...be beneficial. As a result, the business relationship between Australia and China has been consolidated during these trading years. China is the second largest export market after Japan and third largest trading partner for Australia. Alternatively Australia is the ninth largest trading partner for China, thus the bilateral trade volume is increased annually in the growth rate of 30 percent (Moens.G,2007,p.56). Rio Tinto is the one, powerful multinational mining and metal company which is operated business to greatly import its porducts to China as the 19 percentage of company’s revenue is acquired from China market in 2008 (Chen, S. 2010). After Rio was declined an offer of $US20 billion from the state owned Chinalco, the arrest and sentence of Stern Hu and his colleagues in 2009 was occured for allegations of bribery about $US14 million and stealing business secrets from state-run steel company. Consequently the China Iron and Steel Association reflected by the action of stop buying iron ore for the next two months from Brazil’s Vale, BHP Billiton and Rio Tinto (Mascitelli&Chung, 2011). As a result the trade relationship between Australian and China is collapsed in some way that Foreign Minister Stephen Smith said transparency and openness could have facilitated Australia and the international business community in understanding and dealing with the matter (Sainsbury,M.2010). The case has raised the cold war tension between the essential economic relationship between Australia...
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...Executive Summary Rio Tinto, which bases its headquarters in the United Kingdom, has 71,000 workforces working across more than 40 countries including Japan. Being a leading global mining and metals corporation, it is rich in resources, human recourses and capabilities in responding to the demand for metals and minerals necessary to produce in diverse products, ranging from mobile phones to cars. It is focusing on searching, mining and processing the Earth's mineral resources as an effort to maximize shareholders’ value (Rio Tinto 2012). Rio Tinto, Japan faced a great deal of issues due to the earthquake (Vibert 2011). For instance, employees are losing of direction when business is to recommence. Most of the infrastructures such as power systems, public transports and communication channels in disaster-affected areas are destroyed. Furthermore, there are a great deals of uncertainties arose due to the earthquake and its aftermath especially the effect of radioactive contamination on water supply. Lacking of medical infrastructures to help the injuries as their numbers exceeds the affordability of the hospitals is also a concern. Rio Tinto has to act as a corporate residence and deal with these to assure shareholders’ return. This report aims to suggest a solution to deal with the issues identified. The report contains decision criteria acting as targets and measures for the recommendations. TOWS analysis is then put the Rio Tinto’s strength, weaknesses, opportunities and...
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...case study is about Rio Tinto, a mining firm that is carrying out a program concerning the employment of aboriginal people in Australia. The firm actually works with local indigenous communities, and was one of the first organisations to take into contract with the state. That is, the business will have to sign the contract of employing indigenous workers and supporting them in their placement, training and maintaining their posts (Rio Tinto, 2013) STAKEHOLDERS A stakeholder is a group, or a person like workers that has a direct interest in an organisation’s performance, operations and the organisation is affected by them as well as the stakeholders also are affected by the business (Raymond 2010, 14) The stakeholders involved are the indigenous people itself, the present staff, the state, special interest groups and shareholders. Furthermore, the indigenous people are classified as stakeholder as they are affected when there is the selection process while recruiting staff and the company is influenced by them because it has to look for better candidates among these aboriginal people and they will finally be part of the labour force. Moreover in the program that is being carried out, the new recruits would be provided with training as they are not that educated. There is also good environment condition that is being given to them with their jobs being secured. And also concerning the learners, that is those from the tertiary and secondary school Rio is allowing them...
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...EXECUTIVE SUMMARY The report aim’s to examine the annual reports of Australia’s two largest mining companies BHP Billiton and Rio Tinto and analyse their cash flow statements. The analysis requires evaluating the cash flow performance of these companies during the global financial crisis 2007- 2009.The global financial crises were originated in US because of the bloom/bubble in the housing prices. During global financial crisis many financial institutions failed to recoup their money from lenders and finally ended up declaring bankruptcy. The purpose of the cash flow statements is to provide information about the changes to an entity’s cash and cash equivalents over certain period of time. The cash flow from operating activities of the both companies shows both positive and negative signs as the companies were going through recession. Whereas both companies used external and equity source financing and thus made an efficient cost effective decisions from which BHP Billiton benefited the most. Finally it’s concluded that the both companies were successful in overcoming global financial crisis and alternative strategies affecting the profitability of the companies were presented. Introduction Last three years has faced the worst global financial crisis after the great depression of 1929-1933. The origin of global financial crisis was mainly in US starting from mid 2000’s and taking the whole world into account by the end of 2007. The main reason of the crisis...
