Analysis of Growth Strategies and Environmental Factors of BHP Billiton

This report analyzes the growth strategies and environmental factors of BHP Billiton, including the implementation of strategies, investigation of strategies utilized, failure or criticism of past tactics, macro and micro environmental analysis, and organizational and leadership culture style. The report includes PESTEL and SWOT analysis, Porter's Five Forces Model analysis, and highlights the importance of diversity in the workplace.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

1MANAGEMENT
Executive Summary
The report has helped in the entire analysis of the various types of issues that have been faced
by BHP Billiton Company. The different kinds of growth strategies have been taken into
consideration which helped in understanding the overall effectiveness of the firm.
Furthermore, this has been seen that the macro and micro environmental aspects have been
taken into consideration which provided huge difficulties in managing the same. The
organizational culture and leadership approach have been identified which provided huge
pressure on analyzing the issues in an effective manner.

2MANAGEMENT
Table of Contents
Task 1.........................................................................................................................................2
Introduction................................................................................................................................2
Strategies Deployment at BHP Billiton.....................................................................................2
Vision, Mission along with Core Competencies....................................................................2
Successful Implementation of Strategies in Past Scenario....................................................2
Current Implementation of Strategies....................................................................................2
Investigation of Strategies Utilized by BHP Billiton.................................................................3
Task 2.........................................................................................................................................3
Failure or Criticism of Past Tactics........................................................................................3
Task 3.........................................................................................................................................4
Macro and Micro Environmental Analysis of BHP...............................................................4
PESTEL Analysis...............................................................................................................4
SWOT Analysis.................................................................................................................5
Porter’s Five Forces Model Analysis.................................................................................5
Task 4.........................................................................................................................................6
Organizational and Leadership Culture Style of BHP...........................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................7

3MANAGEMENT
Task 1
Introduction
BHP Billiton is the largest multinational mining, metal and petroleum company which
has been listed as the dual public organizations and the headquarter of the company is
situated in Melbourne, Australia. The revenue that has been earned by the respective
organization is US$38.285 till the year 2017 and there are more than 65000 employees who
are working in the organization and this is the report of 2017 and the company served the
entire worldwide (Bhp.com, 2018).
Strategies Deployment at BHP Billiton
Vision, Mission along with Core Competencies
The mission of BHP Billiton is to provide the different customers of the organization
is to provide with sustainable valued products in the market. The purpose of the company
BHP is to provide with sustainable kind of value to the different stockholders, professional
partners as well as the employees and the host groups of the organization. The particular
business is trying to focus mainly on the causing zero harm to all the individuals as this will
assist the organization in gaining profitability in comparison to the other competitors in the
market. Furthermore, this can be analysed that the different fundamental capabilities of the
company are to outline the diverse kinds of strategies which will help them in growing value
and this assists the organization in becoming more competitive in nature in the entire
competitive market. Finally, the effective model of operations helps in allowing leveraging
skill in the dissimilar longstanding development of the company and this will assist the
company in taking different practices in sustainable development of the company in an
efficient manner (Banumathi and Nadarajan, 2016, p.995).
Successful Implementation of Strategies in Past Scenario
There are different strategies that are being implemented by the company BHP
Billiton in the organization wherein the main adoption was the growth along with innovative
kinds of strategies which helped the company in gaining competitive advantage in the whole
market. The main goal of the company was to create sustainable value for the different
employees and shareholders of the organization as this helped the firm in gaining strong
customer base and this will help the company in being ahead of the different other
competitors in the future as well (Bratton and Gold, 2017).
Current Implementation of Strategies
In the present scenario, there are strategies implemented by the company BHP to gain
huge effectiveness and gain profit in the market that is competitive in nature. In the present
scenario, this has been noticed that BHP tried to implement strategies which will lead to
enhancement of the needs of the returns of the shareholders along with providing them with
value in the near future as well. The main aim and purpose of the organization is to increase
shale of assets and copper which will create revenue surge and this will help in improvement
of the different factors which is responsible in managing the different activities in an effective
manner (Leiber, Stensaker and Harvey, 2018, p.12). Moreover, the innovation technique is
the proper implementation of the technology in the organization which will attract more
customers in the market as this has been noticed that the technological advancements has

