Business Analysis of Broken Hill Proprietary Company

1552 Words4 Pages
bulb-icon

Recommended: Pest analysis literature review

BHP BILLITON
BHP is known as Broken Hill Proprietary Company and was established in 1885 and its works in three major sectors which are: mineral, petroleum and steel along with that it also works in some other field like transport and logistics, corporate services, strategy and legal .Mainly they were involved in discovery, development, production and marketing of iron ore, copper, oil and gas. Its main headquarter was in Melbourne and gave employment to 30000 individual.
Billiton was formed in 1860 in Netherlands and it is named after the name of tin-rich Island in Indonesia, where they first started mining. In 1997, they join the FTSE 100 index(London stock exchange ) .Before merging this company leads in mining and metal also in manganese, steaming coal, nickel and titanium minerals. Some of the major market conditions before the merging were:
-Global capital markets were increasingly selective, as national and trading exchange limitations become less relevant, shareholders demand enhanced returns
- Clients consolidating and have become much more efficient themselves
- Workforce learn that gradually more a "suite" of skills is essential for promotion and job security
- Doubtful economic situation with most of the major economies of the world
- Facing a period of slow, or no, growth

BHP and Billiton merge together in 2001 and form dual listed company .The merger was beneficial for both and increase the value of company from a market capitalization of $28b in 2001 to one of $42b in 2003.
With this new form company BHP Billiton could now offer integrated, global, industrial minerals solutions to customers as it could now operate two major centres as well as provide an extensive array of services. BHP Billiton would become ...

... middle of paper ...

... INC. With market capital 12.82b and second is VALE with market capital 64.75b ( http://finance.yahoo.com/q/co?s=BHP+Competitors).
Rivals with the same product market approach: Arcelor Mittal capital value 24.97B and POSCO with value 20.70 B

CONCLUSION
Through PESTEL analysis, industry environmental analysis and a strategic grouping map analysis, the BHP BILLITON can be evaluated. The PESTEL analysis showed various trends that may have an effect on the industry while the industry environmental analysis showed that the competitive rivalry in the industry is quite low. The strategic grouping map illustrated that the company enjoys its high position from all, there are rivals in same trait but they are far behind from the company. They are not only making profit but also helping small business to grow, enhancing education opportunities, empowering community centre.

Show More
Related

  • Belarus Should Abolish The Currency Trading Restrictions

    735 Words  | 2 Pages

    The coins made in gold, silver and bronze were traded during Roman Empire and the shortage of coins created a barrier for money circulation. However with the establishment of paper money, a sophisticated banking, global clearing system and electronic money, the global financial system evolved with a worldwide framework of legal agreements. In the Global Financial market, foreign currencies issued by the world, countries are traded by the buyers and sellers using currency exchange rates. Now a day, it is very common practices of companies in one country to raise capital in a foreign country by listing their stocks on major foreign exchanges given the growth of equity markets are becoming more globalized (SNHU, 2015).

    Read More

  • value

    1823 Words  | 4 Pages

    Clearly, the current share price of $13.89 is deeply undervalued. The fair stock value of $26.94 has been conducted by including tax-shield, on/off balance sheet value and the value of un-mined gold, however this result is based on number of assumptions.

    Read More

  • DeBeers Diamonds

    819 Words  | 2 Pages

    With the introduction of synthetic diamonds and changing of government regulation DeBeers was loosing it control. DeBeers who had controlled the diamond market for nearly One Hundred. The case study review will looks at how DeBeers used key strategic tools to put new life into the company and develop it into been the worlds biggest and best once again. To examine how DeBeers changed the article must be examined using some key strategic tools these will include Porters 5 Forces, The Four P’s of marketing and PESTEL.

    Read More

  • Business Analysis: BHP Billiton

    978 Words  | 2 Pages

    The company is known as the largest iron ore, coal and manganese producer in Australia, Brazil, and South Africa. They own one of the major suppliers or copper, silver, lead, and uranium in Australia and continuously looking for ways to expand globally. As of 2016 BHP Billiton has been announced to be the third largest nickel producer and the sixth largest producer of aluminum

    Read More

  • Westpac And St. George Merger

    1009 Words  | 3 Pages

    Westpac began trading on 8 April, 1817 as the Bank of New South Wales. In the year 1982, the then Bank of New South Wales merged with the Commercial Bank of Australia, naming it as it is today, Westpac Banking Corporation. Westpac has branches and affiliates throughout Australia and New Zealand, contributed by merges throughout the previous years, and the Pacific region, and key financial centres around the world including London, New York, Hong Kong and Singapore. As at 31 March 2008, Westpac Group had a workforce of approximately 29,000 people around the globe and Westpac Banking Corporation had global assets of $402 billion1.

