Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine

To dewater the former Magma Mine and sink the exploratory shaft, the RCM team was faced with extracting and managing about 2 billion gallons of naturally accumulated water as well as about 300 million gallons per year of new inflow. The team's goals were to accomplish the dewatering safely, in a quick and economically feasible way, while also protecting the environment and managing the interests of local stakeholders. The team had four options to consider: treat and release, reverse osmosis, pond evaporation, and irrigation pipeline. In choosing the best option, Salisbury and RCM had to consider the seriousness of stakeholder concerns and the possibility of jeopardizing the bigger RCM project.

Authors :: Patricia H Werhane,, Michael E. Gorman, Jenny Mead

Topics :: Global Business

Tags :: Leadership, Sustainability, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine" written by Patricia H Werhane,, Michael E. Gorman, Jenny Mead includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rcm Dewatering facing as an external strategic factors. Some of the topics covered in Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine case study are - Strategic Management Strategies, 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 (B): Dewatering the Magma Mine casestudy better are - – there is increasing trade war between United States & China, challanges to central banks by blockchain based private currencies, geopolitical disruptions, competitive advantages are harder to sustain because of technology dispersion, technology disruption, wage bills are increasing, central banks are concerned over increasing inflation, there is backlash against globalization, talent flight as more people leaving formal jobs, etc

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Introduction to SWOT Analysis of Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine

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 (B): Dewatering the Magma Mine case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rcm Dewatering, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rcm Dewatering 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.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine can be done for the following purposes –
1. Strategic planning using facts provided in Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine case study
2. Improving business portfolio management of Rcm Dewatering
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 Dewatering

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Strengths Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Rcm Dewatering in Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine Harvard Business Review case study are -

Superior customer experience

– The customer experience strategy of Rcm Dewatering in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Ability to lead change in Global Business field

– Rcm Dewatering 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 Dewatering in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Operational resilience

– The operational resilience strategy in the Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine 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.

Ability to recruit top talent

– Rcm Dewatering is one of the leading recruiters in the industry. Managers in the Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine 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 Dewatering has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rcm Dewatering to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Training and development

– Rcm Dewatering 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 (B): Dewatering the Magma Mine 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.

Innovation driven organization

– Rcm Dewatering is one of the most innovative firm in sector. Manager in Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine 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 (B): Dewatering the Magma Mine firm has clearly differentiated products in the market place. This has enabled Rcm Dewatering to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Rcm Dewatering to invest into research and development (R&D) and innovation.

Organizational Resilience of Rcm Dewatering

– The covid-19 pandemic has put organizational resilience at the centre of everthing that Rcm Dewatering does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.

Analytics focus

– Rcm Dewatering 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,, Michael E. Gorman, Jenny Mead 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.

Low bargaining power of suppliers

– Suppliers of Rcm Dewatering in the sector have low bargaining power. Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rcm Dewatering to manage not only supply disruptions but also source products at highly competitive prices.

Effective Research and Development (R&D)

– Rcm Dewatering has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

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Weaknesses Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine | 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 (B): Dewatering the Magma Mine are -

No frontier risks strategy

– After analyzing the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine, 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.

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 (B): Dewatering the Magma Mine, in the dynamic environment Rcm Dewatering has struggled to respond to the nimble upstart competition. Rcm Dewatering has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

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 (B): Dewatering the Magma Mine 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 Dewatering has relatively successful track record of launching new products.

High bargaining power of channel partners

– Because of the regulatory requirements, Patricia H Werhane,, Michael E. Gorman, Jenny Mead suggests that, Rcm Dewatering 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.

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine, is just above the industry average. Rcm Dewatering 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 (B): Dewatering the Magma Mine 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 Dewatering 's lucrative customers.

Aligning sales with marketing

– It come across in the case study Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine 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 (B): Dewatering the Magma Mine can leverage the sales team experience to cultivate customer relationships as Rcm Dewatering is planning to shift buying processes online.

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 Dewatering supply chain. Even after few cautionary changes mentioned in the HBR case study - Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rcm Dewatering vulnerable to further global disruptions in South East Asia.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Rcm Dewatering is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

High cash cycle compare to competitors

Rcm Dewatering 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.

Increasing silos among functional specialists

– The organizational structure of Rcm Dewatering is dominated by functional specialists. It is not different from other players in the Global Business segment. Rcm Dewatering needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Rcm Dewatering to focus more on services rather than just following the product oriented approach.

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Opportunities Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine | 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 (B): Dewatering the Magma Mine are -

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 Dewatering 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.

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 Dewatering can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Using analytics as competitive advantage

– Rcm Dewatering 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 (B): Dewatering the Magma Mine - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Rcm Dewatering to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Better consumer reach

– The expansion of the 5G network will help Rcm Dewatering to increase its market reach. Rcm Dewatering 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.

Creating value in data economy

– The success of analytics program of Rcm Dewatering has opened avenues for new revenue streams for the organization in the industry. This can help Rcm Dewatering to build a more holistic ecosystem as suggested in the Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine case study. Rcm Dewatering can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Buying journey improvements

– Rcm Dewatering can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Manufacturing automation

– Rcm Dewatering 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.

Learning at scale

– Online learning technologies has now opened space for Rcm Dewatering 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.

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 Dewatering can explore opportunities that can attract volunteers and are consistent with its mission and vision.

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 Dewatering in the consumer business. Now Rcm Dewatering can target international markets with far fewer capital restrictions requirements than the existing system.

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 Dewatering can use these opportunities to build new business models that can help the communities that Rcm Dewatering operates in. Secondly it can use opportunities from government spending in Global Business sector.

Developing new processes and practices

– Rcm Dewatering 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.

Loyalty marketing

– Rcm Dewatering 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.

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Threats Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine 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 (B): Dewatering the Magma Mine are -

Consumer confidence and its impact on Rcm Dewatering 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.

Increasing wage structure of Rcm Dewatering

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Rcm Dewatering.

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Rcm Dewatering in the Global Business industry. The Global Business industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

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.

Environmental challenges

– Rcm Dewatering 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 Dewatering can take advantage of this fund but it will also bring new competitors in the Global Business industry.

High dependence on third party suppliers

– Rcm Dewatering 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.

Stagnating economy with rate increase

– Rcm Dewatering 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.

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 Dewatering.

Easy access to finance

– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Rcm Dewatering can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

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 Dewatering 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 (B): Dewatering the Magma Mine, Rcm Dewatering 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 .

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 Dewatering business can come under increasing regulations regarding data privacy, data security, etc.

Technology acceleration in Forth Industrial Revolution

– Rcm Dewatering has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Rcm Dewatering 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.

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Weighted SWOT Analysis of Rio Tinto and the Resolution Copper Mining Joint Venture (B): Dewatering the Magma Mine 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 (B): Dewatering the Magma Mine 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 (B): Dewatering the Magma Mine 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 (B): Dewatering the Magma Mine 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 (B): Dewatering the Magma Mine 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 Dewatering needs to make to build a sustainable competitive advantage.

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