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Rio Tinto Mining Company Management Essay Introduction

SWOT Analysis is a framework to evaluate competitiveness, internal potency and languish of a company. PESTLE Analysis is defined as the meld, which is used to guide external factors of an organization. This analysis is useful to start a new business or emergence into foreign markets.

Company name

Rio Tinto Mining Company

Type of industry

Metals and mining

Headquarter

London

Sales/Revenue

$40.52 Billion

Area served

Around 35 countries

Number of stores

174

Competition

Arconic, Sandvik, China Minmetal

USP

World lead company finding, processing resources of Earth

Target Group

Leaders of the automobile industry, NGOs and local communities

Products

Iron, Copper, Diamond, Uranium

Website

https://www.riotinto.com

Rio Tinto Mining Company Management Essay SWOT Analysis

Strengths

  • Rio Tinto Mining Company focuses on building leadership in data, technology and automation
  • The company has a strong base of reliable supplier of raw material
  • Being the leading global mining player, net profit of this company is $13.925 billion

Weaknesses

  • Rio Tinto Company Management cannot acquire success in integrating firms based on different work culture
  • The organizational structure is not adjustable and flexible enough to cope up with the present scenario
  • Managing forecast of products is not ineffective due to which, reduced opportunities to sell products is predominant

Opportunities

  • Emergence of innovative technologies and machinery products increase in the new production.
  • The construction and infrastructure with financial and professional services can give the company further opportunities to build up a great workforce.
  • Selling the company’s products through online mode, increases in its sale by bringing profit to the company

Threats

  • Deficiency in efficient workforce decreases in the rapid growth of the company
  • Some of the relevant competitors are like Alcoa Inc, Anglo American plc, Newmont Mining Corporation and Teck Cominco Limited
  • Since these competitors are producing new technologies therefore, Rio Tinto Mining Company Management is under threat to adopt new technologies for future development.

Analysis

As per the case study of Rio Tinto Mining Company Management, it has been observed that it is known for its extensive and successful exploration program. This company has a very good connection with the distributors and dealers. The dealers enhance company's product and illustrate those products among customers to increase overall productivity and sales. As per the case study of Rio Tinto Mining Company Management, it has been observed that, the company has a strong free cash flow, which helped it to give resources for further development in presenting new products with high amount of profitability. Ineffectiveness of organizational structure lead Rio Tinto Mining Company to witness decreased sales and difficult in organizing its products (Shahba et al. 2017).

As per the case study of Rio Tinto Mining Company, it has been observed that adoption of new technologies like ERP system, AI or big data can widen up scopes to contribute towards mass production. Selling products through online transaction can moreover, increase profit (Mikler et al. 2019). The case study of Rio Tinto Mining Company further revealed that this company has fewer workforces due to which, innovative products are not being introduced for many years. In case the company has to develop or wants to make a profit then it will have to meet needs of consumers. There is a high chance of other competitors to grab possibilities to prosper as a famous mining company, which can be one of the biggest threats for the company.

Rio Tinto Mining Company Management Essay PESTLE Analysis

Political

  • The UK political system consists of multiple parties, leading to political instability 
  • Post-Brexit imposed restrictions on the corporate tax regime

Economic

  • Protectionist policy of the UK government may impact metal exporters
  • Currently, GDP of the country accounts to $2.62 lakh corers

Social

  • Increasing interest of people in Leisure
  • Educational level of employees can help in organizational growth

Technological

  • Investment in lithium battery technology is likely to widen up scopes for future growth of mining companies
  • Recent technologies like hydraulic mining can impress new consumers

Legal

  • Regulations and policy changing like Regulations and policy changing Act 2008 can decrease consumer demand
  • The health and safety policies like Health and safety law at work Act 1974 focus on safety-related issues of workers

Environmental

  • Weather condition limits transportation of resources and finished products
  • The Climate Change Act 2009 imposed huge responsibility on organizations to reduce net carbon account by 100% as compared to 1990 baseline by 2050

Analysis

As per the case study of Rio Tinto, political instability and frequent changes in political parties created risk for companies. High level of taxation policies de motivated companies to expand their products, especially after Brexit. Increasing growth rate of GDP affects Rio Tinto to grow in the near future. The protectionist policies of UK government may affect the mining and metal exporters like Rio Tinto. As per the case study of Rio Tinto, educational qualification of employees can be an opportunity to serve their customers better. In recent days people are interested in leisure that can be a threat for a company. According to Křupka et al. (2018), productive programmers are supported by leveraging policy.
As per the case study of Rio Tinto, they also take support of leveraging technology to promote their productivity programmed. They use new technologies to gaining popularity in industries and to compete with others. Strategic plans play an important role when healthy development of a company is concerned (Wolf and Floyd, 2017).

Investment in Lithium battery technology can be an opportunity for Rio Tinto to increase their sell. This renewable energy may expensive but Government and customers are willing to pay the exact price for these items. As per the case study of Rio Tinto, changes in trade regulations and policies can be a risk for them. Intellectual and other data protection acts protect plans of companies from copyrights. Health and safety law attracts their employees to join this company that can be an opportunity for them. As per the case study of Rio Tinto, specialists of human resource team maintain their social responsibilities employees with the help of health and safety act. Frequent changes in weather conditions can be considered a predominant threat for companies that are dealing with explosive materials (Rastogi, 2016). For instance, during the rainy season, it is difficult to transport resources and finished products, affecting delivery date.

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References

Reference List

Křupka, J., Kantorová, K. and Haile, M., (2018). Swot analysis evaluations on the basis of uncertainty-case study. Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 43/2018.

Mikler, J., Elbra, A. and Murphy-Gregory, H., (2019). Defending harmful tax practices: mining companies’ responses to the Australian Senate Inquiry into tax avoidance. Australian Journal of Political Science, pp.1-17.

Perera, R., (2017). The PESTLE analysis. Srilanka: Nerdynaut.

Rastogi, N.I.T.A.N.K. and Trivedi, M.K., (2016). PESTLE technique–a tool to identify external risks in construction projects. International Research Journal of Engineering and Technology (IRJET), 3(1), pp.384-388.

Shahba, S., Arjmandi, R., Monavari, M. and Ghodusi, J., (2017). Application of multi-attribute decision-making methods in SWOT analysis of mine waste management (case study: Sirjan's Golgohar iron mine, Iran). Resources Policy, 51, pp.67-76.

Wolf, C. and Floyd, S.W., (2017). Strategic planning research: Toward a theory-driven agenda. Journal of Management, 43(6), pp.1754-1788.

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