This website uses cookies to ensure you have the best experience. Learn more

Strategy Analysis For Iron Ore Segment Of Bhp Billiton

1887 words - 8 pages


1. Company background,

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 ...view middle of the document...

2.1.2 Weaknesses
Although BHPB has larger business capital, the cross-fields strategy disturbed the deployment of resources for the core business. For instant, BHPB values their position in energy products market such as petroleum so that this segment would take approximately 40% of assets while it only turned into 20% of revenue (ASX, 2014). Consequently, the iron ore segment gained less emphasis than that of its rivals.

2.1.3 Threats
Externally, the threats could be analyzed by PEST model. It can be divided into three aspects, political, economic and social impacts. Political impact: Mining industry is an industry with high level of energy consumption, which can be easily influenced by environmental policy of the government.

In order to reduce the guesthouse gas emissions, the Australian government has set the target to diminish carbon dioxide emissions by 5%, below 2000 level by 2020(Australian Government, 2013). This policy could have a significant impact on BHPB because of its nature of business-energy-oriented. Based on the data collected by International Energy Agency (IEA), 9% global CO2 emission could be blamed to the iron and steel manufactories (Efficiency, 2007). If the Australian government plans to keep its promise to Kyoto Protocol, harder and more rigorous requirement on the environment would be implemented in the near future. Thus the company has to spend more on environmental sustainability to make sure its operation abide by the government policy. More than that, it might also influence the cost of the new application to develop new resource if the company expects to expand its mining capacity. Economic impact: Highly rely on the economical surrounding, especially on China’s economic trend.

From Y2012, China, the largest iron ore buyer in the world, intentionally slowed down the pace on economic growth, the demand on iron ore has therefore been decreased drastically (Wilson, 2012). This turned the iron ore market into bear market of surplus by $32 billion in January 2014 (Trefis Team, 2014). Relatedly, the commodity of iron ore price continually declined from 2013(TSI, 2014), getting nearer to the bottom point within a year. Although for company such as BHPB would be more concern about the return in the long term which means the price influence could be weaken by times, the unpredictability and pessimistic forecast on China’s growth flagged the potential risk for further development. As a matter of fact, most of these figures estimate that China will probably fail to reach the growth target of 7.5% in Y2014 (Trefis Team, 2014)( Guo & Zou, 2014). Social: Conflict with aboriginal culture and workplace safety
The iron ore mining industry brought enormous economic benefit to Western Australia. Significantly, it creates job opportunities to solve the high unemployment rate in the aboriginal area (Hajkowicz, Heyenga & Moffat, 2011). However, due to the lack of cultural understanding, the residents...


Analysis of Groupon Marketing Strategy

1569 words - 6 pages With the internet technology, everyone can stay at home for online shopping. What’s more, if you can enjoy daily discounts with all the information, home delivery and 24-hours daily operation, that’s all can be found by buying Groupon. Groupon, the company has successfully captured millions of online consumers throughout the world. The marketing strategy of Groupon captures the consumer behavior. Consumer buying behavior, defined as... “The

Investigating The Reasons for the Original Location of the Iron and Steel Industry in South Wales

2632 words - 11 pages steel production. These are coking coal and blackband iron ore, which were both easily available from the valley floors and sides of the Welsh mountains and were often found within close proximity of each other, meaning the area was very suitable for industrial development. Also, limestone was required, which could be easily obtained from only a few kilometres north of the site. For this reason a line of steel towns


979 words - 4 pages As I look upon the annals of my life of 21 years, I see many thoughts,visions and ideas andevents of signifigance,some important,some superfluous and some profound.It is the latterim concerned with,for it is these events that characterize one`s personna, leaving a deepscar etched into the soul.The scar that gives me character is the Iron.To fully understand its impact,one must travel back in time a bit.A time before imet the Iron,a time not all

Marketing Strategy Analysis of Coca Cola

3197 words - 13 pages results of the audit to create at least one new marketing objective for Coca-Cola.P.E.S.T. ANALYSISHaving examined the political, economic, social and technological trends, useful information was generated for a strategy formulation, at Coca-Cola. The following represents a summary of the findings: (Refer to appendix 1 for definition of PEST Analysis).PoliticalManufacturers of soft drinks are increasingly guarded by legislation affecting health

An Analysis of Arvind Kejriwal’s Communication Strategy

1899 words - 8 pages order to stay connected with their fans or convey their thoughts and messages to the people. Arvind Kejriwal too has resorted to such a strategy by creating a page on his name on twitter and being actively posting information about his activities so that the people know about what he is upto for the betterment of the society and the country on the whole. (d) Newpapers: The print media has been the major portal through which Arvind Kejriwal has

