Part 1
BHP Billiton is the combination of the two companies BHP Billiton and Billiton Plc, the duo has decided to unite and continue their business activities (Rozanov et al. 2014). BHP Billiton is now administered by a board of management team and the company’s headquarter is situated in Melbourne, the company also have other branches and those are based in Johannesburg and London.
The report will showcase how BHP Billiton can be benefitted from the DLC architecture and what steps they should undertake for the betterment of their company. They have faced issues along the way and those issues will be highlighted in this report. The issues can be mitigated via ERP methodologies and that will be detailed well in this report. The sales procedures have been discussed thoroughly in the report in the form of a flowchart. BHP Billiton can embellish their business activities with the assistance of the accounting software available in the market and this report will show all the possible benefits the accounting software can provide to BHP Billiton.
BHP Billiton Companies Structure
BHP Limited and Billiton Plc planned to share resources of their respective companies for their joint venture and they all form a Board of Directors for administrating and controlling BHP Billiton. The shareholders have taken some initiatives to improve the business works of the enterprises (Pierdicca, Pulvirenti and Pace 2014). From these approaches, the shareholders of both the enterprises can gain profit and they hope they can be benefitted largely.
Both BHP Limited and Billiton Plc have decided to implement and configure DLC structure for their premises and this DLC architecture can provide them with the i. sharing goods ii. Integration of considerable cheap elements that have a prolonged lifetime.
The ASX and LSE give both the companies to gain a competitive edge from the global financiers and global financial markets (Mirzoev and Lyubartsev 2013). The proposed DLC architecture will definitely assist them to share the resources among themselves and to gain large market share.
The DLC architecture assists the shareholders of the enterprises to sell their resources and goods and other assets. Therefore, due to this sharing of shareholders improve the flexibility and definitely, both of the companies can prosper from this joint business venture.
The proposed DLC structure has the capabilities to strengthen the economic background of both the enterprises (Jaffeand and Irizarry 2014). The whole project has become quite costly as a result of configuring the DLC structure, but they should not worry as that will help both the enterprises in the long run to conduct business.
The two enterprises are based in two countries, so initially it is difficult to communicate and to share the resources in between, and for this reason, the market share of the companies will decrease significantly. However, they must be confident and should have the self-belief that they can gain profit in mere future (Petoukhov et al. 2012). They have the plan, they have the proposed design and they have the capabilities to turn around and prosper. This could have been profitable if they were a single company but however, they should consider that the DLC would help them in the long run.
Operational issues that BHP Billiton can face due to the mentioned structure
According to BHP Billiton Petroleum, they want to embellish their premises’ procure-to-pay techniques with Quadrem’s electronic system to flourish the business and this electronic system completely follows the API PIDX regulations.
The ERP system can help BHP Billiton Petroleum to facilitate bill payment; it also assists to make a proper analysis of the data expenses associated with commercial transactions. The engineers can take advantage of the ERP system to manage the account and this will reduce the extra effort to manage and control the account. Thus ERP system can definitely help them to conduct the business activities (Pfleger et al. 2013). The employees are preferring electronic mails over ordinary mail services and in this way they can achieve goals they want to achieve with ease with the help of this approach.
First the customer is requested whether they are ready to buy the goods then it is checked whether it is available in the stock or not, if available the goods are confirmed and the money transaction between the clients and BHP Billiton representatives occur, after the payment, the clients are handed over the necessary goods (Christauskas and Miseviciene 2012). The clients afterwards collected the gods and finally after service procedures are conducted.
The DLC architecture can help both the enterprises a lot. This architecture can bring some immense advantage to BHP Limited and Billiton Plc. However, besides the advantage, there are adverse effects associated with it. The adverse effects that can occur are- on e company can just vanish, the other company can get to the top. For this reason, the enterprises can face huge loss and this can create a negative impact on the shareholders. There is another issue associated, the enterprises located in two geographically dispersed regions can face issues related to currencies, both the two countries use two kinds of currencies, so after that failure it can be really difficult for them to share the resources and the market share and carry on their business venture (Blum et al. 2012). Thus if they face loss or get into this kind of scenario, they must keep themselves ready to pay the huge amount of money, they must keep themselves to cope up with the difficult time and lastly, they should reunite and work hard to get the share back which they have lost.
