Pestel analysis of bhp billiton. BHP Billiton Limited [SWOT Analysis] Weighted SWOT Matrix 2022-10-25
Pestel analysis of bhp billiton
PESTEL analysis is a tool used to analyze the macro-environment in which a company operates. It stands for Political, Economic, Sociocultural, Technological, Environmental, and Legal factors. PESTEL analysis is a useful tool for understanding the external factors that can impact a company, such as BHP Billiton, and inform strategic decision-making.
Political factors refer to the impact of government policies and regulations on the company. BHP Billiton operates in a number of countries, each with its own political landscape. In some cases, the company may face challenges due to political instability or changes in government policies. For example, BHP Billiton's operations in Chile were impacted by protests and civil unrest in recent years, which disrupted its supply chain and operations. The company may also face regulatory challenges, such as changes in environmental regulations or taxation policies.
Economic factors refer to the impact of economic conditions on the company. BHP Billiton is a global company, and its operations are impacted by economic conditions in the countries where it operates. For example, a recession or economic downturn could lead to reduced demand for the company's products, while a strong economy could lead to increased demand. The company's financial performance may also be impacted by exchange rate fluctuations, as it operates in multiple currencies.
Sociocultural factors refer to the impact of cultural and societal factors on the company. BHP Billiton operates in a number of countries with diverse cultural and societal norms, which can impact its operations. For example, the company may face challenges in countries where it is perceived as being culturally insensitive or where there are differences in work-related practices and expectations. The company may also face challenges related to social responsibility and sustainability, as it is expected to operate in a responsible and sustainable manner.
Technological factors refer to the impact of technological advancements and innovations on the company. BHP Billiton is a resource company that is heavily reliant on technology for its operations. For example, the company uses advanced technology for exploration and extraction of resources, as well as for transportation and processing of materials. The company may face challenges if it fails to keep up with technological advancements, or if it faces disruptions due to technological failures.
Environmental factors refer to the impact of environmental conditions on the company. BHP Billiton is a resource company, and its operations have a significant impact on the environment. The company is expected to operate in an environmentally responsible manner, and it may face regulatory challenges if it fails to do so. The company may also face challenges related to climate change, such as increased extreme weather events or water scarcity.
Legal factors refer to the impact of laws and regulations on the company. BHP Billiton operates in a number of countries, each with its own legal system and regulatory framework. The company may face legal challenges related to its operations, such as disputes with stakeholders or regulatory violations. The company may also face legal challenges related to issues such as human rights, labor practices, and environmental regulations.
In conclusion, BHP Billiton faces a number of external factors that can impact its operations, as identified through a PESTEL analysis. These factors include political, economic, sociocultural, technological, environmental, and legal factors. Understanding and addressing these factors is essential for the company's long-term success and sustainability.
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Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for BHP Billiton. The marketing department of BHP Billiton. However, it is also important to note that the Porter Value Chain model application depends on the unique contextual variables that must be considered when assigning the weightage to primary and secondary value chain activities. Article continues after ad PESTEL analysis provides great detail about operating challenges BHP Billiton Limited will face in prevalent macro environment other than competitive forces. The Value Chain approach suggests that a company can consider these activities as economic rent sources.
Bhp Billiton Limited PESTEL Analysis
How Bhp Billiton Limited can tackle the Threat of Substitute Products or services? Effective infrastructure management can allow BHP Billiton to optimise the value of the whole value chain. Potash Uralkali can leverage this trend by expanding its product range and targeting new customers. BHP Billiton Ltd operates in a dynamic environment where it is influenced by — technological changes, increasing environmental activism among consumers, increasing regulatory framework for environmental factors, government decisions, collective social trends, regulatory framework, consumer spending behavior, and ever evolving legal system. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. The high interest rate will encourage the attitude towards investment and increase growth opportunities for BHP Billiton.
