Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue
The case takes place in Peru in the aftermath of the worst mercury spill in history by a transportation contractor for Newmont Mining Corporation. BHP Billiton, which has no connection to Newmont, but is affected by increased hostility toward mining companies, enters into an agreement with Oxfam to conduct training on sustainability and "the impacts of large-scale infrastructure projects on communities." Executives from the company's various international business units were selected to participate in the program, to be held each year in Orissa, India. One of the first managers selected to attend the program is the general manager for BHP Billiton's Tintaya Copper Mine. The case discusses the process, objectives, and outcome of the resulting dialogue between BHP Billiton and local inidigenous residents.
Swot Analysis of "Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue" written by Sheila M. Puffer, David T.A. Wesley includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Bhp Billiton facing as an external strategic factors. Some of the topics covered in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue case study are - Strategic Management Strategies, Globalization, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, banking and financial system is disrupted by Bitcoin and other crypto currencies, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models,
talent flight as more people leaving formal jobs, technology disruption, etc
Introduction to SWOT Analysis of Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Bhp Billiton, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Bhp Billiton operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue can be done for the following purposes –
1. Strategic planning using facts provided in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue case study
2. Improving business portfolio management of Bhp Billiton
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Bhp Billiton
Strengths Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Bhp Billiton in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Bhp Billiton digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Bhp Billiton has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Bhp Billiton in the sector have low bargaining power. Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Bhp Billiton to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Bhp Billiton is present in almost all the verticals within the industry. This has provided firm in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Bhp Billiton has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Bhp Billiton has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Sustainable margins compare to other players in Strategy & Execution industry
– Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue firm has clearly differentiated products in the market place. This has enabled Bhp Billiton to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Bhp Billiton to invest into research and development (R&D) and innovation.
Learning organization
- Bhp Billiton is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Bhp Billiton is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Bhp Billiton
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Bhp Billiton does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Operational resilience
– The operational resilience strategy in the Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Bhp Billiton is one of the most innovative firm in sector. Manager in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– Bhp Billiton is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Highly skilled collaborators
– Bhp Billiton has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Bhp Billiton is one of the leading recruiters in the industry. Managers in the Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue are -
Slow to strategic competitive environment developments
– As Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue HBR case study mentions - Bhp Billiton takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Bhp Billiton has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow decision making process
– As mentioned earlier in the report, Bhp Billiton has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Bhp Billiton even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Bhp Billiton products
– To increase the profitability and margins on the products, Bhp Billiton needs to provide more differentiated products than what it is currently offering in the marketplace.
Increasing silos among functional specialists
– The organizational structure of Bhp Billiton is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Bhp Billiton needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Bhp Billiton to focus more on services rather than just following the product oriented approach.
Skills based hiring
– The stress on hiring functional specialists at Bhp Billiton has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Bhp Billiton has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Bhp Billiton has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Bhp Billiton is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Bhp Billiton needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue, in the dynamic environment Bhp Billiton has struggled to respond to the nimble upstart competition. Bhp Billiton has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue are -
Better consumer reach
– The expansion of the 5G network will help Bhp Billiton to increase its market reach. Bhp Billiton will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Developing new processes and practices
– Bhp Billiton can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Bhp Billiton can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Learning at scale
– Online learning technologies has now opened space for Bhp Billiton to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Bhp Billiton can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Manufacturing automation
– Bhp Billiton can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Bhp Billiton can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Bhp Billiton in the consumer business. Now Bhp Billiton can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Bhp Billiton can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Bhp Billiton can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Bhp Billiton can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Bhp Billiton can use these opportunities to build new business models that can help the communities that Bhp Billiton operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Building a culture of innovation
– managers at Bhp Billiton can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Threats Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue are -
Stagnating economy with rate increase
– Bhp Billiton can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Environmental challenges
– Bhp Billiton needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Bhp Billiton can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Bhp Billiton in the Strategy & Execution sector and impact the bottomline of the organization.
Shortening product life cycle
– it is one of the major threat that Bhp Billiton is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Bhp Billiton has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Bhp Billiton needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Consumer confidence and its impact on Bhp Billiton demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Regulatory challenges
– Bhp Billiton needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Bhp Billiton will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Bhp Billiton can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Bhp Billiton needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Bhp Billiton business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Bhp Billiton.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Bhp Billiton can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Bhp Billiton needs to make to build a sustainable competitive advantage.
