Norton Plc Case Study

1. Introduction
BHP is a one of largest mining and Resource Company in the world, owning 60000 contractors and employees, global headquarters are found in Melbourne Australia. They have two parent companies-BHP Billiton limited and BHP Billiton Plc. Up to now they have over 130 years history. BHP mainly produces copper, Petroleum, Iron Ore, coal and Potash by process and extract minerals gas and oil. The company have a successful and important strategy that is diversified and expanded by market to produce large, low cost, long life products in order to create asset and grow value. They also focus three factors are Safety, productivity and culture. Their main business market of distribution is in the Australia, Chile, Canada, UK and US. It

The most main reason is the Escondida copper mine is located in Chile’s Atacama Desert. It is the largest copper-producing mine in the world. As early as 2012, in the global copper production, it is accounted for 5 per cent, and 15 per cent in Chile copper production. BHP invested and operated this business, they also own 30 per cent interest in Escondida, however, in 2017, BHP had 57.5 per cent in Esondida. It is important for them to make a larger investment and launch projects in Chile. The report demonstrates that BHP may face opportunities or risks and some potential or significant impact when business environment changes. First, the report will analysis social, cultural, political, legal, economic, trade, financial and Infrastructure business environment. Second, the report needs to make overall assessment that provide attractiveness and improvement of the business environment in Chile. Final, the report will make recommendations and suggestions of how to manage risk so that hurt operation of BHP in Chile and establish positive change in the business

It usually divided by executive, judicial and legislative. Their current President, Michelle Bachelet hopes to reduce imparity in order to implement stable democratic system and balance democracy. Most important is that normally the court is not subject to political constraints. Therefore, corruption fundamentally is not occur, and Chile becomes one of least corrupt country in the South America. Above all, when BHP is processing business in Chile, Company generally can relieve a negative effect during political environment. Chile provides a safe and free political business environment for BHP. A good local political system is good for satisfying customers need, reducing operating cost and increase profitability for BHP. Because Chile can be beneficial by corresponding technology for driving development of economic and needed working capital. FDI provided this advantages. Therefore, the attitude of Chile’s government is very open for foreign direct investment (FDI). The Chile’s government also issued “Decree Law No.600”, it also called “foreign investment Status”. The purpose of implementing law for government was able to promote the development of FDI and promise development of economic. In 2009, Chile’s stock of FDI had reached $121.6 billion(according to UNCTAD), it had become 2nd largest country in Latin America, and FDI increased 13 percent in 2010. Foreign investment’s Vice- President, Matías Mor