TWO FOREIGN COMPANIES OPERATING IN AUSTRALIA RIO TINTO Rio Tinto is British-Australian multinational metals and Mining Corporation. Their headquarters in London, UK and they have their management office in Melbourne Australia. The company came into existence in 1873, when a multinational group of investors bought a mine complex on riot into river, in Huelva Spain, from the Spanish government. The company had gone through a long series of mergers and acquisitions to make themselves among world leaders. Their main focus is on extraction of minerals and refining of iron ore and bauxite. This company is dual-listed, it has registered itself with London stock exchange and Australian securities exchange. Their main objective is to find, mine and …show more content…
process the earth’s mineral resources in order to maximize value for their shareholders. The company has set up many goals one their primary one is to deliver strong and sustainable shareholder returns from their different strategies. The company has set up a proper vision that their company should be admired, respected for delivering superior value, as the industry’s most trusted partner. The company has basically six business strategy:- 1. World-class portfolio:- This company is leading in all either it is iron ore, aluminum, copper or diamonds.
They have adopted a clear strategy to maximum use of their resources and opportunities and delivering best return to their shareholders. 2. Quality growth: By reducing their capital expenditure they are able to achieve high quality growth and through the help of project pipeline they expected high annual growth and internal rate of return. 3. Operating and commercial excellence:- In this they gave preference to the safety of their team. Because they believe a well-run operation is a safe operation. 4. Balance sheet strength:- Setting net gearing ratio their target is to lower end they range at current point in cycle. 5. Capital allocation discipline:- Their first allocation is on their operations and next is to their shareholders. 6. Free cash flow generation:- By reducing their operating and capital costs they were able increase volume expansions from high quality
projects. McDonalds in Australia McDonalds is basically found in USA in 1960. At that time they had opened 200 restaurants throughout USA. After that in 1971, they had opened their first restaurant in Sydney suburb called yagoona. Today there are over 900 McDonald’s across Australia. Basically it’s a franchise business where in Australia it’s more than two third owned and operated by individual businessman and women. In Australia it also changed its name temporarily to Macca’s. As the company first started its business in U.S. but suddenly it started failing their and tremendously started growing in Australia. Basically because in Australia everything is different whether its service, menu or the public image. In Australia they set up bars of fresh food where you can watch how your order is being prepared. Adopting different strategies:- in Australia they adopted different strategies which helped them to grow like first was introducing all day breakfast because McDonalds first preference is customers’ demand. Then after that they launched new program “create your taste”, where it’s like building your own burger seems like withdrawing cash from an automatic teller machine. With a few swipes at the screen customers can pick their combos at the entrance of the restaurant.
So, there should be an efficient and optimum use of resources with the modernised techniques that provide them competitive advantage over the competitors and make them an efficient organization.
Du Pont is organized into ten industrial departments. The department responsible for TiO2, the pigments department, is the second smallest of the ten departments. The revenue for this department in 1971 is $180 million which represent only 4.68% of Du Pont’s revenue. Although there is a considerable risk associated with the growth strategy, the committee is willing to grow this department because it is one of the smallest departments for du Pont, and the company performing so well financially as a whole. This leads us to the conclusion that the growth strategy should be pursued. Du Pont can afford to take a risk on this strategy given the small impact this department has on their associated financials, not to mention that the returns with the growth strategy are superior to the maintain strategy.
This object is one of the financial goals to invest properly. Marriott used discounted cash flow techniques to evaluate potential investment. It is beneficial because it is considered present time value. Projects which increase shareholder value could be formed with benchmark hurdle rates, the company can ensure a return on projects which results in profitable and competitive advantage.
Strong corporate governancethis company believes in order for a business to have strong performances they have to have good corporate governance. They strive to be transparent in their governance practices and policies. They also strive to be responsive to their shareholders while managing the Company for long-term success.
In order for a company to push its improvement and create a balanced plant, it is necessary to increase the throughput, while reducing inventory an operating expense. But, what is most important is to identify the bottlenecks to be able to focus on them. After focusing and solving the constraints, everything else is going to be less powerful but important at the same time.
It is stable over time and expands the attention range of the corporation. Through involving a broad and long term aim, it creates a sense of urgency and improvement drive
The volume of their operation is important to how their business is organised. Essential to their operation is the repeatability of the tasks their employees are doing as well as the systemisation of the work, where standards and procedures drive the way in which each part of the job is carried out. This combination provides a low cost base. For example McDonalds; are well-known for high volume low cost hamburger and fast food production.
...y it is so important for business to express that their workplace is a safe environment where everyone is respected and treated the same due to their level of productive work.
Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall quality of our design, manufacturing, administrative, and support organizations.
Adding to overseas sourcing so that lead time could be faster for design and production they could also divide the business up and have different locations for orders and new products to make business faster and
... will create and increase work efficiency. When more projects are getting completed at faster rates and in the right way they company will be able to take on new tasks. Whenever a company can take on more tasks, of course, it will increase its revenue. As revenue increase everyone part of the institution will benefit.
...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.
The second way is to achieve low direct and indirect operating costs is gained by offering high volumes of standard products and offering basic no-frills products. Production costs are kept low by using less parts and using standard components. Limiting the number of models produced to ensure larger producti...
To be our customers’ first choice in every market we serve by exceeding commitments, providing new technology solutions, leveraging our diverse brands, driving operational excellence, and committing to the highest standards of business practices - all of which will drive Tyco’s long-term growth, value and success (Tyco, 2011, Mission & Goals, para. 1).
The most common purpose for a team is to bring people together with different ideas to capture many avenues in which a goal may be reached. A team offers the ability of different ideas coming together and making a decision based on all inputs of many individuals. You will get a better product from a team discussion than of an individual due to adversity among the team members. Too often if the team has one individual that doesn’t see things as the rest he is not operating as one of the team but trying to wreck the project or operation. The team must understand that maybe the purpose is to enforce the rules and regulations and keep the team within the boundaries that are set. Safety is not something that should be forgotten and all too often it is on the back shelf of every operation until the worst happens. As a safety team we must all understand that decisions made will not always be the most acceptable but may be the most right decisions made. As a quote from General Colin Powell “Being responsible sometimes means pissing people off. It’s inevitable if you’re honorable.” Many of us are not willing to accept being told what to do especially when we disagree with what is being stated. Until something changes or is determined to be obsolete it must be agreed upon within the team to comply. This is not just for the deck-plate personnel but the managerial staff as well. As part of a team we all must be onboard with operations and how they need to operate.