Value Chain Analysis of Rio Tinto

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student:
Name of the University:
Author’s Note:
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1MANAGEMENT ACCOUNTING
Table of Contents
Question 1:.......................................................................................................................................3
Introduction:................................................................................................................................3
Value chain analysis:...................................................................................................................3
Conclusion:..................................................................................................................................5
Question 2:.......................................................................................................................................6
Part 1:...........................................................................................................................................6
Part 2:...........................................................................................................................................6
Parts 3 and 4:...............................................................................................................................7
Question 3:.......................................................................................................................................7
Part 1:...........................................................................................................................................7
Part 2:...........................................................................................................................................7
Part 3:...........................................................................................................................................8
Part 4:...........................................................................................................................................8
Part 5:...........................................................................................................................................8
Part 6:...........................................................................................................................................9
Part 7:...........................................................................................................................................9
Question 4:.....................................................................................................................................11
Part 1:.........................................................................................................................................11

2MANAGEMENT ACCOUNTING
Part 2:.........................................................................................................................................11
Part 3:.........................................................................................................................................11
Question 5:.....................................................................................................................................11
Part 1:.........................................................................................................................................12
Part 2:.........................................................................................................................................12
References:....................................................................................................................................13

3MANAGEMENT ACCOUNTING
Question 1:
Introduction:
In this part, Rio Tinto is selected as the organisation, which is one of the leading
organisations operating in the Australian mining sector. The mission of the organisation involves
partnership with its key suppliers for maximising innovation so that there is minimisation in total
ownership cost (Riotinto.com, 2019). However, recently, it has been criticised owing problems
in transport, partnerships with the supplier and minimised visibility of operations. Thus, it is
essential for Rio Tinto to implement value chain for resolving the above-identified issues.
Value chain analysis:
There are two categories of activities in value chain analysis, which include primary
activities and secondary activities. For Rio Tinto, the primary activities include the following:
Inbound logistics:
These activities of the organisation are related to storing, receiving and disseminating the
product inputs. It could comprise of warehousing related to physical products, architecture and
material handling for receiving and storing customer information (De Waal et al., 2014). At
present, Rio Tinto has outsourced majority of its activities related to inbound logistics.
Operations:
These activities help Rio Tinto in transforming raw materials into finished products. Rio
Tinto uses its customer data so that it could serve advertisements depending on usage behaviour
to the clients and moulding plastic for manufacturing products.
Marketing and sales: