BHP BILLITON Essay Example

BHP Billiton-Swot Analysis

BHP Billiton-Swot Analysis

BHP Billiton has a well-established external and internal environment that leads to the company’s success especially dues to natural resource operation. The company also has a defined market in various continents where it trades the minerals and petroleum. The strengths of the organization and the opportunities lead to its success and the improvement of the weaknesses reduces the threats.


BHP Billiton is a popular company and it is known for its well differentiated asset portfolios. The company supplies various metals all over the world, including copper, lead, silver, uranium and aluminium used all over the world for different purposes. The company is also renowned for production of various ores such as iron ore, manganese and metallurgical coal. The company also operates in various countries, including Brazil, South Africa, Australia and the United States. The company provides energy from thermal coal, which is used in the generation of electric power and in various industrial activities across the continents. The company already has eight operating branches that are operating in Africa, Australia, and South America and in the United States.

The company has been making profits in the last one decade and the financial returns have been made through returning the capital to the investors of the organization. The company is enabled to return the return capital through the buyback program. The company has therefore maintained a high rating of creditability in which the global market of the organization is raised. The profits of the firm emanate from the petroleum and mining activities. Hence it is referred to as a natural resources company.

BHP Billiton Company cherishes its customers and therefore looks forward to impressing them. The firm has a good customer service that attracts more clients to the goods and services offered by the organization. The company Brand name continues to gain popularity globally. The image of the firm is also fostered by CRS activities carried out by the BHP Billiton Company. The services and the commodities that are offered by the firm are also of credible quality and are offered at an affordable price. Additionally, the company has enough workers, hence a great source of labor to execute the operations across the continents. The organization has 45,000 employees across the major operation countries[ CITATION SIK151 l 1033 ].


There are areas that require improvement in the company as they are the sources of weaknesses. One of the great weaknesses of the firm is competition. The company’s weakness originates from ineffective margin measures and short-term equity financial returns. The approach of improving financial returns will allow the company faced the close competitors effectively. The company also has a problem with the human resource department. The failure of the department leads to drawbacks on the firm’s operation. Inadequate qualified staff in the mining sector is posing a challenge to the company’s activities and might affect the market in different companies.

Furthermore, communication within the organization is poor. The corporate staff fails in responding to inquiries by use of the new technologies. The company also lacks a platform where the management can interact with the stakeholders and the customers, Poor communication techniques discourages the investors from the firm reducing the revenue that would otherwise be earned by the firm[ CITATION Sim17 l 1033 ].


The company is looking forward to executing a wide range of projects, especially in the pipeline. Currently there are 29 projects in which the company is operating feasibly. If the company will execute the companies in a cost-effective way, the projects may end up earning the company great revenue. Additionally, the company has a chance of improving the image in the market if the communication staff starts incorporating new media into the company’s innovative plan. Use of modern technology will increase the outreach of the customers, hence creating a solid customer relation which will in turn expand the company’s market. Brand awareness establishment in the market is an opportunity for the company to grow financially in the world.

The BHP Billiton Company has undertaken the environmental responsibility after abiding by the Kyoto protocol. The firm has managed to reduce the greenhouse gases by a 5%. Proper management of natural resource will lead to cleaner production by the firm and in the long run, it will lead to sustainable development. The firm will hence increase the supply of commodities maneuvering across industries including the transport and utility organizations. The firm will make more profit by offering cost-effective services and commodities [ CITATION Ray13 l 1033 ].

One of the company’s primary operations is mining. The miners are continually faced with the heavy cost from regulation by the governments. Political threats from countries such as Australia make the company vulnerable to risks. The risks could also emanate from the shipping, contract costs, inflation as well as issues associated with labor. PBH Billiton Company depends on China for the markets of the natural resources, when there is global slowdown on the resources; the company is likely to experience losses[ CITATION Mar167 l 1033 ].


The company has a number of strengths through which the global success of the company is anchored. The management of the firm is also well organized so as to solve the firm’s weaknesses. The purpose of the entity is achieved through exploring all the opportunities available, especially in defining the market and identifying the market gap. The company produces quality commodities with an aim of conquering its greatest threat which is competition. The company has hence continued growing prosperous internationally, especially due to its marketing position.


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