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 inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, increasing transportation and logistics costs, technology disruption, cloud computing is disrupting traditional business models,
competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, 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 -
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.
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.
Diverse revenue streams
– Rcm Copper is present in almost all the verticals within the industry. This has provided firm in Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
Analytics focus
– Rcm Copper is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Patricia H Werhane,, Jenny Mead, Michael E. Gorman can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
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.
Organizational Resilience of Rcm Copper
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rcm Copper does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Rcm Copper in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
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.
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.
Successful track record of launching new products
– Rcm Copper has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Rcm Copper has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
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 -
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.
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.
Aligning sales with marketing
– It come across in the case study Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange can leverage the sales team experience to cultivate customer relationships as Rcm Copper is planning to shift buying processes online.
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.
Interest costs
– Compare to the competition, Rcm Copper has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Lack of clear differentiation of Rcm Copper products
– To increase the profitability and margins on the products, Rcm Copper needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Slow to strategic competitive environment developments
– As Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange HBR case study mentions - Rcm Copper takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Rcm Copper has relatively successful track record of launching new products.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Rcm Copper supply chain. Even after few cautionary changes mentioned in the HBR case study - Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rcm Copper vulnerable to further global disruptions in South East Asia.
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 -
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.
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.
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.
Developing new processes and practices
– Rcm Copper can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
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.
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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Rcm Copper is facing challenges because of the dominance of functional experts in the organization. Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Rcm Copper can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Rcm Copper has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Rcm Copper can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
Creating value in data economy
– The success of analytics program of Rcm Copper has opened avenues for new revenue streams for the organization in the industry. This can help Rcm Copper to build a more holistic ecosystem as suggested in the Rio Tinto and the Resolution Copper Mining Joint Venture (A): The Land Exchange case study. Rcm Copper can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 -
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.
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.
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.
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 .
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.
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.
Technology acceleration in Forth Industrial Revolution
– Rcm Copper has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Rcm Copper needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
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.
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.
High dependence on third party suppliers
– Rcm Copper high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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.
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.
