..................................................................................2 1.3 Methodology ..............................................................................................................................2 1.4 Delimitations..............................................................................................................................3 2. Industry Analysis .................................................................................................................................3 3. BHP Billiton ........................................................................................................................................4 3.1 Background ................................................................................................................................4 3.2 Financial Standing .....................................................................................................................4 4. Rio Tinto ..............................................................................................................................................5 4.1 Background ................................................................................................................................5 4.2 2012 Performance and Uncertain Future ...................................................................................5 5. Merger...
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... This report provides an analysis and importance of CSR reporting in mining industry, how well companies disclose social and environmental issue according to GRI guidelines. This article’s main focus is to describe trends of CSR reporting in mining companies in Australia. This article provides detailed overview of companies reporting format and structure, CSR disclosing motivation, how well company account for job losses and impact of reduction of oil price on companies. The purpose of this report is to describe CSR practice of mining companies in Australia and highlights the importance of sustainability reports regarding social and environmental perspective. This report is based on two major mining companies namely BHP Billiton and Rio Tin. The information used for writing this article is gathered from different researcher, annual reports, newspapers, and online articles, GRI guideline. Only Secondary data used to write report and study based on ASX registered companies companies in Australia are more aware of GRI reporting standards now and also know that how crucial it is to report on the sustainability issues from social and environmental perspective to have long term business and secure future. . Contents Executive Summary i Contents ii Introduction 3 Question a 3 Question b 5 Question c 7 Question d 8 Question e 9 Conclusion 11 Reference List 12 Introduction Corporate social responsibility...
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...& EQUITY ARBITRAGE SALES FOR INTERNAL USE ONLY Trades Examined: UK - Netherlands Reed Elsevier NV (REN NA) vs Reed Elsevier Plc (REL LN) Royal Dutch Petroleum (RDA NA) vs Shell Transport & Trading Co Plc (SHEL LN) Unilever NV (UNA NA) vs Unilever Plc (ULVR LN) UK - Australia BHP Billiton Ltd (BHP AU) vs BHP Billiton Plc (BLT LN) Brambles Industries Ltd (BIL AU) vs Brambles Industries Plc (BI/ LN) Rio Tinto Ltd (RIO AU) vs Rio Tinto Plc (RIO LN) Introduction: The purpose of this report is to provide a basic overview of the dual-listing environment, highlighting the nature of company structures involved, why the structures were adopted and how they work. Contents: Page 1. Frequently Asked Questions 2 2. Why do Dual Listed Companies Exist? 4 3. Dual Listing Structures 5 4. Currency Risk 6 5. Terminology 7 6. Factors Affecting Performance 8 Appendix 1: Stock Specific Data A.1 Reed Elsevier NV vs Reed Elsevier Plc 10 A.2 Royal Dutch NV vs Shell T&T Plc 12 A.3 Unilever NV vs Unilever Plc 14 A.4 BHP Billiton Ltd vs BHP Billiton Plc 16 A.5 Brambles Ind. Ltd vs Brambles Ind. Plc 18 A.6 Rio Tinto Ltd vs Rio Tinto Plc 20 Glossary of Terms 22 1. Frequently Asked Questions Q. What is a dual listed structure? Where a company is listed on two exchanges it is referred to as a Dual Listed Company. The two listed organizations have entered into...
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...ACCTG20040 Auditing and Ethical Practice Assessment item 1: Term 3, 2013 Understanding Companies and Their Business Risk Prepared by: Timothy Supandji Table of Contents EXECUTIVE SUMMARY 3 Factors in understanding company and business risk before accepting as New Client 4 Comparison of the Overall Financial Conditions of BHP Billiton Ltd and Rio Tinto Limited during the GFC 6 Explanation of risks associated with BHP and Rio Tinto Ltd during GFC 8 Managing Business Risk: BHP Billiton Ltd Vs Rio Tinto Limited 10 CONCLUSION 11 EXECUTIVE SUMMARY There are four purposes for this report. It attempts to provide description of what factors that the auditors need to consider in understanding a company and assessing business risk before attempting any audit work on a particular client. The second aim is to explain the comparison of financial conditions between BHP Billiton Ltd and Rio Tinto Limited during the Global Financial Crisis that occurred in 2007 to 2008. Further, the risk that is associated with BHP and RIO during the Global Financial Crisis will be explained. Finally, this report intends to explain of which company is better in handling and managing the business risk during the Global Financial Crisis. Factors in understanding company and business risk before accepting as New Client Generally speaking, at the time when there was a Global Financial Crisis, it has detrimental effect to the companies globally with downfall of share prices. Because...
