Tata Steel Strategy

The second and chief objective is to assess the impact of the crisis on the foreign exchange and stock markets. The report answers why the crisis adversely affected the Latin American market indices while the US market indices continued to rise.

These driving forces very easily impact the steel industry’s competitive structure in a bad way. These driving forces make it very difficult for steel companies to compete in this industry.

Steel Industry Outlook Driving Forces: „« Globalization - Low cost foreign manufacturers "dumping" steel in Porter's Five Forces: „« Competition - as stated earlier, competition is fierce and foreign competitors are dumping steel.

As mentioned in the case the main problem is the excess of steel in the steel market. Right now foreign steel is being dumped in the US. This results that supply exceeds demand which results off course in decreases of profit for many steel companies. This gives a lot of pressure to the companies and most of them are not able to survive the pressure and

I believe that the steel market is a very attractive market for the players that are already competing. I would not recommend new companies to try to integrate themselves in this market without substantial capital and very advanced technology. Globally steel demand is rising every year and companies are still vigorously competing for the extra market share. All firms are continuing to expand evolve and grow which means that profit are also very high in the steel market. The do have some protection issues even in

Six Flags Financial Crisis Capitalistic Enterprise Business 10A Edward Bayone May 7, 2010 Table of Contents A. Introduction B. Financial Crisis C. The Economic Environment D. Competition E. Changes F. Conclusion G. Exhibits H. Work Cited 3 5 8 9 10 12 13 15

Finally, I could also mention that this was a value destroying industry, since the cost pressure was high but with the lower prices of steel, the companies had difficulties to pass the impact of the costs to the customers.

Steel was used in every American architecture to enhance durability (needs iron/coal) Bessemer Process- Cool air is blown on hot iron to burn off impurities and produce more durable steel and cheaper

-Other notable trends involve European production as well as new Antidumping rulings. Industry Key success factors To be successful in the steel industry a company must be very innovative and able to differentiate their products from the next guy. Steel is steel and it is not important as to how it is packaged or how it looks but whether it serves the customer’s needs. In order to be successful production must be efficient, delivery must be on time, and innovation is the key.

The driving forces that are at work in the steel industry are foreign steel producers, new opportunities for the uses of steel, and growth in worldwide demand for steel. Although, the U.S. steel industry experienced some relief from the dumping of foreign steel producers, the dumping was still remained a force that was problematic in the steel industry. As seen above, the steel market is primarily controlled by the foreign steel producers. The anti-dumping and countervailing duty orders and suspension agreement, covering imports of hot-rolled steel in, was extended for 5 years to alleviate some of the harm resulting from the influx of steel in the U.S. market. This extension was initiated to help keep the surplus of steel products in the U.S. at bay. This particular driving force can and has adversely affected the steel industry.

The year of 2008, the world economy confronted its most risky emergency since the Great Depression of the 1930s. The disease, which started in 2007 when overpriced home costs in the United States at long last turned

Unit 3HRC – Understanding Organisation and the Role of Human Resources 1.3 Political 1. UK government changes may impact upon the level of investment given to the manufacturing and construction sectors 2. Public Spending Cuts | Economic 1. Downturn in the economy has negatively affected the

Analysis and evaluation Dominant Economic Characteristics of the Steel Industry Environment The steel industry worldwide has a huge excess capacity, forcing many companies to operate in red. An unprecedented number of steel producers have filed for bankruptcy. Among them are Bethlehem Steel Corporation and LTV, who were the country’s third- and fourth-largest steel producers respectively. With a lot of world’s economies in recession in late nineties, there was a surge in the import of steel. With unfair subsidies from their governments, foreign steel producers were dumping steel in the U.S. market at cut-rate prices. In 1999, the United States had decided not to impose any import restrictions.

Since its establishment, Tata has shown a strategy of incremental change. Arguably, that point was important because so the group might vary within the current market. In the nineteenth – century steel was seen as an unprofitable section. Even more than 50 independent steel producers went into bankruptcy in the USA (Business Monitor International Ltd, 2010: 54).

The Transformation is facing financial management as a growing industry that provides a well-rounded wealth of information that is rapidly evolving along with the economic growth. As you well know our finance and accounting departments are under fire to perform dynamically. More exceptional than before is the weight to drive