BHP Billiton Companies Structure
BHP Limited and Billiton Plc planned to merge and continued their business venture, they together named their collaboration company as BHP Billiton. A Board of management team now runs the company and establish their own headquarter in the city Melbourne and other branches in the city London and Johannesburg (Jaffeand and Irizarry 2014).
This report will highlight that BHP Billiton must adopt DLC structure to prosper their business activities. The operational problems have been discussed in this report, and also the ERP method by which they can optimize their business solutions. The sales procedures have been discussed in the form of flowchart. The report will also grandstand the adoption of the accounting software and the benefits that they can get.
Both BHP Limited and Billiton Plc decided to share their company resources and form a single Board of Directors for managing the company. In this way the shareholders of both the companies have decided to vital steps to enhance their business activities (Rozanov et al. 2014). They also ensure that both the two companies will share the profit and will be benefitted equally from the shareholders.
Both the companies have planned to install the DLC structure in their premises via this DLC structure they will be benefitted from the i. shared resources, ii. combining a large number of cost-effective metals having a long life (Pierdicca, Pulvirenti and Pace 2014).
The ASX and LSE provide the two companies the opportunities to gain the advantage from the global investors and the principle markets. The DLC structure also help to exchange the resources between themselves.
The DLC providing the benefits of shareholders to the companies in terms of selling their resources and other assets (Mirzoev and Lyubartsev 2013). Because of the sharing of the shareholders enhance the adaptability of both the companies and offer maximum benefits to the joint venture.
The DLC structure must gratify the accounting framework not only for the two countries but also for the two countries (Petoukhov et al. 2012). This is expensive but adaptation of the structure will help them in the long run.
The existence of two different companies in two different countries may result in less market share (Pfleger et al. 2013). If there were a single company, they could have gain more market share but in this case they will have to face problems initially but it is hoped with their resources and sharp planning they will come up with huge profits in coming future.
BHP Billiton Petroleum mentioned that are ought to improve their own procure-to-pay procedures with Quadrem’s electronic system to embellish their business activities further and the system is based on API PIDX policies.
The ERP system will help BHP Billiton Petroleum to pay bills, analyse the data expenses and advance price that is compliant to the commercial deals. The structure will help the engineers to accommodate the account without taking any extra effort and this will also enhance their business activities (Christauskas and Miseviciene 2012). They opted to deliver electronic mails rather than ordinary mail services and in this way they started to meet the goals they set for themselves.
The operational issues that BHP Billiton can face due to the mentioned structure
Clients or the customers’ request for the products and make a contract, then check for the standardization of the product, the customers either approves the product or else reject it, if the product is approved, it gets shipped, if not approved it is notified, and the company checks the status and the condition of the product, if the customers reject the order in between, the item is not shipped and is returned back to BHP Billiton (Blum et al. 2012).
The combining effect of both the companies can be sometimes effective or can be devastating. It may happen one company just get vanished and the other company gets on the top. This will result in loss of the companies and the shareholders. Secondly they can face another issue, both the two countries are sharing two different currencies, so for them it is really difficult to share the resources so easily (Billiton 2012). Thus, if a company faces loss, loses share, they must be ready to pay an amount to reunite and to get back the share.
In the dual-headed structure the companies can even face another issues for instance, it is necessary to give dividends among the investors inside the structure and it must be considered whether they are tax effective or not, and it may often that the shareholders in the top company is not getting the dividends, and the dividends they are receiving are not tax efficient for them (Schmitt and Raisch 2013). In the union, these issues must be noticed and must be resolved so that the top company get the benefits as per their capabilities.
Moreover, the tax section inside the unification must be examined thoroughly as the tax results or outcomes may made an impact on the money trading at the enterprise level as well as the stockholder level (Billiton 2014).
Save time: When one selects to use the accounting software they can be largely benefitted from that as this save a lot of time of the individuals, one will not have to keep record manually and also will not have to calculate things manually.
Financial Monitoring: BHP Billiton will not have to manually work on all the data whole throughout the year, the accounting software will update every details for BHP Billiton, so if they adopt the software they will be largely benefitted for sure (Billiton 2014).
Managing cash flow: With the help of the software BHP Billiton can keep track of every payments of the company thus enables the companies to know the cash flow updates all the time.
