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International strategic management strategy
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BHP Billiton analysis of International strategies and discussion
BHP Billiton is a globalized company that was formed in 2001 through a merger between Broken Hill Proprietary (BH P) and Billiton. BHP is one of the world’s largest producers of aluminum, cooper, iron, ore, silver uranium and other minerals alike. BHP also has interests in petroleum. BHP is the worlds largest mining and resource company with about 100,000 staff in more than 25 different countries. The companies headquarter resides in Melbourne, Australia and is listed on both the ASE (Australian securities exchange) and on the London Stock exchange.
Mission Statement: "...At BHP Billiton our objective is to be the company of choice - creating sustainable value for our shareholders, employees, contractors, suppliers, customers, business partners and host communities.... We aspire to Zero Harm to people, our host communities and the environment and strive to achieve leading industry practice. Sound principles to govern safety, business conduct, social, environmental and economic activities are integral to the way we do business..."
(http://www.bhpbilliton.com/home/aboutus/ourcompany/Pages/default.aspx)
BHP Billiton future objectives and strategies are to continue to create long-term shareholder value through discovery, acquisition, development and marketing of natural resources. The key idea BHP Billiton is focused around is to Own and operate large, long life, low cost expandable, upstream assets to pursuer growth opportunities.
BHP Billiton 6 strategic drivers are focused around these points:
People: The foundation of the business
License to operate: Commitment to establishing and maintaining positive relationships with communities and governments for ar...
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... it is can at times be about co-operation and this is evident in the merger of BHP and Billiton in 2001. What BHP Billiton should have learnt from this analysis is that if they continue to diversify, look for new opportunities in emerging markets and maintain a good public image than maintaining success will not be as difficult as it is to build it up in todays times. It is also important to note as it has been evident in the past that the joint ventures and mergers are becoming increasingly more popular as it opens up many different avenues into conducting business in other parts of the world as well as giving more power and control to MNCs in controlling markets, in an increasingly more globalized world we must put at best foot forward to diversify and integrate business and cultures to remain globally competitive.
Word count: 1803
Nicholas Buckle
S3110720
Globalisation is having a significant impact on marketing. This is because a business, by distributing itself across international borders makes its product more readily available to international customers and creates employment opportunities in the country it has moved to. To understand the impacts, globalisation, marketing (particularly market segmentation), global marketing strategies and general history of Qantas need to be examined.
...esponsibly towards all its stakeholders. We believe that creating value for all our stakeholders is the only sustainable way for us to thrive as an independent, family-owned company. In our new framework and strategy for sustainability and responsibility we aim to integrate this mindset even further into the core operating model of the company (Welcome).”
As a natural resources company, BHP Billiton is vulnerable to changes in the environment and policies regarding the environment. With each environmental downfall, profit is jeopardized, which can push growth and innovation back. BHP Billiton has been heavily affected with blackouts in South Australia that has been interrupting production in Olympic Dam since September 28 during a two-week blackout. Without power supply security, BHP Billiton is having difficulty keeping power prices affordable in South Australia. The total estimated profit loss of the power outages was $450 million. These obstacles have disturbed BHP Billiton’s ability to compete globally with electricity price rises.
BHP Billiton is the most successful company throughout the world by using unchanged strategies in their business. They have a strategy to operate large, low cost, expandable, and upstream commodities by using raw materials, geography, different assets and market, which give them a superior marginal costs throughout economic and commodity cycles for several years. They put the security of their workers first and supporting them by providing various facilities (see appendix 1). Their diversification makes the easy cash flow system by reducing the exposure to any one commodity and give for more identifiable and great financial performances. To become more successful BHP have heaps of human resources or workforce which reflect their values and communities. They have aim to recruit and attract other people who make their organization successful and thrive on working in teams and going to their extra miles to give their best. Moreover, they are committed to meet the changing needs of their customers. They have world class portfolio of growth option that will make them able to plan for a short term and long term goals and continuing them to create value for their shareholders which BHP more powerful (BHP Billiton, 2014). By using these all measures BHP Billiton kept its solid position in the nine month period till the end of March 2014 with the record of production attained for four items and at 10 operations. In aggregate, processing expanded by 10% for throughout the period what's more is required to develop by 16% over the two years to the end of the 2015 fiscal year. For further development BHP having a plan to start new projects where they pursuing a higher rate of returns on incremental investment and increasing inter...
