Corporate Sustainability Strategic Indicators †MyAssignmenthelp

Question: Discuss about the Corporate Sustainability Strategic Indicators. Answer: Introduction BHP Billiton is a trading entity and is an Anglo Australian multinational company. It deals in a number of areas namely mining, petroleum, metals and many more as such sectors. Headquartered in the Melbourne it was founded in the year 1885 in broken hill of Australia. It is termed as the Worlds largest mining company in 2015 according to the value of its shares and market presence. The mentioned report will provide a clear highlight of the business strategies of the mentioned company and its success factors over the years. The purpose of the report is to determine the internal and external analysis of the mentioned company. The mentioned company operates a wide variety of mining processing and oil and gas production operations in around 25 countries across the world. The company has four primary operational units, with an optional fifth operational unit, referred to as Businesses: Potash Iron Ore Copper Petroleum Coal The company employs around 40,000 people all over the world in its vast range of corporate offices and company facilities. The researcher states that the companies transformed them entirely in the world of information and BHP Billiton ability to exploit the intangible assets is turning out to be more decisive than their ability to administer tangible assets. BHP Billiton is expanding its business on global platforms and study reveals that it has implemented the concept of balanced scorecard, which helps in supplementing the measurement of financial performance of business (Bair and Palpacuer 2015). Hence, the resources and core competencies measures the criteria of perspective customers, internal business process, learning and growth. BHP Billiton is of late has been transferring the resources and capabilities across the geographical boundary which provides the way for company to leverage its core competencies more fully and expands its competitive advantage into the wider array of geographical markets (Billiton 2014). VRIO Analysis is performed to determine the conceptual framework of which forms an indispensible part of BHP Billiton strategic scheme. The primary objective of conducting such analysis is to determine the resources of BHP Billiton or the capability worth of BHP Billiton. Value:The primary question rose whether BHP Billiton has the abilityto make optimum utilization of its resources or does it put in effort in exploring and exploiting the opportunities (Billiton 2014). It is also puts an emphasis on inflecting threat in the market position for BHP Billiton, if a firm is unable to possess threat in the market then it might expose its weakness. However, in this context BHP Billiton having abundant of resources and assets is regarded as strength in mining industry and other competing firms might feel themselves as a threat in contrast to the resource capabilities of BHP Billiton. Rarity:BHP Billiton is considered as one of those mining companies which has a superior competitive advantage in the market. It is not short of resources and capabilities and hence, it is benefited from the other competing organizations due to is vast range of properties (Billiton 2014). Numerous studies has indicated that BHP Billiton enjoys the competitive advantage in following sector over several other mining firms due to its overall objectives and strategies which are apparent throughout the mining industry. Immutability:The scenario of compatibilityreflected through the frameworkof VRIO analysis reflects the internal environment of BHP Billiton. It determines the adequacy of cost disadvantage in terms of capability and resources in the process of procuring and the development of the resources in comparison to other mining firms. Mining company like BHP Billiton having rich and valuable resources can be hard to emulate for other competing firms in order to gain advantage. BHP Billiton can either exploit those external opportunity or neutralize the threat from external sources by making optimum utilization of available resources (White 2017). Organization:Once BHP Billiton has understood the concept of rarity, value and immutability of resources and capabilities, the next procedure is to organize the organization in an appropriate manner to make an effective use of such resources (White 2017). However due to its large scale of operation, BHP enjoys the benefits sustained competitive advantage for prolonged period of time. The management and the control systems of BHP Billiton consist of both formal and informal mode of managerial decisions by aligning such decisions with the strategy of the organization. These components of BHP Billiton are better known for complementary capabilities and resources because it helps in sustained competitive advantage. Without correct organizational and managerial strategies no firms can achieve the valuable, rarity and immutability and may suffer competitive disadvantage. The term value chain comprises of activities defines the functional operations and performance of specific activities in order to deliver valuable product and service in the market. The theory of value chain is based on the foundation of decision supporting tools, which adds to the competitive parameters (Billiton 2016). Value chain analysis facilitates the physical illustration of several processes for BHP Billiton, which are involved in mining, and extraction of raw materials and concluding the procedure by rendering the final product, which is commonly known as value chain. Primary activities:Facilitating the arrangement for inbound movement of minerals, metallurgical coal, silver, irons ore, manganese from the mining site to the manufacturing units. The functions and operations of BHP Billiton are concentrated on administrating the process, which converts the inputs of raw materials in to the output of finished goods. Supportive activities:This