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Corporate Social Responsibility:

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on 14 September 2013

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Transcript of Corporate Social Responsibility:

Corporate Social Responsibility:
The Latest Boom Product for Mining Giant Rio Tinto
Case 5, Page 397
Presented by; Jimena Blanco and Minka Marriott

Case Study
Rio Tinto
Iron Ore Mining
Yandi and Marandoo State Two Mines, Pilbara, Western Australia
Environmental Challenge
Hamersley Irrigated Agriculture Project

It is reasonable to tie a corporate strategy like corporate social responsibility to a profit-making (or cost-reducing) business strategy?
Rio Tinto is a miner. Running catle stations is not core business so how should the company handle this opportunity? Should it be at arm's length profit making enterprise?
Rio Tinto's
Business Level Strategy
gain competitive advantage
exploit core competencies
provided comparative advantage

What to offer customers?
How to manufacture them?
How to distribute?

Business Strategy Foucus
Currently low cost provider

Lead global mining and metals to maximize value for shareholders.

Mining Environment change
Economic
GFC
Political
Taxes
Sociocultural
Values and Beliefes
Geographical
Location of mine sites
What are the marketing implications of including CSR into the corporate strategy decision-making process?
Introduction of Corporate Social Responsibility
Determining other core competencies necessary to satisfy customer needs
Initiation of ambitious strategy
Ariculture program
Superior advantage
Differentiation Business Strategy
Value of superior product.
Strong emphasis on differentiating features
Features customers are willing to pay for.
Offer something different
Five Components of the New Strategy
Scope
Domains it plans to enter
Agricultural segments
Hay and Cattle Farming
Goals and Objectives
Return of investment
Strengthen corporate identity
Induce profits
Reduce cost
Resource Deployment
Use current resources
Financially viable
Environmentally sustainable
Identification of sustainable advantage
Employment
Drought management
high quality feed
reduction of grazing on local land

Synergy
Stronger Synergy between current businesses practices
Effective use of water
Satisfy needs of customers

Relating back to sociocultural views

Continuous improvement needed

CSR intertwines into core business product

RIO TINTO
Currently
Large corporation
Many Strategic Business Units (SBU)
Diversification Strategy
value creating

PESTEL
SWOT
Porters Value Chain
Porters Five Forces of Competition.
BCG Matrix
Internal-External Matrix
Recommendations

Arm's Length
Share knowledge base
Improve overall industries efficiency
Political
Tax policies
Goverment regulations
Set Prices
Economic
Recession
Low Profits
Downsizing in industry
Social
Name association
Techological
New technologies to stay ahead limited
Environmental
Drought
Rains
Too much fodder
Legal
Training new staff
Different work safety expectation
Strengths
Tangible
RIO TINTO – global/national industry
Natural resources
access to mining resources
Capital availability is high
Inter-tangible
Human resources and knowledge base is evident
Industry connections

Weaknesses
Tangible
Resources are limited
Inter-tangible
Rio Tinto’s reputation is low
Industry reputation is bad
Human resources

Opportunities
Use the Rio Tinto name to further sales
Association to a larger brand
Industry knowledge
Knowledge base
Threats
Other businesses within the industry
Goverment change
Common goals
Mutual Benefits
Positive Publicity
Sustainable competitive advantage
Cost reduction/Profit Making
Relationships with stakeholders

Preferring Product with CSR characteristics
Added value
Consumer Satisfaction
Social Responsibilities

CSR only based strategy
No competitive advantage
More factors involved
Full transcript