Essay: BHP Billiton's Organizational Structure And Management - A Comprehensive Study.

This assignment requires you to undertake the process of analysing one organisation and its operating environments from a marketing perspective. And then apply the learning from lecture 1-10 in the development of marketing strategy. You will provide an overview of this organisation, as well as detail the type of orientation towards marketing it takes. You are also required to examine and analyse the context and environments in which this organisation operates (its industry and the macro-environmental forces impacting on the industry).

Mining industry of Australia is considered as one of the primary source to the financial structure of the country (Fleming and Measham 2015). According to the report, 50% of the total revenue of the country comes from mining industry (Mason et al. 2014). Mining industry of Australia is associated with various parts of the world. It exports huge amount of mining goods to the other countries which stimulates the financial structure of the country. Mining companies are mainly based on the metal and ore (Bice 2014). Australia is known as the leading mining products producer. BHP Billiton is one of the leading mining companies of the Australia as well as world. BHP Billiton has been formed in 1860. It covers a huge market share of the mining industry. It is known as one of the huge profit making business organization of Australia. It possesses a large workforce. It deals with metal and ore. It is known as a major exporter of the mining goods to the other parts of the world. The BHP Billiton believes in quality and accuracy. They always provide quality service to the loyal consumers. The organizational management of BHP Billiton always takes active part in the community development as well. They have taken several notable initiatives to support the community development (bhpbilliton.com, 2017).

The below mentioned article has discussed about the organizational structure of the BHP Billiton. The report has enlightened various parts of the organization to give a vivid concept about the organizational structure and management of BHP Billiton.

BHP Billiton is considered as the leading name of the mining industry of Australia. It preserves a rich culture and strong financial background. This is a major quality of the organization (Schoenberger 2016).

The organizational management believes in diversification. This is one of the biggest strength of the organization. Due to various source of economy the organization is able to beat the rival companies.

BHP Billiton is associated with various countries of the world. The organizational management exports various mining goods and services to other countries. Eventually it has become one of the renowned names in the global market as well.

Being one of the large business organizations, it possesses a huge workforce with 45,000 employees. It has many skilled staff members who have huge experience in the mining field. These skilled employees are highly responsible for the growth of the organization (Le Meur 2016).

Introduction to BHP Billiton

The organization is also known for its CSR policies. The organization has taken several innovative initiatives to support the establishment of local community. This has brightened up the brand image of the organization.

The organizational authority of BHP Billiton maintains well-structured supply chain with the stakeholders. There are many internal and external stakeholders are associated with BHP Billiton. The organizational management maintains strong and transparent relation with all its stakeholders to avoid any kind of future risk. This is another major strength of the organization. To ensure the bright future for the organization, the leaders of BHP Billiton must maintain strong bonding with stakeholders, as they are one of the key elements of the business organizations.

Government interference in the organizational function has made the organizational operation inefficient. Government has implemented various rule and regulations that put harmful impact on the organizational strategy as well as organizational development. It is often evident the organizational management of BHP Billion often faces various issues to operate the business organization (Erickson et al. 2016).

It is frequently evident that the organizational leaders of BHP Billiton often enter into various kind of controversy which is harmful for the brand image of the organization. It is important to avoid any kind of controversy to maintain the reputation in the society. However, BHP Billiton faces various criticisms due to various past accident cases.

The organization has a scope to add variety in the product list. The organization can deal with Coal and Copper. This will be helpful for the organizational management of BHP Billiton to earn long-term goal.

BHP Billiton can associate with the leading mining companies of other countries. It will give great scope to strengthen the organizational structure of the country.

Globalization has given a wide opportunity to BHP Billiton to reach to the global consumers. The organization can easily increase their profit margin and annual revenue by providing quality service to the potential consumers of the various corner of the world (Badenhorst, O’Connell and Rossi 2017).

The emergence of various other mining companies has threatened the existence of BHP Billiton. The organizational management often faces various difficulties due to arrival of many other rival companies.

