Preparedness for the Future - BHP Billiton - Case Study Example

Name : xxxxxx Tutor : xxxxxxx Title : Preparedness for the Future Institution : xxxxxxx @2012 Introduction Most organisations operating in the modern day business world are not prepared for the future thus in instances where a disaster was to occur to the organisation there is a high probability that the business or organisation will not be able to go back into operation and instance where it goes back to operation they will mainly rely on loans. Most business owners and their assistants or mangers should concede that calamities and tragedies do occur and they ought to be prepared so as to ensure a brighter future for the organization and business. Business ought to take various measures to put off the disasters from taking place and if they do the level of impact ought to be low thus there will be only a slight distraction of the business in the future (Ireland & Johnson, 1995). Most business preparedness plans consist of measures that are considered in the protecting of the staff, data and property thus there is an ensured future for the business. A business preparedness plan therefore aids the organization in investments and also in the maintenance of the staff well being (Wheelwright 2006). In determining the preparedness of the company for the future certain aspects will be put into consideration. These aspects are a brief overview of the company, its mission and vision, the products offered to the customers, clients and the major competitors. Also a SWOT analysis will be carried out so as to evaluate the business preparedness for the future, a PESTLE analysis and micro analysis will also be carried out to evaluate the adequacy of current resources to move forward into the future. This report will also aim at identifying the possible, probable and preferable futures for the organisation based on its current preparedness for the future. Company overview The organisation that will be referred to in this report is BHP Billiton which is one amid the largest and powerful companies in Australia. BHP Billiton mainly majors in mining activities oil production and gas production. The company’s mission is to be the company that is most preferred by the customers this will be done by the creation of a sustainable assessment for the staff, service providers, shareholders, and clientele and business partners. The company seeks to cause no harm to individual living near their working areas, the communities in the areas where they are operating and the surrounding environment (BHP Billiton 2012). The company’s vision is to offer long-term value to their customers it will be achieved by the invention, expansion and alteration of natural resources, and the stipulation of inventive customer solutions. The company is dedicated to a long-term plan of empowering of low cost of products, world class products which will replicate diversification in marketplaces and geographic areas. Product and services BHP Billiton has a wide range of products which they sell to their customers. Examples of such commodities are: base metals, iron ore, aluminum, energy coal, petroleum, and many others metals. They produce products of high quality which are later sold to their customers so as to generate the income and act as a strive competitor to other companies products in the market. Customers and clients Customers are said to play a vital role in an organization because they enable and facilitate business continuance when they purchase their goods and at the set price. In the same way that the company has a diverse list of commodities which they supply to the market the same way that they have a large customer base since most of the commodities and products they offer are vital to every day living of human beings thus it is evident that BHP Billiton has large customer base. Competitors Most organisation are of the notion that completion among rivalry companies only benefits the consumer of the products but in essence it also aids the companies in ensuring that they offer goods and services of high quality to the customers and that the right communication channels are used when advertising their products (Porter 1985). BHP Billiton has a long list of competitors some of which are from different countries. The major competitors of the company are companies such as: Alcoa, Shell Oil Company, De Beers, Anglo American and many others. SWOT analysis A swot analysis is carried out on BHP Billiton so as to evaluate its preparedness for the future. A SWOT analysis mainly deals with the threats, strengths, opportunities and weaknesses of a certain company. When used the SWOT analysis give details of BHP Belliton in terms of the interior and exterior aspects that are vital to its international achievement in manufacturing, selling, selling abroad and leveraging mining possessions to both international and intercontinental consumer and providers (Fine 2009). The table below shows a SWOT analysis of the company. Strengths efficient strategic framework ample and efficient technology Merging of the company Leveraging of company plan Weaknesses Financial risk plan Over funding of certain products while others are neglected Opportunities High demand of the products Emergence of multi-national trade union and new global trade associations to hold up the leverage of commodities. Ability to obtain the most excellent, aggressive and skillful personnel owing to it’s the companies multi-cultural nature and branch out culture Threats Global economy ferocious