General Environment for the Global Iron Ore Industry in China - Case Study Example

nbsp;Established in the year 2003, Fortescue Metals Group (FMG), is seeking to become the 'new force in iron ore.... nbsp;Established in the year 2003, Fortescue Metals Group (FMG), is seeking to become the 'new force in iron ore.... The company is actually new entrant in the forty billion dollar iron ore mining industry of Australia, and aims at challenging the leading local players namely; BHP Billiton and Rio Tinto.... However, since its establishment in the year 2003, the company has become the Australian iron ore's third-largest supplier....

Global sourcing and procurement logistics in china Over the past decade, China has always been the best destination for procurement managers across the globe.... Suppliers in china export commodities ranging from electronics and apparel to heavy machines to the United States and the European Union (EU); these have kept steadily growing, making China the top country in exports.... In terms of labor, a major problem in china was the high costs of inputs and labor in its manufacturing industry during the period before the grand recession....

For the purpose of long term investment, the company has put in place plans to go international in countries like china, Latin America, and Russia.... The company is the backbone of the US economy through employment of 1 out of 10 people employed in the country as well as being the chief purchaser of the country's steel, aluminum, iron, copper, and plastic among other materials used in the manufacture of automobiles.... The company operates internationally and therefore has covered a wider global market in terms of automobiles....

For instance, a shipment of the iron ore has increased by averagely 27 percent annually over the past half a decade.... Despite this, the decline of demand for iron in 2014 led to the decline of iron ore prices by more than 50 percent and subsequent collapse of more than 70 mining companies in Australia (Lannin2014).... Political impacts According to Zweig (2008), a political concern is a need for the resources to sustain its fast growth has led China to implement the “Beijing Consensus”, which has been inconsistent with the “Washington Consensus” that until China's rise had prevailed in the global commerce since the World War I....

The table below lists these segments: Business Segment Principle Activity of the Segment Revenue from sales of goods (as of Dec 31st 2013) Copper Mining of copper, lead, zinc, silver, uranium, molybdenum and gold Total Revenue $ 13,868 Coal Mining of metallurgical coal and thermal coal (inform of energy) Total Revenue $ 9,115 Aluminium, Nickel and Manganese Mining of bauxite, refining of bauxite into alumina and smelting of alumina into aluminium metal Mining of manganese ore and production of manganese metal and alloys Mining and production of nickel products Total Revenue $ 8,411 Petroleum and Potash Exploration, development and production of oil and gas Potash development Total Revenue $ 14,833 iron ore Mining of iron ore Total Revenue $ 21,356 Source (BHP Billiton Limited Annual Report 2014) Overview of BHP Billiton Limited Industry The Company operates in a mining industry driven by stiff competition from rival companies such as Santos Limited....

… The paper "Role of Central Bank and Government in china's Economic Growth" is a great example of a report on macro and microeconomics.... The paper "Role of Central Bank and Government in china's Economic Growth" is a great example of a report on macro and microeconomics.... While the rest of the global economies are still struggling to post growth, the Chinese economy continues to post tremendous growth rates that are approximated at about 10 percent annually....

in china, Guangzhou city is among the locations where heavy industry is common and this provides job opportunities to the vast population of the economy.... Therefore, aeronautics and heavy industry play a critical role in the global platform that cannot be ignored in a highly networked world (Foster et al.... It hosts a competitive maintenance repair and overhaul industry (MRO) that draws influence and significance in the global aeronautic market....

Influence from the general environment The general environmental factors that affect a business are summarized in the PESTEL analysis tool.... The level of competitive rivalry in the natural resources industry is high as there are various firms offering similar products to those that are provided by BHP Billiton.... There is a high level of entry barriers in the natural resources industry, thereby making BHP Billiton have a low risk of market entry threat....