4MANAGEMENT
invested in providing high return on the opportunities of growth which helped in generating
capital along with providing high returns in the company which will recover the overall
growth of the company in a positive manner.
Investigation of Strategies Utilized by BHP Billiton
The different strategies which has been adopted by the respective company in order to
improve the growth of the firm and this helped them in gaining advantage in the entire
market. The two major strategies of growth which has been applied by the company are as
follows:
Michael Porter’s Generic Forces
As per the generic forces of Porter’s, this can be analyzed that this is one of the major
strategies which was being adopted by BHP as to gain more popularity and competitive
advantage in comparison to the other competitors in the market. From the above, this was
being analyzed that the strategy of cost leadership has been adopted by BHP in which they
were ahead of their competitors in the market. As there are different kinds of external
environmental threats in the organization, this has negatively impacted the organization and
this will have huge negative impact on the company as well. There is huge demand of the
customers in the market, this was seen that the company BHP needs to implement the cost
leadership strategy which will assist the company in reducing the costs of the different kinds
of resources and there will be effectiveness in the value chain of the different activities as
well. The proper diversification of the different products and services will create huge value
for the company and gain competitive advantage in the market (McDONALD, 2015).
Strategies Related to Growth
The strategy which has been accepted by the company BHP and this helped the
company in implementing the growth of the firm. With the different kinds of innovative
strategies which has been adopted by the firm such as improving the level of productivity
level along with maintaining momentum level in an efficient manner that has helped in the
growth of the firm in an appropriate manner. Furthermore, this has been noticed that quality
portfolio is based on the different assets which helps the company in receiving medium
growth-related opportunities along with different measures (Sen and Rajagopal, 2017).
Task 2
Failure or Criticism of Past Tactics
There are failures that are faced by the corporation BHP in the past in which this has
been noticed that in the year 2015, this was being noticed that BHP faced major challenges
which was seen and identified from the different unreported documents in which this was
being published that the mining organization was totally conscious of the various
terrorizations from vilest ecological damage and there was no act was taken by them.
Furthermore, after six months this was seen that there were millions of wastages of mine in
liters wherein there was more than 20 people who were killed and the company BHP which
was dealing in mining related activities did not care regarding different kinds of risks in an
efficiently (Waring, 2016).
The major accusation which was faced by the respective company is the respective
organization was not being conscious of the worst kind of impairment which took place and

5MANAGEMENT
this impacted the entire productivity and profitability of the firm in a negative manner (Dalal
and Malik, 2015, p.12). The matter which was criticised for BHP in which the organization
did provide the safety to employees and customers and they were only involved in different
kinds of aspects which was not essential that is profit making approach of the organization.
Secondly, the other incident which took place at BHP Billiton was relating to the
argument along with the different trade unions and this was related to the different payments
and benefits which was being provided by the company. The workers who were working in
BHP did not focus on the safety of employees and there were various protests. These kinds of
protests aided the various staffs in benefitting from cost lowering and this helped them in
performing effectively (Theguardian.com, 2018).
Task 3
Macro and Micro Environmental Analysis of BHP
PESTEL Analysis
With PESTEL analysis, this will help in analyzing the different kinds of external
factors which are required to be taken into consideration as this helped the company in
understanding the factors that can affect the company in both positive or negative manner.
Political factors are the first aspect in which this has been identified that BHP needs
to remain neutral in various countries wherein the organization is having various kinds of
operations. The factors help in focusing mainly on not contributing in any kinds of funds of
political party in the country (Hill, Jones and Schilling,2014).
Economic factors are the second aspect in which this has been noticed that as BHP is
the oil market, there are various kinds of disputes in the market and this affects the overall
profitability of the firm in a negative manner. the main issue relating to market instability as
there is high level of uncertainty (Dalal and Malik, 2015, p.12).
Social Factors are the other aspect which noticed that BHP is aware of the various
types of issues which are social in nature related to the firm stability and the company is
required to implement various remedial measures as this will help in maximizing the threats
effectively (Yadav and Kumar, 2015, p.685).
Technological Factors are the aspect wherein innovation is important as this is oil
professional and this is competitive in nature and the advancement of technology in BHP
which is situated in Australia has to focus on staying ahead on the different competitors in the
market (Shafritz, Ott and Jang, 2015).
Legal Factors are the aspect in which there are various kinds of resources which are
required to be taken into consideration in delivering proper benefits to the customers in the
market. The health along with safety legislations help in improving the overall productivity of
the firm (McDonald and Wilson, 2016).
Environmental Factors are the factor which BHP mainly aims at delivering the
customers with the different kinds of long lasting benefits which will be beneficial for the
company in a positive manner in an effective manner (Yadav and Kumar, 2015, p.685).

