Bhp Revitalizes Its Global Management :: essays research papers fc

BHP Revitalizes Its Global ManagementSummary of the article by David Forman "BHP REVITALISES ITS GLOBAL MANAGEMENT,"Business Review Weekly, April 17 1995, page 24-26.BHP is setting up the involve management to handle a rapid global expansion.They have done this by appointing a network of regional corporaterepresentatives and a corporate usual 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 countries round the world.BHP has taken advice from other companies, that have expanded outside 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 expects BHP to beable t o find expansion opportunities. Particularly where opportunities existthat involve more than one divisional group.An example of this is BHP Power, which develops power stations victimization the mostappropriate energy source for the circumstances. Power is an independent group,drawing on the skills of the Mining and Petroleum divisions where necessary.The accompany is looking at other possible new businesses, 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 developed in the Steel division.In 15 years BHP has gone from being a domestic steel producer with smallpetroleum and archeological site operations, to having a significant international presencein the steel, oil and mining industries. (Forman, D. 1995, pp. 24-26)MANAGEMENT PRINCIPLESAfter a six month review of their business fructify into the next century BHPhas developed a strategic plan.(Forman, D. 199 5)The strategic management process uses nine steps to create a strategic plan.1 station the organisations current mission, objectives and strategies.BHP operates steel, mining and petroleum businesses.2 Analyse the environment.They have recognised that many areas that they operate in are suitablefor expanding existing operations.3 account opportunities and threats.The opportunities are to develop businesses that are not yet operatingin a particular area. The threats are competitors who move in quicker, and alack of apprehensiveness of the specific environment.4 Analyse the organisations resources.BHP have recognised that they have many skilled people within the steel,mining and petroleum operating divisions.5 Identifying competencys and weaknesses.The strength of BHP is in its traditional steel, mining and petroleumoperations. The weaknesses are the lack of a co-operative link between thedivisions.6 Reassessing the organisations mission and objectives.