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...Table of contents Executive summary i 1. Introduction 1 2. Motivation of publishing sustainability report 1 3. Key features of sustainability report 2 3.1 Completeness 2 3.2 Transparency 2 3.3 Comparability 2 4. Evaluation 3 4.1 Completeness 3 4.2 Transparency 3 4.3 Comparability 3 5. Conclusion 4 6. References 5 Executive summary Sustainability report is a kind of report which results from sustainable development, it aims at helping company to have a better long-term performance. Sustainability report is characterized by a range of information include environmental, social and governance. Sustainability report has a great impact on investment decision and company's financial performance. The motivation of company publish the sustainability report is the benefits which include more profit, reputation, and support from government and consumer. The key features of the sustainability report contain completeness, transparency and comparability. 1 Introduction With the growing demand for meaningful, timely and comparable data, sustainability report becomes more and more popular; almost every company will publish their sustainability report. Thus, stakeholders put more attention...
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...RIO Questions (1) I should look at whether the current KS of RIO suggests any bus. Or finc risks (2) Does increase or decrease leverage (if I recommend) affect return or risk RIO is raising (3) Is RIO a high or low Beta company? HOW DOES GFC AFFECT ON RIO? (4) What is the average level of leverage within proxy firms and mining industry? EBIT ($ millions, no taxes) EPS ($) 0 0.2 0.4 0.6 0.8 1 3 2.5 2 1.5 1 0.5 0 – 0.5 – 1 D/E = 1 D/E = 0 This can be used in ass by showing the change in D/E ratio and how does it affect EPS This graph show at which EBIT the two different D/E produce the same EPS * Let’s evaluate the following ratios chapter 28 716 * Total book value of liabilities / total book value of equity (1) * Total debt / book value of equity (2) * Net debt / book value of equity (3) * Net debt = Total debt - cash * Net debt / net tangible assets (4) * Net tangible assets = total assets – intangible assets – total liabilities – preference shares * Net debt / market value of equity (5) * Notes: * It would be better to use market value of debt, but not all firms issue bonds * The above ratios can also be converted to have total assets (book value or market value) as the scaling factor * I need to evaluate these ratios for ass * RIO does not issue bonds => book value only AUS has imputation tax system...
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...BFZ5959 The Report on Rio Tinto Limited By YANG Jie (Jake) Student ID: 27315541 Abstract: The report focused on financial performance of Rio Tinto Limited during 2006-2015. The report graphed the share price, market capitalization, earnings per share and debt structure and interpreted the figures respectively. The dividend policies and buybacks are also investigated and shown in the report. The report suggested though Rio Tinto Limited was in a hard time, its prospective was still positive. In order to develop better, the report argued Rio Tinto Limited maintained its good features and did some necessary change at the same time. Abstract 1 1. Introduction 3 2. Share Price 3 3. Market Capitalization 4 4. Earnings per Share 5 5. Debt Structure 6 6. Dividend Policy and Buybacks 8 7. Conclusion 9 References 10 1. Introduction Rio Tinto Limited, a large Australian company, was selected as targeted company. Rio Tinto Limited is involved in the mining, exploration, smelting, refining and selling of minerals; the manufacturing of metal and non-metal products; and the provision of professional services. The report investigated the share price, market capitalization, earnings per share, debt structure, dividend policy and buybacks during 2006-2015. After investigation, the report got some conclusion and tried to give some suggestions. 2. Share Price Figure 1: Share Price Source: OSIRIS database The share price of Rio Tinto Limited during 2006-2015 was shown in Figure 1...
