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Business Strategy of BHP Billiton Assignment

   

Added on  2020-04-01

14 Pages3491 Words486 Views
Business Strategy1

Executive SummaryThis paper serves to explain the business strategy in the context of BHP Billiton, Australia. Itis renowned for its diversified commodities assets, which consists of iron ore, coal,manganese, silver, copper, uranium and gold mining. In addition to the mining of ores,petroleum, and energy are the other significant industries. BHP Billiton’s glorious history,enormous size, global exposure to countries like, USA, South Africa and parts of MiddleAfrica, Canada, South America, UK and parts of south Asia have made its business all themore identified globally. It contributes a major part in the Australian economy highest taxpaying records, royalties and employment. Moreover BHP Billiton serves to encourage socialactivities like fostering education, health and safety of Australian citizens, minorities, womenand children. Its transparency in sustainability reporting and business profits sharing hasmade it popular among shareholders and consumers (BHP Billiton, 2017).This paper discusses how BHP Billiton gains competitive advantage in Australian marketthrough specific reasons. It also engages in describing the trends of Australian steel industryand BHP Billiton’s role in the industry. The business strategies and tools that may have beenapplied by the BHP Billiton management is also analysed through identifying the macro andmicro environment in which it operates. The internal analysis of the BHP Billiton is shownby applying McKinsey’s7S framework. Evidences against the information and reasonsprovided have also been presented along with the report contents for the convenience of thereaders.2

Table of ContentsIntroduction................................................................................................................................4Discuss BHP Billiton’s competitive advantage?........................................................................4Discuss some of the trends in the Australian steel manufacturing industry:.............................5Discuss the current business strategy of BHP Billiton in Australia:..........................................5Internal Analysis of BHP Billiton (Management talent; Resources & Capabilities).................6Management Talent:...............................................................................................................6Resources:..............................................................................................................................7Capabilities:............................................................................................................................8External Analysis (Macro and Micro)........................................................................................9Pestle Analysis (Macro):........................................................................................................9Porter’s 5Forces analysis (Micro):.......................................................................................10Conclusion................................................................................................................................11References................................................................................................................................133

IntroductionBusiness strategy can be defined indifferent terms by the scholars, but literally it means theway or ways by which business objectives can be achieved. Different businesses adoptdifferent strategies suitable to their business environment and needs. Some businesses choosemanagement processes as their business strategies, while others focus on the marketing tools.Some of the others may choose to lay emphasis on the technical processes (Verbeke, 2013).In this paper, business strategy and its diverse aspects has been discussed in the context ofBHP Billiton, the largest Australian conglomerate. BHP Billiton has its history harking backto the nineteenth century. Both the companies BHP and Billiton have glorious history interms of business. They merged their businesses in 2001. BHP Billiton’s businesses centre inmining, petroleum and energy. It is renowned for its diversified commodities assets. In thispaper, BHP Billiton’s business strategy and strategic tools have also been illustrated (BHPBilliton, 2017).Discuss BHP Billiton’s competitive advantage? BHP Billiton Australia has the strong line of business history in both Australia and all overthe world. It is the world’s leading industry of natural resources. It pays off the highest taxesand royalty to the Australian government. Moreover its profit margin is highest among all theother Australian conglomerates. The company gains high profit from its petroleum businessesall over the world including Australian market. BHP Billiton’s competitive advantage can beidentified through its leadership, diversity and inclusion programs, which comprises ofinclusion of more women employees, supporting the leadership of women in specific areas ofbusiness operations, like Vanessa Torres, Head of Group Investment and Value managementin BHP Billiton. Others significant drivers of competitive advantage are inclusion ofIndigenous group people in BHP Billiton, supporting them in education and employment, and4

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