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Presentation on Stakeholder Analysis of BHP
Introduction
In the modern era, the development of effective strategies and action plans are essential for companies to grow and sustain in the competitive business environment.
Businesses are also required to carry out analyses of their stakeholders at regular intervals so that they can become well aware of stakeholders’ expectations and develop strategies to meet the same.
This presentation is based on BHP which is a mining company and it is the leading resource provider in the world.
To stay competitive and carry out a smooth flow of activities, in the long run, companies are required to make sure that their stakeholders are satisfied in the best and every possible manner.
The analysis of BHP’s stakeholders has been carried out in this presentation.
A) Introduction to BHP
BHP is an Anglo Australia based multinational company which is dealing in metal, mining and petroleum.
Back in the year 2017, BHP was listed as the largest mining company in the world (BHP, 2020).
The mission of BHP is to become a company of choice by creating sustainable value for the stakeholders.
The vision of BHP is directed towards creating innovative and market-focused solutions for the customers and to becoming a company that aspires to zero harm to communities, people and the environment (BHP, 2020).
The operations of the selected business are directed towards carrying out the extraction and processing of various minerals.
BHP is presently operating with more than 72000 workers and contractors and the operations are mainly carried out in America and Australia.
At present, BHP is offering its products and services around the world and USA, Singapore and Houston are the countries from where the business is managing its sales and marketing (BHP, 2020).
Melbourne, Australia is the place where the global headquarter of the selected organization is located.
At present, climate change, increasing corruption, loss of public trust and increasing inequality along with the scarcity of water are the most important challenges which are faced by BHP.
In terms of industry trends, investing in the growth and development of local communities and societies is the most important trend within the mining and petroleum industry.
Seizing different opportunities and uncertainties has also been identified as a trend that is very popular in the industry.
The businesses in the industry have also started following the path of decentralization and this can be termed as another critical trend in the industry.
The primary purpose of BHP is to bring resources and people together so that a better world for a living can be easily developed.
The goals of BHP includes having the best resources, assets, capabilities and the creation of long term value for the customers.
The company is operating with a diverse yet simple product portfolio which is providing it with an opportunity to carry out a smooth and more effective flow of all operations and activities.
The workplace of BHP is driven by the commitment to transform and provide the best possible services and products to customers around the world.
B) Stakeholders view
The use of stakeholder view model has been carried out and the seven different stakeholders of BHP are mentioned below as:
Stakeholders can be defined as the group of people or parties who are affected because of the operations, activities and decisions of a business enterprise.
Employees
These are the internal stakeholders of BHP and they play a significant role in the growth and development of the organization (Petit, 2019).
The employees are important stakeholders because they are the ones who implement the action plans and strategies developed.
Employees within BHP have a great amount of time and financial investment and this can be termed as another major reason because of which they are important.
The employees at BHP are also critical stakeholders because their views and opinion assist the organization in areas such as new product development and making modifications in the existing offerings.
Managers
The role of managers as important stakeholders within BHP cannot be neglected in any case (Eskerod and Larsen, 2018).
Managers are vital for the selected business as a stakeholder because they act as a link between the top and lower levels of management within BHP.
The role of managers as stakeholders is also very important in the context of developing strategies and plans for the long term success of the business.
Managers also act as a point of contact for the shareholders of BHP and this is another major reason because of which they are considered as important.
Civil society
It includes the local communities and societies in which BHP carries out its business operations and activities.
Civil society has been identified as the external stakeholder of the business enterprise (Kent and Zunker, 2017).
At present, the production units and facilities of the selected business are having a direct and considerable impact on the people living in civil societies.
This group of stakeholders can be termed as very important for the chosen enterprise as by neglecting the needs and expectations of people in the communities and societies, BHP cannot carry out a smooth flow of its operations in long run.
Defining the boundaries with regards to the host communities and conducting social baseline at regular intervals have been identified as the tactic which has been employed by BHP to meet the expectation of this stakeholder group.
The brand is also working closely with the local people so that the host and indigenous culture can be protected in the best and every possible manner.
Suppliers
The suppliers of BHP can be termed as the group of external stakeholders and they are also important in the success and growth of the chosen enterprise.
Suppliers are vital because they are providing the selected organization with essential items and supplies so that an effective and uninterrupted flow of various tasks, operations and activities can be easily carried out.
To attain the desired growth and success in the long run, BHP is responsible for identifying the expectations of these stakeholders and meeting them same.
Here, timely payment, along with proper communication and shipment are the strategies that assist the business in meeting the expectations and needs of this stakeholder group.
It has also been identified that for the purpose of maintaining long term and satisfactory relations with the suppliers, BHP also emphasizes considering the views and opinions of the same in the process of decision making.
Customers
This can be termed as one of the most important and critical stakeholder groups which need to be managed and well taken care of by the selected business.
All operations, business processes and activities of BHP are directed towards meeting the customer needs and this is the reason because of which the group of stakeholders is very important.
The selected business emphasize a lot understanding the changing needs of customers within the global market and delivering services and products in accordance with the same.
The group of stakeholders is also significant because they are directly contributing to the success and growth of BHP by purchasing its offerings.
Customers are also playing a critical role in providing the business with appropriate direction and guidelines with regards to the ways in which activities and operations need to be carried out.
Customers are also important because they are affected by the value and service quality delivered by BHP.
Investors
It can be defined as another important group of stakeholders which is affected because of the operations and decisions of BHP.
It can be stated that investors are important stakeholders because they provide adequate financial support and aid to the chosen business so that it can easily carry out a smooth and desired flow of all operations and activities.
The role of investors is also very important in the context of providing ideas and strategic direction to BHP so that it can attain better growth and success.
