Rio Tinto Alcan is an Aluminium producing company based in Canada. However, its scope as a company and hence operation grounds are not limited to Canada. The company has eliminated all geographical barriers expanding its wings to becoming an international company. Alcan has operations in many countries across the globe and recruits thousands of workers worldwide in a diverse range of operations. The company is renowned as the top aluminum manufacturer across the globe in terms of annual revenue and volume (Surhone, Timpledon, & Marseken, 2010).
According to research, the company operates in more than 40 countries thus enabling it to employ about 77000 employees. The company has also invested in research and service facilities in order to improve its creativity and innovation in its operations (ABA, 2005). This probably explains why the company has always found its way out of concrete calamities it has faced in the phase of its existence. At a point in time, the company went through a restructuring process in a bid to improving accessibility by customers. This was also followed by the need to be at a position where the company could easily respond to the disasters it could probably face.
Since the year 2000, Alcan Inc has been faced with a number of economic challenges. Some include the continued decline in the real price of aluminum in the world market hence a gradual erosion of the profit margins that Alcan obtains. There has also been a decline in the demand for aluminum as a result of the increasing demand of aluminum substitutes such as iron and plastic (U.S Geological Survey, 2011, p. 45).
Strategies have been laid down by the company’s management to help sail through these challenges. For example, the company has been forming mergers and partnerships with strategic partners in a bid to strengthen its capital base as well as improve its marketability. The company has also restructured itself over the years in order to reduce its operational costs.
Alcan Inc has been experiencing some social challenges. These almost entirely relate to the criticisms based on the operating system of the company and its general management. There are also technical challenges facing the company. Key to this is the lack of proper communication and leadership as regards both the top management and the IT experts hence a barrier in developing efficient IT infrastructure (Acar, 2005).
A proposal was made by Ouellette for a new application management to be adopted. An analysis of the key cost areas and the benefits that will be derived from such a program gives its pros and cons. In the bid to realize low operational costs while maintaining an improvement in profit generation, Alcon technologies saw the company adopt iWay Software that was significantly applied in gathering and integrating data from diverse sources. Choosing the right software enables better information delivery and effective practices for use (Latvia, & Maule, 1977). Such a step has faced many criticisms especially on the basis that it was entirely theoretical and the possibility of it being successful was limited.
Alcan’s organization and operating technology has four main goals: developing a low-cost growth strategy, eliminating waste, meeting customer expectations, and positioning the company for future growth. Alcan is expected to grow bigger in terms of operations and revenue in future. Business continuity plans are essential in ensuring it retains its market leadership (Evans, 2006). Investing in IT research and development is a relevant continuity plan in ensuring Alcan continues to operate effectively as a market leader (Evans, 2006). Being an international company, Alcan needs new ways of integrating IT to ease the flow of information needed in business growth.
References
Acar, C. (2005, July 12). The Alcan Case. Retrieved from Alcan Inc: http://wwwai.wu-wien.ac.at/~koch/courses/bogazici/archive/mis-spring-2011/presentations/alcan.pdf
Dube, L., Bernier, C. & Roy, V. (2009, May). Taking on the challenge of IT management in a
global business context: The Alcan1 case – Part B. International Journal of Case Studies
in Management, 7 (2), 1-10.
Evans, D. (2006, June 12). Alcan Sustainability Report 2006. Retrieved from Alcan Inc: http://www.cbcsd.org.cn/susproject/qykcxfzbgzh/kcxfz/download/jialv2006sdeng.pdf
Surhone, L. M., Timpledon, M. T., & Marseken, S. F. (2010). Rio Tinto Alcan. Frankfurt: VDM Verlag Dr. Mueller AG & Company Kg.
U.S Geological Survey. (2011). Minerals Yearbook, 2008, V. 1, Metals and Minerals. Washington: Government Printing Office.