Business Analysis: Dyson and Its Strategy for Marketing

1496 words - 6 pages finally design with confidence that customers will buy only their products and measures the graph of success. Stamm, (2009) highlights that successful implementation of innovative strategy totally relays on mutual and supportive morals and behaviours and needs to be constant for a long term and also needs to live this belief through performances. ( Stamm, 2009). James Dyson inventor of cyclonic vacuum technology believes that “Like everyone we get

This essay is an analysis of the story the "Life in the Iron Mills" by Rebecca Harding Davis

1840 words - 7 pages owners of these factories had a huge labor supply available to them and no incentive to look out for the employees' safety or health. The need for laws and change sparked writers such as Davis to expose the horrible conditions of the factories to the public. In the opening sentence, of the novella, Davis describes a cloudy day in the Iron Mills. "The sky sank down before dawn, muddy, flat, immovable. The air is thick; clammy with the breath of

Analysis of the Branding Strategy of Nanda Home

1122 words - 4 pages The essay intends to first analyze the branding strategy of Nanda Home. Focusing on the failure in sustaining the appeal of its flagship product Clocky, and later give branding recommendations to Nanda Home and one of its product, Tocky in a new market, United Arab Emirates (UAE). The analysis and the recommendations will be based on the application of two branding goals of image and function. Clocky’s deficiency in branding can be ascribed to

Analysis of the Effectiveness of Company’s Market Strategy

1628 words - 7 pages The main topic for this Extended Essay is to analyze the effectiveness of company’s market strategy. A marketing strategy can be defined as a process that helps a business to optimize the opportunities in order to complete business objectives, which mainly gain profits. It includes all basic and long-term field activities of marketing that deal with the analyzing of initial strategy, evaluation of the strategy, and making of a new strategy if

A Film analysis of the beginning segment of the film 'Welcome to Sarajevo' (good for film orals)

1446 words - 6 pages strength of its dictator, Josip Broz Tito. When Tito died in 1980, tensions between the three main ethnic groups quickly mounted throughout the early 1980s. In1990, elections in Bosnia resulted in a governing group of three ethnically-based parties which corresponded to the three major ethnic groups. Muslims and Croats in the governing body favored independence for Bosnia-Herzegovina, while most Bosnian Serbs did not. In a referendum, over 63

The Joint Africa/EU Strategy: Analysis of a Common Agreement

1282 words - 5 pages 1. Working title The Joint Africa-EU Strategy: Analysis of a common agreement 2. Summary and Outline of Topic With the signing of the Lisbon Treaties in 2007, the EU and the African Union (AU) decided in the ‘Joint Africa-EU Strategy’ (JAES) to further strengthen the co-operation between both continents. “The purpose of this Joint Strategy is to develop a political vision and practical approaches for the future partnership between

Similar Essays

Analysis Of Bhp Billiton

1680 words - 7 pages . In The Hague, Netherlands Billiton PLC was formulated in 1860 where it started its first extraction. Earlier focus of this company was on tin mining in Indonesia on the Island of Billiton. Then in 1997 it will join the membership with FTSE (Financial Time and The London Stock Exchange) 100 index. Prior to the emerging, BHP Billiton is the largest producers who engage in the production of zinc, aluminium, copper, manganese, iron ore, uranium

Fundamental Analysis Of A Firm: The Case Of Bhp Billiton Limited

1921 words - 8 pages is BHP Billiton Limited (BHP), the world’s leading diversified resources companies that major commodity businesses contain minerals probe, manufacture (predominantly iron ore, coal, copper, etc), and considerable interests in gas and oil. It was officially listed on ASX on 13 August, 1885(ASX, 2014). The following report will discuss the analysis of firm, financing, risk and performance, investments, sustainability and long term viability and

Literature Review The Effect Of Particle Size Distribution On Packing Density, With Relation To Iron Ore

1248 words - 5 pages increase in the bulk density and the other 3 mechanisms account for a decrease in it. Works Cited 1. Sohn H, Moreland C. The Effect of Particle Size Distributions on Packing Densities. The Canadian Journal of Chemical Engineering. 1968; 46 (3): 167-167. Available from: 2. Xu J, Zou R, Yu A. Quantification of the mechanisms governing the packing of iron ore fines. Powder

Analysis Of "The Man In The Iron Mask"

699 words - 3 pages Conflicted ThemesDifferences in human characteristics can often cause conflicts between individuals. Dumas’s use of loyalty and greed in The Man in the Iron Mask exemplifies the conflict that D’Artagnan and other characters experience throughout the book in several different scenarios.Dumas expresses loyalty throughout the book in numerous ways, but mainly through the protagonist, D’Artagnan. In the past, D’Artagnan became