This 5 page paper, which includes a 6 slide PowerPoint presentation, is a SWOT analysis of the mining firm Rio Tinto, looking at the strengths, weaknesses, opportunities and threats faced by the company in 2009. The bibliography cites 4 sources.
Tinto is a large intentional company, in order to consider their position a SWOT analysis may be very useful looking at the strengths, weaknesses, opportunities and threats faced by the
company. Strengths The firm has achieved a large increase in revenues, earnings before interest, tax, depreciation and amortization, in 2008 this
was 75% higher than 2007. A great deal of this was due to the acquisition of Alcan, a deal which was completed in 2007.
The firm has a large amount of long term assets which are well managed in order to leverage long term value. There is also a high level of
vertical integration, this is a known source of value, where a company is able to control the entire process in house, in line with Porters value chain theory (Thompson, 2007).
The markets that the firm operates within are also markets where there is an increasing demand and across a wide number of industries. Weaknesses The company has acuminated
a high amount of debt, this was increased as a result of the debt that came with the acquisition of Alcan. There are current attempts to alleviate this with the
sale of two Alcan divisions; Alcan engineered products and packaging operations, but so far a purchaser has not been found and the firm may need to split these up first
to achieve a sale in the mean time there is a high level of debt which requires servicing (Jennemann, 2009). The firm also has a weakness in
terms of the recent financial performance with falling debt levels and a decrease in the level of equity in the firm. This is aggravated by the high debt levels.