Program and Portfolio Management

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Program and Portfolio Management
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Program and Portfolio Management 1
Table of Contents
Part A – Organisational Context.....................................................................................................2
Part B1 –External Strategic Analysis.............................................................................................. 3
Porter’s five-force model:..........................................................................................................4
PESTLE Analysis.......................................................................................................................... 7
Part B2 – Internal Strategic Analysis............................................................................................10
Firm value chain:...................................................................................................................... 10
Part C – SWOT Analysis................................................................................................................11
Part D – Recommendations......................................................................................................... 13
References................................................................................................................................... 16

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Part A – Organisational Context
BHP is a group that provides excellent services in mining field in all over world. It has
many business processes and operations (Anderson, et al. 2015). This report will provide eight-
domain framework to identify eight environment of BHP Billiton Company. It will provide
different environments, such as technological, economic, competitive, legal, global, resource,
customer, and labour environments (Krstic and Becic 2011).
The multinational corporations (MNC) are having their business beyond a single country.
MNC tend to target markets in different countries. They require a strong marketing strategy to
get their aims. Headquarter of BHP Billiton is in Melbourne Australia. They maintain all
operations from headquarter and monitor all business processes (360strategy.co.il 2011).
SWOT analysis is useful for identification of its customers, competitors, threats, opportunities,
and collaborators. It is helpful for gather actual information of organization. Therefore, they can
develop a suitable marketing strategy (Billiton 2010).
BHP Billiton is having marketing strategy to manage all the operations of the
organization. This report will be proposed a marketing strategy and element of marketing mix
based on the PESTLE and SWOT analysis. BHP Billiton is a mining company and it was founded
in 1885 as a merger between Billiton and BHP. It is best in mining. First time, it mine zinc, lead,
and silver in Broken Hill Australia (BHP 2019).
BHP Billiton expended its operations to enhance its functions, which involved
production and advertising of other materials that included oil, iron, copper, and diamonds.
BHP Billiton is also increases its boundaries in business of steel products. BHP Billiton identifies
different fields to enhance business of the organization as leading global resource company
(bhp.com 2019). It will create value for its stakeholders using a well-designed market strategy.
It is a best way to identifies natural resources and marketing them to its target clients in all over
the world. BHP Billiton is having many mission and they creating value to all stakeholders of
company. It creates new operations, which can create new values for the company as well as

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stakeholders. BHP Billiton is having specific needs of its customers, shareholders, suppliers,
employees, and partners (Blainey 2010).
BHP Billiton is having different external environment. These external factors are help in
the designing of the marketing strategy. There is eight-domain framework. This is describing
about the BHP Billiton external environment (Adler 2013). It is a necessary thing for an industry
to aware about the external environments. Therefore, BHP Billiton is managing all the
environments using different marketing strategies. It requires many things to maintain all the
risks and fluctuations in the business of company. Some important environments affect the
growth of an organization. Innovation is a fresh idea of a person or a team, which is used to
solve or optimize a task. In case of business, innovations are game changing thing. Innovation
can change the main business idea. Business strategies and innovations are highly interlined
with each other. There are many game changer innovations in the market, which can make a
huge impact on the business strategies of an organization (Teece 2010).
This report will also describe about the major opportunities and threats for BHP Billiton.
It is necessary to find opportunities and threats for an organization. It will help in designing
market strategies. In conclusion, it will conclude about the major environments, opportunities,
and threats of BHP Billiton.
Part B1 –External Strategic Analysis
External strategic analysis is beneficial to enhance and change mandatory changes in the
marketing strategies of an organization. BHP uses many strategies to external strategic analysis
and it is a way to enhance their business process. It will provide help in taking opportunities and
reduces threats of organization. BHP uses porter’s five-force model for finding different forces,
which can make affects thier business. In next section, this repot will discuss about porter’s five-
force model for BHP.
Mining industry is highly uses optimization tools in their operations for reducing cost of
different unnecessary business processes. BHP can also use optimization process to overcome

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the unnecessary cost of different processes, which can be used in the other beneficial processes
of the organization (Menabde, et al. 2012).
Source: (BHP-annual-report 2018)
Porter’s five-force model:
Porter’s five-force model is highly used for external strategic analysis. It will provide
better results in terms of identification of the external forces of the organization. BHP is having
many business processes. Therefore, it has many threats from different things, such as buyers,
suppliers, new entrants in market, and many others ( Jurevicius 2013). Porter’s five-force model

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is helpful to identify different forces, which can effects on the performance, efficiency, growth
and many other things.
Threats of New entrants: BHP is having few new entrants in the market, which are
share in mining, such as CITIC Pacific Mining. Because of dearth of natural resources, there is
limited supply and capacity available in the global market.
Source: (BHP-annual-report 2018)
BHP has a good financial growth but in year 2015, it has a mishap and they lost their
financial growth. Now, BHP is again on same page and they have a good growth in their
productivity and performance.
Threats of substitutions: BHP is strongly placed in Australian market as well as global
market. It is broad organization with his diversified portfolio of natural resource assets, to
counter any threats of substitutes. Many organisations are highly interested in the mining
industries, as it provides high benefits from different processes. However, natural resources are
limited. In addition, investors are interested in the sustainable development and sustainable
products. BHP is highly follows all the Sustainable Development Goals (SDGs) to manage their
growth and performance. There is a threat for most of the organization, which is substitution.