The investors of BHP are playing a significant role in enhancing the brand image and market reputation of the business and this can be termed as another major reason because of which this group of stakeholders is very important.
Government
The government of the country taxes businesses and this is the reason because of which the government has an important stake within the companies and organizations.
The government can be also treated as a primary stakeholder of BHP because the company is required to develop strategies and working practices in accordance with the regulations and guidelines issued by the government.
The legal and regulatory requirements are required to be satisfied by BHP and therefore, the role of government in the success and growth becomes significant (Paynter, Halabi and Tuck, 2019).
On the other side of this, it can be argued that government also has the right to impose several fines and penalties on BHP for neglecting the regulations and the statement also indicates the value of the government as a stakeholder.
C) Stakeholder analysis
The categories of different stakeholders have been mentioned below:
Employees, investors, government and customers can be termed as the four major stakeholders of BHP.
Customers
The people who are using the services and products offered by BHP are its customers and these are a very important group of stakeholders for the chosen organization (D’Agostino et al. 2020).
In terms of behaviour, it can be stated that the need and demand of customer changes at regular intervals and this further create issues and complications for the business.
BHP needs to make changes in its offerings at regular intervals so that it can satisfy the need of this stakeholder group in the best and every possible manner.
The motive of customers as a stakeholder group is to obtain the best and high quality of services and products from BHP.
It can be also expressed that this group has a low competitive threat along with low cooperative potential and this can be termed as the reason because of which BHP is required to hold this group.
Employees
The behaviour of BHP’s employees is directed towards understanding the changing customer needs and delivering the offerings according to the same (Khan, Skibniewski and Cable, 2019).
The employees within BHP are highly motivated and inspired to carry out innovations and constant enhancements in the services and products delivered.
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The motive of employees is directed towards attaining higher and more potential opportunities with regard to growth and personal development (Hatipoglu, 2019).
The employees have a low competitive threat and at the same time their cooperation potential is high and because of this reason, they have been categorized into offensive stakeholder groups.
Government
At present, the behaviour of government is directed towards making the business practices and operations more flexible and smooth (Elias, 2016).
Providing adequate support and assistance to the businesses is also an important objective of the government (Cuppen, 2016).
In the context of BHP, the motive of the government as a stakeholder is that the organization strictly abides to the laws and regulations developed.
The government has been categorized into a defensive stakeholders group because of its low cooperative potential and high competitive threat.
Investors
The behaviour of investors within BHP is inclined towards providing financial and strategic support to the business for its growth and development (Heslinga, Groote and Vanclay, 2019).
Investors are also emphasizing ensuring the fact that smooth and effective flow of all operations is carried out within BHP in the long run.
The motive of investors is to get adequate, timely and satisfactory returns against the investment which they have made in BHP (Paynter et al. 2019).
It can be stated that because of high cooperative potential and high competitive threat, investors have been categorized into the swing group of stakeholders.
Conclusion
It can be inferred that at present, BHP is the leading resource company in the world and it is dealing in industries which are metal, petroleum and mining.
Increasing corruption along with climate change and scarcity of water are the common challenges that are currently faced by the chosen business.
Employees, managers, local communities, suppliers, government, investors and customers have been identified as the significant stakeholders of BHP.
The selected organization is required to make sure that it is well aware of the expectations of various stakeholders groups and it is placing efforts to satisfy the same.
References
BHP, 2020. [Online]. Our Business. Available through: <https://www.bhp.com/our-businesses/>. [Accessed on 9th April 2020].
BHP, 2020. [Online]. Our Approach. Available through: <https://www.bhp.com/our-approach/our-company/>. [Accessed on 9th April 2020].
BHP, 2020. [Online]. Our Company. Available through: <https://www.bhp.com/our-approach/our-company/about-us/, [Accessed on 9th April 2020].
Petit, J., 2019. Automated Vehicles Cybersecurity: Summary AVS’17 and Stakeholder Analysis. In Road Vehicle Automation 5 (pp. 171-181). Springer, Cham.
Eskerod, P. and Larsen, T., 2018. Advancing project stakeholder analysis by the concept ‘shadows of the context’. International Journal of Project Management, 36(1), pp.161-169.
Kent, P. and Zunker, T., 2017. A stakeholder analysis of employee disclosures in annual reports. Accounting & Finance, 57(2), pp.533-563.
D’Agostino, D., Borg, M., Hallett, S.H., Sakrabani, R.S., Thompson, A., Papadimitriou, L. and Knox, J.W., 2020. Multi-stakeholder analysis to improve agricultural water management policy and practice in Malta. Agricultural Water Management, 229, p.105920.
Khan, A.Z., Skibniewski, M. and Cable, J.H., 2019. The Project Stakeholder Analysis Process1, 2.
Elias, A.A., 2016. Stakeholder analysis for Lean Six Sigma project management. International Journal of Lean Six Sigma.
Cuppen, E., 2016. 15 Stakeholder Analysis. Foresight in Organizations: Methods and Tools, p.208.
Heslinga, J., Groote, P. and Vanclay, F., 2019. Strengthening governance processes to improve benefit-sharing from tourism in protected areas by using stakeholder analysis. Journal of Sustainable Tourism, 27(6), pp.773-787.
Paynter, M., Halabi, A. and Tuck, J., 2019. Storytelling and Corporate Social Responsibility Reporting: A Review of BHP 1992–2017. In The Components of Sustainable Development (pp. 205-230). Springer, Singapore.
Hatipoglu, B., 2019. The use of publicly available information for human capital analysis: case of three Australian companies. Vie sciences de l’entreprise, (1), pp.119-137.
Paynter, M., Halabi, A. and Tuck, J., 2019. Storytelling and Corporate Social Responsibility Reporting: A Review. The Components of Sustainable Development: Engagement and Partnership, p.205.
