...CHAPTER 1 INTRODUCTION Financial analysis (also referred to as accounting analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. It is performed by professionals who prepare reports using ratios that make use of information taken from Profitability statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may: Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment in the production of its goods; Issue stocks or negotiate for a bank loan to increase its working capital; Make decisions regarding investing or lending capital; Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business. INDUSTRY PROFILE Iron & Steel sector in India is on growing because of the tough international and national demand. India's swift economic growth and towering demand by sectors like construction, infrastructure, and auto sector, at domestic and globally, has placed Indian steel industry on the international map. According to the recent report by International Iron and Steel Institute (IISI), our country is in the seventh...
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...Pick-n-Pull Value Analysis ######### ############### Healthcare Financial Management ############## June 2013 Executive Summary This paper discusses the EVA analysis of Schnitzer Steel Industries and Pick-n-Pull Auto Dismantling Inc. as both a part of Schnitzer Steel Industries and as a stand alone company. Pick-n-Pull is better served as an individual company. As their own entity, Pick-n-Pull would be able to grow its number of locations, sell their scrap car bodies to the highest bidder and expand into additional markets without having to seek permission and wait for approval for funds from Schnitzer Steel. This paper shows the reasons that in my opinion Pick-n-Pull would be a much better investment as its own company without Schnitzer Steel’s ownership. Established in 1987, Pick-n-Pull Auto Dismanteling, Inc. (PNP) is a chain of self-service auto parts stores and is one of the largest recyclers of end-of-life vehicles in the industry. They have 61 locations currently in the United States and Canada and while many other companies are closing location, they are continuing to grow. The basis for the retail portion of their operation is simple customers pay their admission to the yard (admission prices vary by yard location), bring their tools and remove the parts that they need for their cars, vans and trucks foreign and domestic at a fraction of the price they would pay a dealership or even an automotive repair business. Pick-n-Pull keeps an online inventory...
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...BSRM Steels Ltd. Work Plan for SWOT Analysis Duration: 2 months (15th February to 15th April) Project Manager: Mr. Mahmud SWOT Steps/Activities | Data Sources | Data Collection Method | Responsible Person | Working Group | Logistics Supports | Required Fund | Timeline | Remarks | Analysis of General Environment | Primary & Secondary | Survey, govt. & regulatory publications, etc. | Mr. Adnan & Mr. Masud | 4 | Transport, survey instruments, technological support. | TK. 100,000 | 15th Feb to 14th March | Info gathered from both sources. | Analysis of Industrial Environment | Secondary | SEC publications, industry competitive analysis, business journal, industrial publications etc. | Ms. Shanila& Ms. Sinthia | 3 | Company’s database access, Technological support, analyzing tools. | TK. 70,000 | 15th Feb to 14th March | | Analysis of Internal Environment | Secondary | Company profile, minutes of meetings, financial statement etc. | Mr. Muhib | 2 | Factory inspection, company’s database access, analyzing tools. | TK. 50,000 | 15th March to 31st March | | Describing 1. General OT 2. Industry OT 3. Internal SW | Secondary | Findings from external & internal environment analysis | Ms. Tahmina | 1 | Technical support, fact finding tools. | TK. 20,000 | 1st April to 14th April | Describe the findings of previous steps | Strategic Conclusion | This work plan will be taken as cornerstone of SWOT analysis of BSRM Steels...
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...What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new steel products via recycling scrap steel in particular? Please do a five-forces analysis to support your answer. http://www.slideshare.net/sizzlingmayank/strategic-management-4836230 1. -Porter’s Five Forces Analysis of Steel Industry in the United States of America Threat of new entrants Bargaining Power of Suppliers Bargaining Power of Buyers Internal rivalry within Industry Threat of Substitutes 2. Bargaining Power of Buyer’s a. With an increase in domestic competition in steel sector in the USA, the options for buyers are on a rise. b. Low Product Differentiation. c. Switching costs is low. d. Buyers buying in large scale posses strong negotiating power. Buyer’s Market !!! 3. Bargaining Power of Supplier’s a. Scarcity of raw-materials like steel shreds, iron ore, coke, recycled steel. b. Few Suppliers. c. Most of the raw-materials are imported. Cost strategy drives Joint ventures, Mergers and Acquisitions between suppliers and manufactures !!! 4. Major players in the United States of America Major M&A involving foreign partner 5. Internal Rivalry a. Domestic market – more than 20 players. b. Intense rivalry – Price wars. c. No differentiated product. ...
