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Word Count: 432 words

Business Capstone 301


2013
Video Business Case Report Part 1
Rio Tinto Japan - Business Resilience

Name

: Sakinah Maharani

Student ID : 15115274
Tutor

: Azhar Yahya

Word Count: 432 words

Video Business Case Report Part 1 Rio Tinto Japan: Business Resilience
Headquartered in London, Rio Tinto is an international mining group (About Us 2013). Later
in 1966, Rio Tinto Japan Co., Ltd. was established as a subsidiary of Rio Tinto. Rio Tinto
competes in Japan with other companies in the mining industries in terms of price,
relationships, quality, and various other factors. In Japan, they have two types of operations
which are buy and sell operation, which is linked with the aluminium division; and service
provider operation, which basically covers all of the other business units who are doing
business in Japan. The service provider acts as a platform to facilitate business between them
and Rio Tintos customer base in Japan (Vibert 2011).
Health and safety is Rio Tintos first priority. For Rio Tinto it is important that the
environmental effects of its activities are kept to a minimum and that local community benefit
as much as possible from operations (Business Resilience 2013).
Rio Tinto Japan had its first main issue in 2011. An earthquake occurred in northeastern
Japan on March 11, 2011. Mr. Vibert, one of its employees, contends that among the many
issues occurred immediately after incident was what they would do on the Monday, March 14
2011 when they had to return to the office and restart the business (Vibert 2011). At this
point, it can be said that business resilience of Rio Tinto Japan is at stake.
The earthquake caused a major power shut down. As a result, facilities such as trains, traffic
lights, and lights in buildings were malfunctioned (Vibert 2011). Uncertainty increases as
there is a lack of information and channel of communication. This unfortunate event has
made it unfavourable to run the business as usual. This situation may affect the business
performance of Rio Tinto Japan against its competitors in the same industry.
While Rio Tinto Japans business operation is paralyzed, other major mining companies that
are not affected by the earthquake will take this as an advantage to fulfil the demand of the
customers in the market. The longer it takes for Rio Tinto Japan to recover and restart its
business operation may lead to a loss in market share and shareholder confidence. Therefore,
it is important for Rio Tinto Japan to make strategic decision that will allow them to respond
such unexpected event and diminish the level of uncertainty in a more efficient and effective
way.
In conclusion, Rio Tinto Japan must make a decision to overcome the issue of business
resilience to be able to improve and maintain its continuous business operations.

Word Count: 432 words

References
Vibert, Dermot. 2011. Issue: What is an important issue that your company is currently
facing?, interview by Curtin Business School, April 23, video, CBS Digital Media
Platform.
Vibert, Dermot. 2011. Cause: What caused this issue to arise and why is it important?
Marketing, interview by Curtin Business School, April 23, video, CBS Digital
Media Platform.
Vibert, Dermot. 2011. What does your organization do and how is it different?, interview by
Curtin Business School, April 23, video, CBS Digital Media Platform. \
About Us. 2013. Rio Tinto. Accessed April 23, http://www.riotinto.com/.
Business Resilience. 2013. Rio Tinto. Accessed April 23, http://www.riotinto.com/.