Another major threat for the BHP Billiton is reduction of the demand. The growth of the in house mining company is the primary reason for decreasing demand of goods of BHP Billiton. This has put a negative impact on the economic structure of the organization (Salvioni and Astori 2015).

Organizational Structure of BHP Billiton

The business organizations that deal with mining goods are the key consumers of the organization. Leading manufacturing companies from the various parts of the world are associated with BHP Billiton. Various gas fields, rod fields are the key consumers of BHP Billiton (Bice 2014).

BHP Billiton is associated with various suppliers and distributors of the mining goods of the various parts of the world. Ohanet gas field, ROD gas field, Appin these are some key collaborators of BHP Billiton. The organizational management of BHP Billiton maintains strong supply chain with all the distributors and suppliers to provide efficient service to the potential consumers. It is one of the major reasons for the consecutive growth of BHP Billiton (Mayes, Pini and McDonald 2013).

The arrival of the various competitors has put a significant impact on the organizational growth. Some major competitors of BHP Billiton are Anglo American, Exxon Mobile and British Petroleum (BP). These mining companies are giving tough competition to BHP Billiton.  There is always a threat of substitute and new entry for the BHP Billiton. These rival companies are also providing equal product and service to the consumers. Thus, consumers have many other options instead of BHP Billiton. It has led the organization to experience many difficulties (McPhail and Adams 2016).

Australia is considered as one of the politically stable country which is highly beneficial for the growth of the organization.

On the other hand, government intervention on the organizational function is one of the major issues that BHP Billiton is experiencing every now and then. Various government rules and regulations have put negative impact on the organizational growth (Meira et al. 2016).

Mining industry is considered as a giant in the society for the rapid growth of the global warming. The organizational management faces various social barriers due to the objection of the local community. This is harmful for the growth of the organization (de Villiers and Alexander 2014).

Mining companies often faces various legal issues due to the rise of other rival companies. Rival companies often try to harm the reputation of the organization by copying organizational structure and strategy. This has led the organization to face various legal issues (Su et al. 2013).

Several accidents cases and other controversies have led the organization to face leagal issues.

Environmental factors put an important impact on the growth of the mining organizations, as according to many people mining companies are the responsible for the growth of the global warming and environmental pollution. Due to such reason they often face various difficulties to control the organizational functions (Jordan 2016).

Management of BHP Billiton

The organizational leaders of BHP Billiton often conduct various market researches to maintain effective relation with the consumers. It is mandatory for all the business organization to consider the requirement and preference of the target market. It gives vivid picture of the market trend and requirement of the organization. BHP Billiton maintains a strong healthy and interactive relation with the consumers and distributors. It provides a clear idea about the market demand (Garcia et al. 2016).

The organizational management of BHP Billiton is able to identify the potential threat by conducting market research. It helps the organization to deal with the risks and strengthen their inner qualities so they can resolve many future risks. The organization maintains transparent relation with all its collaborators to avoid any kind of risks. The rate of market competition is increasing day by day. It is mandatory for the organizational management to identify the competitiveness of market to establish a better future for the organization (Mayes 2015).

By conducting primary survey the organization can successfully identify a specific segment of the market where they can find maximum number of potential consumers.

By conducting secondary market research the organizational management of BHP Billiton can identify the market trend and how new entrants can give threat to the existence of the organization.

They maintain healthy and interactive relation with the suppliers and distributors to monitor their performance.

By conducting secondary market research the organizational leaders of BHP Billiton will be able to identify the impact of the external factors on the organizational growth.

It is essential for all the business organization to identify the target market for the business, as the consumers are the key component of the business organization. The growth of the business organization is highly dependent on the satisfaction level of the consumers. The primary target market of the organizations is the manufacturing organizations that deal with the mining products such as metal, ore and coal and so on. BHP Billiton can deliver their products to these business organizations for the manufacturing process. There are many gas companies, rod companies; they are the target market of the organization (de Villiers, Low and Samkin 2014).

