...is a multinational company one of the biggest producer os natural recourses which operates in mining, gas, metal, steel, and oil sectors. The company was formed in 2001 by merging BHP Limited and BHP Billiton PLC,which is still in existence as separate companies but operated my single management team.The company operates is activities in 100 location within 25 countries and among them 40% of them are established in Australian region.The company was highly profitable which runs with integrity wherever it goes or runs.company clearly gave more focus on longterm share holder with discovery,development and marketing of natural resources.For to achieve this targets they lightened on 3 things(1)building and managing the company's assets and services.(2) setting up standard norms where all workers are devoted to there responsibility.and lastly(3) winning the trust of there shareholder,stakeholder workers by regular communication..(Robbins,s,DeCenzo,d.coulter,M & woods,M 2014,Management the Essentials, Pearson Australia,Sydney,pp.19.) Key issues of the company: Organizational Design: BHP says “Our Operating Model has been designed to deliver a simple and scalable organisation, providing a competitive advantage through defining how we work, how we are organised and how we measure performance”( The BHP Billiton Way What we do and how we do it,April 2012).The organization is designed with transparency with clear chain of responsibility of group of employee,so that employee understand...
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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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...of 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...
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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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...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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..................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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...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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...| 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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...The slowdown in China’s growth has had a rippling effect with consequences seen in the Australian Government, Domestic Firms and even Multinational Firms. Due to the slowdown, implications that have been placed on the Australian Government have been ones such as a need for the restructuring of certain policies to be able to handle the increased exposure to the volatility of the commodity market. The government should ensure appropriate policies are in place to facilitate the management of risk in regards to this volatility. Seeing as how the price of iron ore has fallen by more than what the government expected at the time of the May budget, there is a need to look at the budget again as this may hinder any planned spending due to predicted government investment and income. With the Australian mining industry being held at such a high standard from the rest of the world, there is a need for Australia to retain as much revenue as possible. With the super-sized profits being reeled in by resource companies operating in Australia, it is up to the Australian Government and the implementation of the mining tax, as this would reduce the damage being felt by the exports industries such as manufacturing and tourism which has suffered due to the increased Australian Dollar (Jessica Irvine 2010). Other implications seen by the Government include a potential volatility in the relationship between the Australian Government and the Chinese Government due to a reduction in the...
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...organisation 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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...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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...Lynch The Dual Listings July 2002 EVENT DRIVEN & EQUITY ARBITRAGE SALES FOR INTERNAL USE ONLY Trades Examined: UK - Netherlands Reed Elsevier NV (REN NA) vs Reed Elsevier Plc (REL LN) Royal Dutch Petroleum (RDA NA) vs Shell Transport & Trading Co Plc (SHEL LN) Unilever NV (UNA NA) vs Unilever Plc (ULVR LN) UK - Australia BHP Billiton Ltd (BHP AU) vs BHP Billiton Plc (BLT LN) Brambles Industries Ltd (BIL AU) vs Brambles Industries Plc (BI/ LN) Rio Tinto Ltd (RIO AU) vs Rio Tinto Plc (RIO LN) Introduction: The purpose of this report is to provide a basic overview of the dual-listing environment, highlighting the nature of company structures involved, why the structures were adopted and how they work. Contents: Page 1. Frequently Asked Questions 2 2. Why do Dual Listed Companies Exist? 4 3. Dual Listing Structures 5 4. Currency Risk 6 5. Terminology 7 6. Factors Affecting Performance 8 Appendix 1: Stock Specific Data A.1 Reed Elsevier NV vs Reed Elsevier Plc 10 A.2 Royal Dutch NV vs Shell T&T Plc 12 A.3 Unilever NV vs Unilever Plc 14 A.4 BHP Billiton Ltd vs BHP Billiton Plc 16 A.5 Brambles Ind. Ltd vs Brambles Ind. Plc 18 A.6 Rio Tinto Ltd vs Rio Tinto Plc 20 Glossary of Terms 22 1. Frequently Asked Questions Q. What is a dual listed structure? Where a company is listed on two exchanges it is referred to as a Dual Listed...
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...ACCTG20040 Auditing and Ethical Practice Assessment item 1: Term 3, 2013 Understanding Companies and Their Business Risk Prepared by: Timothy Supandji Table of Contents EXECUTIVE SUMMARY 3 Factors in understanding company and business risk before accepting as New Client 4 Comparison of the Overall Financial Conditions of BHP Billiton Ltd and Rio Tinto Limited during the GFC 6 Explanation of risks associated with BHP and Rio Tinto Ltd during GFC 8 Managing Business Risk: BHP Billiton Ltd Vs Rio Tinto Limited 10 CONCLUSION 11 EXECUTIVE SUMMARY There are four purposes for this report. It attempts to provide description of what factors that the auditors need to consider in understanding a company and assessing business risk before attempting any audit work on a particular client. The second aim is to explain the comparison of financial conditions between BHP Billiton Ltd and Rio Tinto Limited during the Global Financial Crisis that occurred in 2007 to 2008. Further, the risk that is associated with BHP and RIO during the Global Financial Crisis will be explained. Finally, this report intends to explain of which company is better in handling and managing the business risk during the Global Financial Crisis. Factors in understanding company and business risk before accepting as New Client Generally speaking, at the time when there was a Global Financial Crisis, it has detrimental effect to the companies globally with downfall of share prices. Because...
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...Financial Statement Analysis: WOW, BHP and TSE compared Introduction Financial statements are often called “the language of business.” Thus, any leader in every area of business and non-profit management will need to know and understand how to read, analyse, and interpret the meaning and decision making implications of financial statements. Every accountant and financial analyst will need to be able to calculate financial ratios and analyse related non-financial data in order to see whether the company is successful or not and suggest what can be improved in the operations if needed. Therefore, there was thorough financial investigation of BHP Billiton, Transfield Services Limited and Woolworths Limited. In order to investigate these companies activity, the 2008 and 2009 annual reports were retrieved from official companies’ websites. Also general information on industry averages for various ratios was obtained from financial websites as well as ASX website. Specific events that could have impacted a company’s operations were followed on the related web-links. In order to make a financial decision, financial analysis of financial ratios was conducted. In order to have the most necessary information following ratios were considered to be most important in making investment decision - profitability ratios that measure a company’s earning ability, in the broad categories of margins and returns. The major margins in our case were gross profit and net profit margin...
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