Strategic Scenario Plan for BHP Group Ltd

This report discusses the scenario planning technique used by BHP Group Ltd, a global mining and resources corporation. It covers future forecasting methods, strategic developments, SWOT analysis, competitive strategy, and financial projections. The report also highlights the company's generic or top line strategy.

Strategic Scenario Plan

Contents
PART 1 INTRODUCTION...............................................................................................................................3
PART 2.........................................................................................................................................................4
FUTURE FORECASTING METHODS...............................................................................................................4
What forecasting methods are being used to provide projections and estimates for future
performance?..........................................................................................................................................4
What listening processes are being followed (if any)..............................................................................5
Conduct and calculate some financial projections for the organisation..................................................5
PART 3 Strategic Developments..................................................................................................................6
Strategic vision........................................................................................................................................6
SWOT analysis.........................................................................................................................................7
Generic or top line strategy.....................................................................................................................8
Competitive strategy...............................................................................................................................9
Vertical integration and diversification strategies...................................................................................9
PART 4 CONCLUSION...................................................................................................................................9
REFERENCES..............................................................................................................................................11

PART 1 INTRODUCTION
Scenario planning is concerned with the tomorrow. It's a way through which businesses may
get a sense of probable future situations and how they can influence their stated objectives.
Whenever issues or adjustments arise, a company may use these situations to make wise choices.
Scenario planning, in the framework of a corporation, is a technique to establish control over an
environment where change by assessing potential expectations and defining how the firm will
react. This report based on the BHP Group Ltd is a worldwide mining and resources corporation.
The corporation is a manufacturer of iron and plutonium, as well as a copper furnace, copper
refineries, and rare metals. Petrol, Copper, Iron Ore, and Coal are the company's segments. The
Petroleum section is responsible for oil and gas exploration, development, and manufacturing.
Copper, silver, zinc, molybdenum, radon, and gold are all mined by the Copper sector. Iron ore
mining is the focus of the Iron Ore sector. Extraction of industrial and electrical coal is done by
the Coal sector. Mineral, oil, and gas are extracted and processed by the business from its
manufacturing operations, which are largely situated in Australia and the Ame.
BHP Billiton, the Anglo-Australian mining conglomerate, has laid forth a 5 growth
strategy. Andrew Mackenzie, the company's CEO, has defined a lead to effective on value
development and increasing cash value to investors. Mackenzie claimed BHP Billiton can
benefits of the project in all economic situations while addressing at the Bank of America Merrill
Lynch Symposium. “While we remain optimistic about metals' lengthy prospects, we are not
awaiting for pricing to rebound. “Correct now, we have whatever we need in our portfolio to
dramatically raise the Stock profits,” he added.
“We will continue to increase efficiency, with a further US$3.6 billion in benefits
projected by the end of july third budget year,” Mackenzie said. Our big firms' unit expenses are
anticipated to drop to about half of what they were 5 years earlier. We're keeping the positive
momentum, and there's more to follow. We'll also put money into projects that will allow us to
tap into our assets' hidden potential. At total investment expenditure with less than US$1.5
billion, they may provide nearly 1 million tons of gold standardized data. This represents and
over ten percent of BHP Billiton's initial output. As prices rebound, we will also improve the
amount of our elevated shale resources in a systematic way.

Except as otherwise stated, number shows BHP's decided to risk net present value
method at general agreement price levels; metals comparable industry is based on financial year
2018 year estimate came to the realisation price increases (as accepted for publication in BHP's
Outcomes for the year ended 30 June 2018 on 21 August 2018); information from affiliates can
be seen on a 100% basis, and information from shares taken into account assets and other
operational processes is pr. The BHP Billiton Mitsubishi Alliance (BMA) asset, which is run
cooperatively with Mitsubishi, and the BHP Billiton Mitsui Coal (BMC) asset, which is operated
by BHP, make up Queensland Coal.
PART 2
FUTURE FORECASTING METHODS
What forecasting methods are being used to provide projections and estimates for future
performance?
Although there are many approaches for forecasting business results, there are 4 types of
frameworks or methodologies that businesses employ to anticipate future activities. Only with
examples given of typical prediction model, they'll have a good handle of how organizations
utilize these methods for improving their systems and processes and deliver better:
Qualitative techniques: The goal is to organise all details and decisions about the considerations
being approximated in a rational, impartial, and organised manner. Such approaches are
commonly employed in emerging industries, where the creation of a product concept may need
many "discoveries," making R&D expenditures impossible to predict and commercial
acceptability and adoption rates very unpredictable.
Judgmental forecasting model: To produce forecasts, several judgmental forecasting models
use personal and intuition knowledge. There are instances, for example, while no evidence is
accessible for comparison. When releasing a new product or dealing with unpredictably changes
in the market, judgmental prediction models might be useful.
Time series analysis: Whenever multiple years of evidence for a product category is accessible,
and correlations and patterns are both apparent and generally consistent, various measured in
many different ways are utilized. Nevertheless, the situation is not as straightforward as it