The DLC architecture has another adverse effect. The investors must be provided with the dividends and it is absolutely necessary. There is another thing that must be considered, the dividends that they are receiving are tax effective or not. A scenario can incur where the shareholders in the top company are not receiving the dividends, and if they get, the dividends can be inadequate for them (Billiton 2012). The DLC structure should show lights on the issues, those issues should be focussed and should be solved so that the top enterprise can get the required advantage.
The tax section within the DLC structure must be considered and must be measured as these outcomes may affect the economy at both the stockholder and enterprise level (Schmitt and Raisch 2013).
BHP Billiton adopting the accounting software packages
ERP method take up by BHP Billiton
Save precious time: The accounting software can definitely save precious time of both the enterprises, the employees of these enterprises can get the benefits of this software can reduce the hard work of the employees. They do not have to calculate the records so the software reduces the hard work.
Monitor the finance data: BHP Billiton does not need to work on the data manually instead the software does the job for them, the software can update the details for them (Billiton 2014). Thus it can be concluded that the software can give them numerous benefits to them.
Manage of cash flow: The accounting software can help BHP Billiton to calculate the cash flow of the enterprises all the time, so the employees of the enterprise do not have to worry about the updates, this software can also keep records of each and every payment.
No time to learn: The owners of the small enterprises are keen on learning new things, they not willing to learn the software usage, also due to lack of resources they show less interest (Billiton 2014).
Fewer mistakes: The software usage diminishes the chance of errors and mistakes incurred within, so by taking up the accounting software, BHP Billiton can conduct all the business operations with more efficiency.
Providing advanced solutions: The optimised and advanced data and database solutions can be achieved via the accounting software, the software also provides security solutions to the enterprise, and the software ceases the security risks residing within (Woodside et al. 2013). The agile and efficient software solutions can be available via this software.
Digital copies: The accounting software can offer the benefits of saving documents as soft copies or digital copies. The enterprises along with the investors must keep with them the soft copies with them.
Benefits of Mobile apps: The mobile apps of the accounting software can be found beside the software of the desktop version. These apps are for the platform iOS and Android. This can assist BHP Billiton to carry out their business activities at home and anywhere outside the home.
BHP Billiton is the international leader in the metal industry. The company also offers resources other than metal and those resources are profitable. BHP Billiton is known to provide the quality service from the beginning and they do not compromise with the nature of the metal and the resources (Wilson 2012). They conduct their business all over the world and they are known for selling the resources- aluminium, diamonds, coal and silver. Their aim is basically to become the international market and their hard work pays off.
BHP Billiton stated that it will take over others in the market and they reflect can be seen on April 26, 2017, when they made a huge investment.
Earnings History showcased that BHP Billiton acquired about 0.654 in each and every share they made in 2017; Revenue History also added that BHP Billiton Limited acquired revenue income of 19.31 bn in the year 2017 and still continuing.
BHP Billiton is the world’s popular natural resources and metal service, provider. They also sell quality products at least affordable price rate and the products are nickel, diamond, manganese, steel-based products and other natural and gas and resources.
Sales procedure flowchart for BHP Billiton
The company is the major supplier of iron ore based goods. BHP Billiton is the third largest nickel and copper manufacturer; they are the sixth largest manufacturer of aluminium all over the world. Besides all these resources and metals, the company exports thermal coal and they are largest exporter in the world (Floris, Grant and Cutcher, 2013). BHP Billiton sells these products and provides all these services across Asia, Europe and US markets, they too are the international supplier of this area. BHP Billiton also carries out their gas and oil business around various countries which include Tobago, Trinidad, Australia and the UK.
Another point to be mentioned and that is that BHP Billiton is the lead manufacturer of the two metals zinc and lead. From the mentioned parameters it can be confirmed that BHP Billiton is on the driver seat and they are the global leader in many resources and metals, it is hoped that they will prosper in coming future (Trüby and Paulus 2012).
The challenges or issues faced by customers while using the accounting software are-
Meeting the requirements or not- BHP Billiton can find the accounting software is not serving the purpose, in this scenario, it may happen BHP will have to reject the software.
The configuration of the software- BHP Billiton must take the assistance of the professionals to install and configure the software. The employees can face several problems during the usage of the software initially.
