods and services needed for an organization’s operation. It entails implementing electronic means to process publish exchange and store information concerning procurement without a paper medium. Hence it consists of publishing calls for tenders on the internet, sending out documents and specifications consultation files for companies, binding tender forms, etc   38 2.4.2 Factors/ drivers for adoption e-procurement In general a number of factors might hinder or influence the adoption of e- procurement in an organization including; inadequate technological infrastructure, lack of skilled personnel, inadequate technological infrastructure of partners, lack of integration with business, implementation costs, company culture, inadequate  business processes to support e-procurement, regulatory and legal controls, security, co-operation of business partners capacity, inadequate e-procurement solutions, upper management support (Chipiro, 2009). Shakir et all, (2007) identified several driver/barriers for adoption of e-procurement;   Economic: Little benefit to vendors, vendors’ concerns about costs, vendors’ fear of competitive bidding because of its adverse effect on price, insufficient internal resources to support e-procurement  Operational: vendors’ concerns about required changes in work processes, lack of skilled personnel, particularly when the vendor is required to  populate, update,...

Words: 3170 - Pages: 13

Diamonds

...hierarchical approach to determine the functional currency of a company operating with foreign currencies, below are items to consider during the decision making process in descending order of importance: 1. The currency that mainly influences sales price for goods and services. 2. The currency of the country whose competitive forces and regulations mainly determine the sales prices of its goods and services. 3. The currency that mainly influences labor, material and other costs of providing goods or services. 4. The currency in which receipts from operating activities are usually retained. 5. Whether the activities of the foreign operation are carried out as an extension or are autonomous. 6. Whether transactions with the reporting entity are high or low proportion of the foreign activities 7. Whether the cash flows of foreign operation directly affect the cash flows of the reporting entity. 8. Whether the cash flows from the activities of the foreign operation are sufficient to service debt obligations. As a result the dollar, due to international regulations, is the currency for transactions involving diamonds,Sparkle must comply the law, but the dollar and countries that use it as their primary currency does not significantlyinfluence prices of diamonds since it is regulated and the main market for diamonds is located in Belgium countryusing the euro as primary currency. In this case, Sparkle would be in a situation where the volatility of the dollar could......

Words: 1002 - Pages: 5

Conflict Diamonds Case

...328 Conflict Diamond Case Study Raw diamonds are making their way from deadly jungles to hands and necks all around the world. It is unfortunate that these resources from third world countries are being exploited for the sake of vanity. Diamonds are not just a symbol of love anymore but are also becoming a symbol of mutilated body parts and crisis. While lives are being taken and children are being exploited, there are fortunes being made by transnational corporations. All the while these poor African people working in the mines under horrendous conditions are only getting paid maybe a dollar a day. As long as there is wealth to be made this crisis may never come to an end. So, a question arises as to who are the key players and how can they help stop conflict diamonds or even worse, how are they contributing. There may very well be those that are trying to help stop conflict diamonds such as the World Diamond Council, United Nations and possibly others such as reporters just like we see in the movie ‘Blood Diamond.’ However, it is almost clear that all other stakeholders are only contributing. For example, Multinational Enterprises it seems only care about the huge profits they make and perhaps look the other way in order to have middle men working to smuggle these diamonds and pass customs. These MNEs’ have the most power in this situation and will continue to make large profits if nothing is done now. Consumers also contribute to conflict diamonds due to the......

Words: 1093 - Pages: 5

Blood Diamonds

...depicts the adverse effect of diamonds on the people of Africa. It also addresses the real price of diamonds which it believes to be the lives of millions of Africans. Additionally, it examines the response from the United Nations and question if enough is being done to crack done on the sale of blood diamonds.   The famous phrase “Diamonds are Forever” is known to most people all over the world. What most people do not know is where most of these diamonds are coming from and how they came to become perfect gestures of love and romance. Looking at a clear cut diamond ring, it is hard to imagine the possibility of thousands of innocent people being murdered, tortured, and forced to mine for these stones; unfortunately that is the case in Africa. Diamonds in West Africa have been used for the last 30 years to fund rebel groups and their desire to take control of their nations by violence and intimidation. In such conflicted regions of the world, diamonds lose their connotation of beauty and elegance and are stained with blood. In this paper, I will discuss the many ways in which “conflict diamond” has brought nothing but poverty, suffering and war to the West African people. I will further explain what world organizations such as the United Nation have done in order to counteract the adverse effects of the conflict diamond on the African community, and the extent to which such efforts have been successful. Conflict diamonds are diamonds illegally traded to fund......

Words: 1693 - Pages: 7

Purchasing

...Case 1-3: Southeastern University Situation: * Heather Sloman is a buyer in the purchasing department for Southeastern University * Walter bought a $14,000 piece of equipment without following standard university purchasing policies * Purchasing is centralized and responsible for negotiating with suppliers, signing contracts with suppliers, and supervising the execution of contracts * Supplier is not on the approved supplier list and quotes from three approved suppliers are less than the one Walter chose or involve better service * $75 million spend Basic Issues 1. Acceptable suppliers 2. Price, quality, service 3. Budgeting 4. Authority for internal users/following purchasing policies 5. Purchasing for a public institution/service organization Tasks: * Define alternatives * Keep the machine and pay for the supplier. * Return the equipment and negotiate the cancellation penalty * Go back to the supplier and use the quotations to negotiate a lower price * Improve the purchasing process to avoid unauthorized purchases * Obtain information from unapproved supplier via RFQ Actions: * Evaluate unapproved supplier with RFQ * Accept the supplier * Acquire purchase information * Decide whether to add supplier to list of approved suppliers * Reject the supplier * Return the equipment * Negotiate the cancellation penalty. * Consider......

Words: 524 - Pages: 3

Wal-Mart's Purchasing Process

...Title: Wal-Mart’s Purchasing Process To: Dr. Franklin Mitchell From: Mark Bieker Class: Class: AC 550 Accounting Information Systems Date: October 10, 2011 Introduction Wal-Mart was founded by Sam Walton in 1962 with the first Wal-Mart discount store opening in Rogers, Arkansas. The company was officially incorporated as Wal-Mart Stores Inc. on October 31, 1969. Currently, Wal-Mart has stores in 50 states in America and 15 countries worldwide, including Argentina, Brazil, Canada, Chile, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom. The growth of Wal-Mart over a period of 49 years is remarkable and has lead Wal-Mart to become the biggest retailer in the world. Wal-Mart also has a strong community presence in the areas the stores are located. Wal-Mart’s purpose is to save people money and to help them live better. In 2007, Wal-Mart changed its slogan from “Always low prices” to “Save money. Live better.” This slogan is demonstrated in the products that Wal-Mart sells. Wal-Mart will not be undersold. Wal-Mart caters to the low income and middle income people by offering goods at low prices. These low prices are demonstrated in the products Wal-Mart sells. The products include: food, drink, clothing, jewelry, electronics, automobile supplies, sporting goods, toys, and furniture. Basically, Wal-Mart offers customers a one stop shopping experience. In order to provide this variety of...

Words: 5069 - Pages: 21

Đăng nhập | Terminator: Kroniki Sary Co... | Albero Di Natale 150 180 210 240 Cm 1900 Rami Linea Norway Foltissimo Realistico