 BHP Billiton Ltd SWOT Analysis / Matrix
For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for BHP Billiton Limited if it is situated in unstable political environment. It represent a great opportunity for BHP Billiton Limited to drive home its advantage in new technology and gain market share in the new product category. Strategists at BHP Billiton Ltd can utilize SWOT for following objectives - Using SWOT for Strategic Planning at BHP Billiton Ltd Over the years the nature of the strategic planning has changed in the Metal Mining. References Books on BHP Billiton Ltd SWOT Analysis BHP Billiton Ltd 2018 , "BHP Billiton Ltd Annual Report", Published in 2018. When labor markets are flexible, Bhp Billiton Limited. The BHP Billiton s 40 Billion Hostile Bid for Potash Corp PESTEL Analysis will look at the external factors — political, economic, social, technological, environmental, and legal. That can be extremely expensive.
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Gig economy impact — The Uber Files reveals the fact that gig economy is leading not only to the dehumanization of the work force but also how these big tech companies are influencing the rules and regulations in the communities that they operate in. Environmental The analysis likewise increases your opportunities to earn more revenue in the company. Are these norms consistent with international institutions such as World Trading Organization, European Union etc. . This will impact the poorest countries the most. The stability of the currency is also important- an unstable currency discourages international investors.
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Some examples of BHP Billiton's marketing and sales activities are- sales force, advertising, promotional activities, pricing, channel selection, quoting and building relations with channel members. In some cases, cases dealing with popular companies do not consist of current research study since it wasn't readily available at the time the case was composed. BHP Billiton Ltd can leverage this trend to build products that provide enhanced customer experience. . Legal Factors that Impact Punch Up In the Potash Industry B : BHP Billiton Ltd - Resourcing the Future or Mining Their Own Grave? Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. Objectives of Doing SWOT analysis at BHP Billiton Ltd for Metal Mining Segment SWOT analysis is one of the most widely used tools for strategic analysis.
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. The PESTLE Analysis needs to be made use of to supply a context for your business' role in regard to external aspects. In many cases products are designed based on environmental standards and expectations rather than catering to traditional value propositions. A visual way of PEST analysis understood as' PESTLEWeb 'has been developed at Henley Organisation School in the united kingdom. Revista ESPACIOS, 39 16. European Journal of Innovation Management, 16 3 , 285-300.
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It can also use Value Chain Analysis to develop brand identity. It indicates the need to ensure coordination between different value chain activities. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. Wrigley, Divisional Autonomy and Diversification PhD, Harvard Business School, 1970 M. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. Increasing focus on profitability — As the interest rates are increasing in broader economy, investors will focus on profitability. Analyze Strengths and Weaknesses of Potash Uralkali.
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In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. The Porter's 5 Forces tool is a rather strong tool. The present liquidity in the EU markets is coming at the cost of currency depreciation. Bargaining Power of Buyers Bargaining power of buyers indicates the pressure that customers exert on the business organisations to get high quality products at affordable prices with excellent customer service. Lockdowns in China — As the Chinese government likely to continue its zero Covid policy well into 2023, BHP Billiton Ltd needs to have strategy not only regarding local lockdowns in the Chinese market but also its impact on its global supply chain. Some of the economic factors that Potash Uralkali should evaluate both in the present market and one in which it wants to enter are — inflation rate, GDP growth rate, disposable income level etc. The macro-environment factors can impact the Porter Five Forces that shape strategy and competitive landscape.
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Political Factors that Impact BHP Billiton Limited Political factors play a significant role in determining the factors that can impact BHP Billiton Limited's long term profitability in a certain country or market. Technological trends can be used to start the creative social media campaigns for developing online brand communities. Understanding the importance of The PESTEL Analysis of BHP Billiton s 40 Billion Hostile Bid for Potash Corp The PESTEL Analysis of BHP Billiton s 40 Billion Hostile Bid for Potash Corp will help the company make strategic decisions correctly, keeping in perspective the external trends, and factors of the external environment. Potash Uralkali has to assess whether it can live with the fast pace of technology disruption in its industry. Weaknesses of BHP Billiton Ltd can either be absence of strengths or resources of capabilities that are required but at present the organization doesn't have.
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However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. Cost Advantage of BHP Billiton 4. The PESTEL Analysis of BHP Billiton Group Long-Term Debt A will help the company make strategic decisions correctly, keeping in perspective the external trends, and factors of the external environment. Taxi industry is now dominated by players like Uber and Lyft. Dow has used Value Chain Analysis to explore the unique marketing opportunities and extracted value from generic commodity market.