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...| CASE 2 | Fortescue Metals Group: The new force in iron ore | ABC 9/12/2011 | Contents Introduction 1 Analyzing the external environment 1 Demographic 1 Economic 1 Socio-culture 2 Political-legal 2 Global 2 Technological 2 External environment conclusion 2 Industry analysis 3 Profit pool 3 Porter five forces 3 Threat of new entry 3 Bargaining power of suppliers 4 Bargaining power of buyers 4 Threat of substitute products 4 Rivalry among competing firms 4 Industry analysis conclusion 4 Competitor analysis 4 Analyzing the internal environment 5 Tangible resources 5 Intangible resources 6 Value chain analyzing 6 Capabilities 6 Core competencies 7 Weaknesses 7 Current strategy 7 Future strategy 8 Concluding remarks 8 References 9 Introduction Fortescue Metals Group: The new force in iron ore is a new company in the Australia with new vision. It was founded in 2003 with the aim of lowest cost producer in order to complete with large players of industry. Its main customer is China. Its lowest cost structure is main reason behind getting huge business from china. It had to faced many challenges in the industry but its strong policies supported company to make its distinct position in the industry Analyzing the external environment Every business/ company has external environment with some positive and negative points. Below is the analysis of Fortescue external environment. Demographic According to information...
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...Resources: www.gold.org americanresources.org oilprice.com http://www.statista.com/statistics/267381/world-reserves-of-iron-ore-by-country/ http://www.businessinsider.com/countries-by-gold-reserves-january-2013-2013-1?op=1#ixzz34xUsjF9T www.northamericaninterests.ca Дэлхийн хамгийн том уул уурхаЙн компаниуд The global top ten richest mining companies № | Company name | CEO | Location | Revenue | Stock price | Website | 1 | Glencore Xtrata, 1974 | Ivan Glasenberg | headquartered in Switzerland | $200bn in 2013 | GLEN (LON) 325.75 GBX | www.glencore.com/ | 2 | BHP Billiton | Andrew Mackenzie | headquartered in Melbourne, Australia | $67.83bn, Dec 2013 | BHP Billiton Limited (ADR)NYSE: BHP | www.bhbbilliton.com | 3 | Rio Tinto, 1873 | Sam Walsh, Tom Albanese | headquarters in London | $54.6bn, Dec 2013 | RIO (LON) 3,082.42 GBX | www.riotinto.com | 4 | Vale, 1942 | Murilo Ferreira | Rio De Janeiro, Brazil | $48.9bn, 2013 | Vale SA (ADR)NYSE:...
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...Leadership Contents Executive Summary 2 Introduction 2 Conclusion 9 References 10 Executive Summary The current study examines the current forms of corporate leadership in leading companies of UK. The study examines the various forms of leadership, theories and models . The study examines how corporate leadership is important for SME’s startups. The study highlights the models like transactional leadership and team leadership. The study discusses about the theories of leadership in terms of behavioral and situational theories. The current study has been explained with the real time examples of corporate like Rio Tinto and BHP Billiton. Introduction The characteristics and progress chart of the have been much desired and focal point of study for all the scholars and researchers. The policy decision making and purposeful action in the area of economic development and job creation will ensure the strong growth of SME in developing countries like India and China (Leitch et al., 2010). The strong role of leadership in the area of economic development is important for the sustainable growth of the SME. For the organization in the developing, it is important to build the strong leadership capacity, while at the same time they are creating effective environment for all their employees for their motivation and well being. The National Occupational Standards (NOS)...
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...The slowdown in China’s growth has had a rippling effect with consequences seen in the Australian Government, Domestic Firms and even Multinational Firms. Due to the slowdown, implications that have been placed on the Australian Government have been ones such as a need for the restructuring of certain policies to be able to handle the increased exposure to the volatility of the commodity market. The government should ensure appropriate policies are in place to facilitate the management of risk in regards to this volatility. Seeing as how the price of iron ore has fallen by more than what the government expected at the time of the May budget, there is a need to look at the budget again as this may hinder any planned spending due to predicted government investment and income. With the Australian mining industry being held at such a high standard from the rest of the world, there is a need for Australia to retain as much revenue as possible. With the super-sized profits being reeled in by resource companies operating in Australia, it is up to the Australian Government and the implementation of the mining tax, as this would reduce the damage being felt by the exports industries such as manufacturing and tourism which has suffered due to the increased Australian Dollar (Jessica Irvine 2010). Other implications seen by the Government include a potential volatility in the relationship between the Australian Government and the Chinese Government due to a reduction in the...
