BHP Billiton is Australia’s largest company. It is also the world’s largest diversified company dealing with the natural resources. The company was formed in the year 2001.It is specialized in mining of diversified mineral resources. It is one of the global listed companies established in 25 countries. The company has a wide range of portfolio for mining of commodities. Some of these commodities are;
• Energy coal
• Aluminum
• Metallurgical coal
• Precious metals i.e. diamond and silver
• Liquefied petroleum gas
• Manganese
Diversification of Commodities
One of the company’s competitive advantages is the diversification of commodities in the market. It provides resilience to the flow of cash. This is by consumers’ exposure to any one currency or commodity. It also provides more predictable and strong financial performance. This has shown an upward trend towards strengthening the market position. Billiton has a wide range of assets. It has, therefore, benefited from other competing firms. The company’s ability not to lag in resources is the reason it is considered as one of those rare companies.
Organization and Control
BHP’s intent to deliver superior long-term value to shareholders is clear in one way. Through diversification which allows the company to grow and invest in the business throughout economic cycles. The company operates its assets under an organizational structure that is simple and scalable. The structure allows employees to operate in a straight-forward manner. This is because it is supported by a standardized and controlled process.
Shareholder Interest
The company’s profits which are very evident are attributed to the group’s members. The profits are obtained after the deductions of tax. BHP Billiton is facilitated by the amount of profit available for distribution to the company’s shareholders. During the financial year, the total return yielded from the shareholders shows the combination of the dividends. As a result, the company manages to generate a lot of wealth.
Customer First
BHP Billiton has a portfolio of high-quality growth opportunities that are unrivalled. The growth opportunities are aimed at meeting their customer’s changing needs. The resource demand of emerging economies at every stage of growth is highly dependent on this portfolio.
Economic Contribution
Last year, BHP emerged as Australia’s largest taxpayer. The company’s economic contribution to the country was around A$ 27 billion in that year. It was through payments to suppliers, employee benefits and dividends, and taxes that they managed to achieve this. Again, in 2014, from the production of Australian commodities, it generated a profit of A$ 16.2 billion. This was all subject to Australian tax. Impressive, isn’t it?
Diverse Assets
BHP Billiton has a global collection of large, low-cost, expandable assets. It makes it a very profitable company. These assets are diversified by the market, the commodity as well as geography. The company has a competent management. It works towards maintaining a clear long-term strategy for the business.
Transparency
BHP voluntarily disclosed tax payments to the government’s sustainability report for the last 15 years. Last year, the company was recognized by Transparency International. It was recognized as the world’s leading Resource Company for disclosure and transparency reporting.