    Read More

  • Cooper Industries Proposal to Acquire Nicholson File Company

    2708 Words  | 6 Pages

    Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor’s offer and Cooper financial data was decided. The remainder of this paper will provide the analysis and rationale for this determination.

    Read More

  • Rio Tinto's Business Strategy and SWOT Analysis

    2734 Words  | 6 Pages

    Rio Tinto’s head offices (headquarters) is in the United Kingdom (UK) , their company group comprises Rio Tinto plc is listed in a London and New York Stock Exchange company,also Rio Tinto Limited is listed in the Australian Securities Exchange. The global presents of Rio Tinto and their expertise in the technology world and marketing, this enables Rio Tinto to supply the right product, at the right quality at the right time to their stakeholders (customers).

    Read More

  • Zara Fashion

    2436 Words  | 5 Pages

    The most interesting company to compare Inditex is The Gap. Although The Gap has much higher revenues than Inditex (almost five times Inditex), it incurred a net loss, as opposed to Inditex, which achieved a 23%, return in investment. This is due to the extremely high costs of good sold for The Gap. This could be caused -at least partially- by the complete outsourcing of the production. They do not have enough control over the production costs. Although The Gap has larger market share than Inditex and has equity almost double that of Inditex, Inditex is much more profitable.

    Read More

  • Best Buy's Competition

    869 Words  | 2 Pages

    withstanding a large recession, and commanding high market share. In the last five years, the company’s

    Read More

  • Rio Tinto Case Study

    2063 Words  | 5 Pages

    Rio Tinto has not only been a mining company but an investor to small and coming business that would help it to gain a competitive advantage to the mining industry. It has mostly invested in companies that specialized in innovation and technology.

    Read More

  • PESTLE Analysis Approach To The Oil And Gas Industry

    729 Words  | 2 Pages

    The deep analysis of the macro-environment is key to the organisations in order to understand which factors are impacting their operations. The main purpose of PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental) is to identify those factors that have an impact on the organisation but are outside its control area. Together with other frameworks (such as Porter’s ‘5 forces’), PESTLE framework is required to develop a comprehensive analytical strategic process.

    Read More

  • Triple Bottom Line Case Study

    886 Words  | 2 Pages

    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

    Read More

  • Diversity Management

    940 Words  | 2 Pages

    Training and development is essential to employee’s retention, loyalty and overall satisfaction. When employees feel there is opportunity within a company and diversity leading the way employees pride and productivity is enhanced.

    Read More

  • PricewaterhouseCoopers PwC

    1755 Words  | 4 Pages

    Although many think of the firm as American, its origins can be traced to the United Kingdom. Price Waterhouse’s beginning started in 1849 when Samuel Lowell Price opened his accounting practice in London. In 1865, Price joined forces with fellow Brits, Holyland and Waterhouse. They renamed the firm Price Waterhouse & Co. Similarly, Coopers& Lybrand started in the United Kingdom, when William Cooper opened his firm in 1854; it was later known as Cooper Brothers. In 1957, three firms, Cooper Brothers (U.K.), McDonald, Currie, & Co. (Canada), and Lybrand, Ross Brothers, & Montgomery (U.S.) merged to form Coopers & Lybrand. Price Waterhouse and Coopers & Lybrand were both extremely successful from the 1960s through the 1980s, adding to their menu of services and expanding internationally. In the early 1990s, a wave of consolidation in the professional services industry driven by potential synergies and economies of scale led to the merger of Price Waterhouse and Coopers & Lybrand. Thus, Pricewaterhouse...

    Read More

  • Mining Industry Case Study

    1648 Words  | 4 Pages

    The mining industry is a billion dollar industry that has been around for years. In calendar your 2016 a net profit of $US20 billion was the aggregated profit for global miners. The year before, 2015, the mining industry had a record high gearing ratios, 49%. The industry took advantage of better operation conditions to pay down debt, reducing the gearing ratios to 41%. Many company front line executives took advantage to reduce debt and fortify their company balance sheets. The results of reducing company debts resulted in minimum funds for capital expenditure

    Read More

More about Business Analysis of Broken Hill Proprietary Company

Open Document