The Decline In Rio Tinto's Profit

Due to bureaucracy policies and procedures, it sometimes becomes hard to come out with innovative ideas quickly at Rio Tinto. To streamline the bureaucracy, I recommend Rio Tinto to embrace open innovation through collaboration internally and externally. Rio Tinto should assemble a global task force across all the product groups committed to accelerating ideas from concepts to reality. Prioritization of good ideas needs analysis by potential impact, risk and time to market, and should quickly transition open ideation to define the project teams. The open collaboration should embed the four innovation pillars employees reward mechanism, idea generation, idea conversion and idea diffusion.

It is this that has sparked China’s vulnerability to external shocks. In 2011, China’s exports amassed almost $2 trillion, however in Feb 2012, China recorded a $31.5 billion trade deficit as a result of the European sovereign debt crisis in which China’s main trading partners plunged into recession. China’s severe BOGS decrease is an attempt to control growth and a sustained level of 7.5%. Investment policies are also critical for China to achieve economic growth and development. Foreign Direct Investment (FDI) in China is being sought primarily in the redesign of State Owned Enterprises (SOE’s) and in the development of interior provinces. Between 75-80% of World Bank loans to China in 2008 were directed to the central and western regions, the most economically disadvantaged. This promotes increased wealth within China, leading to higher levels of development due to a more positive Human Development Index (HDI), which currently sits at 0.687, up from 0.677 in 2010. Thus, trade and investment are critical factors in ensuring that China’s growth remains sustained at 7.5% whilst still encouraging increases in development.

Those who argue that the ending of mining is not the ending of the economy and that the construction investment could offset the mining sector slump may be misled. They, together with those who assert that the ongoing fiscal and monetary stimulus have ample powers to lift the economy should clearly realise the following: the plunge in mining investment, the down turn in construction industry, the restriction in fiscal and monetary actions all signal that the Australian economy is sliding to sluggish. This low growth condition will continue for several years to come; it seems there is no room for

China economy experienced an incredible growth in the last few decades that made the country the 2nd largest economy in the world. When China started the program of economic reforms in 1978, it ranked 9th in nominal GDP but 35 years later it’s now ranked 2nd in the nominal GDP and been the world’s manufacturing hub. In recent years, China’s modernization propelled the tertiary sector and in 2013, it became the largest category of GDP with a share of 46.1%, while the secondary sector still accounted for a sizeable, 45% of the country’s total output. Meanwhile, the primary sector's weight in GDP has shrunk dramatically since the country opened up to the world.

International trade and subdued investment combined conspired to the slowest world growth since 2009. World bank economic growth is expected to rise to 2.7% in 2017 from 2.3% last year. Throughout Europe and Japan, monetary support and fiscal policies should help support economy activity this year. In China, growth is projected around 6.5% which reflects certain factors like uncertainty about global trade, and private investments. China accounts for about one-tenth of all global imports and exports, and roughly one fifth of investment accounts but has slowed from 21% to 10% in the last few years. With the recovery in certain commodity prices, like oil, the divergence is expected to narrow heavily. The environment the world is in right is a difficult one, negative interest rates constrict monetary policies and may warrant more fiscal policies. What needs to be done is to initiate more useful policies to include human capital, investment, global technology transfer, and heavily promoting trade in order to obtain at least some level of positive

Sir, a detailed analysis has been performed on the income statement and balance sheet of Riordan Manufacturing. The reason for this memo is to show the results of the analysis and provide an overview of the company’s financial situation.

This standard points of interest the necessities for Rio Tinto Group organizations to actualize an

BHP Billiton is the world’s top producers of major commodities. China, as BHP Billiton’s largest export market, demand strongly influences the BHP Billiton’s operation (Western Australian Iron Ore Industry Profile 2015). According to the annual report of BHP Billiton (2015), China brought about 36.6% revenue in the amount of total export revenue for BHP Billiton, among the largest product is Iron Ore, which was 66% in 2015. Meanwhile, the forecast of iron ore will continue to increase production. However, Chinese steel consumption may growth slow next few years (shows in figure 1) because the real estate industry decline (Mark 2015). Therefore, oversupply and weaker demand may create the fluctuations in commodity prices which related to commodity risk.