competition and competition among similar organization Global restraints Local cost-effective and market restraints PESTLE Analysis There exists a wide range of external environment that to a great extent has an effect on the choices made by managers or leaders in most organisations. PESTLE analysis will be carried out so as to measure the extent to which BHP Billiton is prepared for the future. The pestle analysis will look at the environmental, political, legislative, economic, social and technological factors. The environmental factors that is likely to affect BHP Billiton in its preparedness for the future is climate change. Climate change is presently a serious global challenge. As a company it will play a major role in making certain that they recognize emanation from their products and work towards the invention of low emissions technology. This seems to be vital measures in its preparedness for the future. The social factor that is likely to affect BHP Billiton in its preparedness for the future is the community attitudes towards the operations of the company. Most of the land that was previously occupied by the community has been taken up by the company since it contains the minerals and also most of the mining activities have led to contamination of water. Another sociological aspect is that in the individual’s workings in the mines tend to use underground facilities more as compared to the use of overhead facilities. The Australian government has formed a nationwide regulatory organization to abridge multi-jurisdiction problems, however multi-factor rule remains as a major component of the industry’s working atmosphere. The national regulatory structure of Australia is depicted the appendix section of this report. BHP Billiton exports most of its products to other countries. Thus effective measures ought to be put in place so as to improve the delivery of products to these countries. Advancement in technology which in our case is the use of gas will reduce emissions to the environment thus energy efficiency will be achieved. Legal factors seem to be a vital risk factor for BHP Billiton. Laws which may affect the company are laws such as national gas law and national gas rules. Micro-Analysis These are considered as factors within the business and may have an effect on it. Micro analysis factors that may affect its preparedness for the future are: business structure, resources, business culture and the owners. The company has adequate flow of finances which will assist in its preparedness for the future. From an environmental point of view, BHP Billiton seems to be a leader this is when the GHG emissions are compared with the company’s asset base. BHP Billiton is well known for adequate health and safety performance and also the company has an advantage in that it was formed through an amalgamation of two highly harmonizing companies. Possible future for BHP Billiton based on its current preparedness. Based on its current preparedness for the future BHP Billiton seems to have a brighter future. This can be supported by the fact that the companies have a concern for climate change this will make customers who are currently royal to the company this will enable the sustainability and preparedness for the future. The future is bright for the company since it is highly concerned with the sustainability of the environment in which they operate. Solutions to improve the sustainability of the business/organisation If a business wants to survive it ought to be beneficial and sustainable for a long period of time (Thompson 2002). For sustainability of the business BHP Billiton ought to apply sustainable development plan which will mainly involve two aspects which are the organisation aspect and the sustainability aspect. These aspects will add to BHP Billiton long term viability. Such aspects which will provide sustainability for the business include aspects such as social responsibility and lack of harm amid the employees and the environment in which they operate. Another aspect is the execution of an effectual risk administration program. Bibliography BHP Billiton website, 2012, accessed 23 rd January 2012, http://www.bhpbilliton.com/home/aboutus/sustainability/Pages/default.aspx. Fine, L. 2009. The SWOT Analysis: Using your Strength to overcome Weaknesses, Using Opportunities to overcome Threats, CreateSpace, South Carolina. Ireland, C. and Johnson, B. 1995, Exploring the Future Present. Design Management Journal. pp. 57-64. Porter, M.1985. Competitive Advantage, Free Press, New York. Thompson, J.2002. Strategic Management, Thomson, London. Wheelwright’s reading ‘Personal futuring: A step-by-step guide, 2006, accessed on 23 rd January 2012, http://www.docstoc.com/docs/7339009/Personal-FuturingA-Step-by-Step-Guide. Appendix Table 1: SWOT Analysis Strengths efficient strategic framework ample and efficient technology Merging of the company Leveraging of company plan Weaknesses Financial risk plan Over funding of certain products while others are neglected Opportunities High demand of the products Emergence of multi-national trade union and new global trade associations to hold up the leverage of commodities. Ability to obtain the most excellent, aggressive and skillful personnel owing to it’s the companies multi-cultural nature and branch out culture Threats Global economy ferocious competition and competition among similar organization Global restraints Local cost-effective and market restraints Figure 1: The national regulatory structure of Australia Read More