MAN505 Managing Innovation And BHP Billiton Management

rtunities and protects the company from threats (Wilson, 2012). The threats and opportunities of the company are discussed below.

Opportunities

The company has taken various projects in the pipeline to implement and complete the projects (Hurst, 2015).  These projects are likely to become an important source of revenue and the projects are executed at a reasonable cost.

The effective brand position is the strength of the company. The company uses innovative marketing strategies and new media tools to attract the customers. Therefore, the company is creating and maintaining brand awareness among its consumers through its effective marketing strategies. The company committed to a reduction of 5 percent in green house gas emission. It makes long term agreements for the success of the company. The company has developed a strong potash resource position in Canada thus; it is the biggest opportunity of the company. In future, the company can take various benefits through its effective opportunities. Over the last few years, BHP Billiton has invested a large amount into the online platform. In this way, the new sales channels have been opened for the company. Therefore, the company can take benefits of this opportunity by identifying the consumers in a better way. The company makes new environmental policies to gain competitive advantages (Sykes &Trench, 2016).

Threats

The company is facing threats continuously due to rising costs from suppliers and contract labor cost and energy, shipping cost. Labor staffing issues and concerns, inflation also can affect the organization success and development. The company is continuously facing political threats in domestically as well as internationally (Boyd, 2017). The company is facing environmental issues, weather interruption, and intense competition. Therefore, the several challenges are faced by the company. The changing and varying consumer buying behaviors and attitudes from online channels also affect the growth of the company. Innovative technologies are developed by the market disruptor and competitors could be serious threats in future to the company. China is a major consumer of commodities such as copper and iron. Therefore, a slowdown in Chinese environment and economy also adversely affect the prices of products (Vanclay et al, 2015).  

The team of the BHP Billiton focused on implementing, analyzing and identifying the new ways and methods to improve and increase productivity and raise the standards. The company is looking skilled, enthusiastic, and talented employees to join the team for a future period. The company provides support to people for improving and developing their skills and potential. The digital revolution and shareholder's values are the main future trends of the company. In future, the company wants to operate and manage an effective ecosystem and it wants to create a vision for the industry. If the company wants success and growth in future then it should focus on the optimise portfolio and innovative technologies. Therefore, the company should analyze and identify the threats and opportunities to gain competitive advantages in the future (Epstein and Buhovac, 2014).

Strengths and weaknesses of the BHP Billiton 

Through SWOT analysis the company can identify the strengths and weaknesses of the organization. They are discussed below.

Strengths

BHP Billiton is a well known natural resource organization with fully diversified portfolio assets.  The company is one of the biggest suppliers of silver, lead, copper, aluminum, and uranium. It is the biggest strength of the company. The company is a major manufacturer of metallurgical coal, iron ore, and manganese (Seele & Lock, 2015). The company provides dedicated customers services to its customers. It maintains a strong market position and it makes effective marketing strategies. It increases the demand for petroleum, metals, coal, oil, and gas. It maintains a successful and strong track record for product innovation and development of new products. It focuses on the centralized marketing operations and processes to increase and enhance the marketing activities. The company maintains a strong leadership position in the market. In this way, the company increases cross selling opportunities and competitive advantages. The company has built a strong dealer community to promote and endorse the company products. The company executes and implements the new projects and technologies and it generates good revenue and profit. Therefore, the company should maintain its strengths in future also to gain the benefits of competitors. BHP Billiton is a very strong brand name in the world and it maintains strong labor force. In this way, the company can take benefits in future through its excellent and strong workforce. Further, the CSR activities also encourage and enhance the brand image. The company is increasing its profit and revenue day by day. The future strategies of the company should be based on the operational excellence, high-performance culture, and excellent capital allocation. Therefore, the company can overcome on its competitors in future (Floris, 2013).

Weaknesses

There are many weaknesses exist in the company which affects the business activities of the company. Unskilled, semi-skilled human resource and poor corporate communication among employees are the major weaknesses of the company. It also affects the growth and success of the company. It needs to improve the long term financial and economic return on equity and gross margin. It is also weak in corporate communication and the employees of the company are not proactive to respond and resolve the corporate and business inquiries of the stakeholders and investors. Gradually, the company is also reducing the aluminum production therefore, it faces many problems. If the company wants to grow in the future then it should maximize the strengths and opportunities and minimizes and reduces the threats and weaknesses. The company is also facing health and safety issues in iron ore operation in Western Australia. The production of metals is very energy intensive procedure so the company needs to focus on the production of metals (Ellis, 2012).

There are various competitors of BHP Billiton like Exxon Mobil, Bharat petroleum, Anglo American, Nippon Steel and Chevron Corporation. All the competitors influence the business activities and operation of the company. Competitors are one of the biggest weaknesses of the company so it should evaluate and measure the business activities of competitors. In this way, it can overcome on competitors. Sometimes government intervention and interferences also affect the operation efficiency of the company. Now it can be said that if the company wants to overcome on competitors then it should make some innovative strategies for the future time period. The company can hit and beat the competitors, it the company identifies the weaknesses and strengths. Thus, the company should measure and analyze all these weakness and it should make a good position in the market. Competitive advantage plays a major role in the strategy discipline. The company should also analyze the strengths, weaknesses, threats, and opportunities. The company is not focused on the quantitative goals and objectives (Connolly & Orsmond, 2011).  

