Strategy Analysis for Iron Ore Segment on BHP Billiton

Growth in troubled steel industry. How to sustain Nucor’s earnings growth in the industry, which has many marginal competitors and production overcapacity.

New entrants may pose a threat to the company by introducing new innovative products at a competitive prices and eating into their market share and customer loyalty. The threat of entry for the coal and uranium industry tends to be low due to high entry barriers. The reason for this is the government regulations and restriction on coal and uranium mining companies. Resources of coal and uranium are laminated. The capital expenditure or set up of mining company is very high. Moreover, mining companies has a high exit cost and that because the use of specialized asset. Also,

Right from the announcement of the Carmichael coal mine project to the final approval, the project received strong opposition from various stakeholders.

Rio Tinto first step to achieve the smarter mining system is MOF. The company must address all the key issues with technology, supply chain, intersection of strategy and operational best practice. These are corporate social responsibilities, process improvement, business model innovation, asset management, improvement of information integration and collaboration, governance and workforce.

This article reports on the decline in Rio Tinto’s profit as a result of waning Chinese demand for Australian commodities, and the response of the company’s chief executive to the half yearly profit figures.

Part of Matalan strategy is to expand into new markets (Matalan Report 2018). However, we need to identify the right market, the right timing and the scale of entry, so we can successfully penetrate the new market and explore its international expansion opportunities (Hill 2011). We identified Australia as a potential market and after assessing the external and internal environments, evaluating the long-term profit potential of the country and highlighting any potential risks. We found that Australia is an attractive location for Matalan to expand to, due to its thriving economy, stable government, trusted legal system and highly skilled workforce Technavio (2016).

Copper mining became extremely popular in 1843 in what is now known as the Copper County. Here was on the only place in the whole United States of America to get pure, native copper, that was until the early 1900s. The first documented reports of copper being found in Michigan was in 1667 by Claude Allouez, a missionary from France. In Allouez's report, the Native Americans in the Lake Superior area, known as the Chippewa's, really valued the copper nuggets they found there. The Upper Peninsula was soon to erupt into the center for the mining industry (Molloy, 1999).

With 75% capacity utilization, a level too low for many companies, three European companies decided to merge to form the world’s largest steel producer. Two Japanese companies did the same to form the second-largest steel producer. These new mega-steelmakers could easily outmuscle their U.S. competitors. The largest steel producer in the US, USX-U.S. Steel group was already at number 11, with a threat of falling

Rio Tinto corporate strategy is geared towards always getting the maximum profit to its investors. They achieve this by always attempting to operate in a sustainable and responsible fashion. The Group chooses to invest in opportunities that are large scale, long life and gain maximum profit. As a company that creates wealth by extracting minerals and metals from the earth Rio Tinto must also accept some of the responsibility that comes as a result of mining.

During the year 1968 this company acquires the US Borax who was considered to be the world’s largest deposit in the field of industrial minerals.

This report analyses the financial performance of BHP Billiton, a diversified natural resources group, for a potential investor. It uses the financial ratios to analyse the company’s profitability, liquidity, efficiency and investment potential.

As the owner of these natural resources the government is accountability to improve the mineral and petroleum resources for the benefit of the State and its citizens . So, whereas the government works regulators of the development of these resources, other side the private companies had undertaken the development of Australia’s minerals and petroleum resource and thus both of them have establish cooperative relationship.

This, however, does not mean that there is no relevant or serious competition issue in the steel industry. The growing consolidation in the steel industry worldwide through mergers and acquisitions has already thrown up several significant concerns. The fact that internationally steel has always been an oligopolistic industry, sometimes has raised concerns about the anti-competitive behaviours of large firms that dominate this industry. On the other hand the set of large firms that characterize the industry has been changing over time.

Growth and a balanced portfolio are attractive objectives, however, for some companied, there has produced big problems. NCR reported a loss of $60 million in 1972 primarily because it entry into the computer field. General Foods took a $39 million write-off in 1973 on its entry into the business of fast food chains (Biggadike, 1979). British Petroleum and Shell that have invested in the minerals industry and were kicked out as s result of unacceptable levels of earnings which were a consequence of the parent oil companies’ lack of understanding of the minerals business (Canbell and Goold 1995). It is a common phenomenon that entry into a new market without a clear strategy and over-confident in profit generating ability result in a failure diversification. Management and technology skills may not be easily transferable to a new area of business. It is generally agreed that to attempt simultaneously to enter new markets and develop new products is a risky strategy which should be managed prudently.

Tata Steel Tata Steel is the largest steel producer in India. The main project described is the development of a model for adjusting the mix of products to compensate for different levels of power shortages at various times in the day. Prior to describing this project, the presenters show how they used a productmix model to improve profitability, comparing its results to those of their previous strategy of maximizing output. The electricity shortage model built on this one with the added element of incorporating the fixed costs associated with the adjustments necessary to compensate for a lack of power. The value in this tape is at several levels. The users of the model make the point that they were skeptical that anyone in management science could tell metallurgists how to improve their operation of a steel plant.