...Submission: April 2, 2015 BHP Billiton Limited Introduction: BHP Billiton is world’s largest diversified natural resources company. The company was created by the merger of two companies, BHP Ltd (An Australian mining company) and Billiton PLC (An UK based Company). BHP Billiton has created long time share holder value through the discovery, acquisition and development of natural resources. In the last few years, BHP Billiton has faced some governance challenges in conducting their business around the world. For overcoming those challenges several strategic drivers has been taken by BHP Billiton. This report mainly focused on external and internal environment, strength and weakness, Governance challenges and strategic drivers of BHP Billiton. Overview of BHP Billiton: BHP Billiton is a Dual Listed Company (DLC) comprising BHP Billiton Limited and BHP Billiton Plc. BHP Billiton was created through the DLC merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc), which was concluded on 29 June 2001. BHP Billiton is a leading global resources company. The purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. BHP Billiton are among the world’s largest producers of major commodities, including aluminum, coal, copper, iron ore, manganese, nickel, silver and uranium, and have substantial interests in oil and gas. The headquarters of BHP Billiton Limited, and the global headquarters...
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...BHP Billiton is known as the world's largest diversified natural resources company.As one of world’s largest producers of major commodities, including aluminium, copper, energy coal, iron ore, manganese, metallurgical coal, nickel, silver and titanium minerals, and uranium along with substantial interests in oil and gas. BHP Billiton's objective is to create long-term shareholder value through the discovery,acquisition,development and marketing of natural resources.As a global organization,it has more than 100000 employees and contractors across the 25 nations.BHP Billiton Summary Review for 2011 in the year ended 30th June 2011 showed the financial results increased compared to past 5 years that the total return to shareholders was US$15.1 billion,underlying EBIT was US$32.0 billion,attributable profit(excluding exceptional items) was US$21.7 billion respectively.Moreover,BHP Billiton made US$195.5 million of Community Contribution which contributed to the company's aim that to maximise shareholders' wealth. The community contribution BHP Billiton made can be considered as a part of the company's social responsibility and the sustainability for the society community.Corporate social responsibility is a form of corporate self-regulation integrated into a business model.The goal of corporate social responsibility is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities,...
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...BHP BILLITON Petroleum Sector BHP Billiton is one of Australia’s greatest corporate success stories; having grown from humble beginnings in Melbourne, BHP is now a multinational commodities powerhouse and claims to be the world’s largest national resources company. (Annual Report, 2009 pp. B) The BHP Billiton Petroleum sector has been the focus of big BHP investment dollars of late as the company looks to expand their operations. BHP-B Petroleum produced over 376,000 barrels of oil per day in 2009 and has maintained an impressive 9% annual growth rate since 2007. (Petroleum Annual Review, 2009 pp 5) BHP Petroleum operates in many countries across the world and is currently undertaking oil and gas projects in Australia, The Gulf of Mexico, Algeria, the UK, Pakistan and Trinidad and Tobago with the intention to expand into Malaysia, the Fawklands and Canada in the near future. (PAR, 2009 pp 5) The market for petroleum and indeed the mining industry as a whole was unsure what effect the global financial crisis would have and what action affected parties would take during the period. Regardless of the changes, such a large and important company as BHP would have to study the potential changes and start, if necessary, reformatting their financial planning/strategies and other control processes. These would have to be looked at on a whole organisational level; ranging from the BHP hierarchy all the way down to the smaller subsidiaries in order to accurately gauge the potential...
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...BHP Billiton is the world’s largest multinational mining company which specialises in the extraction of copper, iron ore, gold, petroleum, natural gas, nickel, uranium, coal and oil; it was founded in 2001 in Melbourne, when the companies BHP and Billiton merged. The business has been lately underperforming; with a revenue of 61.2 billion US dollars and a loss of 1.91 billion US dollars in 2015. However from 2010 to the 2014 financial year, BHP Billiton has been able to achieve attributable profits/ net profits of around 15 billion US dollars, which indicates that this business is mostly profitable. There is no evidence to prove that BHP Billiton sells high quality products, however according to the company’s website they state that their...
