Strategic Planning In Business is Essential

MANAGEMENT

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Contents
INTRODUCTION......................................................................................................................1
Current strategic plan of BHP Billiton.......................................................................................1
External factors that will impact the organisation in 2025........................................................2
Internal environment in preparation for 2025............................................................................3
Organisations strategic objective for 2025.................................................................................3
New Strategic model..................................................................................................................3
Suitable strategy for organisation’s 2025 objectives.................................................................4
Strategy development process....................................................................................................4
7-S model of BHP Billiton.........................................................................................................5
Organisations strategic issues....................................................................................................5
Key strategic stakeholders..........................................................................................................6
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

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INTRODUCTION
In the modern day business, strategic planning has become very much essential. Every
company should do internal and external analysis so as to understand the environment that is
present around the business and the way in which they can utilise their resources for strategic
planning. Both internal and external environment is going to change till 2025 and it the role
of the strategy makers to analyse these changes effectively. This is necessary for strategic
development process within the organisation. BHP Billiton is an Anglo-Australian
multinational mining, metals and petroleum dual-listed public firm that is headquartered in
Melbourne, Victoria, Australia (Lusty and Gunn, 2014). In terms of market capitalisation it’s
the world’s largest mining firm and in terms of revenue it is the third largest firm by revenue.
This report analyses the internal and external environment around the company till 2025. It
evaluates the current strategic plan of the company as well as the strategic objective made by
the company for 2025. It also assesses the firm’s new strategic model. Strategic development
process and the issues related to organisation’s strategy have been highlighted along with the
strategic stakeholders that are going to get affected by it.
Current strategic plan of BHP Billiton
BHP Billiton has developed itself into a highly profitable company. The current strategy of
the firm is to own and operate the large, future expandable, low-cost, long-life strategies and
achieve them with the help of upstream assets. It is diversified by geography, market and
commodity. Company has diversified and large amount of assets throughout the world
(Hajkowicz, Cook and Littleboy, 2012). They are working on low cost options for value
creation and long term growth of the organisation. Following this strategy company aims to
achieve higher productivity and sustainable future for the company. At the same time
company is planning to implement technologies and apply the capital for increasing the value
of the resources as well as extract maximum benefits from it.
The strategic model is utilised by the organisation is to improve the business operation by
increasing the effectiveness of the resources. Multi-functional team are created within the
organisation so as to bring efficiency in the business process. Creation of such teams helps in
bringing best of practices within the organisation which is necessary for the improvement in
the processes that are performed within the organisation (Sykes, et al. 2016). Company aims
to build a bigger business by improving the production capacity of the company. Automation

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and technological advancements remains to be to be the base for increase in production.
Current strategies of company are aiming to boost the long-term shareholder value.
Company is aiming to build partners that will help in increasing their base in the local
regions. Internal and external cooperative planning has helped them in improving the stability
of their business. Investors have been raising issues related to sustainable development of the
company (BHP Billiton, 2013). Their current strategic model also aims at improving the
skills of their human resource by building strategic platforms and taking use of different types
of strategies (Kirsch, 2010). Corporate social responsibility has been their priority but they
will have to improve their CSR strategies so as to improve their image. They have a plan to
grow the value of BHP inside their stakeholders so that they do not only remain a high profit
generating company but also a firm that is capable of looking the society they serve for. Their
strategic planning has six areas of focus which includes cost efficiencies which focused on
further gains. Other is latent capacity that aims to provide attractive returns and produce
limited risk. Third are Major projects that will help in generating value for the company and
increase the returns of the firm. Fourth is exploration that aims at giving positive outcomes
which will reduce the risks for future well. Fifth aim of the strategic plan is to improve the
technology which will be helpful in improving the safety, unlocking resources and lowering
the cost. Last and sixth aim is to Onshore them which will help in increasing the value and
flexibility of the firm (Dhakal, 2014).
External factors that will impact the organisation in 2025
In 2025, external environment in the country is going to be changed from what is now. World
politics is becoming multipolar where new political powers are increasing in different parts of
the world. At the same time the decisions such as Brexit will start showing its effect on the
business in that region. By 2025, there are more tie ups that is going to get created among the
countries this is going to benefit firms like BHP. BRICS like associations will become the
need of the global economy. By 2025, more number of companies is going to come in
different industries and hence innovation is going to be the base for gaining the larger market
share. Since the global prices are coming down hence companies will have to look for the
plans that helps in reduction of the product’s cost. The cost of fuel is going to rise at
extremely high levels and some of the OPEC countries are going to become petroleum
deficient (Fonseca, 2010). There is a constant decrease in the numbers of people that s having
higher pay scale hence the purchasing power of the people will decrease till 2025. It is also to