Global Business Environment Analysis of Rio Tinto Report

This report provides an analysis of the global business environment, focusing on the multinational company Rio Tinto. It begins with an introduction to the concept of the global business environment and its impact on service delivery. The core of the report is a PESTLE analysis, which examines the political, economic, social, technological, legal, and environmental factors affecting Rio Tinto's operations. The analysis considers various aspects such as political instability, economic conditions, social trends, technological advancements, legal regulations, and environmental policies. The report highlights how these factors influence the company's performance, sustainability, productivity, and profitability. The conclusion emphasizes the importance of market analysis before business expansion in the global environment. References to relevant academic sources are included to support the analysis.

Global Business
Environment

Table of Contents
Introduction................................................................................................................................................3
Pestle analysis......................................................................................................................................3
Conclusion.................................................................................................................................................4
References................................................................................................................................................5

Introduction
The surroundings where organization renders their services despite of their home
country are referred to as global business environment. This leads to creation of strong
impact on the ways in which services are conveyed (Davidson, Hauskrecht and von
Hagen, 2020). To understand concept of global business environment, Rio Tinto is
taken into consideration which was founded in 1873 and headquartered in London, UK.
They deal within production of copper, uranium, iron ore, aluminum, diamond and coal.
This report comprises of Pestle analysis of firm and along with impact that is created on
it.
Pestle analysis
The tool which is used for identifying factors that builds up influence on
performance firm is defined as pestle analysis (Hamilton and Webster, 2018). With
respect to Tiger Aspect Production, this is illustrated beneath:
 Political factors: There is a high risk for their business as well as assets when
rendering their services in countries where there is political instability. Like anti-
inflationary policy made by Chinese and Clean Technology Program created by
Australian government leads to drop within iron ore income. Furthermore, level of
corruption and risk of military invasion will also create a strong impact on their
services (Kasemsap, 2020). Economic factors: This comprises of exchange rates, labour cost, education
level and many other aspects. Slowing Chinese economy will lead a negative
impact on demands of iron ore. US administration has formulated protectionist
policies which may influence metal exporters along with miners. Social factors: Various social trends create affect on consumption and
production rates of Rio Tinto. This comprises of warning declining demand of iron
ore and possibilities of global supply gut as well as social stigma associated with
carbon emission and climate changes (Newman and et. al, 2020). Technological factors: Recent enhancements creates an impact on future of
mining as it involves completely automated and driverless trucks as well as trains

through which quick services can be delivered. Rio Tinto has leveraged
technology for supporting productivity programs. They can make investments
within lithium battery technology (Tallman, Luo and Buckley, 2018). As per
technologies which are used within market they can opt for same to ensure that
sales of their services can be enhanced thereby leads to improvised profitability. Legal factors: Risk for Rio Tinto is increased with changing policies as well as
stringent regulations within mining. Furthermore, profitability is impacted by
ongoing lawsuits for alleged corruption as well as license issues. There is
National Greenhouse and Energy Reporting Act 2007 which they have to adhere
to. Environment factors: Violation of environmental policies will have an adverse
impact on Rio Tinto. The major concern for firm is their ability for rehabilitation as
well as restore of used up mining facilities (Davidson, Hauskrecht and von
Hagen, 2020). They ensure that operations carried out by them do not hamper
the environment.
The key drivers have been illustrated above which has to be considered by Rio Tinto
while delivering services within global market. An instance can be taken like if education
level of individuals is not as per requirement then; they have to pay more for their
employees as they will be relocating (Hamilton and Webster, 2018). This might seem a
small aspect but they create a major impact on sustainability, productivity and
profitability of firm.
Conclusion
From above, it can be concluded that while dealing within global environment
there prevails distinct situations according to which services are being delivered. For
this, before expansion of business they need to analyze the market in which they are
planning to expand so that they can have affirmative impact.

References
Books & Journals
Davidson, L.S., Hauskrecht, A. and von Hagen, J., 2020. Macroeconomics for Business:
The Manager's Way of Understanding the Global Economy. Cambridge
University Press.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Kasemsap, K., 2020. The role of strategic outsourcing in global business. In Foreign
Direct Investments: Concepts, Methodologies, Tools, and Applications (pp. 236-
268). IGI Global.
Newman, C. and et. al, 2020. Corporate social responsibility in a competitive business
environment. The Journal of Development Studies, pp.1-18.
Tallman, S., Luo, Y. and Buckley, P.J., 2018. Business models in global
competition. Global Strategy Journal, 8(4), pp.517-535.