Australian business report: BHP Billiton Limited-
Executive summary:
The international natural resources business BHP Billiton was established in 2001. With its
headquarters in Melbourne, Australia, it is one of the biggest mining corporations globally.
They produce iron, steel, copper, silver, aluminium, oil, and gas. The following report will
outline the contribution of entrepreneurship and innovation to BHP Billiton, explain the
factors of technology and globalisation and how they influence the business’s decisions and
evaluate the importance of ethical decision-making and corporate social responsibilities.
Contribution of entrepreneurship and innovation:
BHP Billiton, being a complex company with vast resources, faces significant risks in
entrepreneurial ventures. However, through proactively emphasising entrepreneurship and
innovation, BHP Billiton remains ahead of other companies in the mining market. This
allows the company to capitalise on new trends and opportunities, adjust to changing industry
environments, and differentiate apart from rivals—all of which contribute to long-term
success. BHP focuses on expertise research, development, skills, and capability. This has
allowed them to extract metals successfully from mines, reducing costs and ensuring an error-
free process. BHP also has a strong workforce capable of handling international business in
uncertain environments. BHP Billiton partnered with Aust-mine to promote an open
innovation programme, engage suppliers, and adopt emerging technologies as part of its
Mining Equipment, Technology, and Services (METS) Sector Strategy. Thus, BHP is
dedicated to fostering regional supply chains and economic diversification in Australia, to
maintain its competitive advantage and innovative reputation in our technologically
advancing industry.
Factors that influence business decisions:
Technology is a major factor influencing most business sectors, especially in our technically
advancing world today. According to Infosys.com “Worldwide mining operations are 28%
less productive today than a decade ago. Declining ore grades, increasing costs, shortage
of skilled labour, market volatility and stringent regulatory compliance have been driving
the mining industry to look for ways to improve productivity and efficiency.” Technology
is essentially the solution mining businesses need to integrate to progress. In fact, according
to globaldata.com, “BHP has been leveraging machine learning technologies to bring
disruptive changes in its business processes and has initiated various in-house strategies to
drive digital transformation. The annual ICT spending of BHP was estimated at $398.2
million in 2023.” BHP is utilising a variety of emerging technologies, including artificial
intelligence, cloud computing, and robotics, to improve operational efficiency and customer
experience. Hence, the introduction of advanced technologies in BHP have enriched safety
reduced water and energy consumption which is an incredibly important factor within the
business.
Additionally, Globalisation represents the interconnection of nations around the world, which
is fostered by free trade. It is particularly significant since it is one of the most powerful
factors influencing the modern world’s businesses. Many of the world's largest and most
successful firms are effectively international organisations, with headquarters and supply
lines spread across the globe. BHP Billiton is established in developed economies such as
Australia, Canada, and the United States, but is now focusing on trying to expand into China,
one of the world’s fastest emerging economies. However, they face challenges such as the
Chinese government's proactive efforts to secure resources and rising state-owned enterprises
in these countries becoming competitors. Moreover, BHP is determined to build a strong
relationship with Germany. At a conference, the chief executive officer of BHP stated
“Germany and Australia start from a good place. Germany - has the opportunity to lead
Europe and the Northern Hemisphere, while Australia continues to play a critical role in the
Asia-Pacific and the Southern Hemisphere. The security and prosperity of our individual
businesses, and our nations and populations, rely on our ability to work freely, innovatively,
and cooperatively with each other.” Therefore, highlighting the importance of globalisation
as a factor in the business.
Ethical decision making and Corporate social responsibilities:
Within any business there must be ethical and moral decisions being made to uphold respect,
responsibility, fairness, and trustworthiness in the workforce. Corporate social responsibility
(CSR) is a business strategy in which firms strive to operate in ways that benefit society and
the environment rather than damage them. BHP prioritises developing a sustainable
approach. This is defined as not causing harm to the natural environment in which the
company operates. Their 2030 goals are to reduce at least 30% of emissions and have at least
30% of water and land under conservation. Ethically, BHP thrives for a workforce that is
safe, healthy, gender balanced at every level, culturally diverse, inclusive, and skilled for the
future. As of 30 June 2023, women represented 35.2% of BHP’s employee workforce, a 1.8%
rise. Socially, BHP have been actively associated in rural communities, a recent case study
shows how BHP has supported healthcare in regional areas after Covid-19, where they
provided funding for Puntukurnu Aboriginal Medical Service (PAMS) to employ an
additional two GPs to provide medical support and donated rapid antigen tests and 15,000
surgical masks to PAMS for distribution. Overall, BHP conducts positive ethical decisions
and CSRs, undoubtedly contributing to their well reputable name of a company.
Conclusion:
In summary, BHP Billiton is a highly successful Australian founded business. This report has
concluded that it is entrepreneurial and innovative, which allows them to stay ahead in a
competitive market, have factors such as technology and globalisation helping their business
immensely expand and advance while also ethically conducting themselves positively and
adhering to corporate social responsibility requirements.
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