The position of the company in next 10 years 

After the various researches, it has been found that BHP Billiton is doing excellent business activities. The report has discussed the strengths, weaknesses, opportunities, and threats of the company. The company is making excellent strategies to focus on the various business activities of competitors (Fonseca, McAllister & Fitzpatrick, 2014). The company is using innovative technologies to gain the advantages in future. The company is also making long term as well as short term mining strategies. The company is focusing on mining cost to enhance the production of the company. It also invests the huge amount of the innovative growth of the company. In this way, the company can make a good identity in upcoming years. The company has engaged in various forms of innovation in mining sectors. The company is making various innovative strategies and plans to take the various opportunities in future. The company is also focused on the portfolio management and pipeline. The company is appointing the right person at the right time to do the work of innovation. The company is also using innovation metrics to measure the progress and guide the innovation decisions (Brueckner et al, 2013).

To gain the efficiency in the next 10 years, the company will need to foster innovation and modernization by using the right technology, culture, and system. If the company wants to gain efficiency in next 10 years, then the company should define the innovation goals with their employees.   The company should acquire and adopt the suitable and appropriate resource and skills to achieve the long term goals and objectives. The company should operate an ecosystem to resolve the collective problems. If the company wants to know the strategies and ideas of the competitors, then it should collaborate with competitors. The level of collaboration should be based on the production efficiency and cost savings. The ecosystem should be designed in such way that it will encourage and improve collaboration among all the stakeholders like original equipment manufacturers and mining companies. The company should focus on the digital revolution (Cisternas & Gálvez, 2014).

The company should also articulate the digital plans and strategies to succeed in the digital future.  Universal college London and the BHP Billiton announced an agreement to set up an institute for sustainable and natural resource initiatives in London, UK. The two new institutes will be launched by the company to resolve economic, cultural, legal environmental and technological issues. The BHP Billiton is one of the biggest companies in diversified resources. The company is creating a shared vision to gain the competitive advantage and make sustainability. The company understands the business benefits and it also evaluates the social outcomes (Raufflet, Cruz and Bres, 2014).

The company is focused on the change management and water management to gain efficiency in the future. It is creating the inclusive and sustainable workforce to diversify the work. In the next mining generation, the company will improve the work processes and technologies. Therefore, the company will achieve the operational and capital efficiency. The company is also reducing the green house gas emissions. Now it is assumed that the company will take various enormous benefits in future.  The main object of the company is to create long term and sustainable share holder value through the marketing and development of natural resources, acquisition, and collaboration (Schoenberger, 2016). The company is using the effective business model to determine the success of the organization. The company is evaluating and developing the resource projects creates the value of the organization. The company is taking effective action to reduce the various emissions. In next 10 years, the company will improve and build investments, operations, ecosystem, and communities. The company will also evaluate and control the financial risk, operational risk, and sustainability risk. The company is also focused on the corporate governance structure. In this way, the company can make a good position in oil and mining industry in the future and it can achieve the organizational goals and objectives (Kunz and Moran, 2016). The business model of BHP Billiton is showing discussed below.

(Source: BHP Billiton strategic report, 2014)

After the SWOT analysis, it has been found that the company can take various opportunities in the next 10 years to build a good position in the market and it can also expand its business in different countries. The company is also completing the project under the specific budget and particular time so it takes various benefits. The company is maintaining the cordial environment in the organization, therefore; employees perform their task with efficiently and effectively. Hence, it will increase the productivity of the company as well as employees.  The company will maintain a good identity and position in the next 10 years with the use of SWOT matrix (Lodhia and Martin, 2014). In short, the SWOT matrix of BHP Billiton is discussed below.

Conclusion 

Now it is concluded that BHP Billiton is the biggest mining company in the world. It deals in various kinds of commodities like steel, copper, iron, aluminum, zinc, and gold. The company uses good marketing mix effective marketing strategies to overcome on competitors. It is the global resource company across the world. The petroleum sector is engaged in development, exploration, expansion, and production of oil and gas. The company manages and operates its product distribution process through its universal logistic chain (Cortese & Irvine, 2010). There are various operational units of the company like copper, potash, petroleum and iron ore.

Gradually, the company is expanding its business across the world. The operation and financial management of the company are excellent. The team of BHP Billiton maintains cooperation and coordination in the organization. The company uses the SWOT analysis to identify its strength, weakness, opportunities, and threats. If the company wants growth and success in the next 10 years then it should focus on its environment and it should analyze the environment through SWOT analysis and PESTLE analysis. The company can also use porter five forces model. The company should focus on the strategies and plans of its competitors and it should maintain the cooperation with competitors to gain success and improve the sustainable development in the future. In this way, the company can maintain goodwill in the market. The company should provide training to employees for improving the performance of them. Manpower plays a significant role in every organization, therefore, the company should focus on the manpower

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