Bhp Billiton

BHP Billiton Ltd. must initiate a structured corporate governance department which create complete liaison between government bodies as well clearly state their laws to the employees of the organization. This structure must be divided in three sub functions as

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

Business environment consists of the surrounding factors that either help or hinder the development of business. There are five elements of the business environment:

Stevens and Chessell (2014) discuss the concerns over Australian government’s approval of the tax exemptions for the BHP Billiton for a $20 billion demerger of non-core assets. Considering the positive market reaction towards BHP’s plan for the underlying dividend to shareholders and potential benefit for industry, the Australian Taxation Office approved the exemption application. BHP is considered to improve corporate sustainability and maintain the positive momentum under current advantageous government policies and industry conditions.

For BHP Billiton and ANZ, financial reporting is an integral part of their business, the primary objective is to provide the most useful information for stakeholders in their decision-making; it helps ensure that the companies and organizations are in good financial condition in the industry and that their operations are honest and transparent to follow the rules and regulations under the restriction of the law. Both of these companies comply with the necessary government requirements and disclosure for the sake of their investors, and stakeholders, while managers use this data to make important decisions, adjustment, budgeting and changes needs for their investment.

BHP BILLITON is established and world biggest natural resources organisation. This company is working in 25 countries across the world. BHP BILLITON is one of the top industries for producing aluminium, energy coal, metallurgical coal, copper, uranium, iron ore, oil, gas, diamonds. Head office of this organisation is in Melbourne, Australia.

BHP Billiton is an Australian based global company created in order to source and mine natural resources. These resources include copper, iron ore, coal, uranium and nickel. BHP also claims to have “substantial interests in oil and gas” (BHP Billiton, 2015). In order to have continual future growth, BHP has taken the growth of climate change into consideration when planning for the future.

BHP Billiton is one of the top producers of iron ore, metallurgical coal, copper and uranium, while also interested in oil, gas and energy coal. Extraction and processing of the minerals, oil and gas operations are located primarily in Australia and the Americas. BHP runs under a Duel Listed Company structure with 2 parent companies; which are BHP Billiton Ltd and BHP Billiton Plc. These are operated as a single entity and are run by a board and management. The global headquarters for BHP is Melbourne, Australia. BHP’s revenue was over $44 billion in 2015 with over 65,000 employees in 2016 and operating in 25 countries.

The BHP Billiton is second biggest mining company in the world based on income. The Australian mining company earned a massive $68 billion dollars in sales in year 2013 from selling products such as iron ore, cooper, aluminium, coal, silver, nickel, uranium and manganese according to Spence (2014). Broken Hill Proprietary’s history began in a mine in Broken Hill, Australia. BHP was founded in year of 1885. The company participated in variety of activities such as finding, developing, producing and marketing of iron ore, copper and a range of other natural resources. According to BHP Billiton Chronology (n.d.), Billiton was a mining company and its history found back to year of 1860, when the documents of association were accepted by a meeting of investors in the Groot Keizerhof hotel in The Hague, which is in Holland. In year 2001, Broken Hill Proprietary and Billiton Company have decided to merge into BHP Billiton Company which had positive reactions from certain individuals such as then Australian Prime Minister John Howard who believed this merging of companies is very beneficial for Australia (O’Brien, 2001). BHP Billiton is a Dual Listed Company (DLC) which involves BHP Billiton Public limited company and BHP Billiton Limited. BHP Billiton was established through the Dual Listed Company fusion of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Public limited company), which was finished on June 2001. The head office of BHP Billiton,

External Environment: The main external elements need to be observed and established in and around the organization which will affect the organization.

BHP Billiton Limited is a British-Australian global mining company, founded on June 29, 2001 through a merger of Australia’s mining and oil company BHP (1885) and a London based mining company, Billiton (1860). Billiton was originally a tin mine on Indonesia's Belitung Island in the 1860s, BHP was first developed in 1885 as a lead, silver, and zinc producer in Broken Hill, Australia. This merger created one of the world's most diversified resources company, growing to have operations in 91 locations and a workforce of over 80,000 people.

BHP Billion, a merging cooperation of BHP and Billion in 2010 (BHP Billiton, 2011), is a world leading company in mining and resource exploiting. According to ASX data, BHP Billion has the largest business scales in the Australian market, AU$166 billion of market capital and AU$71 billion of annual operating revenue in FY13 (Australian Securities Exchange, 2014). Over 128,800 employees and contractors work in 26 countries worldwide to create value for their shareholders (BHPB Annual Report, 2013). The core business has been classified into five units: petroleum, copper, iron ore, coal and aluminum, making 20%, 18%, 17%, 31% and 14% respectively in the revenue of FY13. It can be seen from Graph 1 that although iron ore was not the segment with the largest assets, it still returned with the largest revenue and highest ROA rate in 2013. The following paragraphs will focus on the strategy analysis on the segment of iron ore and how it can conquer possible threats

In this term of our discussion we’re talking about business environment. It’s like an overview of the whole business environment. Simply environment of a business means the external forces including the business decisions. They can be forces of economic, social, political and technological factors.

An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).

As the name suggests, “internal” business environment refers to internal factors and resources that affect the running of the business. This primarily includes the workforce where the employees play a vital role in affecting company’s performance. If a company has well trained or motivated employees, that company is likely to get good output from them. However, if the same company recruits unmotivated employees who do not perform well or dig in their heels when a new plan arrived, this will affect that company’s production levels and ultimately hinder its profitability. Another factor to consider is all the capabilities that a company possesses. The tool used to monitor them is the resource based