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Analysis Report
Executive summary
Business strategies and plans are important nowadays because they provide direction to organisations and assists in the accomplishment of goals and objectives. Businesses are also required to employ suitable practices which can support in creating a high degree of satisfaction among external and internal stakeholders.
The purpose of the present study to carry out analysis of BHP Billiton which is Anglo Australia based Resource Company. The study will support in tracing the overall growth and development of the selected business enterprise by carrying out the practical application of different strategies. Furthermore, the objective of the present report is to outline two practices which have resulted in criticism of the business enterprise. The external environment analysis of the company has been carried out with the help of two different models which are SWOT analysis and Porter Five Forces Model. In addition to this, the analysis of a company’s culture, leadership and core competencies is also carried out in the current investigation.
The present study is important because it will help readers and other organisations to understand the value of effective strategies in the long-term growth and development of a company. The significance of the current report is that it will also outline the value of sustainable strategies and practices. It has been found that criticism has affected the operations and activities of BHP Billiton in a negative sense. In addition to this, intense competition and increasing government regulations are the major threats faced by the selected business enterprise. However, the practices linked with leadership and organisational culture within BHP Billiton is satisfactory.
TABLE OF CONTENTS
Introduction    3
Tracing the growth and development of organisation    3
Successful strategies deployed in the past    3
Current strategies    4
Criticism of the business practices    5
Criticism 1    5
Criticism 2    6
Environmental analysis    6
M Porter five forces analysis    6
SWOT analysis    7
Organisational culture and leadership style    8
Conclusion    9
References    10
Introduction
In the modern era, effective management of business strategies and plans is vital for the success and growth of an organisation. Nowadays, the competition among businesses in the mining industry has become so intense that it is no longer easy for a company to attract customers and attain the desired volume of sales and profits (Morgan, 2015). Organisations are required to develop and deploy effective business strategies which can assist in long-term growth and development. The present study is based on BHP which is an Anglo-Australian global resource company founded in the year 1885. The report outlines the mission, vision and core competencies of BHP along with the strategies deployed by the company in the past. In addition to this, the analysis of a company’s external environment is also carried out in this study.
Tracing the growth and development of organisation
Mission
The mission of BHP is to become a company of choice for its stakeholders
Vision
The vision of BHP is to create sustainable value for all its stakeholders in the long run
Core competencies
The main and most important competency of BHP is its expertise in evaluating, extracting and sale of natural resources. Furthermore, the company’s core competencies also include its effective and sustainable methods of production and operations. It can be expressed that BHP’s sustainable approach has supported the business enterprise in reducing the overall cost of operations and productions in the long-run (Smith, 2016). The low cost has further helped the brand in competing and maintaining its position in the highly competitive industry.
Successful strategies deployed in the past
The selected business enterprise i.e. BHP is the leading global resource company in the world and it has been able to gain this position after developing and deploying successful business strategies (Garcia et al. 2017). It has been analysed that cost leadership which is one of the most critical strategies in the model of M Porter generic strategies has been employed by the company.
According to the concept of Porter generic strategies, there are four different strategies which can be taken into consideration by businesses to gain competitive advantage over other players in the market. The strategies are mentioned below as:
(
Differentiation
) (
Cost leadership
)
(
Differentiation
Focus
) (
Cost focus
)
According to the strategy of cost leadership, the selected organisation has focused on attaining higher profit margins by reducing the overall cost of operations. To carry out operations and business activities at low cost, BHP is using a sustainable approach for production and operations. The brand is able to gain a competitive advantage over other market players by offering services and products at low prices.
Current strategies
In the context of the current strategies, it can be expressed that the brand has employed integrated low-cost differentiation strategy which has supported BHP in carrying out the smooth flow of all operations and activities. The present strategy is supporting the selected organisation in learning new skills and knowledge quickly and applying the same to gain a competitive advantage in the global market (Lewellyn and Logsdon, 2017).
The firm focuses on carrying out environmental scanning at regular intervals to understand the changes in the external business environment. Based on the information collected through environmental analysis, BHP makes certain changes in its operations, services and products while adapting the environmental changes in the best possible manner.
The management of BHP emphasises on monitoring business strategies at regular intervals with an objective to identify the loopholes and issues within the same (Epstein, 2018). The...