Essays on Bargaining Power of Suppliers Case Study

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The paper '"Bargaining Power of Suppliers" is a perfect example of a Management Case Study. BHP Billiton is an energy company which came into being through a partnership between BHP and Billiton. BHP was Australia’ s largest natural resources company with a diversified portfolio including minerals, gas, oil, and steel. Billiton was the world’ s most dynamic mining company with the best mining and metal operations. Today BHP Billiton is a world-class business with the most diversified range of products and consumers. They are following an extensive growth strategy and reaping the opportunities.

They are huge and still growing! Corporate Strategy (2008-2010)   A corporate strategy for the company has to be devised such that it supports its aggressive expansion plans. The analysis of the company via a SWOT and PEST analysis will help study the organization. Porter’ s five forces will help analyze their competitive position in the market. The kind of diversification and expansion plan (merger/acquisition) will be devised for the company to support its long term plans and objectives.     SWOT Analysis   Strengths:   BHPB is the largest diversified resources company in the world. They have a unique product portfolio since their operations are embedded around the world and they deal with almost all energy products.

Their corporate social responsibility is commendable because they consider social responsibility and responsibility towards their stakeholders as a primary aspect when they state their threats and challenges and also when they devise their corporate strategy. The company has a unique quality and breadth of products. Their main strength is their diversified portfolio which includes a profound inventory with growth projects in every product portfolio. BHPB focuses on the consumer mainly while marketing its products.

Their main aim is to fulfill the customer’ s needs and wants appropriately. A consumer-focused strategy is their strength because this way they retain their customers. BHPB has the most unique portfolio of the most diversified products, customers and that also across a number of different countries in the world. This is their major strength since it sets them different compared to their competitors. Their petroleum business is their edge and the strength of the company among the vast portfolio of products because they are a Fortune 50 company and this gives them an edge over competitors.   Weaknesses:   Their poor management of the safety of their workers at their mine at Cannington that is North West Queensland is a weakness.

The Australian Workers Union assistant national secretary Ben Swan claimed that this was not the first accident at Cannington. There had been more of these accidents due to rockfalls and the company failed to provide adequate safety to the workers over there. This has spoiled the company’ s image and they have been blamed that they are not a socially responsible company. This can get their name in the news for all the wrong reasons.

(Cranbourne journal news; 2008) BHPB is also having problems in meeting deadlines because they confessed recently that they will not be able to ship the Australian-mined coal that is further used for steel so as a result the steel prices will rise. This can again mar their image and also move the trust that the market has on BHPB. (Wall Street Journal; 2008). This shows they might be having problems in managing production or mining because there has to be a reason to why they were unable to meet deadlines.

Works Cited

Alcoa. 25 January 2008.

Bargaining power of suppliers. www.bhpbilliton.com; 25 January 2008.

< http://www.bhpbilliton.com/bb/sustainableDevelopment/socioeconomic.jsp>

BHP fails to meet commitment. Press Digest. Wall Street Journal (2008) 25 January 2008.

< http://uk.reuters.com/article/oilRpt/idUKBNG5389020080125>

Maintaining a safe working environment www.bhpbilliton.com; 25 January 2008.

Minimize risks and give way to opportunities. www.bhpbilliton.com; 25 January 2008.

Worker dies at BHP Billiton's Qld mine Cranbourne journal news. (2008) 25 January 2008.

Social responsibilities. www.bhpbilliton.com. 25 January 2008.

Strategic alliance. 25 January 2008.

Threats to BHPB. www.bhpbilliton.com. 25 January 2008.

Unrelated diversification. 25 January 2008.

Vertical Integration. 25 January 2008.

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