Introduction
This research analysis report is based on several fundamental attributes of BHP Billiton. To begin with, it conducts an analysis of the critical risks and strategic outlook of the company. This is aimed to determine whether the company is destined for growth by determining areas of growth, and identifying those that have slowed down. It also identifies the market forces that are assisting the company in growth, as well as those forces that are hurting the company. The main aim of the report is to identify areas in which the company has excelled, and which it has flopped. It is highlight the strengths that allow the BHP Billiton to excel in some areas, and weaknesses the company struggles with.
This paper establishes a platform …show more content…
It is this extensive nature of the company’s activities that has made the company one of the largest mining organizations in the world. It also specializes in mineral exploration, technology, freight, transportation and logistics.
BHP Billiton states its mission as;
Our core purpose is to create long term value through the discovery, development and conversion of natural resources, and the provision of innovative customer and market-focused solutions
BHP Billiton’s Mission Statement
In line with its stated mission, the company has invested heavily in managing and building high quality assets and services for its customers. Further, it holds that it is priority to earn the trust of employees, customers, suppliers, communities, and shareholders.
Its core values are closely aligned with its mission; integrity, respect for the community, to be a market leader, optimal performance, and safety for its employees and the environment.
The company has also defined its strategic drivers to seek out opportunities in the industry. Some of the key drivers include; financial capacity, high quality assets, having growth options, and discipline.
Industry …show more content…
For instance, the increasing cost of maintaining the equipment used in mining has been transferred to the company. Further, there has been a steady increase in the labor costs for exploration. The company has been greatly impacted, and has resorted to delaying the exploration of new projects in the west of the country. Although it has tried to make efforts to lessen the bargaining power of its suppliers, it has a weak position to counter the pressure they generate.
Threats of New Entrants (Moderate to Low)
There is a moderate to low threat of new entrants into the industry. Unlike in many other industries, there is minimal idle capacity and supply in the natural resources market. As a result, it is almost impossible for new entrants. One of the approaches that new entrants have adopted is through joint ventures. For instance, many Chinese firms have formed joint ventures with already existing mining firms in Australia. This mostly affects how such firms are managed, and not in ways that cause BHP major concerns.
Further, the BHP Billiton retains locations where high quality ores are mined. The main challenge for new entrants is that it takes a lot of time to compete with the established firms. Experience is crucial in the mining industry as it helps in determining the best infrastructure to use, how to hire and train employees, and how to capture the
This research analysis report is based on several fundamental attributes of BHP Billiton. To begin with, it conducts an analysis of the critical risks and strategic outlook of the company. This is aimed to determine whether the company is destined for growth by determining areas of growth, and identifying those that have slowed down. It also identifies the market forces that are assisting the company in growth, as well as those forces that are hurting the company. The main aim of the report is to identify areas in which the company has excelled, and which it has flopped. It is highlight the strengths that allow the BHP Billiton to excel in some areas, and weaknesses the company struggles with.
This paper establishes a platform …show more content…
It is this extensive nature of the company’s activities that has made the company one of the largest mining organizations in the world. It also specializes in mineral exploration, technology, freight, transportation and logistics.
BHP Billiton states its mission as;
Our core purpose is to create long term value through the discovery, development and conversion of natural resources, and the provision of innovative customer and market-focused solutions
BHP Billiton’s Mission Statement
In line with its stated mission, the company has invested heavily in managing and building high quality assets and services for its customers. Further, it holds that it is priority to earn the trust of employees, customers, suppliers, communities, and shareholders.
Its core values are closely aligned with its mission; integrity, respect for the community, to be a market leader, optimal performance, and safety for its employees and the environment.
The company has also defined its strategic drivers to seek out opportunities in the industry. Some of the key drivers include; financial capacity, high quality assets, having growth options, and discipline.
Industry …show more content…
For instance, the increasing cost of maintaining the equipment used in mining has been transferred to the company. Further, there has been a steady increase in the labor costs for exploration. The company has been greatly impacted, and has resorted to delaying the exploration of new projects in the west of the country. Although it has tried to make efforts to lessen the bargaining power of its suppliers, it has a weak position to counter the pressure they generate.
Threats of New Entrants (Moderate to Low)
There is a moderate to low threat of new entrants into the industry. Unlike in many other industries, there is minimal idle capacity and supply in the natural resources market. As a result, it is almost impossible for new entrants. One of the approaches that new entrants have adopted is through joint ventures. For instance, many Chinese firms have formed joint ventures with already existing mining firms in Australia. This mostly affects how such firms are managed, and not in ways that cause BHP major concerns.
Further, the BHP Billiton retains locations where high quality ores are mined. The main challenge for new entrants is that it takes a lot of time to compete with the established firms. Experience is crucial in the mining industry as it helps in determining the best infrastructure to use, how to hire and train employees, and how to capture the