Rio Tinto International Strategies

This report analyzes Rio Tinto's international strategies, examining its product portfolio, the factors influencing business decisions, and the success of its strategies. It also explores how Rio Tinto adapts its products and processes to different international markets, considering factors like packaging, labeling, and climate change. The report concludes by highlighting the importance of internal and external force evaluation for strategic success.

Strategies and resources
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Table of Contents
INTRODUCTION:......................................................................................................................... 3
TASK 1.......................................................................................................................................... 3
1. Analysis of the strategies it uses to operate internationally and reasons behind it...................3
2. Product's portfolio and process for international market:........................................................3
3. Factors that may impact on business decisions taken for product portfolio...........................4
4. Evaluation of the success of its strategies..............................................................................4
5 Adaption of products and processes in international market....................................................5
CONCLUSION:............................................................................................................................. 5
REFERENCES:.............................................................................................................................. 7
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·INTRODUCTION:
Rio Tinto is a manufacturing group of mining industry which follows various evaluation
strategies. It has gone through a range of mergers and acquisitions and emphasize on extraction of
minerals like copper, iron ore, coal, uranium and diamonds (Gereffi and Fernandez-Stark, 2016).
It follows a fixed product portfolio and adapt strategies so that its resources are adapted in
international market. In this report proper analysis of products, strategies global, multi-domestic
and like to implement it into international market and reason behind them are described. It
manufactures minerals like uranium, copper, different varieties of diamonds and process coal. It
possess high quality of product and services and its objective is to provide surety regarding
sustainable and safe shipping of services and strengthen supply chain capabilities.
l壱TASK 1
l弐1.Analysis of the strategies it uses to operate internationally and reasons behind it
Rio Tinto applies strategies to get effective response from customers in variable conditions
including market situations. Following are some strategies:
Multi domestic Strategy: In this strategy focus is made upon local requirements customizing both
marketing strategy and offering products to match various national conditions. Commercial efforts
and advertising are mainly focused rather taking a global approach.
Global Strategy: This is opposite to multi domestic strategy. It tries to achieve a level in
economical market by providing same products and services and is very effective for Rio Tinto as
local preferences' variances in crucial.
Transnational Strategy: It is link between global and multi domestic strategy. It adjusts local
preferences within various nations to balance efficiency.
These strategies should be communicated with staff and should be prioritized for financial
needs. They also help in competitive advantage and emphasize direction in which the organization
is planning to move.
l弐2. Product's portfolio and process for international market:
Product's portfolio combines of all types of materials and resources used to manufacture
products (Ferrell and Fraedrich, 2015). Rio Tinto uses aluminium, copper & diamonds, minerals,
iron ore as raw materials. It operates Argyle diamond mine and is one of best and largest supplier
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of natural coloured diamonds. Their assets include coking coal and thermal operations in UK. It
has talented workforce for supplying important metals and minerals. Operations oh industry are
safe and secure and it uses leading mining process and technology with efficient and low cost
activities. They focus on uncut and rough diamonds which results in Diavik and Argyle
diamonds. Thus, it contains a diverse portfolio of minerals and metals which work in 35
countries. It focuses on findings, studying, developing and optimising projects. Rio Tinto
discovers and explores new resources (Gemünden, 2015). They give surety of correct business
and develop them on time in provided budget which is ready to handover to other departments.
Finally, this project goes through the stage of technical excellence, managing technical risk, and
automation platforms.
l弐3. Factors that may impact on business decisions taken for product portfolio
Factors affecting business decisions taken for product portfolio are fluctuation in demand,
profitability, stand-alone value, competition, capacity of production and policies of company. Rio
Tinto gets affected by these factors and product mix is changed, modified and prepared. Further
replacement of products depends on company's goals. It tries to maximize its profits and
continuous adjust more profits but its decisions are taken regarding demand in the market.
Players, growth and structure highly influence the industry (Hampton and Doostan, 2015). These
factors include market growth, demand and supply which reform financial competitors in market.
Stand-alone value is also dependent on competitive strength. Rio Tinto has ability to absorb
synergies from a single business unit which makes it significant. While political decisions also
fluctuates business decisions. Economical, social, technological, environmental and legal factors
affect these decisions externally. Decrease or increase in tax, emergence of new technology,
different laws like employment law, bureaucracy and entrance of new competitors influence
product portfolio and its pricing.
