Overview
BHP Billiton, formed 2001, is a multi-billion dollar single business entity established by parent companies BHP Billiton Ltd and BHP Billiton Plc, and is currently among the worlds’ top producers in major commodities such as iron-ore and copper. BHP’s main product, iron-ore, is primarily extracted within Australia and Brazil (Worlds’ Top Exports, 2017). Nonetheless, it attracts a largely diversified market, with the main purchasers being Asian nations such as China as well as European nations such as Germany. Similarly, BHP’s coal is largely mined within Queensland and purchased by specialised manufacturing nations such as China (IBISWorld: BHP Billiton Limited, 1999-2017).
At the heart of BHP Billiton’s corporate …show more content…
BHP Billiton’s vision is integrated into their current mission as well as being a long-term approach in creating company strategy, aiming to provide value for business stakeholders via efficient and effective “discovery, development and conversion of natural resources” (Christopher Tipler, 2017). Furthermore, by focusing on their historic processes of ‘purchasing large, cheap and long-life’ products, they are able to attain higher company value and redistribute this to shareholders. (Christopher Tipler, …show more content…
For BHP Billiton, this downward trend in China’s business cycle could negatively affect revenue potential due to the fact that China is one of BHP’s core consumers of all commodities. This will therefore restrict future exports due to China’s presumably minimised demand, especially in key assets such as iron and coal, reducing overall profit possibility for BHP in the short-medium