INTRODUCTION:BHP Billiton is one of the top and leading companies who mainly deal in global resources. It is one of the major producer of main commodities like iron-ore, oil, gas (both conventional & unconventional), copper, energy coal, aluminium, silver and nickel. Developing values for the shareholders for long-term is their purpose which can be achieved by developing, creating new innovative methods of methods of marketing of natural resources.It has above 100 operations running in 25 nations across the world shows its global presence and it has headquarters in Melbourne, Australia (Thompson & Macklin, 2010).
History: Basically the history of BHP Billiton starts with the history of two firms and their merging together. In 1851, a tin mine was discovered on Billiton Island in Indonesia and after that Billiton become the largest producer in mining sector. On the other side, In Australia mining of silver, lead and zinc was discovered in Broken Hill (BHP) in 1885. In June 2001, BHP and Billiton merged together and a new large global resources company was formed. This company has celebrated their 150th anniversary in 2010 (Grant, Butler, Hung & Orr, 2012).
Structure:Every organisation has a different structure than others and is pivotal to achieve goals and objectives. Organisation structure BHP Billiton is productive as BHP Billiton Plc and BHP Billiton limited both combined together to establish a dual listed company. These two companies represent themselves as a one unit and engaged the shareholders of both the companies by contractual agreements. They invite shareholders to the annual general meeting which selects board of directors. Both are managed by 13 directors that are 1 executive and 12 non-executive director (Jia & Toma...
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...s identified the key factors which affected the external operations of the organisation. These factors have been identified by the organisation and take adequate steps to provide unique customer service and solutions based on the market conditions. While on the other hand industry competitive environment analysis depicts the level of competition in the industry. BHP Billiton is ranked one of the top natural resource leaders in the world due to its assets and portfolio. Among all the five forces of Porters framework, bargaining power of suppliers affected this organisation a lot. Increased labour and shipping expenses force them to increase their product prices. After the evaluation of external environment of the company, three key success factors are found –skills, exploration and sustainable development which play an important role in quality delivery of services.
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
BHP Billiton is a diversified leading global resources company. BHP is world’s top producers of major commodities, like silver, nickel, copper, oil and gas, iron ore, metallurgical and energy coal, aluminum, manganese, uranium.
The external environment criteria and rating is determined using a mix of processes. Three of the factors measured are determined by the previous analysis of Porters five forces, these forces are: threat of substitutes, client bargaining power and competitive advantage (Porter, 1998 c1980:447).The last two factors are: rate of inflation and price elasticity of demand. These factors have an economic impact on the company’s ability to achieve a reasonable profit. The threat of substitutes is particularly high within the industry with hot beverages, soft drinks and other alcoholic beverages competing for consumer demand. Competitive rivalry is also intense with few competitors with similar products and capability competing in a market in decline. Added to this is the fact that the brewer cannot deal directly with the retailer or consumer which increases the distributors bargaining power. The overall results indicate that the environment in which the business operates is highly competitive with negatives partially offset by the control of price and low infl...
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
Organisational Structure, Culture, and Management Style of a Business C2 An Analysis of How the Organisational Structure, Culture And Management Style of the Business Affects its Performance and Operation and Help It to Meet Its Objectives The organisation structure of Wednesbury IKEA The organisation structure in the ‘Appendix section’ belongs to the Wednesbury branch of IKEA. Wednesbury IKEA is a large formal organisation and it is best suited to a hierarchical organisational structure. This is because; there are more employees as it goes downwards from each level.
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).
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
The bottom layer would follow the guideline so they can achieve the company objectives. The group structure is Chairman Board of Directors Group of Executives Board of Management Group of General Management The main departments within the group are: Administration Division Business Division Customer Support Division Network Development Division Production Services Division R&D Department Finance Department Human Resources Each division has managers for supervision. The staff in each division needs to follow the managersÂ’ decision. Every member of staff clearly understands their role and responsibility under the hierarchical structure. It is because each layer gets different responsibilities.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.
Michael E. Porter devised theoretical frameworks for analysis both an organisations external environment (the Five Forces Model) and internal competencies (the Value Chain). Apply the two models to an organisation of your choice and conclude briefly outlining how this analysis might inform the development of a successful strategy for the organisation going forward.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Organizational structure is defined as the formal configuration in regard to responsibilities, the allocation of tasks, and authority within the organization between individuals and groups (Galbraith, 1987; Greenberg, 2011). An organization’s structure allows it to accomplish its functions by linking its departments. These departments can be characterized by aspects such as marketing, sales, advertising and manufacturing. These jobs are grouped and there are many distinctions between the jobs people perform (Nelson & Quick, 2011). Both the strategy of the firm and the situations of subunits and individuals within the firm are affected by the organizational structure, and failure to recognize the importance of the organizational structure of a firm would be detrimental to the firm’s performance (Amir-Atefi, DeCanio & Dibble, 2000).
Business structure is a critical factor to determine a company 's success or failure. Generally, larger organization has a more complex organizational structure. In the case of H&M, they had adopted matrix structure, one of the traditional organizational structure, into their business. As shown in figure 1, range of functional groups is listed horizontally across the table and on the other is product/task with a manager taking control of each. The functional structure is divided
Organizations must operate within structures that allow them to perform at their best within their given environments. According to theorists T. Burns and G.M Stalker (1961), organizations require structures that will allow them to adapt and react to changes in the environment (Mechanistic vs Organic Structures, 2009). Toyota Company’s corporate structure is spelt out as one where the management team and employees conduct operations and make decisions through a system of checks and balances.