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...One subsystem, organizational culture, directly impacts and plays a vital role in regards to the functioning and well being of an organization. Organizational culture, as defined by Schein, is a: (…) pattern of shared basic assumptions that the group learned as it solved its problems of external adaptations and internal integrations that has worked well enough to be considered valid and, therefore to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” (as cited in Guzman, Stam, & Stanton, 2008, p. 34). Therefore, IT managers must consider that organizational culture is an important factor to be taken into consideration within the value chain. As stated by Schein, culture is relevant and it matters because it is a powerful, latent, and often unconscious set of forces that determine both our individual and collective behavior, ways of perceiving, thought patterns, and values (Guzman et al., 2008). In order to take a look deep inside an organization’s social and technical dynamics, via value chain we turn our attention to “The Mini-cases: 5 companies, 5 strategies, 5 transformations”. This unique interaction case study was conducted by Balu Bagopal, Maurice Berns, Zayna Khajat, Martin Reeves and Andrew Townsend a MIT Sloan Management Review and knowledge partner. The Boston Consulting Group, with sponsorship support from business analytics provider SAS,...
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...| CASE 2 | Fortescue Metals Group: The new force in iron ore | ABC 9/12/2011 | Contents Introduction 1 Analyzing the external environment 1 Demographic 1 Economic 1 Socio-culture 2 Political-legal 2 Global 2 Technological 2 External environment conclusion 2 Industry analysis 3 Profit pool 3 Porter five forces 3 Threat of new entry 3 Bargaining power of suppliers 4 Bargaining power of buyers 4 Threat of substitute products 4 Rivalry among competing firms 4 Industry analysis conclusion 4 Competitor analysis 4 Analyzing the internal environment 5 Tangible resources 5 Intangible resources 6 Value chain analyzing 6 Capabilities 6 Core competencies 7 Weaknesses 7 Current strategy 7 Future strategy 8 Concluding remarks 8 References 9 Introduction Fortescue Metals Group: The new force in iron ore is a new company in the Australia with new vision. It was founded in 2003 with the aim of lowest cost producer in order to complete with large players of industry. Its main customer is China. Its lowest cost structure is main reason behind getting huge business from china. It had to faced many challenges in the industry but its strong policies supported company to make its distinct position in the industry Analyzing the external environment Every business/ company has external environment with some positive and negative points. Below is the analysis of Fortescue external environment. Demographic According to information...
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...My name is Dermot Vibert. I work with Rio Tinto Japan. On March 11, 2011 I was in our office when we were hit by an extremely strong earthquake. Among the many issues we faced immediately after the earthquake was what would we do on the Monday morning when we had to supposedly return to the office and recommence business. What caused this issue to arise and why is it important? B) Causes Identify the importance of the Causes to the organisation concerned. What Caused these Issues to arise? The reasons underlying the Issues will be explicit in the Causes identified. The earthquake in the afternoon of March 11 was, although it struck 520 kilometers from Tokyo, it was an extremely strong one for us in Tokyo. The buildings shook severely two or three times, and then many, many times thereafter because of the aftershocks. On at least two occasions we had to go under our desks with our helmets on and literally hold on to the legs of the tables. It was that strong. The earthquake knocked out a lot of the power system, and as a result the trains were not able to function normally, and because there was not enough power as well, things like traffic lights, lights in buildings, etc., all these things were affected. There were many unknowns such as what damage there really was in the Tokyo area, for how long would trains not be running, would there be adequate food in two or three days time, what was going to happen with fuel supply, because when we were watching on television,...
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.....2 1.4 Delimitations..............................................................................................................................3 2. Industry Analysis .................................................................................................................................3 3. BHP Billiton ........................................................................................................................................4 3.1 Background ................................................................................................................................4 3.2 Financial Standing .....................................................................................................................4 4. Rio Tinto ..............................................................................................................................................5 4.1 Background ................................................................................................................................5 4.2 2012 Performance and Uncertain Future ...................................................................................5 5. Merger...