Introduction Rio Tinto is one of the leading metals and mining company with its headquarters in UK. The company was found during 1873 by the multinational investors who bought the mine complex from the Spanish government. With footprint on 40,000 countries, Rio Tinto employs about 66,000 people across six continents. Rio Tinto has strong presence in Australia with its Australian headquarters located at Melbourne. Their main products are gold, silver, copper, aluminium, iron ore, industrial minerals, thermal and metallurgical coal and uranium.

BHP Billion, a merging cooperation of BHP and Billion in 2010 (BHP Billiton, 2011), is a world leading company in mining and resource exploiting. According to ASX data, BHP Billion has the largest business scales in the Australian market, AU$166 billion of market capital and AU$71 billion of annual operating revenue in FY13 (Australian Securities Exchange, 2014). Over 128,800 employees and contractors work in 26 countries worldwide to create value for their shareholders (BHPB Annual Report, 2013). The core business has been classified into five units: petroleum, copper, iron ore, coal and aluminum, making 20%, 18%, 17%, 31% and 14% respectively in the revenue of FY13. It can be seen from Graph 1 that although iron ore was not the segment with the largest assets, it still returned with the largest revenue and highest ROA rate in 2013. The following paragraphs will focus on the strategy analysis on the segment of iron ore and how it can conquer possible threats

With proven strategy and strong business model Rio Tinto Group approached the global market. Through a thorough study for the Group’s approach tointernationalize the operations and structure of its production groups, it is found that this approach suits the strategy set by the group to achieve its objectives in maximizing shareholders returns and creating opportunities for improving many communities in the global. Also, it is found that Rio Tinto developed a strong risk-management & decision-making processes that enabled the group to compete against the limitations on its trades & operations.

First published in Mining Journal, April 2013 At long last, Glencore has overcome the final regulatory hurdle and secured the approval of China’s Ministry of Commerce (MOFCOM) to acquire the 66 percent of Xstrata that it does not already own. But not before agreeing to part with one of the prized assets in Xstrata’s portfolio, the Las Bambas copper project in Peru. If no suitable buyer for Las Bambas is found by September 2014, Glencore will have to auction off one of its other copper assets of MOFCOM’s choosing. To clinch MOFCOM’s blessing of the deal Glencore also committed to continue offering longterm supply arrangements to

The employees are also exposed to build and maintain strong partnerships via value chain. This will aid the workforce to maximize value from assets and to explore new opportunity. This is listed down under the strategy focus of 4P’s (portfolio, performance, people and partners). (Performance with purpose, 2017). The appointment of two executives on the management team had boosted the performance of employees and partnership capabilities. This had been done under the leadership of Chief Executive J-S Jacques. Moreover, cost reduction and also improvisation on effectiveness done by Hugo Bague, Rio Tinto Executive Committee member so that company can increase the capacity on financial

Rio Tinto is a multinational company that deals with mineral and metal mining, refining, processing, and marketing. Founded in 1873, this Australian-British company has grown into one of world’s leading mining and Metals Company, dealing in aluminium, copper, diamonds, coal, and iron ore. Refining of bauxite and iron ore are also part of its operations. The transformed metals and minerals give Rio Tinto access to markets across a diverse economic development spectrum, and exposure in varied sectors, including

Timing of the business cycle is not predictable, but its phases seem to be. Many economists site four phases—prosperity, liquidation, depression, and recovery. During a period of prosperity, a rise in production leads to increases in employment, wages, and profits. Obstacles then begin to obstruct further expansion. Production costs can increase, helping create a rise in prices, and