The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structuresBased on the case study, extensive research and annual reports of AT&T the writer has mapped AT&T in the different domains. AT&T should strive to attain a perfect circle as close to the centre as possible, which indicates total synergy, order and equilibrium. Where the circle is skewed drastic change is needed as it moves closer to the outer ring of chaos:
... organizational structure that needs to be maintained for its operations in Australia. As the suggestion has been of total ownership thus span of control is needed and these factors have been discussed in this report to illustrate how effective the organization can be in Australia.
Australia has had one of the most outstanding economies of the world in recent years - competitive, open and vibrant. The nation’s high economic performance stems from effective economic management and ongoing structural reform. Australia has a competitive and dynamic private sector and a skilled, flexible workforce. It also has a comprehensive economic policy framework in place. The economy is globally competitive and remains an attractive destination for investment. Australia has a sound, stable and modern institutional structure that provides certainty to businesses. For long time, Australia is a stable democratic country with strong growth, low inflation and low interest rate.(Ning)
significant activities in the strategic way better than the rivalry firms (Lüsted, 2012). It is
Before the alliance the two firms were in totally different market and they were also in different country but the industry was of same type. Both of the firms were aware about their future plan and lacking.
The topic under review is strategic alliances. This particular form of non-equity alliance between firms in the same industry (competitors) is becoming an increasingly popular way of conducting business in the global environment. Many different reasons of why such alliances are occurring have been recognized. These include: the increasing globalization of the world's economy resulting in intensified global competition, the proliferation and disbursement of technology, and the shortening of product life-cycles. This critique will use Kenichi Ohmae's viewpoint on strategic alliances as a benchmark for comparison. Firstly, a summary of Ohmae's article will be provided. Secondly, in order to critique Ohmae's opinion, it will be necessary to review other literature on the topic. Thirdly, a discussion of the various viewpoints and studies, that have hence arisen, will be discussed in detail. Finally, conclusions will be drawn with implications for companies operating in today's global environment, together with suggestions for future research on strategic alliances.
Wal-Mart is the largest global retailer in U.S. and also one of the biggest multinational companies of any
This company has come a long way into the sustainable and triple bottom line world. “Four wind turbines were erected in 2013 to reduce the use of diesel fuel, which had to be trucked in on a 550-km ice road at a cost of $70 million a year” (Hamilton, 2016). Wind turbines are put into place to create electricity through the spinning of the propellers. Mines are underground therefore it is extremely crucial to have electricity through renewable energy to create light for the miners underground because of the darkness being created. More importantly, if every corporation were to include the triple bottom line in their business goals, it would aid with climate change and global
Organisational change can arise due to a change in strategy and this begins with examining capabilities and the internal environment. This is portrayed in the Strategy diamond. Firstly through arenas the organisation can plan where they will be active in and which part to place most emphasis on for example technologies or value creation strategies. Only after determining this can they implement a positive change, leading to the next element, vehicles to get them where they need to be such as alliances. This can lead to change in management along with strategic partnerships, and the way managers transition to this change will determine if the strategy impacts on the overall organisation in a way that reinforces its purpose and goals. Partnerships indicate how an organisation can strengthen its capabilities by merging with businesses who possess the skills they lack. (Carpenter et al. 2010)
Representing BHP across the world, these managers will facilitate new developments, and assist global expansion. This overseas focus of expansion requires new systems and processes, to take on projects in different countries around the world. BHP has taken advice from other companies, that have expanded outside their home countries, also background advice from consulting firms. BHP have taken this advice, and created a management model to suit their operations. By providing regional representatives to deal with governments, bureaucracies and coordinators of cross divisional activities, this model expects BHP to be able to find expansion opportunities.
As Sutton suggests, the CEO of BHP Limited – Paul Anderson, had a change in his leadership style which lead to the success of his company. This was more closely analyzed in Sutton’s talk with the CEO himself where they discussed about the progression of the company. When Paul first took over in 1998, the company was under a messy management and there had not been a CEO for nine months previously. As a result, they were facing challenges in keeping the talented staff and maintaining the stock price as well as gaining profit. At this time, Paul used autocratic/telling leadership style. With this type of leadership style, he made all his decisions then he informed others of the organization about it. The leaders are usually very involved and supervise