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Bhp Case

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Background and context of the company:BHP billition is a multinational company one of the biggest producer os natural recourses which operates in mining, gas, metal, steel, and oil sectors. The company was formed in 2001 by merging BHP Limited and BHP Billiton PLC,which is still in existence as separate companies but operated my single management team.The company operates is activities in 100 location within 25 countries and among them 40% of them are established in Australian region.The company was highly profitable which runs with integrity wherever it goes or runs.company clearly gave more focus on longterm share holder with discovery,development and marketing of natural resources.For to achieve this targets they lightened on 3 things(1)building and managing the company's assets and services.(2) setting up standard norms where all workers are devoted to there responsibility.and lastly(3) winning the trust of there shareholder,stakeholder workers by regular communication..(Robbins,s,DeCenzo,d.coulter,M & woods,M 2014,Management the Essentials, Pearson Australia,Sydney,pp.19.)

Key issues of the company:

Organizational Design: BHP says “Our Operating Model has been designed to deliver a simple and scalable organisation, providing a competitive advantage through defining how we work, how we are organised and how we measure performance”( The BHP Billiton Way What we do and how we do it,April 2012).The organization is designed with transparency with clear chain of responsibility of group of employee,so that employee understand their duties and accountabilities.the company make a structure which gave a specialized task to the employee like mineral exploration group for exploration of mineral deposits which have long last support also finding prospective resources, and conducting drilling activities.and in other part service department do the job of converting mineral resources into the product and other performs separate business unit for different products.and the another group which is marketing group who holds the duty of company's revenues which is handled with the knowledge of different markets where BHP operates like buying and selling of the materials and products and most importantly quick response at market change which is important for the company’s profit.And the group functions have also the duties for handling thing like security managing risk and its control and importantly the impacts of the company on the society.the strategey and policies of the company worked so far and still earing profilts from its operation

Globalization:Globalization means world wide growth.stretchering of the business in the global market.globalization had impacted in the BHP management.there were different issues in the BHP inside in past about conflicts between the group member as there were diversity in the staff member and there background inequlity between the pay for male and female And different environment issues which are now controlled by implementing different policies in company.the rapid growth of china and india has affected positively to BHP as the china is the lagest consumer ore iron ore.

Corporate social responsibility;The company was responsible for damaging the environment due to the operation of’Ok Tedi mine’ in Papua New Guinea.Many people suffered due to that destruction many people and their incentives were harmed In order to deal with this issue, the company has made some management principles to handle all this situation. It’s management policies state “Activities and operations are conducted in an ethical manner, that supports fundamental human rights, respects the traditional rights of indigenous people and supports their cultural heritage” (“HSEC Management Standards”, 2002).now the company set the culture in which all employees accept their responsibility and also they use to be rewarded for desired results,and they earned trust of their employees,customer,supplier,communities and shareholders by making transparency in company. They had also always focused on the managing risk and didn’t negelate there impacts on the environment and society due to their operation.

Future Challenges: The Chinese are slowing in the growth rate.as the China is the huge customer of the iron ore.the effects might be seen like falling in the deman of iron and there might be high chance that longterm price of iron per ton will be lower than in current.this will badly affects to smaller operation as they have high cost of production than the huge operation.as there will be Falls in the prices projects might be unprofitable.which might be he issue of headache for BHP or the investors in future.(The Daily Telegraph, 08/19/2010, p. 6)

Refences: • The Daily Telegraph, 08/19/2010, p. 6 • http://www.youtube.com/watch?v=07sFN_WgoSo • (Robbins,s,DeCenzo,d.coulter,M & woods,M 2014,Management the Essentials, Pearson Australia,Sydney,pp.19.) • Clegg, S. Kornberger, M. Pitsis, T (2011). Managing and Organizations: An Introduction to Theory and Practice, 3rded. London. • Waddell, Devine, Jones and George (2010) Contemporary Management McGraw‐Hill Irw sydney. • E&MJ - Engineering & Mining Journal, ISSN 0095-8948, 02/2014, Volume 215, Issue 2, p.14 • http://thebusinessofmining.com/2010/05/28/bhpbpriorities/ • ^Burton, Bob (2006-09-17). "BHP admits Ok Tedi mine is environmental disaster". Asia Times Online. • www.bhpbillition.com • The BHP Billiton Way What we do and how we do it,April 2012 • D.Samson,R.L.Daft,(2005)Management,Thomson.

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