appears. It's tough to generate forecasts from original information since trends and tendencies
aren't always clear; they're mingled with natural variation, for instance, and sometimes skewed
by things like the impact of a major sales marketing plan.
What listening processes are being followed (if any)
Hearing, comprehending, evaluating, remembering, and reacting are the five steps of the
communication cycle. Following parts will go through those phases in greater depth. Essentially,
a successful receiver must be able to hear and recognise natural speech aimed at them,
comprehend the message sent by these noises, reevaluate or analyze that signal, recall what is
said, and react (verbal or nonverbal) to the data gained.
Conduct and calculate some financial projections for the organisation
Profit and loss account
Profit and loss account
Particulars Amount Particulars amount
Opening stock 9,500 Sales 125,000
Purchase 75000 Less: Return (1000) 124,000
Less: Return (1500) 73,500 Closing stock 1,000
Wages and salaries 13,200
Gross profit 28,800
125,000 125,000
Rent and rates 1500 Gross profit 28,800
Add: Out. Rates 340 1,160 Interest received 1,000
Postage 900 Rent received - 4850
Insurance - 7500 Less: Advance rent –
490
4,360
Less: Prepaid insurance -
411
7,089
Bad debt write off 650

Net profit 24,361
34,160 34,160
Balance sheet:
Balance sheet
Liabilities amount Assets Amount
Capital – 120,800 Bank 10,594
Less: Drawings
5,150
Cash 340
Add: Net profit -
24361
140,011 Prepaid insurance 411
Provision for bad
debts
934 Advance rent 490
Debtor - 12500
Creditor 3,900 Less: Bad debt write off -
934
11,850
Outstanding rates 340 Motor van at WDV - 19600
Less: Dep - 5000 14,600
Loan 100,000
Closing stock 1,000
145,185 145,185

PART 3 Strategic Developments
Strategic vision
BHP's goal aims to build long-term price and better profits by having the greatest talents,
resources, and assets. Our method is focused on a serious commitment to wealth creation and
risk assessment, as well as a strong entrepreneurial spirit societal value for its shareholders. Our
mission is to bring resources and manpower with each other in order to make things a better
place. Our objective is to build lengthy price and better yields by having the finest skills,
products, and properties. Prioritizing health and safety, being ecologically conscious, and helping
our community are all important to us.
SWOT analysis
BHP Billiton is one of the most well-known companies in its field. Through studying and
assessing the SWOT analysis, BHP Billiton preserves its competitive edge over its competitors.
SWOT analysis is a highly process of interaction that necessitates close teamwork across many
corporate areas such as marketing, finances, logistics, decision support systems, and program
management.
Strength: BHP Billiton is a well-known mineral wealth corporation with a wide range of
properties. The business is one of the major uranium, copper, silver, led, and aluminium
manufacturers in the world. Through holdings in Australia, Brazil, and South Africa, BHP is an
organization positively of iron ore, thermal coal, and titanium. The business's Energetic Coal
division, which has eight companies in South Africa, Australia, the United States, and South
America, produces thermal coal to be used in the electricity generation sector and other
commercial enterprises.
Weakness: To be more competitive, the firm has to enhance its net profit and lengthy fiscal
return on asset metrics. BHP Billiton is now dealing with a number of human resource
challenges that are affecting its business. There is a scarcity of skilled personnel, particularly
those with mining experience.
Opportunity: BHP Billiton has a number of projects in the works. The concept stage of 29
projects that has the potential to become a substantial stream of income assuming construction
has been completed efficiently. When advertising national environment from the firm's enormous

