Role of Business, Cultural, and Natural Environments in Shaping the Behavior of Rio Tinto

CONTEMPORARY BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Role played by Business, Cultural, Natural Environments in shaping the behaviour of Rio Tinto 2
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Contemporary refers to belonging to same time period'. It is a business environment with
a vast competitive market that changes continuously at very speed pace. Organizations owners
are required to have better understanding of the developments and requirements of company
Contemporary business environment is increasingly dynamic and competitive. As the fact that
corporate environment is changing at very fast pace there should also be changes in the concepts.
New accounting controls are required to be developed by the organisation for coping with the
changes taking place in firm. (Nikitina and Lapiņa, 2019). Companies are required to develop
reliable and logical business strategies and using adequate management tools for supporting the
planning, controlling and decision-making. Before engaging in any management plans
organisations are required to develop understanding of the factors, which are influencing the
business decisions.
There are various contemporary issues in the business environment. Planning is an
essential factor of management that requires all the aspects to be covered before making any
decisions. Many of the issues which can be faced by Rio-Tinto includes changes in laws, rules
and regulations. They can also face issues like updation of technology. Today organizations
faces increased influence due to legal and political uncertainty. There are issues related with
changes in governance and regulatory requirements. Consumer protection, intellectual property,
health care environment has raised various issues pressuring the industry and at the same time
keeping them under control. Companies are required to consider its implications on their
business ensuring their compliance. Rio Tinto leaders and managers needs to make their
decisions on basis of changes which are taking place in external environment.
Industry has accelerated their growth with the technological advancements. Technology
is helping both companies and society to grow like for example use of automation has made their
work process easy and faster. (Susu and Birsan, 2019). It is giving benefits for trading in the
competitive market. Financing is an economical factor but has great importance in the
contemporary business environment. It is not easy for the companies to raise loan for business.
Management is required to do deep analysis of the projects and activities for which the funds are
to be raised. There are various sources of funds available in the market but it is difficult to gain
the trust and confidence of society.
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Rio Tinto is British- Australian MNC in metal and mining’s field having primary focus
over extraction and also consists refining subsidiaries. Company was established in 1873 with
the headquarters in London, UK. More than half of global assets of company are housing in
Australia, with offices in Brisbane and Perth and headquarters in Melbourne. Company
specialises in the production of bauxite , iron ore, aluminium, alumina, diamonds, uranium and
salts in Australia. Report will emphasise on role played by business, cultural, natural
environment in shaping the behaviour of Rio Tinto. It will also include external and internal
environmental factor affecting business.
MAIN BODY
Role played by Business, Cultural, Natural Environments in shaping the behaviour of Rio Tinto
Rio Tinto is one of the company that is operating in the mining industry and is quite
popular across the world. Business factors play a very important role in sharping behaviour of
Rio Tinto. There are many rivals of Rio Tinto that are operating in this industry. Cost in the
mining operations always remain high which directly determine sales price of the product. Rio
Tinto from its inception focus on cost control and adopt varied cost cutting approaches and
innovative technology in order to reduce its cost (Driffield and Karoglou, 2019). Cost
significantly increased when economy is in recession and at that time due to increase in price of
the products demand get decline. Management of this company understand such a complex
situation and due to this reason, it consistently works on improving its technology base so that
cost can be controlled as much as possible. There are number of components of the business
environment like internal and external. Internal factor further is classified into HR and suppliers
etc. If any company has skilled and efficient human resources then in that case it become able to
compete with rivals and accelerate business growth at rapid pace. Rio Tinto is consistently
expanding its workforce and is also focusing on retaining its employees to maximum possible
extent. This help Rio Tinto in developing highly skilled and efficient workforce in its business.
This is the reason due to which mentioned firm easily implement any innovative idea in its
business at rapid pace (Ruokonen and Temmes, 2019). Thus, it can be said that internal factor is
shaping behaviour of Rio Tinto. Mentioned firm is also consistently improving its suppliers base
at fast rate and maintain close relationship with them due to which it is able to run its operations
smoothly. This is normal business practice that each company follow.
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