Strategic Management of BHP Billiton

Added on - 26 Sep 2019

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Strategic ManagementBHP BillitonStudent Name:Student ID:Course Name:Course ID:Faculty Name:University Name:
1Executive SummaryThe whole world has currently been experiencing a global product boom, and BHP Billiton hasformulated development plans and enhanced shareholder value during this time. The mainmotive behind conducting the strategic analysis of BHP Billiton is to identify key areas of theorganization and give suggestions about the strategic issues related to the performance andoperation of the organization. There are certain core competency areas that have been identified,namely, the ability of the company to develop growth plans and managing the organizationalstructure. It has been observed that the company needs to ensure that its customer serviceorientation stays intact along with its ability to effectively manage the company finances forbetter sustainability.
2Table of ContentsExecutive Summary.........................................................................................................................1Introduction......................................................................................................................................3Strategic Analysis............................................................................................................................3Political Factor.............................................................................................................................3Environmental Factor...................................................................................................................3Social Factor................................................................................................................................3Technological Factor....................................................................................................................3Environmental Factor...................................................................................................................3Legal Factor.................................................................................................................................3Summary......................................................................................................................................3Value Creation.................................................................................................................................3Porter’s Value Chain....................................................................................................................3Core Competencies......................................................................................................................4Summary......................................................................................................................................4Sustain and Enhance Value Creation...............................................................................................4Conclusion.......................................................................................................................................4References........................................................................................................................................4
3IntroductionBHP Billiton is a mining, gas and oil organization which is headquartered in Melbourne,Australia. It is considered as the world’s largest organization measured by revenue. It wasestablished in 2001 through the merger of Anglo-Dutch Billiton Plc. and the Broken HillProprietary Organization Limited (Limpitlaw et al, 2005). The strategy is known as a carefulmethod or plan for obtaining a particular goal usually over a long period of time. Having afocused and clear strategy is critically necessary for the success of the organization. In theabsence of well-defined strategy, the organization may fail in attaining its objectives. Importanceof strategy is following:1.Provides Action Plans and Directions: Strategy helps the organization in establishing aconcise, clear and strategically sound path which provides direction to the organization.Strategy also proposes action plans to achieve predetermined goals of the organization.2.Aligns and Prioritizes Activities: Formulating strategy is about choices, allocatingresources to strategic initiatives, establishing priorities and coordinating to fulfill desiredoutcomes.3.Define Accountabilities: Formulation of strategy helps the organization in defining clearlines of its accountability and timeliness for fulfilling desired outcomes on the preparedstrategic initiatives.4.Provides a Framework for Ongoing Decision Making: Formulating a strategy helps theorganization in decision making. It is necessary that all decisions should support strategyas the strategy is considered as an important point for decision making.
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