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...EXECUTIVE SUMMARY The report aim’s to examine the annual reports of Australia’s two largest mining companies BHP Billiton and Rio Tinto and analyse their cash flow statements. The analysis requires evaluating the cash flow performance of these companies during the global financial crisis 2007- 2009.The global financial crises were originated in US because of the bloom/bubble in the housing prices. During global financial crisis many financial institutions failed to recoup their money from lenders and finally ended up declaring bankruptcy. The purpose of the cash flow statements is to provide information about the changes to an entity’s cash and cash equivalents over certain period of time. The cash flow from operating activities of the both companies shows both positive and negative signs as the companies were going through recession. Whereas both companies used external and equity source financing and thus made an efficient cost effective decisions from which BHP Billiton benefited the most. Finally it’s concluded that the both companies were successful in overcoming global financial crisis and alternative strategies affecting the profitability of the companies were presented. Introduction Last three years has faced the worst global financial crisis after the great depression of 1929-1933. The origin of global financial crisis was mainly in US starting from mid 2000’s and taking the whole world into account by the end of 2007. The main reason of the crisis...
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...BHP Billiton Sustainability Report Case Executive summary This short paper discusses relevant stakeholders that the multinational conglomerate company BHP Billiton encloses in their 2013 Sustainability Report. The components that are briefly touched upon is related to the various stakeholder influences, report and not reported costs (referring to the triple bottom line), but the majority of the paper primarily focuses on the environmental and social factors that BHP Billiton discloses in relation to their sustainability program, because the indicators seem to have the biggest impact on the outward-looking legitimacy of the company. We found that NGOs, local communities and unions highly affect how BHP chooses to report their operations, as these organizations/interest groups have a very close relationship to the firm; both negatively and positively. Furthermore, the paper tries to account for costs not included in BHP’s sustainability report, and it appear that some of these are cost-reporting on corruption, specific environmental issues, anticompetitive behaviour, and transportation. The paper do recognize that BHP is in fact a very active proponent of sustainability reporting, but on the other hand do question to what extent the reporting actually reflect the company’s inner workings, as BHP has been publicly criticised for this before. Question A: Influence of all possible stakeholders of BHP Billiton in terms of environmental and social factors. BHP...
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...Summary This report provides an analysis and importance of CSR reporting in mining industry, how well companies disclose social and environmental issue according to GRI guidelines. This article’s main focus is to describe trends of CSR reporting in mining companies in Australia. This article provides detailed overview of companies reporting format and structure, CSR disclosing motivation, how well company account for job losses and impact of reduction of oil price on companies. The purpose of this report is to describe CSR practice of mining companies in Australia and highlights the importance of sustainability reports regarding social and environmental perspective. This report is based on two major mining companies namely BHP Billiton and Rio Tin. The information used for writing this article is gathered from different researcher, annual reports, newspapers, and online articles, GRI guideline. Only Secondary data used to write report and study based on ASX registered companies companies in Australia are more aware of GRI reporting standards now and also know that how crucial it is to report on the sustainability issues from social and environmental perspective to have long term business and secure future. . Contents Executive Summary i Contents ii Introduction 3 Question a 3 Question b 5 Question c 7 Question d 8 Question e 9 Conclusion 11 Reference List 12 Introduction Corporate social responsibility...
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..............2 1.1 Motivation..................................................................................................................................2 1.2 Problem Statement .....................................................................................................................2 1.3 Methodology ..............................................................................................................................2 1.4 Delimitations..............................................................................................................................3 2. Industry Analysis .................................................................................................................................3 3. BHP Billiton ........................................................................................................................................4 3.1 Background ................................................................................................................................4 3.2 Financial Standing .....................................................................................................................4 4. Rio Tinto ..............................................................................................................................................5 4.1 Background ................................................................................................................................5 4.2 2012 Performance...
