BHP Billiton Strategic Management

Question: Describebhp billiton with proper citation and references. Answer: Introduction BHP Billiton is a global resources company that has made considerable advancements in the domestic as well as the international market. The three key considerable indicators are sales revenue, financial consolidation in the market as well as the business sustainability in the end ("BHP Billiton | A leading global resources company", 2016) .It can be said that BHP Billiton has made considerable progress from the current financial year. In the current year, BHP Billiton has taken aggressive expansion policies to facilitate business expansion. The sales revenue of the brand in the current financial year is $61.2 billion. As per Hitt et al. (2012), the BHP Billiton has widened its range of product and service offerings to the buyers. From offering only petroleum products to the buyers, it has widened its range to metals and minerals to match consumer expectation. Internal environmental analysis Resource capabilities BHP Billiton has abundant resources to assist the organization in its growth (BHP Billiton | A leading global resources company", 2016). In this regard, Eden and Ackermann (2013) noted that the operational as well as the manufacturing infrastructure have assisted the organization to produce goods with the minimum amount of time and effort. The core competencies of BHP Billiton are state- of- the art infrastructure and the operational policies of the business organization. In addition, it has an expertise work force to assist the business organization in its growth. Slack (2015) stated that the business organization can cover a wide range of production activities to facilitate the consumer demand. Besides this, the following core competencies have been identified in the case of BHP Billiton. Asset Portfolio According to Bettis et al (2015), the BHP Billiton has substantial asses that caters towards a wide business portfolio The brand has various assets that helps in the gathering and the production of natural resources in the global market . It is distributed throughout the international market. In addition, it has leased a few portions of its fixed assets in the organization that brings a wide portion of the annual revenues to the business enterprise Experience- Rothaermel (2015) stated that BHP Billiton has been operating for a number of years in the domestic as well as the international market. Thus, it has a considerable experience in mining metals as well as petroleum. This experience has been proved to be valuable in the growth and sustainability of the business enterprise. The brand has been operating for over a decade, and possesses a detailed knowledge of the petroleum and mining resources of the country. Size BHP Billiton is one of the biggest companies through market capitalization in Australia. According to Bettis et al. (2014), it is a multinational brand and encompasses a wide range of production activities in the organization. In the case of BHP Billiton, the brand has fixed assets through a variety of mining and natural resources that has been facilitating the growth of the organization in the global market. Essential directions as well as the objectives - BHP Billiton has pre-determined objectives and goals, which the organization has established. As such, the production and the operational activities of the organization have been aligned with the long-term goals. According to Eden and Ackermann (2013), the brand seeks to be the number one business entity in the domestic market. The brand seeks to follow an expansion policy to expand its business operations in places that are still left to be explored. According to Gamble and Thompson (2014), BHP Billiton is in the process of acquiring newer fields of mining resources in the country .As per the objectives of the organization; BHP Billiton has developed business partnerships with other brands operating in the same product and service line. Slack (2015) mentioned that this has assisted the brand in strengthening the financial resources as well as the operational resources of the country. Vrio The VRIO framework represents the four constituents like Value, Rarity, Imitability as well as organization. Rothaermel (2015) stated that BHP Billiton emphasizes in these four constituents for the continuous growth as well as consolidating its existing business performance in the domestic as well as in the global market. The concept of value relates to the principles that the organization follows in structuring its business operations. Rarity refers to the uniqueness s in the organization that has enabled the brand to build a distinct brand identity. BHP Billiton has a distinct brand identity that has ensured the business enterprise to survive in an intensely competitive market. In the case of Imitability, BHP Billiton has obtained patents on its production methodology, thereby, preventing rival entities to copy. Value chain analysis The value chain analysis describes the business processes that add to the business prosperity of a particular place. In the case of BHP Billiton, the business activities that add to the production as well as the financial sustainability of a business enterprise are effective manufacturing and distribution process in a business organization. The BHP Billiton has a diversified culture in its working force. Since it operates in many countries, the BHP Billiton is an amalgamation of various cultures, opinions and perception ("BHP Billiton | A leading global resources company", 2016). Therefore, there is no lack of fresh ideas in the working environment thereby facilitating organization growth. A multi cultural working environment assists the organization in various business areas like technology, operations, finance as well as the research and development. Strategic issues The following are the essential strategic issues that pose a threat to the business sustainability of the brand: Limited natural resources - The brand has limited natural issues that has been hampering the production rate of the organization in the recent months. Rise in Prices- BHP Billiton has been facing issues due to the rise in the prices of its products. According to Gamble and Thompson (2014), this has decreased the market share of BHP Billiton in the context of the global market. The economic disparity in different countries has been a major contributor towards inflation. Conclusion It can be said that BHP Billiton has been able to build a successful business model. It has created a profitable position for itself in the context of the domestic and the international market. The internal environmental analysis for BHP Billiton has revealed that its primary key performance indicators are organizational infrastructure as well as its range of product offerings. Thus, the organization is on a path of progress and shall retain its business performance and key constituents in the coming years. References Bettis, R. A., Gambardella, A., Helfat, C., Mitchell, W. (2015). Qualitative empirical research in strategic management. Strategic Management Journal,36(5), 637-639. Bettis, R., Gambardella, A., Helfat, C., Mitchell, W. (2014). Quantitative em pirical analysis in strategic management. Strategic Management Journal,35(7), 949-953. BHP Billiton | A leading global resources company. (2016). Bhpbilliton.com. Retrieved 26 May 2016, from https://www.bhpbilliton.com/ Eden, C., Ackermann, F. (2013). Making strategy: The journey of strategic management. Sage. Gamble, J. E., Thompson Jr, A. A. (2014). Essentials of strategic management. Irwin Mcgraw-Hill. Hill, C., Jones, G., Schilling, M. (2014). Strategic management: theory: an integrated approach. Cengage Learning. Hitt, M., Ireland, R. D., Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning. Rothaermel, F. T. (2015). Strategic management. McGraw-Hill. Slack, N. (2015). Operations strategy. John Wiley Sons, Ltd.