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...DRAFT Chinese Foreign Direct Investment in Australia: Policy Issues for the Resource Sector Peter Drysdale Crawford School of Economics and Government The Australian National University and Christopher Findlay School of Economics University of Adelaide Abstract The last nine months has seen Chinese foreign direct investment in the Australian resource sector become an issue of policy interest. There are two big questions that the prospects of a significant rise in foreign direct investment (FDI) from China into the Australian resources sector have raised. Is the surge of FDI into Australian mining and energy consistent with achieving the traditional gains from foreign investment? And are there any particular problems associated with investment from foreign state-owned enterprises or state managed sovereign wealth funds? These are among the questions addressed in this paper. The paper argues that there are no issues that cannot be dealt with under the umbrella of the established test of ‗national interest‘ in managing the growth of Chinese FDI into the Australian minerals sector. It argues that a confusion has been introduced into policy over the questions of state-ownership and supplier-buyer relations in respect of Chinese investments and that clarifying these issues is likely to be important to Australia‘s capturing the full benefits from the growth of Chinese resources demand and longer term economic and strategic interests in China. Paper for Presentation to Crawford...
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...Summary The world's biggest miner BHP Billiton (BHP) is cutting jobs at its coal mines after closing a loss-making mine thoroughly in Queensland early this year (Stewart 2012). BHP's job cuts is accompanied by other global mining companies such as Rio Tinto to confront a retrogressive market with falling industrial commodity prices and increasing costs. The future of Australia's mining boom which is largely dependent on Chinese demand for commodities driven by its economic growth is of particular concern (Stewart 2012). Application of Concepts Both economic environment and the concept of corporate social responsibility (CSR) can be demonstrated in this article. In particular, the nature of BHP's mining business, which is regarded as a significant contributor to Australian economy (Maddock and McLean 1987) determines its need to pay close attention to the opportunities and threats posed by the global economic environment (Blainey 2003). For example, slowdown in China's economic growth and recent European economic recession have impact on Australia's resource exports (Stevens 2012). The Australian mining industry which has once benefited from the surge in demand driven by the rapid growth of emerging economies in Asia since 2003 and the shortage of global supply (Stevens 2012) is now facing a difficult period signaled by the drop of China's GDP growth from 10 per cent to a mere 8 per cent (Connolly and Orsmond 2011). China's demand for resources has declined as a result...
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...be beneficial. As a result, the business relationship between Australia and China has been consolidated during these trading years. China is the second largest export market after Japan and third largest trading partner for Australia. Alternatively Australia is the ninth largest trading partner for China, thus the bilateral trade volume is increased annually in the growth rate of 30 percent (Moens.G,2007,p.56). Rio Tinto is the one, powerful multinational mining and metal company which is operated business to greatly import its porducts to China as the 19 percentage of company’s revenue is acquired from China market in 2008 (Chen, S. 2010). After Rio was declined an offer of $US20 billion from the state owned Chinalco, the arrest and sentence of Stern Hu and his colleagues in 2009 was occured for allegations of bribery about $US14 million and stealing business secrets from state-run steel company. Consequently the China Iron and Steel Association reflected by the action of stop buying iron ore for the next two months from Brazil’s Vale, BHP Billiton and Rio Tinto (Mascitelli&Chung, 2011). As a result the trade relationship between Australian and China is collapsed in some way that Foreign Minister Stephen Smith said transparency and openness could have facilitated Australia and the international business community in understanding and dealing with the matter (Sainsbury,M.2010). The case has raised the cold war tension between the essential economic relationship between Australia...
