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Business Environment Assignment : BHP Billiton

   

Added on  2021-04-21

15 Pages2606 Words27 Views
Environmental Science
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Business Environment1
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Table of ContentsIntroduction and backgrounds....................................................................................................3Business external environment analysis.....................................................................................4Strategic position for the identified challenges..........................................................................8Strategy formulation...............................................................................................................9Conclusion................................................................................................................................11Reference..................................................................................................................................132
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Introduction and backgroundsThe business does not exist in vacuum but coexist with the surrounding and the greatermarkets. The external environment of the business is not under the control of the organisationand impacts the business positively or negatively (CGA, 2010). In both cases the business hasto readjust is strategy to avail the positive opportunity or whether the negative impact. In thecurrent report the example of BHP Billiton is taken to analyses the external environmentimpact on the business and measures taken through applying some definite models ofbusiness. BHP Billiton is an MNC Company in the natural resource market. The organisation wasformed through the merger of Billiton PLC and BHP Ltd in the year 2001 (BHP Billiton,2018).As being one of the largest organisations in the mining sector the organisationoperates in the production of copper, iron and steel, oil, aluminium and gas. The HQ of theorganisation is in the city of Melbourne in Australia. The organisation current holds $98.3 bnas their market capital and have $33.95 bn in their sales figure (Forbes, 2017).In recent yearthe organisation is in some type of difficult in terms of revenue and business growth. After2014 the higher growth rate of the business has seen some downward movement and thatseems to bottom out in 2016-17 as the sign of improvement is visible (simplywall,2018).Under these circumstances the report would try to identify the external cause of thisdecline in the business for BHP Billiton.3
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[Source: simplywall, 2018]Business external environment analysisThe business external environment is analysed through the PESTLE framework for the BHPBilliton. This framework would focus on the business macro environment to understand thechallenges to later address those through proper business strategy (Newton, 2014).PESTLEPolitical and legal factors- as one of the largest mining company BHP Billiton has toconsider the political factors operated from different region and also to trade the products toother region. The natural resources are owned by the country and authorised by thegovernments to be exploited by the privet enterprises. In the Africa continent BHP Billitonhas large size of investments where the political instability can cause problem in productionprocess. on the other hand the mineral product from the Australian region is sold around theworld especially to China. Many bilateral agreements between the China and Australia on the80’s lead the foundation of this strong trading relationship which also influenced the highermineral exports to China (aph.gov.au, 2017).On the other hand the Australia and USA hasclose relationship and the relation between USA and China has an implication on the China-4
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