Less time to learn: Generally, the business owners of the small companies do not show interest, do not have the proper resources to learn the use of the new software (Woodside et al. 2013)
Lessening mistakes: The use of software reduces errors or mistakes occurred and by adopting the software BHP Billiton can perform all the business operations of the company fast and effectively.
Optimised solutions: The software can offer optimized and advanced solutions to BHP Billiton, can offer advanced database solutions to BHP Billiton, this will reduce all the security breaches of the company, it also offers agile efficient solutions to the companies and BHP Billiton can take the advantage of it.
The ERP method adopted by BHP Billiton
Digital invoicing: The accounting software offers all digital invoices thus both the companies and the investors can have the proof as softcopy or digital copies.
Tidy and neat transaction: The invoices which are made manually can be either lost or misplaced, but there is no chance of loss of the digital invoices. Moreover, the software has the capability to store the data securely in the database or in a secure location.
Advantage of Mobility: The accounting apps are also available alongside the software that can be installed in the iOS devices as well as the Android devices. This will benefit BHP Billiton to conduct their business outside office premises.
BHP Billiton is the global leader in the metal and resources industry. BHP along with Billiton offers cost-effective resources. They do not compromise with the quality of services they offer (Wilson 2012). It is their objective to become a global company and their dedication reflects, they have already occupied significant positions in the market conducting the business of aluminum, energy coal, nickel, coal, silver, diamonds.
BHP Billiton mentioned that it will outperform the market. This is the consensus prediction of the investments made by BHP Billiton in April 26,2017.
According to Earnings History and estimates, BHP Billiton Limited earned 0.654 per share in this year so far and according to the Revenue history and estimates, BHP Billiton Limited earned revenues of 19.31bn in this year 2017 so far.
BHP Billiton, the world’s largest natural resources service company is based in Australia. The company offers cost-effective long lasting products to their customers or clients’ which includes the steel-making products, coal, nickel, diamond, manganese and other natural resources and too the natural gas (Floris, Grant and Cutcher, 2013).
BHP Billiton has become the prime supplier of core iron ore products, they are now the third largest producer of metals- nickel and copper. BHP Billiton produces core aluminum and they are the sixth greatest producer in this sector. Moreover, BHP Billiton also trade thermal coal and they are world’s greatest exporter in this sector. They provide these services across whole US, Europe and Asia markets (Trüby and Paulus 2012). They also export coking coal and they are the global supplier in this section. They too conduct gas and oil business across Australia, Algeria, Trinidada and Tobago, the UK.
Another thing must be added to the list and it is that the BHP Billiton is also the dominant manufacturer of zinc and lead metals. All these factors suggested that they are the global leader in the market and because of these factors they are way ahead of their competitors.
The challenges that the users or the customers faced while using the accounting software are as follows-
Requirements met- BHP Billiton using the software can find that the software is not meeting their requirements properly, in that scenario it will be very difficult for any organization to adopt the software properly.
Implementation of the software- The installation of the software must be done taking the help of the professionals. Also, initially the companies’ employee can face issues while using the software.
The sales procedure for BHP Billiton
Assistance- BHP Billiton will need to purchase the update and the upgrade of the software to get advance features of the software as well as to stay safe and secure from the security breaches over the Internet (Vulkan, Roth and Neeman 2013).
Price- The paper-based system is definitely cheap compared to the accounting software’s price. So the individuals or the companies who are choosing the accounting software must be aware of the yearly cost or revenues to update the software.
Recommendation: BHP Billiton will have to be very careful while choosing the accountant software, they have to check whether the software is meeting the requirements properly or not. They will have to make a budget plan completely for the software, for the software updates and the software upgrades. They must hire a technician who have proper knowledge of the software and must educate them with the requirements.
Conclusion
It can be concluded from the above discourse that BHP Billiton must adopt DLC structure to prosper their business activities. The operational problems have been discussed in this report, and also the ERP method by which they can optimize their business solutions. The sales procedures have been discussed in the form of flowchart. The control problems have also been highlighted in this report. The report also grandstands the adoption of the accounting software and the benefits that they can get. The report also showcased why BHP Billiton is considered as the leader. The challenges that one can face while using the software have also been detailed I the report.
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).
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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.
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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.
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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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