This 11 page paper, made up of 9 pages of text and a 6 slide PowerPoint presentation looks at the performance of Rio Tinto. The first part of the paper looks at the strategic approach and the financial results between 2004 and 2008. The second part considered the important of treasury management and the last part discusses the importance of harmonization of international accounting standards. The PowerPoint presentation presents a SWOT analysis of the company and its performance. The bibliography cites 10 sources.
Name of Research Paper File: TS14_TEriotin1.rtf
Unformatted Sample Text from the Research Paper:
PLC is listed on the London Stock exchange and Rio Tinto Limited is listed in Australia, together they are the Rio Tinto Group and are structured as a single economic
entity. The firms main area of operation in mining with major product groups including copper, aluminum, gold, diamonds, iron ore and industrial minerals such as titanium dioxide, borates and salt
(Rio Tinto, 2009). The firm has been successful and despite a hard year the history of the firm and its strategies indicate a potential good future for the firm.
The firm has global operations, but most are located in Australia and Asia, and the firm seeks to compete as a market leader gaining cost advantage though economies
of scale and efficient operations. The strategy was once one which included related and unrelated diversification, mostly horizontal. However, this has been remedied with the divestment of the concerned interests.
The locating and initial stages of any mining operation are long and expensive. Therefore, there has been a strategy of strategic alliances with local mining companies. This has realized several
benefits. The local knowledge has reduced the barrier to operating and trading in the area. This reduces the cost and the risk to the company and also gives them a
much easier route to withdraw should then need to do so. Rio Tinto use their bargaining power to gain clauses within contracts with alliances to their own benefit. This was
seen recently with the alliance with Trivalence Mining Corporation. In working with Trivalence Mining Corporation placed a clause within the contract; clause 6.8, which stated that the company, Rio Tinto
Mining & Exploration Limited (RTM&E), would be able to withdraw from the agreement for Aredor. In this case it was an option that was exercised with effect from March 7th