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...com/statistics/267381/world-reserves-of-iron-ore-by-country/ http://www.businessinsider.com/countries-by-gold-reserves-january-2013-2013-1?op=1#ixzz34xUsjF9T www.northamericaninterests.ca Дэлхийн хамгийн том уул уурхаЙн компаниуд The global top ten richest mining companies № | Company name | CEO | Location | Revenue | Stock price | Website | 1 | Glencore Xtrata, 1974 | Ivan Glasenberg | headquartered in Switzerland | $200bn in 2013 | GLEN (LON) 325.75 GBX | www.glencore.com/ | 2 | BHP Billiton | Andrew Mackenzie | headquartered in Melbourne, Australia | $67.83bn, Dec 2013 | BHP Billiton Limited (ADR)NYSE: BHP | www.bhbbilliton.com | 3 | Rio Tinto, 1873 | Sam Walsh, Tom Albanese | headquarters in London | $54.6bn, Dec 2013 | RIO (LON) 3,082.42 GBX | www.riotinto.com | 4 | Vale, 1942 | Murilo Ferreira | Rio De Janeiro, Brazil | $48.9bn, 2013 | Vale SA (ADR)NYSE:...
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...This report provides an analysis and importance of CSR reporting in mining industry, how well companies disclose social and environmental issue according to GRI guidelines. This article’s main focus is to describe trends of CSR reporting in mining companies in Australia. This article provides detailed overview of companies reporting format and structure, CSR disclosing motivation, how well company account for job losses and impact of reduction of oil price on companies. The purpose of this report is to describe CSR practice of mining companies in Australia and highlights the importance of sustainability reports regarding social and environmental perspective. This report is based on two major mining companies namely BHP Billiton and Rio Tin. The information used for writing this article is gathered from different researcher, annual reports, newspapers, and online articles, GRI guideline. Only Secondary data used to write report and study based on ASX registered companies companies in Australia are more aware of GRI reporting standards now and also know that how crucial it is to report on the sustainability issues from social and environmental perspective to have long term business and secure future. . Contents Executive Summary i Contents ii Introduction 3 Question a 3 Question b 5 Question c 7 Question d 8 Question e 9 Conclusion 11 Reference List 12 Introduction Corporate social responsibility is a business...
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...The slowdown in China’s growth has had a rippling effect with consequences seen in the Australian Government, Domestic Firms and even Multinational Firms. Due to the slowdown, implications that have been placed on the Australian Government have been ones such as a need for the restructuring of certain policies to be able to handle the increased exposure to the volatility of the commodity market. The government should ensure appropriate policies are in place to facilitate the management of risk in regards to this volatility. Seeing as how the price of iron ore has fallen by more than what the government expected at the time of the May budget, there is a need to look at the budget again as this may hinder any planned spending due to predicted government investment and income. With the Australian mining industry being held at such a high standard from the rest of the world, there is a need for Australia to retain as much revenue as possible. With the super-sized profits being reeled in by resource companies operating in Australia, it is up to the Australian Government and the implementation of the mining tax, as this would reduce the damage being felt by the exports industries such as manufacturing and tourism which has suffered due to the increased Australian Dollar (Jessica Irvine 2010). Other implications seen by the Government include a potential volatility in the relationship between the Australian Government and the Chinese Government due to a reduction in the...
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...Thailand inundated automobile assembly plants in 2011. * Holcim, one of the world’s leading suppliers of cement and aggregates, was affected by severe flooding in both Thailand and eastern Australia in 2012, resulting in $6.1 to $8.2 million in maintenance costs and lost production, in addition to costs of around $6.1 million from a surge in coal prices due to impacts on Australian coal mines. * Oil & Gas Chevron, the largest oil and gas producer in Mexico, was significantly affected by Hurricanes Katrina and Rita in 2005. Reduced crude oil and natural gas production, and added costs for repairs and maintenance of facilities, resulted in an approximate $1.4 billion loss in the second half of 2006. * Mining In 2011, Rio Tinto’s Australian operations were hit by cyclones and widespread...
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