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...Question one Environmental analysis of the global steel industry The environmental analysis of the industry involves the identification and explanation of the environmental factors and variables which affects the industry as a whole. It involves carrying out the SWOT analysis of the industry. Therefore in this paper I will analyse two major environmental variables evident in the Severstal steel industry which include opportunities and threats. The main core competitors for the severstal steel companies are the international steel players such as china, South Korea and many others. Other competitors in the industry include the Arcelor Mittal who is the largest producer of steel, Larkish Mittal who is also a chief producer of steel are the main chief competitors of Severtal group steel company. The main threats which have been experienced by the Severstal groups steel companies are numerous and they include the existence of huge demand variations in the regional markets making planning hectic. There is also threat to entry to these lucrative markets by international steel players. The industry is also fragmented despite many mergers it has formed with others. The industry concentration has also been a major cause of rivalry in the steel industry causing many threats to Severstal steel companies. Despite the enormous threats and the market rivalry in the market, the Severstal steel companies have experienced many opportunities which include, the upcoming markets of Africa,...
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...2013” Case Analysis EXECUTIVE SUMMARY The success of Nucor results in correct strategy that managers selected. Nucor Corporation is the largest steel manufacturer in the United States. The steel industry is a fragmented industry. There are many marginal competitors existing in the steel industry. Competitions are high. Nucor is in mature stage of the business life cycle. In this stage, Nucor needs to gain more market share. I strongly recommend Nucor develop product diversity, and spread great company culture to earn sustainable profit growth. ANALYSIS The steel industry in U.S. is not a great industry to begin business for a company due to the economic environment. A bunch of steel companies are facing bankruptcy. However, Nucor breaks the barrier and has strong development in this environment. Industry Analysis. The U.S. steel industry is facing recovery from global recession period, and is in the worst economic period dating back to early 1980s. Also, a number of steel companies have faced bankruptcy, reorganization, or no longer operating. Moreover, because of overcapacity, the steel industry has become a burden that U.S. is willing to get rid of. That is to say, trying to break the siege of the status quo in the steel industry is a challenge to Nucor. Porter’s Five Forces Model. Porter’s five forces model can help identify the current state of Nucor in the steel industry. First of all, new entry to this industry is high. Since the steel industry is in recovery...
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...b. Industry Financial Analysis Industry financial analysis will be conducted with the following companies: The Nucor Corporation, United States Steel Corporation, AK Steel Holding Corporation, Steel Dynamics Incorporated, Allegheny Technologies Incorporated and Carpenter Technology Corporation. The selection of these companies were based on the following: * These six companies belong to North America Industry Classification System (NAICS) code 331110 and have financial data from 2007-2012: Ratio comparison is consistent if all companies are from the same industry. * Firm Size/Geographic Location: Major U.S. companies that account more than 40% of market share according to IBISWorld 2013. Table 1 contains an overview of these six companies. Company | NAICS Code | Geographic Market | Products | Market Capitalization | Company Founded | The Nucor Corporation | 331110Iron & Steel Manufacturing US | U.S. | Carbon SteelAlloy SteelSteel ProductsRaw MaterialsFasteners | 15 Billion | 1940 | United States Steel Corporation | 331110Iron & Steel Manufacturing US | Worldwide | SheetTinTubular | 2.53 Billion | 1901 | AK Steel Holding Corporation | 331110Iron & Steel Manufacturing US | Worldwide | Carbon SteelsStainless SteelsElectrical Steels | 463 Million | 1899 | Steel Dynamics Incorporated | 331110Iron & Steel Manufacturing US | U.S. | SteelFabricated Steel ProductsMetals Recycling and Ferrous Resources | 3.46 Billion | 1993 | Allegheny Technologies...
