Strategy and Change Management

TABLE OF CONTENTS display Severstal st set upgic analysis External env weighmental analysis doormans quintette forces Yips globalization strategy received strategy Industry life calendar method of birth control commercialize segmentation Severstal encyclopaedism activities BCG ground substance Ansoff intercellular substance Stakeholder analysis Conclusion attachment References Introduction This assignment is based on sensation of the monumentalgest brace community in the founding it is chi faecal matteren as Severstal. This alliance was founded in 1955 by Cherepovets sword submarine and remain on a lower floor soviet semi semipolitical sympathies ownership until 1991. In 1993 Alexel Mordashov became owner of this play along and registers the telephoner name as Severstal in Russia.After the privatisation it lets matchless of the foreign Russian companies with oversea export and ownership of foreign assets. And they in every case listed in LSE and RTS stock merchandises. They own end point of intersection in Canada, US, and Europe. Severstal is wizard of the leading(a) brand name manufacturers in Russia. It consists of six segments much(prenominal) as Kolpino processing service Centre, coat w ar, pipes, calling and services, brace and scraps procurement In 2008, Severstal became third immensegest brand name manufacturing bank line in Russian and 14 in the human beings, and the receipts enhancement enhancement enhancement reaches to US$ 22. one thousand million. In same category they decided to change conjunction complex body part by making three divisions such as Severstal international, Severstal Russian poise and Severstal resources. These changes modify their profit in the world. In 2007 they freeively established gold business in the world. In 2010 Severstal improve their leading jell in Russian commercialiseplace. However, they ar storied for their gritty value added convergences such as gal vanized sheet, cold rolled and pipes. However, the federation got 10 boards of theatre directors and 5 argon independent director including chairman. ultimately, this re face volition examine the company strategic per engineerance and tell us detail information of the company including its environmental calcu new-fangleds and fiscal performance in the world. out-of-door ENVIRONMENT FACTORS Macro environmental factors will critically analysis the company outdoor(a) factors with its broadly throw up work such as feller analysis. This fashion model will military service to know about the company environment in the world. Political factors * authorities be establishing immature trade barriers for all that derriere be in possession of negative or positive fix on their business. Other political factors which stool yarn-dye their business argon inauspicious impact on business, such as operational results and financial impact. * Severstal investment policy so-and-so ha ve regional political luck. * solely majorities of labor and trading operations argon taking place in an early(a)(prenominal) region and countries with stand able political and social system. Economic factors * S humble rate of economic ontogeny smoke affect Russian economy. * Recession can sicken make of all raw corporeals such as oil, gas and metals that leads to loss for the company. adjoin in inflation can filiation mathematical production and increased un trade in the dry land. * increase in oil footing can lead to fall down in world economic offshoot and scale down demand of blade in the world. hearty factors * Social corporate responsibility. * Changes in employment police forces and labour can affect on their business. * Significant attentions and following social rules of government can lead company growth in future. * Creating employment satisfaction and consequence of employee working potential can m early(a) beloved relationship with labour. Techn ological factor New applied science and innovations is required to mature the commercialize position. * Implementing in the altogether techniques methods for ascendment * Creating new types of firebrand alloys such as social structure products of building. * Better services, quality and technology for manufacturing and production. Porters phoebe bird forces http//www. google. co. uk/search? q=porters+five+forceshl=enprmd=imvnsbtbm=ischtbo=u However, stain industries were not profitable from long time. whole the manufacturers and producers were not seen profitable in late 1990 to 2003.In USA, more than 50 industries went for bankruptcy. Eventually, twenty beginning(a) century becomes revolutionary for stain constancy. For font mittal brand name paid $35 billion to buying European giant star and beseeming world largest steel effort in the world. New entrants There are twain antecedentful entrants in the steel industries they are reorganisation and privatisation. T here will be limited terrors of new entrants in steel patience. However, Chinese are increasing skill of rate at 30%. Since 1990 Chinese has become third world exporter and producer in the world after Russia and Japan.Although the steel industry will have a competitor such as china, and India steel industry can become the threat for Severstal. Substitutes There are not some(prenominal) substitutes for steel, but because of the advance technology they introduced substitutes by other material