BHP Billiton SWOT Analysis and Porter Five Force Analysis The WritePass Journal

BHP Billiton SWOT Analysis and Porter Five Force Analysis Introduction BHP Billiton SWOT Analysis and Porter Five Force Analysis ) Bargaining Power of Suppliers BHP Billiton is largely impacted by the bargaining power of suppliers in labour, materials, energy, shipping, and energy costs. As the company ensures reduced capacity through enhanced operations, the overall costs from suppliers have increased as well. In the above-mentioned categories, there are negligible substitutes available, which enhance the strong bargaining power of suppliers. Threat of New Entrants The threat of new entrants is relatively low. Due to dearth of natural resources there is very limited capacity and supply available in the global market, which restricts any new entrants in the market. Due to drop in commodity prices, the pace of demand of iron ore from China has slowed down by more than half. Demand will grow less, although still quite impressively and the producers, in general, are more prepared. These factors are likely to play significant barriers for the new entrants rather existing. (Bloomberg, 2012) Moreover, BHP Billiton, being the biggest mining company, holds enhanced infrastructure, latest technologies and trained staff to offer better quality products to the market. For the new entrants it will take a while to upgrade the level. In regard to geographic locations, BHP Billiton has best natural resource locations than new competitors entering the market. Several companies have made extensive moves across Arica, India and China for natural resources but the threat of these companies remains moderate to low. Threat of Substitutes The threat of substitutes is quite low, as there are not many substitutes for raw material products in the market. BHP Billiton is strongly placed, due to its broad, diversified portfolio of natural resource assets, to counter any threats of substitutes. Intensity of Existing Rivalry The rivalry among competing sellers is tough. This is due to the fact that several natural resources companies are competing for access to the reserves available across the world; along with retaining qualified staff; and building infrastructure, transportation and new development projects. On the reserves side, there is a geographic overlap in most areas worldwide, and to retain trained staff has augmented labour wages. However, despite the strong rivalry, the industry remains lucrative due to strong profit potential. As a result, the lowering natural prices are not likely to impact the industry players as they stand affirmative. Also, there have been takeover speculations in the natural resources industry. Mining titans BHP Billiton and Rio Tinto are to generate about $20bn in free cash flow, giving each substantial options for acquisitions and capital management. (Merril Lynch, 2011) In 2005, BHP Billiton purchased WMC Resources of Australia during a takeover battle. The company as a result has the largest uranium reserves in the world and secured a major source of future growth. REFERENCES FTSE All-Share Index Ranking (October 2012) stockchallenge.co.uk/ftse.php (Accessed 06/10/2012) Digital Look 2012. BHP looking for upturn in first half of 2013 (October 2012) digitallook.com/dl/news/story/20311406?username=ac=  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (Accessed 06/10/2012) Hoovers, BHP Billiton, (2012) hoovers.com/company-information/cs/company-profile.BHP_Billiton_Plc.7649c747268ff225.html (Accessed 06/10/2012) Business With The Wall Street Journal, Michael Bennet, The Australian 2011. BHP Billiton, Rio Tinto well funded for takeover programs, says Merrill Lynch (June 2011) theaustralian.com.au/business/mining-energy/bhp-billiton-rio-tinto-well-funded-for-takeover-programs-says-merrill-lynch/story-e6frg9df-1226082744863 (Accessed 06/10/2012) Bloomberg 2012. BHP Says Pace of China Iron Ore Demand Has Slowed by Half (September 2012) bloomberg.com/news/2012-09-19/bhp-says-pace-of-china-iron-ore-demand-has-slowed-by-half.html (Accessed 06/10/2012) Pierre-Yves Benain (2007), BHP Billiton Presentation, International University in Geneva, http://pierre.benain.free.fr/MBA%20698%20BHP%20Billiton%20Presentation.pdf (Accessed 06/10/2012) Strategic Options, BHP Billiton, Jeremy L. Gordon (May 2007) http://pierre.benain.free.fr/MBA698%20BHP%20Billiton%20Report.pdf (Accessed 06/10/2012)

Managements Responsibility Example

Managements Responsibility Example Managements Responsibility – Case Study Example Topic:"MANAGEMENT’S RESPONSIBILITY" From the second e-Activity, determine the level of responsibility management had for the business failure you researched. Provide specific examples to support your response. Management forms the heart of every organisation. This means that if the top management level fails, the entire organisation is also bound to fail. For example, failure of Lehman may be attributed to management failure. Management has the following levels of responsibility that may lead to business failure namely; poor planning, forcefully imposing their will, blaming others for their own mistake and failing to acknowledge their failure. Planning is the first level of management responsibility, when managers fail to establish proper plans they are more susceptible to fail. Secondly, management has the responsibility of using power and authority to ensure success is realized. However, leaders may forcefully use their powers and authority to achieve personal goals rather t han organisation goals hence, leading to organisation failure. In addition, management has the responsibility of delegating duties to the right people; however, management may fail if they assign responsibilities to people who do not have the right skills. Moreover, management has the responsibility of ensuring high ethical standards are upheld. If management fails to effectively execute this responsibility organisation is more likely to fail (Harvard Business School, paras.11-18). A list of three best practices that not only would have helped the company you researched from failure, but would also apply to the rest of the industry your company was part of. Some of the best practices that Lehman and other companies could adopt to prevent failure include; Proper prior planning, involving the right people, and creating a common vision. Having the correct financial and strategic plan is a critical part for any success. The company should define what is to be achieved and within which t ime frame within its plans. Moreover, involving the right people in making and implementing decision may help to prevent company failure. Conclusively, management should establish a common vision that is to be achieved and also influence the efforts of other people to work towards realizing that vision (Kelsey, Sigrid, and Marjorie, p.258).Harvard Business School. Why Leaders lose their way. 06.07.2011. Web.07.07.2014. http://hbswk. hbs.edu/item/6741.htmlKelsey, Sigrid, and Marjorie J. Porter. Best Practices for Corporate Libraries. Santa Barbara, Calif: Libraries Unlimited, 2011. Print.

Nathaniel Hawthorne The birthmark & society''s love for perfection Essay

Nathaniel Hawthorne The birthmark & society''s love for perfection - Essay Example Hawthorne Nathaniel, through his book clearly shows the dangers of using science to correct nature and uses the text to discourage the readers from resorting to science as a solution to imperfections of nature. The thesis of this analysis is that science is not the solution to imperfection. Human beings should learn to appreciate what nature offers and have a positive view of the same. In support to this, this paper tries to find the original meaning of science and its original intention, it appreciates nature and justifies its imperfections and gives the consequences of science as it tries to correct nature. All these point out to one direction: we should appreciate what nature offers and should not resolve to science to offer solutions to our discontent nature. Beginning on looking at science, it is a systematic study of the behavior and the structure of the natural and the physical world. It involves a practical and intellectual activity, which is done through experimentation and observation. Science involves the zeal to understand nature and being able to offer explanations and predictions of nature. Science should help to appreciate and be able to predict nature to a certain extend. Through science, man should be able to appreciate nature and apply its products according to how he has been able to understand it. These applications can be through production of other commodities and products. For example, after understanding the physiological processes of plants, man should be able to use the knowledge to produce food or clothing for other animals and humans. This being the original intention of science, it would be a wrong approach to try to correct what we really struggle to understand when we should be appreciating it. It is also true to say that science cannot fully understand nature and therefore cannot correct what it has not fully understood. Nature on the other hand is