PESTEL Analysis of BHP Billiton

Running head: MANAGEMENT THEORY AND PRACTICE
Management Theory and Practice
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1MANAGEMENT THEORY AND PRACTICE
Table of Contents
PESTEL Analysis of BHP Billiton............................................................................................2
References..................................................................................................................................6

2MANAGEMENT THEORY AND PRACTICE
PESTEL Analysis of BHP Billiton
PESTEL analysis is considered as a crucial tool for the managements of the
companies to assess the impact of macro-environmental factors on the businesses. The
following discussion shows the PESTEL analysis of BHP Billiton that is an Australian
multinational mining, metals and petroleum firm.
POLITICAL FACTORS – There is increasing pressure on the Government of Australia to
comply with the regulations of the World Trade Organizations on the metal mining industry.
The current trend indicates that the existing government of Australia can be changed in the
coming election and thus, BHP Billiton must be prepared since change in government can
also change the governance priorities of the basic material sector (theguardian.com, 2019).
Lowe taxation policies have been majorly beneficial for BHP Billiton throughout the western
region and the company has enjoyed higher profit as well as increased spending on R&D.
However, there can be changes in the existing taxation policies due to increase inequality that
can affect the prodigality of BHP Billiton (treasury.gov.au, 2019). In addition, the local
governments are in search of specific taxation for Metal Mining for containing the carbon
footprints of the basic material industry. BHP Billiton has operations in many countries all
over the world and thus, the company has developed their policies based on the specific
requirements of metal mining industries of those countries. Since, the local governments of
Australia play crucial roles in policy-making, BHP Billiton is needed to consider the
governmental policies of the states and territories in which they operate. Effective
consideration of these aspects determine the business success of the company in the mining
material sector.