Topic > Business Analysis of Broken Hill Proprietary Company

BHP BILLITONBHP is known as Broken Hill Proprietary Company and was established in 1885 and operates in three main sectors which are: mineral, petroleum and steel, besides also working in other sectors such as transportation and logistics, corporate services, strategy and legal. They were primarily involved in the discovery, development, production and marketing of iron ore, copper, oil and gas. Its head office was in Melbourne and employed 30,000 people. Billiton was founded in 1860 in the Netherlands and takes its name from the tin-rich Indonesian island where they first began mining. In 1997, it became part of the FTSE 100 index (London Stock Exchange). Before the merger, this company was a leader in mining and metals, including manganese, smoldering coal, nickel, and titanium ores. Some of the key market conditions before the merger were: - Global capital markets were increasingly selective, as national and exchange restrictions become less relevant, shareholders demand higher returns - Clients consolidate and have themselves become much more efficient - Workforce gradually learns that more "suite" of skills is essential for promotion and job security - Doubtful economic situation with most of the world's major economies - Facing a period of slow, or no growth , BHP and Billiton merged in 2001 to form a dual-listed company. The merger was mutually beneficial and increased the company's value from a market capitalization of $28 billion in 2001 to one of $42 billion in 2003. With this new form, the BHP Billiton company could now offer customers integrated and global industrial mineral solutions as it would now. operate two main centers and provide a wide range of services. BHP Billiton would become...... half paper...... INC. With market capital 12.82 billion and the second is VALE with market capital 64.75 billion (http://finance.yahoo.com/q/co? s=BHP+Competitors). Rivals with the same approach to the market of the product: Arcelor Mittal capital value 24.97 billion and POSCO with value 20.70 BCONCLUSIONThrough PESTEL analysis, environmental analysis of the sector and a strategic cluster map analysis, it is possible to evaluate BHP BILLITON. The PESTEL analysis showed various trends that could have an effect on the industry, while the environmental analysis of the industry showed that competitive rivalry in the industry is quite low. The strategic cluster map illustrates that the company enjoys its high position compared to everyone, there are rivals in the same characteristic but they are far behind the company. Not only do they make a profit, they also help small businesses grow by improving education opportunities and strengthening community centers.