Rio Tinto: Resource-Based View

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Rio Tinto: Resource-Based View
Introduction
Rio Tinto was established in 1873 and 1905. Currently, it is considered as the leading mining and exploration companies in the globe. The companies find, mine and process the mineral resources of the earth – such as metal and minerals that are vital in making thousands of everyday products which meet the needs of the society and contribute to the improve standard of living. The activities of the companies span the world with production from every continent. The companies are offering products such as aluminum, copper, diamonds, energy products, gold, industrial minerals and iron ore (Rio Tinto, n.d.). Rio Tinto is a contemporary business which is committed in serving all of its stakeholders. Thus, in all of its activities, the company follows the very best practice in terms of safety, ethical business, social and environmental responsibility, together with sustainable development (Rio Tinto, n.d.). The main objective of the company is to maximize profit towards its investors by operating in responsible manner and in sustainable manner in the process of finding, mining and processing minerals – areas of expertise in which the Group has a competitive edge. The strategy of Rio Tinto focuses investing in large, long life and cost competitive advantage driven by the quality of opportunity, not choice of commodity (Rio Tinto, n.d.).
The Resource-Based The resource-based view (RBV) of strategic management focuses on the development of core competencies. This theory has been concisely described by Pahalad and Hamel (1990) both achieved the scientific breakthrough and innovation of this theory, even though the notion rooted from Penrose (1959). It is important to take note that RBV theory explains the differences in the performance of the company and its…...

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