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...1.0 Introduction 1.1 Aim This assessment will critical review the process of BHP Billiton changes and detail practice application as result use the managing change theory. 1.2 Structure Critical evaluation Alternative change intervention Maintain the change 1.3 Main point previewed Implementation process Institutionalization 1.4 General background Diagnosing the problem 2.0 Critical evaluation Interventions: Intervention is a tool using when organization planned change in current situation. To effectively adapt and thrive in today's business world, organizations need to implement effective organizational development interventions (Bridges, 1991). Interventions are aimed at improving organization performance in group and individual levels; these changed are intended to improve the efficiencies and effectiveness in the functioning of the organizations. To achieve effective intervention needs to have valid information, free and informed choice and internal commitment of the organizations, also, it needs to linked with the firm’s vision and focused at the appropriate level of the company. Effective intervention is a mixture of actions; use to transfer competence to manage change to organization members. Culture change Culture change helps organizations develop cultures appropriate to their strategies and environments. Organization culture includes behaviours, values, beliefs and norms; it is the soul of the organization. When organization starts intervention...
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...of which accounting technique should to be integrated into BHP Billiton’s contemporary management accounting system. Through in depth research this technique has been identified as the environmental management accounting technique. This result was achieved through the research of the strengths, weaknesses, opportunities and threats (SWOT) analysis and the identification of the critical success factors. A balanced score card was then created using the information gathered to be used in identifying the most relevant technique. EMA was the technique decided upon as compared to the other techniques as it is the most relevant to BHP Billiton as their industry deals day to day with the environment and society. It will create awareness for the harm that is being done to the environment and will encourage them to create the minimum damage to the earth. It will also assess any repercussions of their actions that may affect society and bring harm to people. By integrating the EMA technique, it will help the organisation to collect the most relevant information to their situation and will assist in the planning, controlling and decision making within that organisation. This will improve the organisations strategy in which to help preserve the environment and also affect their financial state positively. TABLE OF CONTENTS EXECUTIVE SUMMARY 3 TABLE OF CONTENTS 3 1. INTRODUCTION 5 2. BHP BILLITON LTD 5 2.1 SWOT ANALYSIS 5 2.2 CRITICAL...
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...Group Assignment: BHP BILLITON International Business Theory & Practice (MGF 5966) Lecturer/Tutor Mr. Sharif Rasel Name & ID Junaidul Haque – 263 512 50 Dalaphone Phengrattanavong – 266 785 94 Girish Balar – 274 718 53 Maike Nan – 263 994 90 Due Date – Week 11 Introduction BHP Billiton, which is Broken Hill Proprietary Billiton, is an Anglo-Australian multinational mining and petroleum company. BHP started its operation in Melbourne in 1885 which is one of Australia’s largest and oldest companies, and it focused on development, discovery, production, and marketing of natural resources. In value-added flat steel products, BHP was also a market leader. In 1860, Billiton was established in The Hague, Netherlands. Billiton developed a growing and substantial copper portfolio. It was also a global leader in the metals and mining sector, and a major producer of aluminum and alumina, steaming coal, nickel, and titanium, chrome and manganese ores and alloys. BHP Ltd of Australia and Billion Plc of UK established merger in 2001, and the result was the dual listed company (DLC). BHP Billion becomes one of the world’s largest mining and Petroleum Company. It expands its business in twenty countries, and its major commodities are iron ore, metallurgical coal, energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel, and silver. This essay will deeply analysis the effects of BHP Billiton’s sustainability practice...
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...Submission: April 2, 2015 BHP Billiton Limited Introduction: BHP Billiton is world’s largest diversified natural resources company. The company was created by the merger of two companies, BHP Ltd (An Australian mining company) and Billiton PLC (An UK based Company). BHP Billiton has created long time share holder value through the discovery, acquisition and development of natural resources. In the last few years, BHP Billiton has faced some governance challenges in conducting their business around the world. For overcoming those challenges several strategic drivers has been taken by BHP Billiton. This report mainly focused on external and internal environment, strength and weakness, Governance challenges and strategic drivers of BHP Billiton. Overview of BHP Billiton: BHP Billiton is a Dual Listed Company (DLC) comprising BHP Billiton Limited and BHP Billiton Plc. BHP Billiton was created through the DLC merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc), which was concluded on 29 June 2001. BHP Billiton is a leading global resources company. The purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. BHP Billiton are among the world’s largest producers of major commodities, including aluminum, coal, copper, iron ore, manganese, nickel, silver and uranium, and have substantial interests in oil and gas. The headquarters of BHP Billiton Limited, and the global headquarters...
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