Analysis of Rio Tinto's Strategic Management Amidst COVID-19

Anlaysis of hot topic
relating to corporate
strategic management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysis of the firm................................................................................................................1
Analysis of an issue and its significance for the firm.............................................................2
Evaluation of the firm’s action...............................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Corporate strategic management is refers to setting the objectives and analyzing the
competitive environment, and then evaluate the strategies that make sure that management rolls
out the strategies across an organization. Further, the current study is based upon Rio Tinto
which is a top mining and construction firm of Australia who also suffer negatively due to
Corona Virus i.e COVID-19. Study will present the market position in which a firm is operate
and then explain the strategic significance of a firm and the action which is taken by the
company.
MAIN BODY
Analysis of the firm
Rio Tinto is a top global leading mining firm whose headquarter is in Australia and the
company is serve at worldwide and also provide its best product and services to their customers
through global level. The company is standing in third position under mining company in the
terms of largest revenue earn. But the company is also affected in negative manner due to
pandemic disease Corona Virus i.e. COVID- 19. As per the current situation, around 1 lac 80
thousand people are suffer from the disease and that is why, government of every country take a
strict action to lock down every country and all the business. As a result, Khan, Fahad, Faisal
and Naushad (2020) in order to comply laws and regulation, Rio Tinto also turn off its
operations and manufacturing process for unspecified period and as a result, the company faces
lots of issue
As the firm is a Dual listed company that is traded on both the London Stock Exchange
and as a result, it sustain the brand image at international level. But due to this Corona virus
Epidemic, the company faces net loss of around 41% but in future they will definitely recover
the same. Moreover, the company also stop its production and as a result, most of the employees
did not get their daily wages and on the other side, company faces issue in its financial
performance.
From the secondary research it has been analyzed that Rio Tinto has a strong rise in 2018
but at the end of 2019, the company suddenly falls due to corona virus and as company also took
billion of money of impairment due to Oyu Tolgoi and Yarwun Alumin refinery projects. But
due to this pandemic virus Koshle, Kaur and Basista (2020) .The dividends are also cut by 19%
and this is the biggest issue which currently the firm face. Moreover, the net debt to $39 billion