process consists of procuring the raw materials such as metallurgical coal, silver extracts, iron ore, diamonds, and manganese from the mining sites to the manufacturing unit where plants and equipment are located. The technological unit in collaboration with the unit that manufactures the products is concerned with retaining the equipments such as the software, technological knowledge and hardware which is introduced by BHP Billiton in converting those inputs into finished goods. BHP Billiton is supported in a proper way by the activities such as accounting and finance controlling the public relation and the quality. Value chain forms an integral part of BHP Billiton for appropriate functional operations. The concept of value chain has rapidly paved its way in leading the management position, which is considered as an important tool for strategic planning. BHP Billiton implements the theory of value chain to the entire supply chains and distribution channels of its organization (Billiton 2016). This implementation has enabled BHP Billiton to post yet another groundbreaking performance based on its business approach aimed at developing the manifold equipments for growth. Such feat acts as an encouraging aspect adjacent to the surroundings of financially viable challenges in relation to its business. Competitive Advantage STRENGTHS OPPURTUNITIES Strong performance financially Diversification International Presence Marketing Position Association with Social Presence Mergers and Acquisitions Global Expansion New tasks Marketing Innovations WEAKNESS THREATS Earlier History of Mishaps Unskilled Human Resources Corporate Communication Demand Fluctuations Rise in Competition Rise in the Costs Threats from political grounds BHP Billiton is a well known company that deals in Natural Resources. The company has a vast range of assets spanning across the globe which makes it one of the very best in the business. The company is one of the largest suppliers of uranium, copper, silver, lead and aluminum. BHP is also a major producer of iron ore, metallurgical coal and manganese with operations in Australia, Brazil and South Africa. With eight operations across South Africa, Australia, the South America, United States the Coal section of the organization provides thermal power for the production of electricity in power generation and some other industries that requires electricity. The mentioned company in this report has been influential in dealing with financial transactions and has been successfully able to provide huge financial returns to the people who have invested in the company. This has been possible because of the aggressive share buyback program of the company. (Pepper et al. 2015). The management of the company has to take care to improve the gross profit margins and also on some long term plans like financial equity. BHP Billiton currently faces several issues that are directly connected to human resources that have a clear impact on the operations. This happens due to the absence of a bunch of trained and qualified staff in the ranks. The weakness of the company in corporate communication is a disadvantage for the company as the staffs of the mentioned company are not that active while responding to enquiries related to corporate management or effective communication between them and the shareholders of the company. A number of projects have been undertaken by the mentioned company which is to be executed by them. There are more than 25 projects in the offering which promises to be a huge source of revenue for the company if they are done and completed in an efficient manner. The mentioned organization can undertake different activities to strengthen its brand position by integrating innovative and latest marketing solutions and by using some new media tools and reaching out to the customers. Kyoto Protocol is now mandatory to abide for every single business organization. BHP Billiton promised to cut down greenhouse gas emissions by at least 5%. The program if managed properly will provide the best example for environmental responsibility and development of the sustainability of the company. There has been a looming threat from continuously rising costs from the suppliers like shipping costs, inflation of prices of essential commodities, rising issues with workers that has been restricting the development of the company globally (Mayes et al. 2014). BHP Billiton is facing political issues even in Australia, as the company has received an unfavorable ruling from the government regarding infrastructure access and the political dynamics of being on the right side of issues cannot be underestimated (Grant et al. 2014). BHP Billiton depends entirely on China for supplying a large chunk of natural resources and global slowdown in world markets will have a direct and devastating impact on BHP. The company must solve the issue to fulfill the demand to gain a respectable percentage of profit in the coming years. PESTLE Analysis Political Factors- Some of the political factors that determine the strategies of BHP Billiton are; Political stability of the country where the company operates Risk of Military invasion Protection of the properties Industrial safety regulations Trade regulations and different tax regimes Economic Factors- Some of the economic factors that determine the strategies of BHP Billiton are; Economic condition of the country where the company operates Efficiency of the financial markets Education level in the economy Labor cost and the amount of productivity in the economy The economical growth rate Conclusion The researcher has been able to accomplish the aims and objectives of the research. The strategies, internal and external analysis of the report has been prepared accordingly. The structure of the report has been done on a systematic basic and thus it has been helpful for the readers to get a clear idea about the focus of the research. 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