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 - – there is backlash against globalization, increasing inequality as vast percentage of new income is going to the top 1%, technology disruption, increasing commodity prices, central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing household debt because of falling income levels,
increasing energy prices, increasing government debt because of Covid-19 spendings, 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 -
High brand equity
– Bhp Billiton has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Bhp Billiton to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
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.
High switching costs
– The high switching costs that Bhp Billiton has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
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.
Superior customer experience
– The customer experience strategy of Bhp Billiton in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to lead change in Strategy & Execution field
– Bhp Billiton is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Bhp Billiton in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Bhp Billiton has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
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.
Analytics focus
– Bhp Billiton is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Sheila M. Puffer, David T.A. Wesley can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
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.
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.
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 -
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.
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.
Products dominated business model
– Even though Bhp Billiton has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue should strive to include more intangible value offerings along with its core products and services.
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.
Need for greater diversity
– Bhp Billiton has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue, it seems that the employees of Bhp Billiton don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
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.
No frontier risks strategy
– After analyzing the HBR case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of Bhp Billiton, firm in the HBR case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Bhp Billiton supply chain. Even after few cautionary changes mentioned in the HBR case study - Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Bhp Billiton vulnerable to further global disruptions in South East Asia.
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 -
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Bhp Billiton in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Low interest rates
– Even though inflation is raising its head in most developed economies, Bhp Billiton can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
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.
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.
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.
Using analytics as competitive advantage
– Bhp Billiton has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Bhp Billiton to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
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.
Loyalty marketing
– Bhp Billiton has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, 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.
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 -
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 .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
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.
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.
Increasing wage structure of Bhp Billiton
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Bhp Billiton.
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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Mining and Corporate Social Responsibility: BHP Billiton and the Tintaya Dialogue, Bhp Billiton may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
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.
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.
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.
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.