The paper "BHP Billiton and Strategic Choices" is a perfect example of a business case study. BHP Billiton is a top multinational corporation in the diversified resources and mining industry. The company was formed out of a merger of Broken Hill Proprietary Company (BHP) from Australia and Billiton from the United Kingdom. The headquarters are located in Melbourne, Australia. The company has a dual listing as BHP Billiton Limited (Australian Securities Exchange (ASX)) and BHP Billiton PLC (London Securities Exchange (LSE)). The company’ s main commodities include coal, iron ore, copper, manganese, titanium, aluminum, nickel, uranium, silver, oil and gas.
BHP Billiton operates in 130 locations in 21 countries mainly in Australia, Southern Africa, and the Americas. The company has a market capitalization of about $179 billion in 2014. Its revenues went up by 2 per cent to $67 billion in 2014, with a net profit of about $14 billion. It has a total workforce of about 124,000 people and contractors (BHP Billiton, 2015a). This report examines BHP Billiton’ s strategic choices. First, the report analyses the external followed by the internal environment factors.
The report also analyses key strategies that have propelled BHP Billiton’ s to its current success. This involves a discussion of the company’ s core strategic management concepts. On the other hand, in 2014 BHP Billiton made public a decision to split, as it were before. So the report weighs in on the debate of whether this is a right or wrong move. Finally, there is a conclusion, recommendations and implications of BHP Billiton's key strategic issues. External Analysis The external analysis captures variables from the market, industry and competitive forces. The external environment directly influences the company’ s strategic choices. The commodities market is characterised by strong demand particularly from the top developing economies of China and India.
But as the manufacturing industry continues to shrink in these countries, the demand downstream is expected to fall. China announced that its economy is expected to grow slower this year at about 7.8 per cent after posting impressive growth rates of above 9 per cent in the recent past.
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