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The role and importance of the supply chain
The role and importance of the supply chain
The role and importance of the supply chain
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Introduction: BHP Billiton is a diversified leading global resources company. BHP is world’s top producers of major commodities, including iron ore, metallurgical and energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel and silver. The largest producer in the world, BHP Billiton Limited has reported a profit of $ 200 billion market with a market capitalization of more than (ASX BHP) recently in the six months to December 2013 announced a profit of $ 7.8 billion. The total net profit figure of BHP’s includes more than $ 140 billion since 1985 (King, 2014). BHP has various facts related to its development and growth in 2014; some of them are discussed below:
• BHP Billiton maintained a solid
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It is very difficult to imitate for each organization. It depends on various reasons: unique conditions of history, causally ambiguous and social complexity.
Organization: It is the firm that is organized in the way to exploit the resources effectively (Hanson, Hill, Ireland & Hoskission, 2011).
Importance of VRIO Framework:
Organization culture: It is a basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously and define in a basic taken for granted fashion an organization’s view of itself and its environment (Johnson, Whittington & Scholes, 2011).
Value chain analysis: A value chain is linked set of value creating activities beginning with basic raw materials coming from suppliers, to a series of value added activities involved in producing and marketing a product or services, and ending with distributors getting the final goods into the hands of the ultimate consumers. (Hunger & Wheelen, 2011, p.59).
Value chain searching for the primary activities that are meant to perform a customer value. Its main purpose is to evaluate its competitor’s facilities that how effectively and efficiently they are providing services to its
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Analysis of organization by web site mentioned that average financial along with marketing and advertising reports to help consumers. Communication with investors could possibly be additional interactive apart from uncomplicated power points. BHP is a huge worldwide business resident and thus the organization profile must be superior. The company needs to improve and have an insurance policy for staff members so that they are made aware of the value of services along with working for BHP Billiton.
To be a company of natural assets BHP would be focused on environmentally friendly organizations. Even though the progress policy of company is actually clear, additional operate processes usually in public places to build a better circumstance intended for BHP business citizenship (Gordon,
Cost management plays a major role when maintaining profit margins. Management must be able to find in which areas of a business costs must be reduced and the consequences that such reductions have in the overall company. In some situations management must change the way the work is being done in order to decrease costs while in other cases changing one supplier for another might be enough, in both situations a tradeoff will occur and the consequences will impact the company as a whole.
In 2007, the global conglomerate BHP Billiton announced it was going to expand the Olympic Dam Mine
BHP Billiton Limited (BHP) is the world’s leading diversified resources companies that major commodity businesses contain minerals probe, manufacture (primarily iron ore, coal, copper, etc), and considerable interests in gas and oil. It was officially listed on ASX on 13 August, 1885(ASX, 2014). BHP investors and shareholders probably include taxable or tax-exempt companies, small and large institutions, domestic and foreign companies, individual and pension fund. The leadership acts on behalf of the investors and make decisions so as to maximize the shareholder’s wealth. It is common for conflicts of interests arising between the two parties. BHP applies both debt and equity financing to raise funds for company growing business. Debt helps lower whole financing cost, but has to repay the loan and interest. Equity financing doesn't need to be repaid, but can confront relinquish business control or any ownership. BHP risk profiles are water supply, mining, energy, transport, also health risk of all employees. The stock price will continue rising above $38 in the future. BHP future projects will be the same as Petroleum Business. BHP focuses sustainability on governance, people, environment and sociery. BHP Billiton has a progressive dividend policy. BHP can continue to have higher EPS ratio.
sixteen different countries, providing many sources for potential growth and new openings for ounces. They host a team of over one hundred and fifty geoscientists that are the industry experts in exploring new fields and opportunities for mining growth. They mainly focus on reserve development and replacement of production, which are key for a mining company’s long term success.
Then BHP was formed a dual listed company in JUNE 29, 2001 as a result of consolidation between two companies broken hill proprietary (BHP) and BHP (PLC). Thereafter it becomes a one of the world's biggest diversified resource companies. Its main ...
Cost advantage: by better understanding costs and constricting them out of the value-creating activities. Main focus of this strategy also known as cost leadership is to offer goods and services at lower cost than the competitors. To follow this strategy a company also consider these approaches- tight cost control, economics of scale in production and also cost minimisation.
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.
In the year 1989, Mr. David Walsh founded the company Bre-X Minerals Ltd., a Canadian firm specializing in mineral exploration. Within the same decade as the founding, the firm would become involved in what became labeled as the ‘world’s biggest mining scam’ and caused shareholders to lose approximately three billion dollars. Four years after the company’s establishment, Walsh was purchased a plot of land in Indonesia bordering the Busang River based on information provided by John Felderhof, a geologist, of the potential profit that could be secured in the area. In 1994 core drilling of the property began and lab results agreed with the promise of gold mineralization; however, these results had been skewed by project manager Michael De Guzman
The Political, Social, and Legal Environment of Business. Case Study Analysis: Union Carbide Corporation and Bhopal. A single slip in action may cause lasting sorrow. A slight mistake in operation at a Union Carbide pesticide plant in Bhopal, India, caused a lot of deaths and injuries. What a tragedy it is.
Swift, W.H, . C.J. Touhill, W.L. Templeton, and D.P. Roseman. 1969. Oil spillage prevention, control, and restoration—state of the art and research needs. Washington, D.C.: The Bureau of National Affairs, Inc.
First, Australian Dollar. Australia is one of the largest capitalist economies in the world with a GDP of USD 1.57 trillion. The Australian economy is dominated by its service sector, comprising 68% of GDP. Besides, the Australian Securities Exchange is the largest stock exchange in Australia and in the South Pacific and ranks 9th in the world in terms of market capitalization. Australia is home to some of the largest commodity companies in the world which are also the 10 largest companies in Australia, including BHP Billiton, National Australia Bank, Commonwealth Bank, Rio Tinto Group, ANZ, Westpac, Telstra, Macquarie Bank, Woolworths and AMP.
The revenue of the company increases from 2012 to 2013 as the foreign exchange increases to Rs 128 crores and gain from RBI currency swap window Rs 745 crore. And also it gain $2.25 on every barrel of crude which is better than the last year which is $2.66 on every barrel. Sales goes high by
Rio Tinto is a leading international mining group, founded in 1873, with operations on all the continents, except for Antarctica. They are listed on London and Melbourne stock exchanges, where they are one of the largest companies listed. Its business is “finding, mining, and processing mineral resources, and their products include aluminum, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals, and iron ore.” (Rio Tinto)
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
Due to increasing demand for natural resources such as coal and iron ore (Anthony, 2016) the mining sector of Australia boomed as it exported to countries such as China (Heath & Petrie, 2016). Thus, affecting the Australian Gross domestic product (GDP). GDP is “the market value of all final goods and services produced within a nation 's geographic borders during a period of time, usually a quarter or a year” (Layton, Robinson, & Tucker, 2016, p. 257) and helps to measure economic growth. The components of GDP are derived from the formula GDP = C + I + G + (X - M). That is, gross domestic product = consumption + investment + government spending + (exports - imports).