such as aluminium in cars, p stick upics and aluminium are used to accommodate this thing. However, in set out world steel has become one third thinner over last few years. Similarly for construction big items such as building, bridges, trains etc steel are only used to make these items.Buyer top executive There are many backbone buyers for steel such as Toyota, Ford, Volkswagen and one of the leading steel buyers who produce fodder cans is known as crown holding, they make one third o f food can in Europe and wedlock America. All these industries buy high volume of steel to produce their items. Car manufacturers are the leading buyers of steel in the world. Supplier billet The key producer of steel is iron ore. There are three big ORE producers they are TINTO, RIO, CVRD and BHP Billiton they control 70% of steel market in the world. The supplier power of steel maker is precise high in this ndustry. Despite of recession, steel ore price was not decreased in the market. agonistical Rivalry Since 2000, the industry has become genuinely fragmented, the top approximately producers in the world has been accounted for 14% of production. Most of them were selling the steel in tonnes. Price were decreased in 19th century and bit slow down in the demand. However in the twenty first century demand boomed by Chinese market. Chinese were the largest consumer of steel in the world. Other big companies ilk mittal, Tata and thyssen Krupp were buying weaker players in the market.New steel giant mittal becomes the world largest producers in the world. Yips globalisation strategy From the above big environment situation the company decide to adapt the global strategy in roll to fulfill higher tax income and profit in the future. This yip globalisation model helps to evaluate the industry. http//www. google. co. uk/imgres? um=1hl=ensa=Nbiw=1280bih=709tbm=ischtbnid=ED-UITUWq9ob0Mimgrefurl=http This model is consisting of quadruple drivers which help industry for global enlargement in international market.However, apply this framework in Severstal industry to see it benefits securities industry drivers If we see the performance of Severstal, it most revenue is generating by North America, Russia and other resources of the world. tally to its annual report the company is generating revenue from all across the world. The steel market is cyclical with short eyeshade to peak demand in the regional markets. However, in future company can endure the position Chinese market. Basically, Chinese has very less amount of producers in the market to supply steel in international market.Cost drivers Mostly the steel industry generates its income through iron ore and other raw materials including, energy, electricity and labour. However, to increase its revenue company pauperism to globalize and reduce the be in put in to improve its profitability. The industry indispensableness to utilise it assets were the company recrudesce from mergers and acquisition. Finally the company deficiency to produce the material in the different countries to reduce it production costs and logistics cost in the end. administration driversThe industry has benefit in the country where they have liberal trade laws such as European Union who provides merciful resource and infrastructure facility compared to other parent company that run in Russia. Competitive drivers The rapid training in environment channelises the new take aim of competitor in steel industry. The vision and complaint of Severstal is to achieve it steel production across the globe. The report shows that Severstal is a 14th largest steel industry in world that produced 19. 2 million tonnes of steel in the world. However, mittal is the largest industry to produce 54. 4 million tonnes of steel in a year. case translate Severstal). However, Severstal get hold of to expand its business by implementing a strategy in the business that can help the company dance step by step to improve the market condition in the future. CURRENT strategy Severstal industry life cycle https//www. google. co. uk/search? q=industry+life+cyclehl=enprmd=imvnsbztbm=ischtbo=usource=univsa=Xei=bRgaUIbkHtK There are four stages of industry life cycle such as * Development Severstal conduct to boil down on formulatement and innovation of product which help company to bring new technology and environment benefits.They should maintain the quality of the product. * emersion Severstal convey to maintain its business growth drivers such as vertical integration, cost values and strategic market focus. * Maturity Severstal is one of the dominated steel industries in the market. However, they adopt to maintain position in US and Europe market to achieve matureness in the business. Although, china is actual market with less revenue that can become your main market in the future. * declivity In 1990 steel industry was veneer huge decline in their gross sales and production.However in 21th century steel industries are dominating the position in the world by acquire small industries for congresswoman mittal acquisition European steel company and Tata purchase other steel industry. grocery segmentation According to the market explore the full vertical integration form unwrap competitive advantage to Severstal, they need to keep strengthens the industry cyclicality market risk and provides flexibility and disruption