BHP Billiton: Performance and Strategy
Added on 2020-04-07
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BUSINESS STRATEGYBHP BILLITON LTDSTUDENT NAME
BUSINESS STRATEGY: BHP BILLITON LTDEXECUTIVE SUMMARYOne of the finest industries dealing in mining of metals like zinc, silver, lead and steel making raw materials is BHP Billiton which is a large conglomerate in Australia. By recognising potential resources available in the city of Broken Hills, the company flourished its business. The company made many acquisitions and followed an organised way of management. This report will analyse environmental factors of the company along with discussing current strategy of BHP Billiton while identifying trends in Australian steel manufacturing industries. 2 | P a g e
BUSINESS STRATEGY: BHP BILLITON LTDTable of ContentsEXECUTIVE SUMMARY........................................................................................................21. INTRODUCTION..................................................................................................................42. INTERNAL ANALYSIS.......................................................................................................42.1. Assets...............................................................................................................................42.2. Competitiveness..............................................................................................................52.3. Sales, profits, share price.................................................................................................62.4. Strength and weaknesses.................................................................................................63. EXTERNAL ANALYSIS......................................................................................................83.1. PESTLE ANALYSIS......................................................................................................83.2. MICRO ANALYSIS.......................................................................................................94. CURRENT BUSINESS STRATEGY.................................................................................105. CONCLUSION....................................................................................................................126. REFERENCES.....................................................................................................................133 | P a g e
BUSINESS STRATEGY: BHP BILLITON LTD1.INTRODUCTIONBHP Ltd was established in the year 1885 and has its headquarters situated in Melbourne inAustralia who operates in more than 25 countries globally [ CITATION Bhp17 \l 1033 ]. Thecompany made a quick recognition of available resources in mining business in mid-1800s asmining industries had less governmental regulations with huge investors pouring in thosedays. The company followed a trend of mergers and acquisitions in its long run one of whichwas made with Billiton group in the year 2001. The company after acquisition was namedBHP Billiton. One of the biggest ventures of BHP Billiton is AUD 2 Billion mine that wasstarted in Western Australia and brought huge progress to local community by givingemployment opportunities to them. Currently, BHP Billiton has more than 100,000employees, including contractors, worldwide and revenue realised is around AU $61.2 billionannually[ CITATION BHP17 \l 1033 ]. Many incidents took place in the company like BP Oilspill, Takata Air Bags problem, Volkswagen emissions scandal and Global financial crisis butwith strategic approach of the company, it sustained the market enormously. 2.INTERNAL ANALYSIS2.1. Assets As shown in the figure below, BHP Billiton leads the global resources companies with outstanding portfolio of assets. The shareholders value plan is designed to provide the management with opportunity to concentrate on the issues by amalgamating BHP into a sole Australian tax resident listed company[ CITATION Val17 \l 1033 ].4 | P a g e
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