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...looking to more sustainable products or services in order to keep their company running long into the future. BHP Billiton has taken one such initiative, as one of the largest mining companies, it understands the importance of the environment to big business, both social, environmental and economical, therefore has been producing readied sustainability reports for the past 3 years. Sustainability strategy BHPs sustainability strategy is incorporative of how they can match their capabilities to accomplish its objectives but without compromising their or futures generations ability to use their opportunities to achieve their goals in the marketplace. They have done this through four main foundations in which it is trying to improve sustainability; they include safety, healthcare, environmental effects and lastly the community at large. Safety is an important factor for BHP as it is a large mining company many of the jobs include some level of risk. There official motto for safety is “we do not compromise our safety values”. They planned to have Zero fatalities and a reduction in recordable injuries through identifying the effective risk controls, and eliminating the root of these injuries, as seen in this table below. Healthcare is a contributing factor to BHPs successes as a healthy workplace is more efficient then an unhealthy one, this is because BHP “seeks ways to improve the health of our workforce and the community”. They...
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...Organizations such as BHP would operate a number of different performance appraisal methods. In order to ensure the success of the method implemented certain processes need to be in place. Outline the processes and documentation an organisation such as BHP would need to have in place to successfully implement performance management * Firstly, BHP would need to assess whether all positions within their organisation are documented and available in current and accurate position descriptions. * Investigate whether managers have provided all BHP staff with performance indicators to be used in the current appraisal period, ensuring they are consistent with each staff members key role requirements, as outlined in each position description. * Assess BHP’s performance management policy and procedures to determine whether performance appraisal meetings are being held at a frequency in-line with BHP’S policy requirements (i.e at least once a year). BHP can also use the policy to check whether all performance documentation has been completed , recorded and signed off by both manager and employee. * Investigate whether all BHP staff are subjected to appropriate organisational policy and procedures for rewarding good performance as well as addressing underperformance. * Assess how disagreements about performance apprasials outcomes are managed, investigating whether BHP has a clear and consistent policy and procedure for the dispute settlement process. Also, whether the issue can...
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...Group Assignment: BHP BILLITON International Business Theory & Practice (MGF 5966) Lecturer/Tutor Mr. Sharif Rasel Name & ID Junaidul Haque – 263 512 50 Dalaphone Phengrattanavong – 266 785 94 Girish Balar – 274 718 53 Maike Nan – 263 994 90 Due Date – Week 11 Introduction BHP Billiton, which is Broken Hill Proprietary Billiton, is an Anglo-Australian multinational mining and petroleum company. BHP started its operation in Melbourne in 1885 which is one of Australia’s largest and oldest companies, and it focused on development, discovery, production, and marketing of natural resources. In value-added flat steel products, BHP was also a market leader. In 1860, Billiton was established in The Hague, Netherlands. Billiton developed a growing and substantial copper portfolio. It was also a global leader in the metals and mining sector, and a major producer of aluminum and alumina, steaming coal, nickel, and titanium, chrome and manganese ores and alloys. BHP Ltd of Australia and Billion Plc of UK established merger in 2001, and the result was the dual listed company (DLC). BHP Billion becomes one of the world’s largest mining and Petroleum Company. It expands its business in twenty countries, and its major commodities are iron ore, metallurgical coal, energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel, and silver. This essay will deeply analysis the effects of BHP Billiton’s sustainability practice...
