BHP Billiton Group

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BHP Billiton Group is world’s largest diversified mining company. The strategy of BHP Billiton is to own and operate large, long-life, low-cost, expandable, upstream assets diversified by commodity, geography and market (BHP Billiton, 2013). The mission, vision and objective at BHP Billiton is to be the company of choice by creating sustainable value for their contractors, employees, shareholders, suppliers, customers and business partners. For the Major mining company in the industry, using Porter’s generic strategies to analysis BHP Billiton, the focused strategies are not suitable but the cost leadership strategies are therefore considered as strategic options, which in terms of BHP Billiton has long-life, low-cost, expandable and upstream…show more content…
For example, In Australia, the government had plan to increase the effective tax rate in 2010 for mining companies which will adversely affect the financial position of BHP. Economic BHP Billiton will be affected by the global economy, especially in the oversea such as India and China which they are heavy users of commodity which directly affect financial position of BHP. In recent years, there’s is a slowdown the economy of China as the growth slowed down, and this should be of huge concern of BHP Billiton (Malone & Bergin, 2012), because China represented 25% of the total sales revenue to BHP, and BHP Billiton demand will be affected awfully if demands slowdown. Environment Climate change is one of the main business risks of BHP Billiton. The greenhouse effects and related regulations and taxes. BHP annual report (2013) indicated that Carbon-based energy is an input in BHP’s mining and processing operations. However, the Australian Government have introduced a fixed price on carbon emission and established an emissions trading scheme. This will be a negative effect to BHP. In conclusion, based on the above analysis, it is recommend that BHP concentrate more on the costs leadership strategy. Question…show more content…
According to BHP sustainability report (2013), it state that company requires leaders to visibly hold themselves and others accountable for living the company values as outlined in the Charter, which means that BHP is putting safety in the first place, making people a priority and being functionally excellent and working with discipline. Charter as quoted in annual report (BHP, 2013): “The BHP Billiton Charter is the company’s single most important means by which they communicate who they are, what they do and what they stand for as a company. It is through the Charter that they articulate the purpose, strategic drivers that guide them and their organisational values. BHP Billiton believes that by working to the Charter, they will continue to be successful as a company today and for the long

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