bhp billiton
BHP Billiton Limited
Resourcing the Future
BHP Billiton Limited
Resourcing the Future
M. Nazmul Amin
Majumdar
Shiab Khan (13164039)
Sanzida Parvin
(13164025)
Tanzir Islam (13164087)
Yaishi Zaman
(12264035)
Ahammed
Riaz(13164009)
Ahammed Riaz
(13164009)
BHP Billiton Limited
Introduction
BHP Billiton was created through the
DLC merger of BHP Limited and Billiton
Plc. which was conducted on 29 June
2001
BHP Billiton is a Dual Listed Company
(DLC)
Headquarter is located in Melbourne,
Australia
Single management team
Voting rights to both arms
BHP Billiton Limited
Objectives
The Main Objectives Are
External and internal environment analysis
Indicator to measure BHP Billiton corporate governance performance Linking between BHP Billiton’s strategy drivers and the company’s corporate governance agenda
Executive remuneration determination at BHP Billiton
BHP Billiton Limited
External Environment
BHP Billiton Limited
6 Segment Analysis
1. Economic Factors
• Inflation in energy, labor, operations, materials & exploration expenses • Heavily dependent on the China economy for 16.8% of company revenue ($6.6b)
2. Social Factors
• Follow two Human Rights Principles
• Work for reduction of carbon dioxide
3. Environmental Factors
• Practice of ‘zero harm’
• Reducing greenhouse gas emissions in operations by 5% in 2007
BHP Billiton Limited
6 Segment Analysis
4. Political Factors
•
•
•
Political instability: Democratic Republic of Congo, Western
Africa, Mongolia, and Kazakhstan
South Africa: 26% percent of the ownership rights in the mining properties
Chile introduced a new 5% mining tax “royalty” .
5. Technological Factors
•
•
Highly updated and costly
Continuously changing products
6. Legal Factors
•
Fortes cue Metals Group: Loss of $5.5b AUD
Tanzir Islam (13164087)
BHP Billiton Limited
Porter’s Five Force’s Model
BHP Billiton Limited
Porter’s Five Force’s Model
Bargaining Power of Buyers- Low
• Not many substitutes available
• Price increases
Resourcing the Future
BHP Billiton Limited
Resourcing the Future
M. Nazmul Amin
Majumdar
Shiab Khan (13164039)
Sanzida Parvin
(13164025)
Tanzir Islam (13164087)
Yaishi Zaman
(12264035)
Ahammed
Riaz(13164009)
Ahammed Riaz
(13164009)
BHP Billiton Limited
Introduction
BHP Billiton was created through the
DLC merger of BHP Limited and Billiton
Plc. which was conducted on 29 June
2001
BHP Billiton is a Dual Listed Company
(DLC)
Headquarter is located in Melbourne,
Australia
Single management team
Voting rights to both arms
BHP Billiton Limited
Objectives
The Main Objectives Are
External and internal environment analysis
Indicator to measure BHP Billiton corporate governance performance Linking between BHP Billiton’s strategy drivers and the company’s corporate governance agenda
Executive remuneration determination at BHP Billiton
BHP Billiton Limited
External Environment
BHP Billiton Limited
6 Segment Analysis
1. Economic Factors
• Inflation in energy, labor, operations, materials & exploration expenses • Heavily dependent on the China economy for 16.8% of company revenue ($6.6b)
2. Social Factors
• Follow two Human Rights Principles
• Work for reduction of carbon dioxide
3. Environmental Factors
• Practice of ‘zero harm’
• Reducing greenhouse gas emissions in operations by 5% in 2007
BHP Billiton Limited
6 Segment Analysis
4. Political Factors
•
•
•
Political instability: Democratic Republic of Congo, Western
Africa, Mongolia, and Kazakhstan
South Africa: 26% percent of the ownership rights in the mining properties
Chile introduced a new 5% mining tax “royalty” .
5. Technological Factors
•
•
Highly updated and costly
Continuously changing products
6. Legal Factors
•
Fortes cue Metals Group: Loss of $5.5b AUD
Tanzir Islam (13164087)
BHP Billiton Limited
Porter’s Five Force’s Model
BHP Billiton Limited
Porter’s Five Force’s Model
Bargaining Power of Buyers- Low
• Not many substitutes available
• Price increases