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Question: Discuss about the Contextual Factors Internal to a business that Impact on a Business or Organisation and its Business Decision Making. Answer: Introduction Decision making plays a significant role in the running of businesses. Most companies encourage decision making among all workers on the front line as well as those in senior management levels. There are contextual factors that exist within a company whose impact on business operations cannot be ignored (Dunning, 2014). To solve these business challenges, managers have shown ambition and passion through the establishment of sound decisions that address the present and potential internal problems. Company Overview Rio Tinto plc, located in Western Australian in the Pilbara region was incorporated in 1962. Rio Tinto operates in the mining industry where it mines and processes mineral resources. Rio Tinto mines Aluminium, Diamond, Energy, Ore, Copper among many others. The company carries its venture both domestically and globally. However, there are internal business environmental factors that impact on the mining activities of Rio Tinto. This report aims at analyzing the critical issues related to business and Rio Tinto management context as well as gaining a greater understanding of the contextual factors internal to a business that affect the Rio Tinto and its decision making. Internal Contextual Business Factors Rio Tinto faces various challenges in the market which have prompted managers to make important decisions on investment. The mining industry globally is extremely competitive, and this results from the internal weaknesses within the enterprise (Hitt, Ireland, Hoskisson, 2012). The competitive force arises from the Threat of New Entrants for there is a competitive threat to Rio Tinto from BHP Bilton, Vale SA, Glencore plc, and Anglo American Plc among many other new entrants in the market. However, there are other factors that contribute to the failure of Rio Tinto in the industry. Some of which include poor risk management and risk mitigation approaches, legislative issues by the government, and negative reputation from the social constituents forming the market. The management of Rio Tinto employs various techniques in solving these problems and these techniques include: SWOT Analysis PESTEL Analysis Porters Five Forces McKinsey 75 Framework The application of these techniques have helped the management of Rio Tinto address the contextual internal business factors of the company in various approaches as analyzed and reported below: Human Resources To withstand pressure and threat of new entrants, the human resource structure of Rio Tinto has been one of the best. The global footprint of Rio Tinto is underpinned by the company's values for employees safety, integrity, teamwork, respect, and excellence. The long-term success of Rio Tinto in the mining sector has resulted from strengths offered by the human resources. Currently, Rio Tinto's workforce is approximately 50, 0000 in 35 countries. The quality of human resources depicts the quality of services offered by the Corporation (Katz Green, 2009). The company's human resource are highly skilled manufacturing engineers who produce maximum results for the enterprise. The management of people differs from management of other resources at Rio Tinto. HR managers in the company make critical decisions on staffing procedures, contracting, employee rewards and development, training approaches, and employee relations maintenance (Kuratko, Hornsby, Covin, 2014). Workplace learning enl ightens leadership within the internal operations of Rio Tinto. The use of effective human resource management policies connect people within the workplace, and work processes in business have helped Rio Tinto remain competitive. Physical Resources The fact that Rio Tinto is a long term business where going concern policy holds, this means that the most critical resource is physical resources whose management is done internally by the company's managers. Rio Tinto produces a diverse suite of metals and minerals in a broad portfolio. Rio Tinto is a leading mining and metal company; this means that plant, property, and equipment resources are highly used and needed for the success of manufacturing process. The management recognizes that continuing to offer value to the market requires continuous investment in the physical resources (Wirtz, 2011). The manufacture of mineral resources cannot happen if the company uses inefficient machinery. The use of outdated and less productive machinery leads to underproduction and thus making the company not able to meet the market demand. Business Culture The company seeks to foster a business culture under which personnel enjoy safety both individually and collectively with their workmates, surrounding communities, and the contractors. The managers have designed conducive working habits that have enabled every person to understand the processes adopted in creating and preserving business values. Business managers at Rio Tinto utilized organization culture in the collection and organization of internal values and beliefs shared and possessed by the current personnel. As an excellent tool of business decision making, corporate culture sets up a unique system of staff value whose application results in the success Rio Tinto in the mining industry (Price, 2007). Failure by managers to employ organizational culture needs in the strategic plans leads to