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Essay / Business Analysis of Broken Hill Proprietary Company
BHP BILLITONBHP is known as Broken Hill Proprietary Company and was established in 1885 and works in three main sectors which are: minerals, petroleum and steel, as well that she also works in others in areas such as transport and logistics, business services, strategy and law. They were mainly involved in the discovery, development, production and marketing of iron ore, copper, oil and gas. Its main headquarters was in Melbourne and employed 30,000 people. Billiton was established in 1860 in the Netherlands and is named after the tin-rich island of Indonesia, where mining began. In 1997, they joined the FTSE 100 index (London Stock Exchange). Before merging, this company was a leader in mining and metals, as well as manganese, coal, nickel and titanium minerals. Some of the key market conditions prior to the merger were: - Global capital markets were increasingly selective, as national limitations and trade become less relevant, shareholders demand improved returns - Customers consolidate and have themselves become much more efficient - Employees learn that gradually A “suite” of skills is essential for promotion and job security - Questionable economic situation in most of the world's major economies - Facing a period of slow or no growth, BHP and Billiton merged in 2001 to form a dual-listed company. The merger was beneficial for both and increased the value of the company from a market capitalization of $28 billion in 2001 to $42 billion in 2003. With this new form, BHP Billiton could now offer its customers with integrated and global solutions in industrial minerals, as it now could. operates two major centers and offers a wide range of services. BHP Billiton would become...... middle of paper...... INC. With a market capital of 12.82 billion and VALE in second position with a market capital of 64.75 billion (http://finance.yahoo.com/q/co?s=BHP+Competitors).Rivals with same product market approach: Arcelor Mittal capital value 24.97B and POSCO with value 20.70 BCONCLUSIONThrough PESTEL analysis, industry environmental analysis and strategic grouping map analysis, the BHP BILLITON can be assessed. The PESTEL analysis has shown various trends that may have an effect on the industry, while the environmental analysis of the industry has shown that the competitive rivalry in the industry is quite low. The strategic clustering map shows that the company benefits from its high position among all, there are competitors in the same field but they are far behind the company. They not only make a profit, but also help small businesses grow, improving educational opportunities and empowering community centers..