Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange
From its inception, the Resolution Copper Mining (RCM) joint venture faced a number of significant technical, political, and environmental challenges as it attempted to develop a strategy for mining a copper ore body located under the Tonto National Forest in Superior, Arizona. As president and CEO of RCM, David Salisbury faced a number of key decisions in 2008-10 to keep the project on track. The success of the mine hinged on a politically complicated land exchange-and an act of Congress-in which the federal government would give RCM land containing the copper ore in exchange for parcels of ecological significance. Accomplishing this goal required Salisbury to engage with multiple stakeholders and navigate a complicated congressional landscape.
Authors :: Patricia H Werhane,, Jenny Mead, Michael E. Gorman
Swot Analysis of "Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange" written by Patricia H Werhane,, Jenny Mead, Michael E. Gorman includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rcm Copper facing as an external strategic factors. Some of the topics covered in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange case study are - Strategic Management Strategies, Government, Leadership, Sustainability and Global Business.
Some of the macro environment factors that can be used to understand the Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange casestudy better are - – increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, increasing commodity prices, there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, increasing transportation and logistics costs, there is backlash against globalization,
increasing energy prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rcm Copper, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rcm Copper operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange can be done for the following purposes –
1. Strategic planning using facts provided in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange case study
2. Improving business portfolio management of Rcm Copper
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Rcm Copper
Strengths Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rcm Copper in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange Harvard Business Review case study are -
Training and development
– Rcm Copper has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in Global Business field
– Rcm Copper is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Rcm Copper in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Rcm Copper has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– Rcm Copper is one of the leading recruiters in the industry. Managers in the Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Rcm Copper has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rcm Copper to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Rcm Copper in the sector have low bargaining power. Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rcm Copper to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Rcm Copper digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rcm Copper has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Innovation driven organization
– Rcm Copper is one of the most innovative firm in sector. Manager in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Sustainable margins compare to other players in Global Business industry
– Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange firm has clearly differentiated products in the market place. This has enabled Rcm Copper to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Rcm Copper to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Rcm Copper are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Highly skilled collaborators
– Rcm Copper has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange are -
Capital Spending Reduction
– Even during the low interest decade, Rcm Copper has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Need for greater diversity
– Rcm Copper has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
No frontier risks strategy
– After analyzing the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Rcm Copper has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow decision making process
– As mentioned earlier in the report, Rcm Copper has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Rcm Copper even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High bargaining power of channel partners
– Because of the regulatory requirements, Patricia H Werhane,, Jenny Mead, Michael E. Gorman suggests that, Rcm Copper is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange, it seems that the employees of Rcm Copper don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Products dominated business model
– Even though Rcm Copper has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange, is just above the industry average. Rcm Copper needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High operating costs
– Compare to the competitors, firm in the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Rcm Copper 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange, in the dynamic environment Rcm Copper has struggled to respond to the nimble upstart competition. Rcm Copper has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Rcm Copper can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Global Business industry, but it has also influenced the consumer preferences. Rcm Copper can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Rcm Copper to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Learning at scale
– Online learning technologies has now opened space for Rcm Copper to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Building a culture of innovation
– managers at Rcm Copper can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Rcm Copper can use these opportunities to build new business models that can help the communities that Rcm Copper operates in. Secondly it can use opportunities from government spending in Global Business sector.
Using analytics as competitive advantage
– Rcm Copper has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rcm Copper to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Rcm Copper can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Better consumer reach
– The expansion of the 5G network will help Rcm Copper to increase its market reach. Rcm Copper will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Rcm Copper can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rcm Copper in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Manufacturing automation
– Rcm Copper can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Rcm Copper in the consumer business. Now Rcm Copper can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange are -
Regulatory challenges
– Rcm Copper needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Rcm Copper in the Global Business sector and impact the bottomline of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange, Rcm Copper may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Rcm Copper needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Rcm Copper can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange .
Consumer confidence and its impact on Rcm Copper demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Rcm Copper will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Rcm Copper.
Stagnating economy with rate increase
– Rcm Copper can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Rcm Copper business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Rcm Copper needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Rcm Copper can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Shortening product life cycle
– it is one of the major threat that Rcm Copper is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Rcm Copper needs to make to build a sustainable competitive advantage.