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...Summary The world's biggest miner BHP Billiton (BHP) is cutting jobs at its coal mines after closing a loss-making mine thoroughly in Queensland early this year (Stewart 2012). BHP's job cuts is accompanied by other global mining companies such as Rio Tinto to confront a retrogressive market with falling industrial commodity prices and increasing costs. The future of Australia's mining boom which is largely dependent on Chinese demand for commodities driven by its economic growth is of particular concern (Stewart 2012). Application of Concepts Both economic environment and the concept of corporate social responsibility (CSR) can be demonstrated in this article. In particular, the nature of BHP's mining business, which is regarded as a significant contributor to Australian economy (Maddock and McLean 1987) determines its need to pay close attention to the opportunities and threats posed by the global economic environment (Blainey 2003). For example, slowdown in China's economic growth and recent European economic recession have impact on Australia's resource exports (Stevens 2012). The Australian mining industry which has once benefited from the surge in demand driven by the rapid growth of emerging economies in Asia since 2003 and the shortage of global supply (Stevens 2012) is now facing a difficult period signaled by the drop of China's GDP growth from 10 per cent to a mere 8 per cent (Connolly and Orsmond 2011). China's demand for resources has declined as a result...
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...design challenges are met by contemporary managers in society today as development of an organisation occurs. Challenges faced by organisations in the contemporary business environment include keeping employees connected, managing global structural issues and building a learning organisation. Managers seek organisation designs that will be best suit and assist employees producing their work both efficiently and effectively. An organisation’s culture value is maintained through the vision or mission of the organisations founders (Chatman, Jehn 1994). The case study on “BHP Billiton” is an example of how contemporary companies overcome challenges (Robbins, DeCenzo, Coulter and Woods 2012). BHP Billiton functions within the mining, metal, gas, steel and oil area. The current chief executive office is Marius Kloppers. The company employs approximately 100 000 people internationally. The BHP Billiton charter establishes the vision for...
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...| CASE 2 | Fortescue Metals Group: The new force in iron ore | ABC 9/12/2011 | Contents Introduction 1 Analyzing the external environment 1 Demographic 1 Economic 1 Socio-culture 2 Political-legal 2 Global 2 Technological 2 External environment conclusion 2 Industry analysis 3 Profit pool 3 Porter five forces 3 Threat of new entry 3 Bargaining power of suppliers 4 Bargaining power of buyers 4 Threat of substitute products 4 Rivalry among competing firms 4 Industry analysis conclusion 4 Competitor analysis 4 Analyzing the internal environment 5 Tangible resources 5 Intangible resources 6 Value chain analyzing 6 Capabilities 6 Core competencies 7 Weaknesses 7 Current strategy 7 Future strategy 8 Concluding remarks 8 References 9 Introduction Fortescue Metals Group: The new force in iron ore is a new company in the Australia with new vision. It was founded in 2003 with the aim of lowest cost producer in order to complete with large players of industry. Its main customer is China. Its lowest cost structure is main reason behind getting huge business from china. It had to faced many challenges in the industry but its strong policies supported company to make its distinct position in the industry Analyzing the external environment Every business/ company has external environment with some positive and negative points. Below is the analysis of Fortescue external environment. Demographic According to information...
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...RESOURCING THE FUTURE WHO WE ARE About Us BHP Billiton is the world’ largest diversified natural resources company, with a network of 100,000 emploees and contractors in over 25 countries, and is involved in over 100 operations. Our organization is an Australian based company created through the dual listed companies merger of BHP Limited and Billiton Plc in 2001. We pursue a strategy of developing a diversified portfolio of quality ‘tier one assets’ including Steelmaking products, Nonferrous products, Energy products. 10,000 employees and contractors profits of $13 billion (June 2010) world’s largest mining company measured by revenue world's third-largest company measured by market capitalization – value of $165 billion (June 2010) WHY CHINA & POTASH Mining industry potential China is rich in natural mineral resources and are widely deposited throughout all provinces. In fact due to the industry and the construction sector, China’s natural resources account for 48.6% of China’s GDP. However the lack of adequate, advanced technologies, hinder the development of the mining industry and as a result, most of China's mineral potential remains unexploited. An abundance of non-metallic mineral deposits China is one of the few countries in the world that contains a wide range of non-metallic mineral deposits. China has vast quantities of over 5000 non-metallic mineral reserves, one of which is Potash. China has a great demand for natural resources After...
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