poor performance. External adaptation and internal integration help Rio Tinto managers resolve work structure challenges as well as externally instigated problems such as rude behavior by t rade unions. Entrepreneurship and Innovation The global presence of Rio Tinto has made the company express technological expertise in marketing, and this helps the company supply the right product of the best quality and at the correct time. The business operations of Rio Tinto involves underground mines, refineries, open pits, smelters, mills, and power stations which need the application of high technologies to run. Entrepreneurs design and manage these operations with a primary goal to reap more profits and business growth. Internally, Rio Tinto has creative and innovative staff who invent new technologies of manufacturing minerals at the minimum cost and the maximum returns(Rothaermel, 2015). With entrepreneurship in the firm, Rio Tinto has remained optimistic and committed to success due to the creativeness and establishment of new resources that result in competitive advantage. Having a broader picture of the business on the external business factors ha helped the company design competitive advantage techniques that will always enable the company to maintain its position in the market. Organizational Structure The organization chart is another internal factor that affects the operations Rio Tinto plc on day to day basis. The management sorts companies services through the establishment of teams, departments, and structuring of personnel work through outsourcing. There has been a long-term problem in a business structure whose impacts are adverse. The business structure issues at Rio Tinto include financial stability, segregation of employees roles, company offering, and other resource-related challenges (Searcy, 2012). Laying down an effective business structure impacts positively on the number of employees hired by a firm, hierarchical power levels, employee collaboration and commitment, and the employee's roles. Managers of Rio Tinto have responded to these issues by establishing the best structure, in particular on the conceptual work so as to enhance the use of funds in the most sparing manner (Wirtz, 2011). The internal organization of a firm's workplace depicts the level of conducive ness enjoyed by the employees while working. The management of the company has made sound decisions about the diversity of work environment. Internal Communication Internal communication plays a significant role in building a unique culture of the organization. Poor communication creates conflicts, unnecessary complaints, underproductivity, and hostile working structures within the organization. Excellent business culture is built on good internal communication approaches such as interpersonal relationships, philosophical policies, and employees training materials. This fact has made the company segregate the levels of communication in a well-spelled manner. Rio Tinto communication system recommends respect and courtesy, and this has come from the good internal communication systems. Managers are obliged to make decisions on communication channels and approaches that must be observed by every party operating within the business (Hove Tarisai, 2013). For example, the company has established team leaders who pass instructions to the subordinate staff, and this has to lead to little or no conflicts within the workplace. Since employees always dem and to be recognized for their achievement, the management knows their suggestions, complaints, and ideas when formulating critical decisions. Financial Resources Rio Tinto recognizes that its mining activities affect people, the environment, and community at large. The operations of Rio Tinto plc benefits the company itself, investors, general public, suppliers, employees, customers, and the society. Since 1995, Rio Tinto revenues have kept increasing from $ 8.4 billion to the current financial stability of $12.3 billion. Finance has been the driver of every investment activity Rio Tinto undertakes and helps the company seek innovative solutions to manage the market challenges. Finance managers are tasked with the responsibility to make investment decisions on capital projects of a company, where they conduct a feasibility study on the benefit of the project (Chuang Liao, 2010). All business projects are run by finance resources, and this means that in the event when capital is limited, businesses will collapse. The executive management Rio Tinto company have always made overall investment related decisions even in the case of outsourcing so me work. Conclusion The internal business environment consists of contextual factors existing within the company and whose impact determines the success or failure of business operations. The management of a company plays a significant role in making decisions that affect internal functions of the firm. Making effective decisions results to exemplary organizational structure, viable corporate culture, sound utilization of resources, and investment into technology based projects that lead to business success. The internal market factors portray the strengths and weaknesses that a firm has internally. The application of decision making support systems enables the management address the present and potential business weaknesses as well as exploiting the potential and existing inner strengths. References Almazari, A. A. (2014). 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