14.Evaluation of the success of its strategies
Various size of business develop strategies to achieve objectives, before implementation of
strategies its evaluation is needed and they should be specified properly. There are various
techniques of examining strategic management. It improves its effectiveness and performance.
It includes evaluating external and internal forces which affects strategic formulation and
determines right measures.
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Internal Forces: Strategic plan starts with evaluation of internal forces which includes company's
resources like financial assets, employees and proprietary information so that company can meet
its goals. These assets are developed in proper manner and help in company's expansion.
External Forces: These forces help in achieving mission of company and built up strength to
challenge demands of customers. Competitors weaknesses and strengths are also considered.
Company's success is determined by purchasing power of customers (Ghaffari, and et.al., 2017).
But consumers are pulled away through differentiating abilities of rivalries.
Performance Measure: It starts by measuring the operations of company in successful way. It
helps in determining whether the strategic process applied is heading to meet its goals and
missions or not. It includes sales force, manufacturing facility which analyse sales goals and
production targets of organization. It also helps in garnishing market shares for it.
Correction in Performance: After evaluation all historical performance all corrective measures are
considered so that its performance are measured and aligned properly. Sometimes objections are
caused then too it is an important component for controlling process. All its long term and short
term goals should be met. These corrections take time but its ensures its development. Thus, it is
an important component or technique for strategic evaluation. Thus, its resources are effectively
used by companies. Rio Tinto's strategy is based on 4 Ps i.e. Performance, people, portfolio and
partners. It believes in performance with purpose.
l弐5. Adaption of products and process in international marketplace
There are many ways in which product's and resources are adapted in international market
place. Factors which affect are packaging and labelling, weights and measures, climate change,
CE mark and financial investment. Parallel market is required to introduce new products. Details
of products mater and should be completely researched before exporting. Labelling and
packakging includes size of unit to colours used to label for products (Raza, and et. al., 2017).
These features are significant to foreign market. Every country has different electrical power
system. So if resources require more electricity then they have to be compatible with the targetted
market place. Rio Tinto's resources include minerals and diamonds which is processed which
requires high electricity and security. So the country's facing scarcity in power cannot welcome
these resources. Then comes CE mark which is must for consumer safety for selling products in
different EU countries. CE mark is affixed by manufacturer by conformity assessment process.
Weather conditions and climate change also influence in the processing of products. While
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processing, RTFT was researched by R&D department which expanded its growth strategy.
Measures and weights may differ from country to country (Sternquist and Goldsmith, 2018).
Thus, metric is accepted in global market. Alumina is smelted from aluminium which needs a
perfect climate condition. Coal power plants and coking coal is used for electricity generation.
·CONCLUSION:
It is concluded that Rio Tinto analyses external and internal forces to verify its direction
and lead towards completing mission and objectives. Its operations are divided into three main
units which refines resources at refineries. Functional departments explore and support operating
groups.
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·REFERENCES:
Gereffi, G. and Fernandez-Stark, K., 2016. Global value chain analysis: a primer.
Ghaffari, and et.al., 2017. Investigation and evaluation of key success factors in technological
innovation development based on BWM. Decision Science Letters. 6(3). pp.295-306.
Raza, and et. al., 2017. Success evaluation of the biological control of Fusarium wilts of
cucumber, banana, and tomato since 2000 and future research strategies. Critical reviews in
biotechnology. 37(2), pp.202-212.
Sternquist, B. and Goldsmith, E.B., 2018. International retailing. Bloomsbury Publishing USA.
Evans, and et.al., 2015. Cell-free fetal DNA screening in the USA: a cost analysis of screening
strategies. Ultrasound in Obstetrics & Gynecology 45(1) pp.74-83.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Gemünden, H.G., 2015. Success factors of global new product development programs, the
definition of project success, knowledge sharing, and special issues of project management
journal®. Project Management Journal. 46(1). pp.2-11.
Hampton, J. and Doostan, A., 2015. Compressive sampling of polynomial chaos expansions:
Convergence analysis and sampling strategies. Journal of Computational Physics 280.
pp.363-386.
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