Discuss about the Personal Knowledge Network Perspective.
When an enterprise commences a business, the owner and management is optimistic of getting success. Most of the business persons are generally aware of the general pitfalls but most of them try to pay attention to the number of critical issues. Critical issues are the primary issues that are considered extremely important which may determine the company’s survival or success.
This essay will demonstrate the critical matters associated to business context of Rio Tinto which is a British-Australian international enterprise and one of the world’s major metals and mining enterprise. It will also outline the range of environmental factors and contemporary issues and their impact on the business context of the specified company. Furthermore, the essay will also confer the impression of regionalization and globalization on the business contexts.
Analyse the range of environmental forces, organisational structures, functions, governance and legal requirements of firms and the impact on the business context
Environmental factors in business can be demarcated as the sum total of exterior and interior features that has its impact on the commerce. Exterior and interior factors of the business can impact each other and work composed to upset a business (Amine Chatti, 2012). It is very important for Rio Tinto to interact and transact with its business as the business environment has direct relationship with the business. Kotler and Armstrong 2004 stated that environment impose different restrictions on the organization. The stated company has little influence on the environment and it is important for the businesses to recognize the environment they are working in. Business environment is therefore a combination of all external forces such as economic, social, legal, technological and political factors (Amine Chatti, 2012). One of the major external factors that affect the Rio Tinto revenue result is the commodity prices. Furthermore, increasing mining taxes, demand for heightened corporate social responsibility, labour shortage, and the legislative competition among countries are other important external factors which has its high influences on the success of Rio Tinto.
Organizational structure describes the managerial relationships, workflow and departmental arrangement within the context of the business. It is the manner in which organizational structure is developed and can have direct impact on the company’s productivity (Doyle, & Von Windheim, 2014). Organizational structures emphases on the outline of the departments and job characters in the company in the framework of reporting associations. The management of Rio Tinto has increases its concern on health and safety of its workers and has four different groups namely, Aluminum, Copper & Diamonds, Energy & Minerals and Iron Ore under its organizational structure.
One of the few things that are compulsory in business context is the legal requirements. Every entrepreneur can choose from different types of styles and types of business but they are directed by the government regulations (Doyle, & Von Windheim, 2014). A large number of laws such as Health and Safety, mining leases and regulations, noise and air act, ratified agreements and many others affect the business operations of Rio Tinto defining the illegality and setting the operational codes of the businesses to follow (Amine Chatti, 2012). The business rules and regulations help a business firm to improve its operations. Following the safety and security rules imposed by government helps Rio Tinto to prevent injuries, fires or building evacuations that reduces the profitability of the business.
Contemporary issues are usually taken as an event, opinion or theme in a given matter that is pertinent to the current day. It is initiated in nearly any stuff of interest (Nieuwkamp, 2010). Contemporary matters in business context comprise an inexact legal landscape, technical advancements, risks, innovation, knowledge management, e-context and altering face of the loaning market.
Legal concerns in the current business environment in mining industry has already seen affair segment of political and legal uncertainty as the issues like environment protection, health care and safety of the workers and intellectual property has developed into a form of legal issues (Nieuwkamp, 2010). Rio Tinto must keep knowledge of local, state and central business law of foreign countries in which it is operating and should adopt its operations early to these legal terms.
The technology in business has changed a lot in last 30 years and it has now become trend in accelerating the business. It is important for the Rio Tinto to adopt new developments in the technology for the betterment of worker’s safety (Ratnasingam, 2008). Implementing modern technology will assist Rio Tinto in recognizing the business requirements and also in evaluating the business processes.
Risk issues are matter of concern for business persons and also create great uneasiness in indecision, risks in global budget, in credit marketplaces, in new state or central conventions, competitor’s strategy and risk in how modern technology will have its impact on the business (Nieuwkamp, 2010). Companies are changing their strategy from long-term planning to short-term planning with risks as an excuse.
Most of the companies look to generate more groundbreaking cultures. Big corporations are under pressure with innovation and for better innovation process (Ratnasingam, 2008). A improved innovation procedure is the foremost agenda for Rio Tinto leaders but the idea of implementing it is always frightening for them. Their main focus of the specified company should be on how to turn into a more innovative while upholding a sense of control over the business.
The biggest challenge in knowledge management of the organizations is the participation of people or employees in sharing the knowledge, collaboration and re-utilization to achieve business results. It improves and integrates the assimilation, transformation and exploitation of external knowledge capabilities also helps in improving the enterprise absorptive capacity (Wright, 2016). Enhancing the knowledge management in the company will assist Rio Tinto in improving the firm’s growth willingness which has positive impact on the firm’s transformation and assimilation abilities.
E-commerce is no longer limited to choosing of good-looking product or shopping cart. It has now evolved into a new channel and converge retail or total B2B operations. There are some risks associated with e-commerce that has negative impact on both the businesses and consumers. Now, consumers are more empowered than before and have greater choice of goods available to them at lower price than the goods at store (Ratnasingam, 2008). One thing that diverse it from other means is that it is used to sell the product without having direct face to face contact with the sales representative.
