Marketing Analysis - Bhp

INTRODUCTION

BHP Billiton is the worldЎ¦s largest diversified resources company. They employ some 35,000 employees in more than 100 operations in approximately 20 countries, reflecting their aim to be a premier global company. They also occupy industry leader or near industry leader positions in major commodity businesses.1

CORPORATE STRATEGY

BHPЎ¦s corporate strategy is that it aspires to be one of the worldЎ¦s premier companies. This is to be accomplished by delivering upon their vision to earn superior returns for their shareholders as the worldЎ¦s premier supplier of natural resources and related products and services.2 The reason behind this strategy is that BHP wants to shake off its history as a company, which destroyed shareholder value by often pursuing growth for emotional rather than strategic reasons.3

Mission - BHPЎ¦s mission statement is the following: Our purpose is to create value through the discovery, development and conversion of natural resources, and the provision of innovative customer and market-focused solutions.4 BHP does a good job of recognizing that as a multinational and having employees of different cultures it is important and essential to have a statement that everybody can adhere to. BHPЎ¦s commitment to diversity is embedded in the values inherent in its Charter, which is the foundation of the companyЎ¦s business strategy. The specific value statements relating to diversity are clear and unequivocal.5

Value - BHP emphasizes the following values across the organizations which are: safety and the environment, integrity, high performance, win-win relationships, the courage to lead change and respect for each other.6

BHP is successful in creating value when the following occurs: 1)Their shareholders are realizing a superior return on their investment. 2)Their customers and suppliers are benefiting from their business relationships. 3)The communities in which they operate value their citizenship. 4)Every employee starts each day with a sense of purpose and ends each day with a sense of accomplishment.7

BHPЎ¦s ability to manage their assets well and execute profitable growth opportunities helps create value in the company. These actions in return provide superior and sustainable returns for their shareholders.8 The seriousness of BHPЎ¦s commitment to diversity can be seen from the level of resources and energy the company puts into translating the Charter into a set of business-oriented policies and practical programs.9

Diversity and Strategic Orientation - For BHP, diversity is a means to achieving superior business performance as well as the implementation of a set of values. Diversity is a key driver of innovation, and a way of attracting and retaining the best people. BHP also understands that diversity is an important component of its central strategic orientation to be a sustainable business.10

The success of BHPЎ¦s strategy has been slowed down and hindered somewhat due to uncontrollable factors. These factors are the struggling world economy, some low commodity prices, the political instability in the Middle East and the impact of stronger operating currencies. Despite this BHP's unique set of assets and value-focused strategies will allow it to sustain and overcome these forces.11 (For more information, refer to the SWOT in the Appendix)

COMPETITION

BHP has three major competitors: Alcoa, ThyssenKrupp, and Teck Cominco.

(Appendixes, Figure 3)

ALCOA

Strengths

Ў± WorldЎ¦s leading producer of primary aluminum, fabricated aluminum and alumina and is involved in a diverse set of industries such as mining, technology, refining, smelting, fabricating and recycling.12

Ў± Ranked first by Fortune as the "Most Admired Metals Company" in innovativeness, employee talent, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment value and the quality of products and services.13

Ў± Pursued a ЎҐmore than moneyЎ¦ strategy worldwide through charitable donations, grants, and employee volunteerism in conservation and sustainable development.14

Ў± Sole supplier of aluminum space frames for a major corporation such as Ferrari.15

Ў± Ownership interests with Chalco, the only alumina producer and largest producer of primary aluminum in China.16

Ў± Minimizes costs by divesting in non-core businesses that do not meet