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2.Mission, vision and core competence

The mission of BHP Billiton is to create the sustainable value of the shareholders, employees, contractors, suppliers, customers, business partners and the host communities. Without any harm to the people their host communities and the environment they aim to achieve the leading industry practice. They believe in the long-term shareholder value through the discovery, acquisition, development and marketing of the natural resources. Some of the core competencies of BHP Billiton are richly diversified portfolio, experience, size and so on.
2.1 Successful Strategies deployed in past
The main strategy of the company is to own and operate large, long life, low cost, expandable, geography and market. Their strategies have an unrivaled portfolio of high quality growth opportunities that ensures the company to meet the ever-changing needs of their customers and the resource demand at every stage of the growth. The company has proven the delivering the returns of their shareholders which is done through the well execution of the company’s unchanged strategy of owning and operating large, long life, low-cost expandable, upstream assets diversified by commodity, geography and market. BHP Billiton was committed to the health and safety of the people, the nature and the communities where the company runs smoothly. The company applied M. Porter’s Generic Cost Leadership Strategy. In 2012 focusing on profit after the below average returns BHP completed the sale of its diamond business to Dominion Diamond Corporation, switching focus to more profitable Potash operations. Their strategic priorities were productivity, portfolio simplification and capital discipline.

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2.2 Current Strategies
Till date BHP Billiton is regarded as one of the largest mining and resource company. Their current strategy is to own and operate long life, low cost, expandable, upstream assets diversified by commodity, geography and market. With the simple and diversified portfolio of their assets around the world, with low cost options for the future growth and the creation of values. This helps them to apply the values and culture emphasis the safety and productivity, deploy technology and the exert the most values and the highest returns from assets. Operating Models allows them to expertise their business with the multi-functional teams and connects the across the nation o share the best price. Their main strategy is to improve the technology for the actions plans which leads to positive results to reduce risks for future and to improve safety in the organizations. The company focuses on the cost efficiencies on the further gains of the company. They focus on the latent capacity for the attractive returns and the limited risks of the company. The capital management frameworks aim to maximize the potential value of the dollar they earn for shareholders.

3.Criticized for accounting mea culpa and potash
In 2016 BHP was criticized for accounting mea culpa and potash. The company resubmitted its accounts after the materials were discovered deficiencies in the control and processes used to determine the impairments on certain US shale assets. Materials weakness in the controls over the determination of which deferred income tax balance to include in the carrying values of the onshore US assets. The materials weakness was arising due to the lack of understanding by the owner and the control operator. Without the knowledge to distinguish between assumptions specific to BHP and these of a market to participant, including the applicant of deferred income taxes in determining impairment of the onshore US assets. The weakness in BHP’s process was identified by the company’s management.

4. Analysis Tools

4.1PESTEL Analysis
PESTEL analysis is the strategic tool for analyzing the macro environment of the organization which stands for Political, Economical, Social, Technological, Environmental and Legal factors that impact the macro environment of the BHP Billiton.
• Political: BHP Billiton choose to remain neutral in all the countries where their companies are well established. They don’t contribute to any kind of funds of any political parties, politician, or any elected official of any country.

• Economic: The company is the mining and resource company, they can face difficulties within the market when it comes to the price. This is due to the market unstable, allowing prices to drop for 147$ to 33$ like it did in 2008. Although the oil prices were back to its own prices in the current market creating a large amount of uncertainty.

• Social: BHP Billion is well known from the social issues which may arise during the operation of different projects throughout the countries. This results in the company having appropriate management measures to reduce the impact project has the social benefits. Its projects had the social benefits. The company are applying more regulatory standards and safety procedures.

• Technology: Innovation is the key factor for the development of the all kinds of organizations. It helps in competing in the markets. BHP Billiton has the technology park which is located in Australia, to focus its development on technology. Focusing on the innovation the company can be upfront in the market competing in the market this is due to the large team experts and technology innovators of the company. Improvement in mining techniques have lead to mining costs of the company

• Environment: BHP focuses on delivering long term benefits to the environments as well as communities by improving natural resources. The company owns and operates in the diverse range around the globe and recognize the significant impact of operations and the effect on the environment. In South Africa the company allows the unemployed community to provide tree for life program through the cultivation of trees and enhance the environment.

• Legal: BHP Billiton has resources and stakes in different countries. The company is bound to follow all the rues and regulation of the countries for the smooth functioning of the company. The company takes health, safety, risk into considerations of their employees making sure the public health and employees too.

4.2 SWOT Analysis
• Strengths: BHP Billiton always provide the high-quality products with affordable cost and long-lasting assets the lower risks. They have competitive position in the market as one of the dominant manufacturers of raw materials. Strategic management approach of BHP Billiton is another strength because they have ability to outgrow their competitors using effective business strategies.
• Weakness: The company have both strength and weakness as well as they operate in the global market. The company is facing issues in terms of pricing of petroleum and the metal products. Management strains is considered as one of the weakness because of the size of the company that may affect the entire management system. For the extraction of the copper the cost is high but the market margin is low.
• Opportunities: Due to the merge of the company the profit has been increased which increase the purchasing power of the company. BHP Billiton is considered as one of the powerful mining and resource company in the globe. The company have opportunity to have effective competitive position in different products they offer to their customers in global markets.
• Threats: The company can go through different kinds of threats due to their weakness. BHP Billiton is being threaten by the increasing environmental and social requirements. Their increasement in the production cost of energy metals may affect the entire company’s operations. BHP is operating in some fewer stable nations and the operations could be unprotected in the worst situations.

