Business Values Assessment: BHP and Nike
BUSINESS, SOCIETY AND THE PLANET
Part A – Business Values Assessment report
I) Description of the two companies
Two of the organizations are being selected for the detailed study those belong to two different industries. One brand BHP belongs to the mining industry and the other brand belongs to sports apparel and accessories industry. Both of the chosen organizations belong to two different nations the chosen organization BHP has been originated in Australia, and the other one Nike has been originated in the USA. The learner with the aim of assessing a business values assessment report has chosen both the organizations. The major aim of the learner is to know the culture of this business also how values of two different sector’s businesses are different from each other.
The Australian based organization, BHP’s core business is to provide mining services to the government of Australia. The organization has the core responsibility for taking care of the minerals in the land of Australia. The organization is taking responsibility for researching the availability of the minerals in the land also to procure those minerals for the future generation. As per the financial survey, the organization has net income of about US$6.222 billion and has 65,000 employees. The organization is Australia’s one of the largest mining company and third largest company in the size of revenue. The core activity of the business is mining coal, copper, Iron Ore, Petroleum and Potash (BHP Billiton, 2018).
On the other side, the chosen organization is one of the symbolic brands of sports persons, the organization or the brand Nike is supporting the sporting personalities and delivering the message of healthy life. The core business of this brand is to sale sports apparels, accessories, equipment and other services. The USA based largest sporty brand has its net income is of about US$4.24 billion by the end of 2017. Along with this, the organization has about 74,000 employees in all over the world. The organization is the brand ambassador of Sports event, as the brand is always has been promoted by those people who have interest in body fitness or else are related to any of sports events (About Nike, 2018).
II) Differences between the two companies regarding social reports and depth of coverage on special issues
For any of organization the most influence job is to make such parental efforts for the betterment of the business in the market. As per the core concept of the organization or business every organization is deciding to present their business values positively in front of their customers or viewers so that they can win the trust of their investors as well as other stakeholders (Caiazza, Shimizu & Yoshikawa, 2017). Problems or the challenges are the part of the organization that imposed the organization to set out a better strategic plan for the betterment of the future market. Hamilton & Webster (2015) stated that the challenges are the part of the organizational plan or goals that can be supposed to but in such cases cannot control. The statement has defined that for an organization the riskiest factors are the uncertain situations or condition that can arise at any time in the market, which comprises the growth rate of the organization in the market.
The organization BHP Billiton Plc has faced the challenge of price sliding of iron ore in the market that has provoked the market strength of the organization BHP. Due to this challenge, the organization has faced a drastic loss in the market. The market growth of BHP has been down by 10% as compared to last year growth (BHP Billiton, 2018). On the other side, the organization Nike was facing the drastic situation in the apparel market because the process for Nike’s appeal is higher than the normal appeals (About Nike, 2018). It is true that the brand has made its name as a special brand for sports personalities and people who are being associated with the sports or body fitness. In both the cases, the organizations have made their way to tackle down their challenges or problems in the market. The BHP Billiton has focused on the prices as wells requirement of other core products so that it can cover up the loss that occurs due to price sliding of Iron ore. On the other hand, the brand Nike has focused on its price sections and has reframed the price structure for its products.
III) Explanation of the differences between different aspects
Sustainability is the part of the organization that helps the organization to grow up in the market also gives a chance or opportunity to survive well in the market. This is the reason the organization or a company is looking for such kind of opportunity in the market to maintain its sustainability in the market. In the case of the chosen organization, their demand or else requirements to maintain its sustainability in the market must be different because of the different nature of the business in the market. For the organization BHP Billiton the sustainability would be like securing the natural resources for the future generation, and so that organization should focus more on the wastage of resources in the environment. On the other hand, to maintain the sustainability the Nike has to reduce the use of trees for making sporting clothes. In the context of these suggestions from the perspective of sustainability or CSR, the organization NIKE has made its way and started to make clothes by polyester. The matter polyester is preparing by melting plastics. On the other hand, the organization BHP Billiton has focused on the concept of three R’s that is Reduce, Reuse and Remove. Thus, it has been noticed that both the chosen organizations has made their way to success also to get way to maintain their sustainability in the market. Hansen et al. (2015) added to the discussion that CSR is the best way to maintain the sustainability of the business in the targeted market. This is the reason every organization are now focusing on the concept of CSR and performing some activities beyond of business objectives in the favor of the nature. The statement has highlighted the value of CSR activities for the organization as well as its importance for maintain the growth cycle of the organization in the targeted market. The discussion has even revealed that either the selected two of the organizations are different in nature, but their common objective is to secure the nature or environment and for that the management is performing activities as how they want to perform.
