RIO TINTO GLOBAL STRATEGIC MANAGEMENT

Rio Tinto Global Strategic Management

Rio Tinto Global Strategic Management

Introduction

Rio Tinto is a thriving international business in finding, mining and processing the earth's inorganic resources such as aluminium, copper, gold, precious gems, developed minerals (borax, titanium dioxide, etc), iron ore and power goods (coal and uranium). Rio Tinto is a blend of some subsidiaries with each subsidiary focusing on a type of product. This report will be focusing on Rio Tinto's developed minerals assembly of ilmenite miners that are comprise of wholly owned QIT - Fer et Titane in Canada and furthermore 50% interest Richards embayments Mineral established in South Africa. Both subsidiary mine ilmenite which produces titanium dioxide as the major products that are generally utilised for pigments utilised in paper, plastics, tints, etc. This report will investigate the significance of both the general and commerce evaluation and the influence natural natural environment will have on the company, schemes that are set to achieve the organization goals and furthermore Porter's 5 forces idea for the industry assessment. The report will be focusing on a blend of both QIT - Fer et Titane and furthermore Richards embayment Mineral and Rio Tinto as a whole.

Importance of environment assessment

According to Deresky (2002), the first thing that a company should do in setting global scheme is to characterise or clarify operation and objectives. Assessment of the external natural environment that the firm will face in future should be finished next and furthermore analysis of the company's capabilities in considering effectively with the environment. Environment factors are important factors that will influence the success of a company's international expansion. Rio Tinto's fundamental target is "to maximise the general return to shareholders by functioning responsibly and sustainably in finding, mining and processing minerals - localities of know-how in which the assembly has a clear comparable benefit" (www.riotinto.com).

Rio Tinto Ilmenite mining functions in Canada and South Africa, the dangers of functioning in different geographic area should be mindfully considered. According to Deresky (2002), ecological scanning refers to the process of accumulating information and forecasting applicable tendency, comparable action, and attenuating factors that will effect procedure in geographic locality of potential interest. Hanson et al's (2002) found that a firm might not be able to command the general environment's segment and element; instead, it can gather the data required to realise each segment and its implication for the assortment and implementation of the befitting strategies. Thus, general natural natural natural natural natural natural environment assessment is essential, the general natural natural natural natural natural natural environment that should be advised are demographic, financial, political/legal, sociocultural, technological and international dimensions which sway the company's international expansion.

Demographic

According to U.S. Census Bureau, the world community is 6.4 M actually and is projected to reach 6.5 M by January 2006. Thus the need for titanium dioxide is increasing gradually based on the fast world's population augment which is evidenced from Fig1 below. To contend with the expanding world's need for titanium dioxide, Rio Tinto need to elaborate its ...