Help and support- BHP Billiton will have to pay heavy for the up gradation of the accounting software to assure the safety of the software as well as the company, they should know the outdated software is vulnerable to malware attack, thus they need proper precaution (Vulkan, Roth and Neeman 2013).
Costing: BHP Billiton worked on paper and this paper work is definitely cheap, but one should consider the costing of the accounting software, so they must keep in mind that they will have to pay heavy for the accounting software.
Recommendation: BHP Billiton must stay aware of the accounting software, they must be sure whether the software is meeting all the prerequisites or not, they must keep in mind the price of the software along with the software’s monthly upgrade charges. They must have a person having technical knowledge of the software who can assist them in need, along with them will help the employees to become knowledgeable.
Conclusion
It can be concluded from the above discourse that BHP Billiton should take up DLC architecture for good and this approach will help them to flourish their business. All the initiatives and the approach have been highlighted in this report. The report also showcased the taking up of the accounting software that can take the excess pressure from them, can make the business process smooth and agile. The report also grandstands why they are treated as the business leader. The report also discussed the business flow via flowchart, also focused on the challenges they faced.
References
Billiton, B.H.P., 2012. Working with integrity: Code of business conduct.
Billiton, B.H.P., 2014. BHP Billiton results for the year ended 30 June 2014. Available at:(accessed 20 December 2014).
Blum, M., Rozanov, V.V., Burrows, J.P. and Bracher, A., 2012. Coupled ocean-atmosphere radiative transfer model in the framework of software package SCIATRAN: Selected comparisons to model and satellite data. Advances in Space Research, 49(12), pp.1728-1742.
Christauskas, C. and Miseviciene, R., 2012. Cloud–computing based accounting for small to medium sized business. Engineering Economics, 23(1), pp.14-21.
Floris, M., Grant, D. and Cutcher, L., 2013. Mining the discourse: Strategizing during BHP Billiton’s attempted acquisition of Rio Tinto. Journal of Management Studies, 50(7), pp.1185-1215.
Jaffe, A.E. and Irizarry, R.A., 2014. Accounting for cellular heterogeneity is critical in epigenome-wide association studies. Genome biology, 15(2), p.R31.
Mirzoev, A. and Lyubartsev, A.P., 2013. MagiC: software package for multiscale modeling. Journal of chemical theory and computation, 9(3), pp.1512-1520.
Petoukhov, M.V., Franke, D., Shkumatov, A.V., Tria, G., Kikhney, A.G., Gajda, M., Gorba, C., Mertens, H.D., Konarev, P.V. and Svergun, D.I., 2012. New developments in the ATSAS program package for small-angle scattering data analysis. Journal of applied crystallography, 45(2), pp.342-350.
Pfleger, C., Rathi, P.C., Klein, D.L., Radestock, S. and Gohlke, H., 2013. Constraint Network Analysis (CNA): A Python software package for efficiently linking biomacromolecular structure, flexibility,(thermo-) stability, and function.
Pierdicca, N., Pulvirenti, L. and Pace, G., 2014. A prototype software package to retrieve soil moisture from Sentinel-1 data by using a bayesian multitemporal algorithm. IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing, 7(1), pp.153-166.
Rozanov, V.V., Rozanov, A.V., Kokhanovsky, A.A. and Burrows, J.P., 2014. Radiative transfer through terrestrial atmosphere and ocean: software package SCIATRAN. Journal of Quantitative Spectroscopy and Radiative Transfer, 133, pp.13-71.
Schmitt, A. and Raisch, S., 2013. Corporate turnarounds: The duality of retrenchment and recovery. Journal of Management Studies, 50(7), pp.1216-1244.
Trüby, J. and Paulus, M., 2012. Market structure scenarios in international steam coal trade. The Energy Journal, 33(3), p.91.
Vulkan, N., Roth, A.E. and Neeman, Z. eds., 2013. The handbook of market design. OUP Oxford.
Wilson, J.D., 2012. Chinese resource security policies and the restructuring of the Asia-Pacific iron ore market. Resources Policy, 37(3), pp.331-339.
Woodside, A.G., Camacho, A.R. and Lai, W.H., 2013. Guest Editorial: Sense Making, Dilemmas, and Solutions in Strategic Management. International Journal of Business and Economics, 12(2), pp.91-95.
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