IV) Explanation of social accounting approach by Zedak et al. (1997)
As discussed in the above section, it has been articulated that the chosen organizations have made their own way to maintain its social accounting approach in the targeted market or else to promote their CSR activities. As per the point of view of organizational growth with the help of CSR activities, both the organizations have well maintained the eight criteria of Zedak et al. (1997).
|Inclusivity ||The organization has focused on the waste of the natural resources or man-made resources by the human beings, and hence they have launched the program of reuse of waste materials.||The organization has targeted the waste plastics in the market and had tried to make new material by melting the plastic named Polyester for manufacturing clothes; the benefit is it soaks sweat faster than cotton clothes.|
|Comparability ||The BHP Billiton has focused on the government reports about at which rate the organizations are demanding for the raw materials like aluminium and Iron ore for producing finished goods.||On the hand, the brand Nike has focused on the demand for the kind of products in the market. For example, shoes are the high rated sold product of this brand.|
|Completeness||The organization has not set al the criteria because future is not certain and the organization was not sure about the future.||As per the nature of the business, the future market of the business is unstable, and hence it was quite difficult for the organization to meet these criteria.|
|Evolution ||The organization has made an evaluation and has started to promote the ad of saving the earth-saving the resources. ||The organization has made an evaluation and has included Para Olympic players in the promotional activities to spread the complete message of the brand.|
|Management Policies and Systems||The organization has well focused on the labour cost and worthy production||The organization has focused on the market research to get feedback from the customers|
|Disclosure||The organization has disclosed the terms regarding health and safety of the employees at the workplace||The organization has disclosed its pricing strategy as per the demand of the commodity in the market|
|External Verification||The organization has got the certification of ISO 14000 and 9001 for quality assurance||The organization has certified by even ISO 9001 for quality production of clothes and other products|
|Continuous Improvement||The organization has focused on its mission and vision statement for continuous growth.||The brand has focused on the objectives of the business for continuous improvement.|
Table 1: Eight Criteria of Zedak et al. (1997)
(Source: Gray et al., 1997)
V) Reflection of stated value from the social reports
As discussed in the above section, the social reports have presented positive aspects of both the organizations in the market. It has been seen that the organizations are trying to increase their market share in the form of environmental growth. For that, the organizations are focusing on the CSR activities. The external reports or the social reports have stated that both the organizations are different from each other also their core products and services are different from each other, but their motive was same as well as common. Both the organization has the common goal of securing the resources of nature by reusing the waste in the environment. In the fact of this, the organization BHP Billiton has been focused on the reuse of materials and Nike has introduced new kind of matter for producing sports clothes. The social reports of both the organizations have reflected that for an organization CSR is an important task also if the organization has decided to stay awake in the market then the organization is needed to perform more CSR activities in the market. It will help the organization to get positive support from the government and the public.
VI) Reflection on group discussion on these companies
It was a nice and fruitful experience for me while working with others in a group. As a group, we got the chance to read about two giant organisations BHP Billiton and Nike. The chosen organisations are world’s giant as well as largest market leader organisation those have a high rate of market share in the global market. We have decided to divide our tasks for collecting relevant data in the context to the chosen two of the brands. The result was positive for us, and we have been able to follow the fact that working in a team can be possible if there is a positive understanding among the team members (Mone & London, 2018). We are four in numbers in the group, and hence we have divided the tasks of data collection as per the requirement of the job. We made a group of two and searched information about the chosen organisations. All the members have stated their personal views regarding the overall presentation about how the information could be gathered at one place. Personally, I have been even going to official websites of the chosen organisation to get relevant data to make the entire study reliable for the reader. Rest of team members has gone through by various online articles and other related journals that has helped us to gather enough data for concluding our study. Before the final submission of the report, we all have gone through by the possible factors of the presentation of the data, and the references so that there should be no fake data would be added in the list of references.