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InTRODUCTION 3 MAIN BODY3 1. An overview of a mining company BHP Billiton 3 2. Market structure and dynamics

   

Added on  2020-12-18

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ECONOMICS

Table of ContentsINTRODUCTION ..........................................................................................................................3MAIN BODY ..................................................................................................................................31. An overview of a mining company BHP Billiton..............................................................32. An analysis of market structure..........................................................................................43. Determinants of demand and supply of products and services..........................................64. Demand elasticity for products and services......................................................................85. An Analysis of recent event which has impact mining industry........................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTION Economics is the study which assist in understanding the way society uses its limitedresources 1 . It deals with production, consumption, trade and distributions of goods and services.In this Assignment, BHP Billiton a mining industry will be chosen for better understanding ofthis report. The report will lay emphasis on statistics of Revenue, employment, industry'scontribution to GDP of Australia and growth rate. This report will also discuss about marketstructure in which mining industry is operated along with some statistics of market leaders inAustralia mining industry. The supply and demand determinants will also explain in this report.This report also focuses on factors of demand elasticity which affects demand of minerals ofBHP Billiton. The report will cover an issue which impact mining industry along with theirimpact on demand and supply. MAIN BODY 1. An overview of a mining company BHP BillitonBHP Billiton is the world's largest resource and mining company which is operated in almost 25countries with 100,000 employees 2. The BHP Billiton is their headquarter in Melbourne. Thiscompany was begun in 2001 by merger of Broken Hill Proprietary (BHP) with Billiton. Thecompany is one of the largest producer of the world in aluminium, manganese, uranium,titanium, copper, iron ore, nickel, silver and other minerals. Revenue – The revenue of BHP Billiton in 2017 was $ 36,135 millions and in 2018 itwas $ 4,363.8 million .Employment – According to statistics of 2017, the number of employees hired by BHPBilliton was almost 15,906 employees from Australia, 6,361 employees from SouthAmerica and 2,786 from North America. Also from Europe and Asia the company BHPBilliton hired employees 74 and 1,019 respectively . In 2018, the company BHP Billitonhired employees from Australia which increases from previous year that is 16,504employees. Also, number of employees from South America increases with 6,7291Cronin, P., and et.al., 2017. Long‐term health care costs for patients with prostate cancer:a population‐wide longitudinal study in New South Wales, Australia.Asia‐PacificJournal of Clinical Oncology.13(3). pp.160-171.2Xu, S., How, J. and Verhoeven, P., 2017. Corporate governance and private placementissuance in Australia.Accounting & Finance.57(3). pp.907-933.

employees and from Asia the company hires 1,368 employees. But the company hiresfrom North America is 2,490 employees and Europe is 70 employees.Industry's contribution to national GDP – The mining industry's are currently contribute8.5% to GDP of Australia and employs to almost 2% of the total workforce. Also, thissector has contributed 50% of total export earnings in Australia.Industry growth rate – The industry of mining has grown a lot from past years. As GDPgrowth rate of march 2018 was 2.4% which has increased up to 3.1% afterwards 3. Thegrowth in Australian economy is on continuous basis as in first quarter of marchAustralian economy grew by 1% while at December improvement in growth has been0.54% measured.2. An analysis of market structureCharacteristics of mining industryInnovation of business model– The business model focuses on value of bothorganisation as well as customers. The model will convey a relationship of long standingand profitable with their suppliers, customers and partners 4.Asset management – The industry of mining optimizes priorities of asset utilization andcare for short term opportunities and long tern sustainability. The company engages inmining industry view entire life cycle of asset management which enables them to accessthem a wider view of asset class. Governance and workforce collaboration – Earlier mining companies as compared toother industries doesn't care about assessment with corporate governance standards 5.Now Companies adopt various new strategies by which they access collaboration withdepartments, supply chain, geographies, customers, suppliers and partners. Environment and energy – The companies of mining industries prefer to go green andattempt various environment friendly practises which enables them to perform their3Divisekera, S. and Nguyen, V. K., 2018. Determinants of innovation in tourism evidencefrom Australia.Tourism Management.67. pp.157-167.4Brown, S. and Gray, D., 2016. Household finances and well-being in Australia: Anempirical analysis of comparison effects.Journal of Economic Psychology.53. pp.17-36.5Devine, P. J., and et.al., 2018.An introduction to industrial economics. Routledge.

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