4.3 M. Porter’s five forces of analysis
• Threats of new entrants: The new company can bring innovation and new ways of doing things and can put pressure on BHP Billiton. They can apply different strategy like lower pricing strategy, reducing costs, and providing new value proposition to the customers. BHP Billiton can manage all the challenges and build effective barriers to safeguard its competitive edge.
• Bargaining powers of suppliers: In todays, market buyers are demanding a lot. They want a good quality product and the best offerings in the low prices which put the company profitability profit in the long run. So, the company limited the higher the bargaining power of the customers and ability to seek discounts.
• Threats of substitute products or services: The company can tackle with this problem by being service oriented rather than product. They can as well research in the core needs of the customers rather than just focusing what they are buying.
• Rivalry among the existing competitors: If there is existence of rivalry among the companies then, the company will drop their prices down which leads to decrease the overall profitability. BHP Billiton can build a sustainable differentiation so he company can compete better.

5. Organizational culture and leadership style

5.1 Core values of BHP Billiton
BHP Billiton core value is to embrace the openness, trust and focus on team work which diversify the relationships that are mutually beneficial in the communities. The company gives their best for achieving superior business results by stretching their capabilities. Furthermost putting the health and safety first they put priority to their employees and customers. They have been environmentally responsible and supporting the communities. The company believes in integrity of doing what is right. Focusing the efforts on the things and giving their best matters the most. BHP Billiton always aims to defining and accepting their responsibilities and delivering in the communities.

5.2 CEOs of the company who inspired
Andrew Machenzie was appointed as the CEO of BHP Billiton on 10 May 2013. In 2014 he was elected as a Fellow of the royal society. He believes that everyone productivity, particularly in an intellectual role as like of CEO’s. He mentioned that younger employees are more energetic and often put themselves in long hours, cutting back on sleep. The chief executive usually leads the charge with ferocious attitude to red-eyed invincibility. So, BHP chief executive Andrew Machenzie said less was more when it comes to productive hours at work. Mr. Machenzie said ‘A rested Andrew can do more in four hours than a tired Andrew can do in eight’.

6. Conclusion
To conclude BHP Billiton company has been one of the largest mining and resource company around the world and regarded as leader of global natural resources. For the continuity of the company and ensure continue success, the company has developed way of working and sharing knowledge which reflects the values and the superior performance of the company. It keeps on updating and remodeling the working practices in order to maintain their leading position in the market. BHP Billiton operates and want to work with integrity by making the right decision at right place and doing the things in right way. Their first priority is health and safety of their employees, the environments and the communities where they operate. BHP Billiton recognizes that their employees are their valuable assets. The company main objective is o recruit the best people with the probability of progressing them into the future leadership in the upcoming days. The company will ensure to continue as the leading company of natural resource industry in the future.

References
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AFR Business Case Studies | BHP Billiton: The future is yours. 2018. AFR Business Case Studies | BHP Billiton: The future is yours. ONLINE Available at: http://www.afrbiz.com.au/case-studies/bhp-billiton-the-future-is-yours/Page-2.html. Accessed 17 August 2018.
BHP Billiton Mission Statement. 2018. BHP Billiton Mission Statement. ONLINE Available at: http://www.examplesof.com/mission-statements/BHP-Billiton.html. Accessed 20 August 2018
BHP Billiton – Global Compact Network Australia. 2018. BHP Billiton – Global Compact Network Australia. ONLINE Available at: http://www.unglobalcompact.org.au/portfolio/bhp-billiton. Accessed 20 August 2018.
prezi.com. 2018. Business Strategy of BHP Billiton by Katie Brooks on Prezi. ONLINE Available at: https://prezi.com/cqevcwzecybp/business-strategy-of-bhp-billiton/. Accessed 20 August 2018.
BHP. 2018. BHP | Structure and strategy . ONLINE Available at: https://www.bhp.com/our-approach/our-company/strategy. Accessed 20 August 2018.
Financial Review. 2018. BHP criticised for accounting mea culpa, potash | afr.com. ONLINE Available at: https://www.afr.com/business/mining/bhp-criticised-for-accounting-mea-culpa-potash-20170719-gxepkn. Accessed 20 August 2018.
Firm Analysis power point. 2018. Firm Analysis power point. ONLINE Available at: https://www.slideshare.net/stevenbanek/firm-analysis-power-point-51512132. Accessed 20 August 2018.
BHP BILLITON: SWOT ANALYSIS – Thinking Made Easy. 2018. BHP BILLITON: SWOT ANALYSIS – Thinking Made Easy. ONLINE Available at: http://thesis.blogkorner.com/2014/10/bhp-billiton-swot-analysis.html. Accessed 20 August 2018.
Fern Fort University. 2018. BHP Billiton Limited Porter Five (5) Forces & Industry Analysis Strategy. ONLINE Available at: http://fernfortuniversity.com/term-papers/porter5/analysis/56-bhp-billiton-limited.php. Accessed 21 August 2018.
BHP. 2018. BHP | Our Charter . ONLINE Available at: https://www.bhp.com/our-approach/our-company/our-charter. Accessed 20 August 2018.
Anna Patty. 2018. Less is more when it comes to productive hours at work, says BHP CEO. ONLINE Available at: https://www.smh.com.au/business/workplace/less-is-more-when-it-comes-to-productive-hours-at-work-says-bhp-ceo-20171031-gzbswl.html. Accessed 21 August 2018

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