The paper "BHP Billiton Strategic Choices" is a perfect example of a management case study. The global market, operational standards, and systems have championed over the decades. In this regard, a majority of the organizations in the Australian market have adopted and applied the strategic management concepts and approaches in managing their operations. However, besides the management approach adoption, the execution process continues to face challenges as organizations evaluate the ideal strategies (Hill and Jones, 2012). This report develops a review of the diversification and internationalization strategies as key components of the strategic management practice in Australian organizations.
In particular, the analysis adopts the BHP Billiton case study, as an illustration, evaluating the external Australian market, its internal, analysis as well as developing subsequent recommendations for its strategic decision to split into BHP and Billiton Companies respectively. The report focus will be resolving the existing strategic management organizational challenge on whether to retain the diversification approach or to resolve to the market concentration approach in the future. 2.0 External Analysis In order to develop a successful organizational analysis, this report develops a macro-environmental factors evaluation in the Australian market.
In particular, the analysis focuses on the competitors, opportunities, and threats facing the Australian mining industry. 2.1 Competition and Competitors The Australian mining industry has been on a growth trend. This regard, over the last decade, ad especially after the global financial crisis, the industry has attracted a large number of investors both domestic and foreign. Examples of the organizations in the industry include the CSR Limited Mining Company that is a key competitor to the BHP Billiton Company. Through its large consumer and capital base in the Australian market, the organization process a great competition base with its influence expected to rise in the future, with an increasing profitability margin. In addition, as the analysis by Dickie and Dwyer (2011, p. 332) illustrated, the industry is currently at its growth stage with increased potential for future market profitability and gains.
Therefore, this illustrates that it will attract an additional number of new entrant investors in the future, posing additional market competition in the future. 2.2 Opportunities An opportunity analysis evaluates the nature and extent to which industry has the potential for future development and individual organizational market share sustainability.
In this case, an evaluation of the Australian mining industry demonstrates that the industry has gained regional and global recognition for the development and production of quality pure mineral accessories. This implies that with increased technology developments, the industry will expand its influence and dominance into the global market. Therefore, this implies that BHP Billiton Company will have an additional consumer base, thus increasing its prospective future market sales. An additional industry opportunity is the increased technology revolution and changes. In this case, technological developments in the mining industry have increased the safety, efficiency, and environmental sustainability of the mineral extraction and processing process (Schiavi and Solomon, 2006, p. 31).
As such, this implies that with increased technology changes, the organization will not only reduce its operational costs to increase revenue but also increase its market reputation and goodwill among the consumer base, enhancing sustainability.
Bacanu, B. 2010, "Differentiation Vs. Low Cost Strategies In Romania", Management & Marketing, vol. 5, no. 2, pp. 135-142.
Betz, F. 2002, "Strategic business models", Engineering Management Journal, vol. 14, no. 1, pp. 21-27.
Dickie, C. & Dwyer, J. 2011, "A 2009 perspective of HR practices in Australian mining", The Journal of Management Development, vol. 30, no. 4, pp. 329-343.
Hill, C. W. L., & Jones, G. R., 2012, Strategic Management, Cengage Learning, London.
Irwin, D.A. 2006, "The Impact of Federation on Australia's Trade Flows*", Economic Record, vol. 82, no. 258, pp. 315-324.
Katerattanakul, P., Kam, H., Lee, J.J. & Hong, S. 2009, "Migrating Legacy Systems in the Global Merger & Acquisition Environment", Journal of Information Systems Education, vol. 20, no. 3, pp. 281-288.
Lines, M., & Ambler, S., 2012, Disciplined Agile Delivery: A practitioner's guide to agile software delivery in the enterprise, IBM Press, S.l.
Papadakis, V.M. 2005, "The role of broader context and the communication program in merger and acquisition implementation success", Management Decision, vol. 43, no. 2, pp. 236-255.
Peng, M. W., 2014, Global strategy, South-Western, Mason, Ohio.
Schiavi, P. & Solomon, F. 2006, "Voluntary Initiatives in the Mining Industry: Do They Work?", Greener Management Internationa , no. 53, pp. 27-41.
Yang, X., Moore, P.R., Wong, C., Jun-Sheng, P. & Chong, S.K. 2007, "Product lifecycle information acquisition and management for consumer products", Industrial Management + Data Systems, vol. 107, no. 7, pp. 936-953.