resources, the corporation may further enhance its marketing strategy by introducing novel
marketing strategies as well as using new social networks and consumer engagement. This
entails raising brand awareness and recognition in order to promote the business strengths and
activities.
Weakness: Continually increasing expenses from providers, such as energy, transportation, and
bonded labor prices, as well as inflationary and workforce difficulties, are limiting BHP
Billiton's learning and expansion. That in its native nation of Australia, the firm is under constant
political challenges, as it has gotten an adverse decision from the administration over relationship
between technology, and the geopolitical mechanics being on the ‘right side' of problems cannot
be ignored.
Generic or top line strategy
To deal with the competitive pressure, the firm has implemented a mix of cost leadership,
differentiation, and focus tactics. Concentrating on the most relevant intense strategic planning
depending on 3 general strategy flows, the client base development and increased sales targets
are achieved. Market penetration, project management, market expansion, and diversifying are
only a few of BHP Billiton plc's intense growth methods for achieving growth objectives. In this
study, we look at the how BHP Billiton plc uses general and intense growth methods to stay
ahead of the competition.
Cost leadership: This approach enables BHP Billiton plc to increase business by focusing on the
upper income, which accounts for the majority of the retail marketing mix strategy in most
nations. The prices element is typically very important to intermediate customers, and cost
leadership is the greatest method for meeting their demands.
Differentiation: The strategic goal of BHP Billiton plc's use of this approach is to distinguish by
integrating innovation and addressing customers' rising medical conditions. For instance, to
separate itself of the opponents and increase the breadth of options within the sector, BHP
Billiton plc has expanded its business range after researching shifting customer interests. BHP
Billiton plc has established a powerful and relationship with its customers by combining
distinctiveness and cost leadership.

Focus strategy: BHP Billiton plc has a focus approach to reduce costs while still providing the
greatest value. Servicing the demands of a specialized product category at the minimum possible
expense is the reduced focus technique. Although the better value focus approach is used by
stressing the flavor, shape, and production process that best meets the demands and expectations
of the clients. BHP Billiton plc rethinks its advertising strategy and introduces continual
modifications in item product specifications to fulfil consumers' psychological expectations and
optimize reasonable price by concentrating on product characteristics.
Competitive strategy
Only with goal of increasing its strategic advantage, BHP Billiton has used acquisitions
and mergers as a development and repositioning approach. Market penetration, integration,
innovative products, and diversity are all factors in the firm's mergers and acquisitions strategy.
The diversity of goods in the market is one of the firm's comparative edges. It ensures that cash
flows are not disrupted. This is determined by a customer's sensitivity to a certain money or
product. It also has a more consistent and stable business results. This has demonstrated an
increasing tendency in terms of global dominance improvement. Billiton has a diverse portfolio
of assets. As a result, it has profited from the competition. The firm's capacity to not fall behind
in terms of funding is one of the reasons it is regarded as being one of those exceptional
businesses.
Vertical integration and diversification strategies
BHP Billiton plc uses a differentiation strategy to structure its brand portfolio so that they
stick out being distinct from the competition. The firm utilises difference as a tactic to lessen the
competition from other brands because it is an international name with a solid presence. BHP
Billiton plc spends a lot of money on marketing, advertising, and celebrity endorsements merely
to set itself apart from the competition. Maximize productivity, the longest trademark, and an
international reach are some of the differentiating aspects that the business's advertising and
marketing initiatives stress.
PART 4 CONCLUSION
As per the above report it has been concluded that In the mineral wealth business, BHP
Billiton is a worldwide leader. The firm has established an approach to work and exchanging
information that represents its principles and promotes superior talent in order to assure

outstanding results. In order to preserve its leadership role, it is continually upgrading and
improving its working processes. BHP Billiton wants to operate with ethics anywhere they are,
making the right choices and just doing right things. Above everything, they are dedicated to the
safety and safety of employees, as well as the ecosystem and the community in which it operates.
BHP Billiton understands that its most important asset is its employees. The industry's recruiting
goal is to hire the top undergraduates with the correct mix of backgrounds and the best chance of
moving into potential management positions. BHP Billiton will be well equipped to compete the
mineral wealth sector in the coming future of this. Yes, this strategy perfect because it helps to
achieve all the set goals and objectives in particular time frame. Along with focus o those
activities which is required for the business and take further steps.
They have a basic and broad tier one asset portfolio. They have a long lifespan, are
inexpensive, and may be expanded. They implement our principles and philosophy, run them
safely and effectively, and apply that knowledge to derive the greatest value and best yields from
our properties. This has shown to be beneficial to stockholders. They have improved our
financial statement by reducing net debt by US$17 billion, investing US$27 billion in
opportunities in the future, and most significantly, repatriated and over US$29 billion in
dividends since 2016. To keep this record going, we need to make the most of our assets and
devise strategies that will ensure our achievement.
Our ability to live a fulfilling life is dependent not just on our dedication to capital
management, but also on our focus on social worth, which includes contributions to individuals,
the ecosystem, and society. It guides how we distribute wealth, create economic strength, and
keep our environments secure. They are accountable for delivering excellent commercial, long-
term, and social results for our investors, neighborhoods, and humanity. This prompted us to
revise our mission statement to identify people as the motivating force underlying our
accomplishments and to represent our larger impact.

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