6MANAGEMENT
SWOT Analysis
The SWOT analysis will help in managing the different kinds of strengths,
weaknesses, opportunities and threats in an effective manner as this will help in
understanding the various issues in an effective manner.
Figure 1: SWOT Analysis
(Source: Created by Author)
Porter’s Five Forces Model Analysis
Rivalry among the different competitors is the first aspect in which this has been seen
that there are two major competitors of BHP which is inclusive of ALOCA INC. and VALE
S/A and the position of BHP is the top position which will be efficient in nature.
Threat from the new entrants is the other aspect in which this has been seen that
there is low advancement of technology which is high and this is excellent in oil and gas
market.
Threat from the substitutes is the other aspect wherein this is medium in nature as
there are different resources and this is sustainable in nature with proper diversification of the
different resources (Yadav and Kumar, 2015, p.685).
Bargaining power of the suppliers is the other aspect in which this is medium and
there are different kinds of suppliers along with labor energy which is required to be taken
into consideration.
Bargaining power of the buyers is the aspect in which this has been seen that the
buyers will be going to the markets which is providing same kind of materials at a lower
price and this is ineffective for BHP Billiton.
Strengths
The position in the market is effective and this helps
BHP in becoming successful.
The company has created a strong kind of financial
position in the entire market
The company hjas created a huge brand image as this
will enhance the same
Weaknesses
There is huge intervention of the governemnt
inefficiences and this affects the overall growth of the
firm
The different kinds of failures in the past criticisms has
led to huge failure
Opportunities
There is proper acquisition of the different small firms
There is different kinds of expansion of the different
firms in an effective manner
Threats
There is reduction in the firm and the demand for
export which can create huge issues in house
production
There is intense rate of competition
SWO
T

7MANAGEMENT
Task 4
Organizational and Leadership Culture Style of BHP
The culture of the organization is effective and appropriate in nature which has helped
the company in becoming more operational in nature. Furthermore, this has been noticed that
there can be implementation of transformational and transactional leadership style which
helps in gaining proper reputation of the firm. The huge development of the firm has been
taken into huge consideration which has helped and assisted the company in gaining huge
profit in the firm in an efficient manner. Furthermore, this has been seen that there is proper
inclusion of diversity in the workplace as there is huge training of the different employees in
the organization which will recover the efficacy of the firm successfully (Yadav and Kumar,
2015, p.685).
Conclusion
Therefore, this can be concluded that the there are dissimilar kinds of issues that have
been identified which have bene faced by BHP. Furthermore, the macro and micro
environmental analysis is required to be analysed in an effective manner which helped in
improving the overall efficiency of the firm. The culture of the organization along with
leadership which was being followed by the BHP company has become one of the most
effective aspects which was being adopted by the company to gain more competitive
advantage in the market efficiently.

8MANAGEMENT
References
Banumathi, R. and Nadarajan, S., 2016. Swot Analysis on Marketing Strategies Adopted: A
Study on Salt Industries in Southern Region of Tamilnadu. Asian Journal of Research in
Social Sciences and Humanities, 6(9), pp.995-1015.
Bhp.com 2018. BHP | Our business. [online] BHP. Available at: https://www.bhp.com/our-
businesses [Accessed 5 Sep. 2018].
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Dalal, G. and Malik, S., 2015. Online Marketing: A Swot Analysis. The International Journal
of Business & Management, 3(7), p.12.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Leiber, T., Stensaker, B. and Harvey, L.C., 2018. Bridging theory and practice of impact
evaluation of quality management in higher education institutions: a SWOT
analysis. European Journal of Higher Education, pp.1-15.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit
from them. John Wiley & Sons.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice.
In The marketing book (pp. 108-142). Routledge.
Santos, N. and Laczniak, G., 2015. Marketing to the poor: A SWOT analysis of the Market
Construction Model for engaging impoverished market segments. Social Business, 5(2).
Sen, S. and Rajagopal, K., 2017. SWOT ANALYSIS OF FAST MOVING CONSUMER
GOODS COMPANIES–A CASE STUDY ABOUT PATANJALI AYURVED IN INDIA.
Shafiq, K., 2017. SUPPLY CHAIN MANGEMENT, TEXT AND CASES BY: VV
SOPLE. Pakistan Business Review, 17(3), pp.725-730.
Shafritz, J.M., Ott, J.S. and Jang, Y.S., 2015. Classics of organization theory. Cengage
Learning.
Theguardian.com 2018. BHP faces billions in compensation after mine dam collapse, say
protesters. [online] the Guardian. Available at:
https://www.theguardian.com/business/2015/nov/19/bhp-faces-billions-in-compensation-
after-mine-dam-collapse-say-protesters [Accessed 5 Sep. 2018].
Waring, S.P., 2016. Taylorism transformed: Scientific management theory since 1945. UNC
Press Books.
Yadav, T. and Kumar, S., 2015. Mangement Information Systems: Significant Tool for
Strategic & Discreet Planning. International Journal of Applied Research, 1(11), pp.685-688.