IndexIntroduction 2Context 2STRATEGIC BUSINESS UNITS 2Farout System 4IntroductionContextMore than 140 years ago a company called Rio Tinto was established as a legitimate company, in the year 1873 it opened an old copper mine on the Spain River called Rio Tinto also known as “Red River”. As time passed, in 1905, the Zinc Corporation was formed in New South Wales, Australia to treat zinc-containing mine waste at Broken Hill. Expansion into other countries has been the main focus of chairman Sir Auckland Campbell and the management team he leads. 24 years later there was a merger between the two UK companies known as The Imperial Smelting, resulting in the formation of the London-listed Zinc Corporation. Because the company was growing overseas, they decided to sell two-thirds of Spain-based Rio Tinto so they could invest money in new developments in other countries. A large deposit of bauxite was discovered at Wepra, far north Queensland in Australia, that discovery led to Rio Tinto's entry into aluminum and Comalco Limited was established in 1956. Six years later Conzinc Rio Tinto Australia was formed , in 1966 the first exports to Japan, Western Australia Rio Tinto launched its iron ore production operations with the launch of the Hamersley iron mount from mine price. Owners of the world's largest deposit of industrial mineral borates, which has hundreds of daily uses, borax was acquired by Rio Tinto in 1968. Things went wrong for Rio Tinto when its stake in the ancient Cornish tin mining industry in the United Kingdom ended due to declining demand and metal prices. Rio Tinto has decided to get rid of its non-mining interests by selling them and focusing on...... middle of paper ...... direct merger process with numerous advantages such as lower capital intensity, reduced environmental impact and flexibility operational, the Pilbara operations contain a world-class network of 15 iron ore mines integrated with a 1500 kilometer rail network capable of responding rapidly to changes in demand, new technologies to bring greater efficiency, lower production costs and improved health and environmental performance and safety. Strength of Rio Tinto Iron Ore SBUs • Safety improvements such as implication of safety leadership, risk awareness reduces risk of production disruption due to disasters caused by unsafe working conditions for miners • Commitment to the mine of the future will help strengthen the competitiveness of Rio TintoWeakness of Rio Tinto Iron oAnalysis of Rio tintoChoice of analysis method using the FAROUT systemSWOT analysis