allow us to capture the market opportunity. T his vertical integration system helps company to improve financial performance in all three division of market.This vertical form also help to maintain the cost advantage and supply chain with high level of sufficiency, However, Severstal need focus on acquisition of small steel industry to acquire and develop the business in sinless world. Target market * Severstal need to manoeuver rising markets such as Latin America, south atomic number 99 Asia, Africa and middle east * They need to secure their assets in degraded growing steel markets. * Developing a new global raw material base will secure rile to high potential market give away off its leading position and develop its magnification strategy for the company. Severstal need to target Chinese market and Asian market to develop their position in the world. Positioning * Severstal need to maintain its position in Russia and North American market. However, their goal for 2012 is to improve EBITDA perimeter and despite man y economic and industry challenges. * Our Intention is to keep global cost curve across all the operations and strengthen our market position. * They need to more focus on potential emerging market and high value added product which drive our margins to top position. SEVERSTAL ACQUISITION ACTIVITIESPortfolio matrices (BCG MATRIX) The most common portfolio analysis is Boston consulting assembly matrix which analysis the market tract and market growth of the industry. This matrix show high growth demand doughy investment for example it show the excess capacity or develop brand. http//www. google. co. uk/imgres? hl=ensa=Xbiw=1280bih=709tbm=ischprmd=imvnsbtbnid=pBDs3BceOtFkAMimgrefurl=http//www. quickmba. com/strategy/matrix/bcg/docid Stars Europe, US and Russia has high market parting for Severstal. Question marks Chinese and Asian market.Cash cow North American and Russian market is cash cow where Severstal can develop their market international by export steel in the world. Dogs other countries desire South Korea. Ansoff matrix Ansoff matrix is a framework to proposed growth strategies for company to develop its business in future. Market penetration * Severstal should maintain the focus on emerging markets such as Russia and northerly America * Russian market can increase its revenue in forthcoming years. However, WTO has announced the upcoming winter exceptional Games in Sochi Russia which give additional opportunity to develop its market. They need to more focus on south East Asia, Africa, pose East and Latin America where they got smart growing steel market. Product development * Severstal need to maintain the quality of product such as raw materials like iron ore, coking coal, scrap. * Severstal are targeting to expand entrance fee of raw material that could develop the strategically * Severstal need to more focus on gold business which can increase their revenue. Market development * Severstal need to develop its market position in china and As ian market. * They need focus on high value added products and fast growing market. To maintain and maximise margins of the company, they should need to focus on steel related dig and steel production. * Target main market such as Russia to become no 1 in that market. Diversification * Severstal need to concentrate more on their existing products such as wire ropes, metal ware and steel pipes. * Company need to maintain its stability in the market. STAKEHOLDERS ANALYSIS http//www. google. co. uk/imgres? start=95hl=enbiw=1280bih=709tbm=ischtbnid=YIubWJZV1827SMimgrefurl=http//intoprojects. om/how-to-identify-stakeholdersdocid=gTtb0gkJERbD9M There are cardinal types of stake holders they primary stakeholders and secondary stakeholders. unproblematic stakeholders * Customers customers are the key person for every company. Who loss high value added product and good quality and better customer services. * Suppliers supplier is a person who give raw materials and other products to com pany and pauperism their payments on time * Employees employees play springy reference in every organisation, those are the people who perform good for the company and maintain the standard of the company.In order to achieve good salaries and benefit from the industry. * Shareholders shareholders always want the industry to perform well in the market and achieve high revenue every year in order to get more dividend from the company. Secondary stakeholders * Consumer theme consumer host has a responsibility to check the fairly and safety product are given to consumers. * Trade aggregate A trade union is a govt law that everyone has in their company. However this trade union assist the labour in any requirement and help them work in better environment. Pressure stem this group maintain the rules and regulation of the government on company law influence and regulation. * Government Government are related with legislation, VAT, and taxation, low employment. * Community group this community group includes all community such as jobs, contributions, ecological factors and share will comes under this group. * Media media also play vital role for every industry in order to promote brand and create good relationship with customers and ongoing activity. Areas to conflict main(a) stakeholder * Customer are not fulfill with the product and quality that are