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...AN FINAL REPORT ON SALES AND DISTRIBUTION CHANNELS AT STEEL AUTHORITY OF INDIA LIMITED SUBMITTED BY: R.N.MUKHERJEE (07BS3134) STEEL AUTHORITY OF INDIA LIMITED AN FINAL REPORT ON SALES AND DISTRIBUTION CHANNELS AT STEEL AUTHORITY OF INDIA LIMITED SUBMITTED BY: R.N.MUKHERJEE (07BS3134) A Report Submitted In Partial Fulfilment Of The Requirements Of MBA Program Of ICFAI BUSINESS SCHOOL, HYDERABAD DISTRIBUTION LIST: PROF. SUBHASIS RAY (FACULTY MEMBER-MARKETING, IBS Hyderabad) MR. TANMOY SEN (SR. MANAGER (Mrkt-MS), SAIL, KOLKATA) 2 ACKNOWLEDGEMENTS I express my gratitude to Mr. M.R.Rath, Sr. Manager (HRD), Steel Authority Of India Limited (Kolkata) for giving me an opportunity to work with SAIL and for extending support in the form of knowledge and guidance. I would also like to thank my company guide, Mr. Tanmoy Sen, Sr. Manager (Mrkt-MS Division), Steel Authority Of India Limited (Kolkata) as well as other employees of Steel Authority Of India Limited, Kolkata, namely, Mr.R.M.Suresh, Mr. Pankaj Singh, Mr.D.K.Sinha, Mr. N.M.Padhy, Mr. H.Hembram and Mr. M.R.Rath for being a constant source of encouragement as well as for providing guidance throughout the project. I also sincerely acknowledge the guidance and esteemed advice extended by Prof. Subhasis Ray, Faculty Member - Marketing Area, IBS (Hyderabad). Finally, I would like to thank all those people who in the course of my project have knowingly or unknowingly helped me, especially the channel members I...
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...against Low-Cost Steel Imports SWOT, PESTEL, Success Factor and Competitive Advantages Analysis Course Title: Strategic Management Course Code: FNB 309 Prepared For Hare Krisna Kundo Lecturer Department of Public Administration Prepared By Name | Student Id | Md. Shohag Ali | 1265 | Md. Khairul Islam | 1286 | Md. Nazrul Islam | 1292 | Md. Waish Hasan | 1295 | Nawshad Haque | 1959 | BBA, First BatchDept. of Finance and Banking | Date of Submission: September 6, 2012 Department of Finance & Banking Jahangirnagar University Savar, Dhaka-1342 * Problem Statement * Right now Nucor’s main problem is an excess of steel in the market. Foreign steel is being dumped in US, the market is flooded and supply exceeds demand. This decreases the steel companies’ profits and puts pressure on them, forcing some of them into bankruptcy. * Another problem they face is lack of innovation of technology. In order for Nucor to maintain, and continue to post profits in the future they must identify areas to increase technology to lower production costs and increase throughput. * Solution To Problem Statement: Chronologically * Nucor Corporation General Information * Timeline of History and Development * Industry Analysis * Primary Competitive Forces * Driving forces * PESTEL * Porter’s Five Forces Model * Failure of US Market in 2005 * Nucor Analysis * SWOT...
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...Security Analysis Alcoa and Arcelor Mittal Economic Analysis TheUnited States, despite its previous struggles, still finds itself as the most powerful economy in the world with a per capita GDP of $46,000. The United State’s is able to maintain its lead largely in part to the country’s market oriented economy. Currently, the President, in conjunction with government is attempting to bring the United States out of the contraction that plagued the economy for the past few years. The global economic downturn in 2008, spurred by the sub-prime mortgage crisis, and investment failures played a significant role in a GDP contraction rivaled only by the Great Depression. With the onset of technology over the past decade, the United States economy now stands witness to a “two-tier labor market”.This type of market implies that those on the bottom of the market lack the professional/technical skills that their counterparts possess.Those who are in the upper-half have seen the majority of the gains in household income since 1975. This imbalance with the average household income failing to match the inflation rate put the economy in dire need of relief. In 2008 President Barrack Obama issued an asset relief program to help calm the fire. This relief came in form of the Trouble Asset Relief Program (TARP). The program issued 700 Billion in relief to help the economy in October of 2008. In addition to the TARP program, Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection...
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...Indian Steel Industry India is among the top producers of all the form of steel in the world. Low cost manpower and the abundance of iron ore and coal reserves makes India highly competitive. India became the 4th largest producer of crude steel in the world in 2010 as against the 8th position in 2003 and is expected to become the second largest producer of crude steel by 2015. The country has acquired a central position on the global steel map with its giant steel mills, acquisition of global scale capacities by players, continuous modernization and up-gradation of old plants, improving energy efficiency and back integration into global raw material sources. A new research report Indian Steel Industry Outlook to 2012 says that the, Indian crude steel production will grow at a CAGR of around 10% during 2010-2013. The demand for steel is a derived from the demand from other sectors like automobiles, consumer durables, and infrastructure. With the government proactive incentive plans to boost economic growth by injecting funds in various industries, such as construction, infrastructure, automobile, and power will drive the steel industry in future. Led by strong demand for autos and engineering services, the domestic steel demand in India remains robust, as per Moody's sectoral analysis on Asia's steel sector. According to the analysis, the outlook for the domestic operating environment is positive, driven by robust growth in infrastructure, autos and construction and constrains...
