Bhp Revitalizes Its Global Management :: essays research papers fc

BHP Revitalizes Its Global ManagementSummary of the article by David Forman "BHP REVITALISES ITS world(a) MANAGEMENT,"Business Review Weekly, April 17 1995, page 24-26.BHP is setting up the needed perplexity to handle a rapid globose expansion.They have through with(p) this by appointing a network of regional unifiedrepresentatives and a corporate general manager, international.Representing BHP across the world, these managers will facilitate newdevelopments, and assist global expansion. This overseas focus of expansionrequires new systems and processes, to take on projects in different countriesaround the world.BHP has taken advice from other companies, that have expanded foreign their homecountries, also background advice from consulting firms. BHP have taken thisadvice, and created a management model to suit their operations.By providing regional representatives to deal with governments, bureaucraciesand coordinators of cross divisional activities, this model expect s BHP to beable to find expansion opportunities. Particularly where opportunities comprisethat involve more than one divisional group.An example of this is BHP Power, which develops power displace using the mostappropriate energy source for the circumstances. Power is an self-employed person group,drawing on the skills of the Mining and Petroleum divisions where necessary.The company is looking at other possible new seames, that are naturaldevelopments of the companys existing businesses, in the same way Power hasevolved from Petroleum and Mining. One of these is Manufacturing, using theskills essential in the Steel division.In 15 years BHP has gone from creation a domestic steel producer with smallpetroleum and exploit operations, to having a significant international presencein the steel, oil and mine industries. (Forman, D. 1995, pp. 24-26)MANAGEMENT PRINCIPLESAfter a six month review of their business position into the next century BHPhas developed a strategicalal plan .(Forman, D. 1995)The strategic management process uses nine steps to create a strategic plan.1 Identify the organisations current mission, objectives and strategies.BHP operates steel, mining and petroleum businesses.2 prove the environment.They have recognised that many areas that they operate in are suitablefor expanding existing operations.3 Identify opportunities and threats.The opportunities are to develop businesses that are not yet operatingin a particular area. The threats are competitors who motivate in quicker, and alack of understanding of the specific environment.4 disassemble the organisations resources.BHP have recognised that they have many skilled people inside the steel,mining and petroleum operating divisions.5 Identifying strengths and weaknesses.The strength of BHP is in its traditional steel, mining and petroleumoperations. The weaknesses are the lack of a co-operative link surrounded by thedivisions.6 Reassessing the organisations mission and objectives.