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 ...view middle of the document...
Competitive and cooperative strategies are the mechanism adopted by an industry to assists in fair and favourable competition in the market. The industry has developed a good relationship with the government in order to facilitate easy access to loans and grants by Russian government. The company has also been restructured into various divisions to minimise costs and allow enough time for cooperate reporting system. The company has formed the mergers and amalgamation as their cooperative strategy in order to compete favourably with other steel manufactures companies.
strategic recommendation using Johnson’s Suitability, Feasibility and Acceptability criteria.
According to Johnson’s, suitability analysis involves five main key factors which must be keenly considered which included: life cycle analysis of the company which elaborates whether the company’s strategic plan fits in the stage the company will be after its implementation. Second consideration in the suitability analysis is the value chain analysis which determines whether the strategic plan of the company improves the value for money or not. Portfolio analysis which is the next factor analyses whether the strategic plan strengthens the activities of the company or hinders such activities. Business profile being the fourth consideration shows whether the strategic plan to be initiated will lead to financial performance or financial loss. The business positioning is the last considerations which c analyses whether the...