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...AGAINST LOW-COST STEEL IMPORTS Nucor Corporation Sheri Johnson Dr. James Glenn BUS 599-014016 November 28, 2010 Assignment 4 Abstract This paper will explore articles that I researched regarding Nucor Corporation as well as research that I conducted from online articles and material that I read from the book. This paper will discuss the trends in the steel industry and how it may impact Nucor’s strategy; discuss the organizational structure and management philosophy at Nucor. Identify three HRM issues related to strategy implementation and recommend actions to address these issues. I will be given my own recommendations for related or unrelated diversification that the company would need to address. 1. The trends in the steel industry Nucor Corporation is the second-largest steel producer in the United States and has had net sales of $4.6 billion in 2000. Nucor recycles approximately 10 million tons of scrap steel. It operates in 9 states and produces carbon and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. The company emerged from near Bankruptcy in 1966 to become one of the fastest-growing steel. The steel industry is a dynamic, innovative sector, which is constantly adapting and refining itself to become more competitive in the market. The industry does this by developing new, improved steel grades and production...
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...The history of Nucor is replenished with lots of successful stories. The company has well and consistently accomplished their cleverly generated strategy. However, the steel industry is changing and Nucor need to take some actions to prosper and hold on in the future. This report will be analyzing Nucor’s current positions, its competitive advantages, etc. What are the things that Nucor already has to continue its success and what does it need more to adapt to the change of the industry? Nucor’s current position PEST Analysis 1. Political * US government protects domestic steel industry by the anti-dumping tariff and quotas. 2. Economic * Steel is one of the most important raw materials for most industry, especially construction and automotive. * Steel consumption positively relates to economy. * The economy and exchange rate of US dollar can be vital since Nucor’s main operations and markets are in the US. 3. Social * Steel production seems to be unfriendly to environment and dangerous to worker. 4. Technology * Technology is the most important factors for producers to compete. SWOT Analysis 1. Strength * 1st mini-mill technology * Very good leader * Very innovative in steel and joists * Computerized inventory management system * Lean organization * Good organization cultures 2. Weakness * Locations are concentrated in the US 3. Opportunity * New technological advancement ...
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...STEEL INDUSTRY ANALYSIS 1. Industry trends: Indian and Global perspectives, recent happenings. Steel is the back bone of human civilization, it is very crucial in development of a modern economy. The per capita consumption of steel shows the living standard of people in any country. Global Perspective: The industry directly employs about more than two million people worldwide, with a further two million contractors and four million people in the supporting industries. Considering steel’s position as the key product supplier to industries such as automotive, construction, transport, power and machine goods, and using a multiplier of 25:1, the steel industry is at the source of employment for more than 50 million people. World crude steel production has increased from 851 mega tonnes (Mt) in 2001 to 1,527 Mt in 2011. (It was 28.3 Mt in 1900).World average steel use per capita has steadily increased from 150 kg in 2001 to 215 kg in 2011. India, Brazil, South Korea and Turkey have all entered the top 10 steel producers list in the last 40 years. World Steel in Figures 2012 The World Steel Association (world steel) has published the 2012 edition of World Steel in Figures. World Steel in Figures provides essential facts and statistics about the global steel industry. The book contains comprehensive information on crude steel production, apparent steel use, pig iron production, steel trade, iron ore production and trade, and scrap trade. World Steel in Figures lists major...
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...Industry Analysis (Case 1) Paper Instructions and Grade Sheet MAN 4720 Strategic Management Assignment Value - 50 points possible (all team members receive the same grade) Due Date: See syllabus Purpose: Each team will select an industry to study. You will conduct an industry analysis (also called a competitive analysis) of your assigned industry, and to collectively write a paper reporting your results. This paper will require that you apply the concepts that you have learned in the course. This assignment will enable you to learn how to research and analyze the external and competitive nature of an industry. It is necessary to have a thorough understanding of an industry before a firm can develop strategic plans to obtain competitive advantages. Basic Attributes of Your Report: The best reports are the result of a lot of research. There is a direct correlation between research and grades. To earn the highest grade possible, your report should demonstrate evidence of: • Significant secondary research. • Integration of course concepts. • Written in plain English and demonstrating understanding that clarifies and distills the problems and opportunities competitors in the industry are facing. • Precise business writing skills. (You will be penalized for writing mistakes.) The best reports also summarize what you have learned from your research. A great report demonstrates that the student has thoroughly researched the industry,...
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