Globalization and regionalization are not actually new processes; these two are basically concepts that are known in internal business and trade. Both the concepts are always associated in order to describe transactions that are done in international business ground. Regionalization does not basically oppose the concept of globalization as well as regionalization does not create any blocks towards globalization (Akhter, & Beno, 2011). It is stated by Proff (2002) that regionalization creating a path mainly to those outside the triad markets towards grabbing the idea and concept of globalization. With the help of presentation, Proff(2002) justifies that globalization has lowered the trade barriers into several distinct economies and making it smoother for the flow of investment across the markets. By facilitating from association in other economies the capital flow from one single economy to the other increased (Buytaert, & Beven, 2009). Entering to resources and raw materials, cost saving from the operating costs and lowering labor leads to the expansion to another market that proves the advantages for investors while associating in foreign investment. Normally, globalization as, well as trade reforms is credited along with the improved and maintained income growth and poverty declination in a quite more of developing world (Coudert, Hervé, & Mabille, 2014).
As stated by Proff (2002) that various firms mainly outside the triads market have not gathered the perceived advantages of globalization rather that considering the benefits of regionalization. It is seems like regionalization through membership to trade firms as, well as market integration has even made international trade interesting. As described, before the idea of regionalization, creates long term interest along with the expectations of huge returns on investment (“Estimating the Impact of Globalization on International Competitiveness: A Multidimensional Approach”, 2012). Moreover, the national government who has lost regulation of the traditional purpose in order to promote local competitiveness through lowering trade barriers as well as rate of exchange policies has enabled competitiveness for declining in importance. The governments are actually turned to consider the international trade as purpose and way of developing and improving their economies that are basically seen as well as established from the viewpoint of investors and beneficiary economies. Basically, regionalization can be characterized phenomenon on the regional stage along with the assistance of governments (Ghobadian, Rugman, & Tung, 2014). These regional concerns signifies to be the expressed outcomes of governmental exploits starting regional trade managements as well as making deep absorption of separate economies on the regional level.
Due to globalization, the business environment of the mining industry is changing. The iron ore was traditionally dominated by very few suppliers but now as the due to globalization, the demand for iron ore is growing faster than the supply which is causing increase in prices. Cost competition is always comes as a major consideration. But for Rio Tinto, the political obstacles present serious obstacles. Though, economic globalization has impact on the mining industry but the major concern for Rio Tinto is globalized politics and environmental issues. Furthermore, technology is also putting additional impact on the employment in mining. There are now several coal mining machines at Rio Tinto that can efficiently and safely do the work of hundreds of human coal miners.
Conclusion
The essay outlined that outlined the range of environmental factors and contemporary issues and their impact on the business context of Rio Tinto. Furthermore, the essay also discussed the impact of regionalization and globalization on the business contexts of the specified company.
Akhter, S., & Beno, C. (2011). An empirical note on regionalization and globalization. Multinational Business Review, 19(1), 26-35. https://dx.doi.org/10.1108/15253831111126721
Amine Chatti, M. (2012). Knowledge management: a personal knowledge network perspective. Journal Of Knowledge Management, 16(5), 829-844. https://dx.doi.org/10.1108/13673271211262835
Buytaert, W., & Beven, K. (2009). Regionalization as a learning process. Water Resources Research, 45(11), n/a-n/a. https://dx.doi.org/10.1029/2008wr007359
Coudert, V., Hervé, K., & Mabille, P. (2014). Internationalization Versus Regionalization in the Emerging Stock Markets. International Journal Of Finance & Economics, 20(1), 16-27. https://dx.doi.org/10.1002/ijfe.1501
Doyle, M., & Von Windheim, J. (2014). Environmental Management Strategy: Four Forces Analysis. Environmental Management, 55(1), 6-18. https://dx.doi.org/10.1007/s00267-014-0389-5
Estimating the Impact of Globalization on International Competitiveness: A Multidimensional Approach. (2012). China-USA Business Review, 11(12). https://dx.doi.org/10.17265/1537-1514/2012.12.001
Ghobadian, A., Rugman, A., & Tung, R. (2014). Strategies for Firm Globalization and Regionalization. British Journal Of Management, 25, S1-S5. https://dx.doi.org/10.1111/1467-8551.12045
Mehanna, R. (2008). Globalization Versus Regionalization: And the Winner Is…. Journal Of Transnational Management, 13(4), 287-317. https://dx.doi.org/10.1080/15475770802574485
Nieuwkamp, B. (2010). Designing organisational structures for corporate responsible innovation. International Journal Of Innovation And Sustainable Development, 5(1), 4. https://dx.doi.org/10.1504/ijisd.2010.034554
Ratnasingam, P. (2008). The Impact of E-Commerce Customer Relationship Management in Business-to-Consumer E-Commerce. Journal Of Electronic Commerce In Organizations, 6(4), 30-46. https://dx.doi.org/10.4018/jeco.2008100103
Steger, M. (2010). Globalization (1st ed.). New York: Sterling Publishing Co. Inc.
Wright, M. (2016). Innovation and ownership variety. Innovation, 19(1), 74-79. https://dx.doi.org/10.1080/14479338.2016.1233827
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download