Value proposition is one of the integral parts of the successful marketing strategy. In this scenario, value proposition of the BHP Billiton are as follows:

• BHP Billiton leaders are aware of the requirement of the potential consumers.
• The management of BHP Billiton plays vital role in maintaining strong and interactive relation with the customers, distributors and suppliers.
• The organizational management of BHP Billiton aims at providing quality and efficient service to the potential consumers.
• BHP Billiton management always try to incorporate efficient strategies to match the expectation level of the consumers and earn the faith of the distributors, suppliers and the consumers by providing high quality products and service.

It is important to establish a brand positioning statement for grabbing the attention of the maximum number of consumers form the different parts of the world. The brand positioning stamen of BHP Billiton is as follows:

• To provide high quality product and service to the potential consumers.
• To improve the quality of the good and service by including innovative and modern technologies in the organizational structure.
• Enhance the efficiency level of the organizational service.
• To reach to the global consumers.
• Use high quality raw materials in the manufacturing process of the organization.
• To include coal in the list of the products.

Strengths of BHP Billiton

The organizational management of BHP Billiton wants to improve their organizational structure and quality of their products to provide more efficient performance to the consumers. BHP Billiton management aims at reach to the large number of global consumers by increasing their efficiency level (Avanzi et al. 2017). The organizational management of BHP Billiton wants to include coal in their product list, so they can serve the consumers who want to purchase coal and other mining products of coal.

Marketing mix is one of the major elements of the marketing plan. Business organizations can get a transparent idea about the market place where they must promote their products to attract large number of consumers. At the same time, the organization can learn how to promote the products to earn desired success. Marketing Mix is made up of four P’S, such as- Product, Price, Place, Promotion.

The product of the BHP Billiton is the mining products and the refinery products. The organization deals with various mining goods and refinery products. These are the key products that the organizational management of BHP Billiton can offer to its consumers.

The organizational management must set their products price according to the requirement of their consumers. The organizational management must set a standard price for their products so all business organization can avail their products and service. They must design their price chart according to the financial structure of the country. They must understand that it will be helpful for the organization to defeat the rival companies, as consumers always prefer to avail quality products in reasonable price.

The organization can take part in various kinds of social awareness campaign to promote the brand name. They must include some CSR policies in the organizational rulebook. CSR policies work as a weapon for the business organization to draw the attention of the consumers. They can conduct various free health check up camp in the local community. It will be helpful for the organization to reach to the large number of consumers.

BHP Billiton can use internet as a platform for the promoting their brand name. The advancement of the internet has given a wide opportunity to the business organization to promote their product to the global consumers. The organizational management of BJP Billiton can use its as their place to convey their message to their target market.

The organizational management can conduct various social awareness campaigns to grab the attention of their loyal consumers. The organizational management must participate in the tree plantation program or they can provide sufficient support to the poverty stricken people. It will be helpful for the organization to promote their brand name as well as their products and service. The organizational management can use social networking sites for promoting their products. They can design their advertisement in an attractive manner with a powerful social awareness message. It will increase the reputation of the organization among the consumers.

Challenges and Threats Faced by BHP Billiton

Conclusion and Recommendation:

As per the earlier discussion it can be concluded that the organizational authority of BHP Billiton believes is providing quality products to their potential consumers. They incorporate various strategies into their organizational structure to improve the product and service quality of the organization. It has led the business organization to achieve the desired position in the industry. BHP Billiton, being one of the oldest mining companies of the world has brought revolutionary changes in the mining industry as well as in the economic structure of Australia. The organizational management always maintain a strong a supply chain management with their distributors and suppliers. It helps them to avoid any kind of risk. However, some recommendations can be stated, such as- the organizational management must maintain interactive relation with the consumers and suppliers, they can use their social networking sites to maintain regular communication with the suppliers, potential consumers and other stakeholders. It will help them to convey their messages to them in an effective manner. The organizational management must maintain contractual agreement with their suppliers to avoid any kind of miscommunication and crisis. This will helps them to stimulate the organizational performance. The organization can actively participate in the social awareness campaign. It will help them to brighten up their brand image. Thus, the organizational management must consider these factors while designing their organizational structure. It will help them to achieve the long-term goal.

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