Assessment for strategic management

Strategic Analysis
TABLE OF CONTENTS
INTRODUCTION    3
MAIN BODY    3
PART 1    3
1. Business background    3
2. Industry background    3
3. PESTLE Analysis of BHP-Billiton    4
4. Porter’s Fiver forces    5
5. Competitive environment    5
6. Opportunities and Threats    6
PART 2    6
1. Firm’s tangible and intangible resources    7
2. Identification of capabilities    7
3. Core competencies analysis    8
4. Types of information system    8
5. Evaluating the proposed system    9
CONCLUSION    9
REFERENCES    10
INTRODUCTION
Strategic analysis can be defined as the process of research conducted on an entity and its economical as well as environmental background. This analysis includes evaluating along with identifying the economical, technological and environmental data of the organisation’s strategic background. With the use of several macro-environmental analyses such as PESTEL, SWOT and Porter’s five forces; the internal as well as external environment of a company can be easily analyzed (Donovan and Hartley, 2016). In order to conduct this report, the chosen company is BHP Billiton, Australia.
The business operates in mining sector and is based in Melbourne, Australia. The present report describes the internal as well as external analyses of the selected organisation. Furthermore, the study identifies the competitive background of the cited company along with the threats and opportunities associated with the rivalry gang (E. Dobbs, 2014). Moreover, the report also identifies the business’s tangible and intangible resources along with the core capabilities to tackle its rivals. The report also provides recommendations for the suitable information system the company should use or adopt in order to survive in the tough competition (Muriuki, Cheruiyot, and Komen, 2017).
MAIN BODY
PART 1
1. Business background
The chosen company operates fundamentally in the mining sector and is a global leader in the same industry. BHP Billiton operates as a trading association in Australia and is a multinational Anglo-Australian company dealing in mining, petroleum and metals (Bice, 2014). The entity is headquartered in Melbourne, Victoria, Australia and was founded in 1885 in the distinct and isolated area of Broken Hill in NSW (New South Wales). Along with the global leader it is also the most prominent and largest mining business by revenue in Melbourne. It is also listed in the Australian security exchange and is diversified in the resource industry. The values of the entity are highly based on its heritage and strong foundation on which it was established (Bettis, et al. 2014).
2. Industry background
The industrial background of the company is based on the manufacture and discovery of specific commodities namely, iron ore, uranium, copper and coal. The brand deals in coal, iron ore, copper and petroleum segments (Robson, W., 2015). Billiton is engaged in the discovery, development, production and promotion of the natural resources like coal, diamonds, silver, zinc, lead, iron ore, copper, oil, gas and a variety of other natural resources. Billiton emerged as a global leader in the mining and metals sector and is also the main player in the production of aluminum and alumina. It also has a considerable and expanding copper portfolio.
3. PESTLE Analysis of BHP-Billiton
    Political factor
    BHP-Billiton is operating in basic natural resources in several countries and is exposed towards different types of political environments (E. Dobbs, 2014). Before investing into new market the giant mining firm should determined all the political factors like political stability, level of corruption, risk of military involvement, legal frameworks, taxation, etc. All these factors create major risks for the business.
    Economic factor
    The macro-environment factors such as saving rate, inflation rate, foreign exchange rate, interest rate, unemployment rate, etc directly influence the operations of the business (Muriuki, Cheruiyot, and Komen, 2017). The economy of Australia is very wide and fluctuates time to time. Further, the economic factor of the selected business entity includes skilled and unskilled labours, etc.
    Social factor
    Culture of society and the way of doing different things directly influence the business. Attitudes of customers and shared beliefs plays major role in BHP-Billiton (Epstein, 2018). Social factor includes demographic, attitudes, culture, class structure, etc. These entire factors directly influence the operations of the firm.
    Technological factor
    In the modern era, technology plays a significant role in the life of business. The giant mining industry is indulged towards implementation of new technology within the workplace according to the new market trends (Bice, 2014). In terms of safe, effective and fast performance/operations of business the above cited firm highly invest in new and updated technologies.
    Legal factor
    Legal frameworks are different in different countries and these are directly associated with risk factor. The company has adopted many legal rules and regulations concerning with health and safety of employee, consumer protection, data protection, etc. Different laws/frameworks such as discrimination act, anti-trust law, consumer protection act, etc.
    Environmental factor
    Different market has different norms and standards that are directly related with the profitability of the business entity (Bettis, et al. 2014). Environmental factors include climate, weather, laws and regulations, etc. The selected organisation is highly impacted with...