From the onset, the core aim of ArcelorMittal’s Transformation strategy was to invest in the areas which they operate in, by empowering and uplifting the communities that feed their employment pool in the Pretoria, Newcastle, Saldanha, Vanderbijlpark and Vereenging regions. The majority of their 9,500 strong workforce are employed in the Emfuleni Municipal region in Gauteng.As the largest steel producer in Africa, the B-BBEE score of ArcelorMittal has a direct impact on the downstream Steel Industry. This is due to the purchase of steel being the largest line item expense, in terms of procurement, for the downstream Steel Industry. Freddie Swart, Group Transformation Manager at ArcelorMittal, reveals, “Essentially, the foundation of our Transformation strategy is to address the social, environmental and economic challenges facing both the country and the industry at large. It is critical that we support the downstream Steel Industry and, where possible, remove any barriers to their success. One way to do this is to favourably impact the preferential procurement scorecard of those procuring from us, by continuously improving our B-BBEE score. Furthermore, a focus is placed on increasing ‘Black’ participation within the industry, thus, effectively breaking down the Barriers of Entry for ‘new entrants’ to the market.” …show more content…
In order to drive such Transformation through the downstream Steel Industry, ArcelorMittal established the Industrial Steel Incubation Hub (The Hub) as a vehicle to develop and support the industry. “In order to optimise the impact of The Hub and align with government’s expectations of Transformation, we embarked on the establishment of The Hub, in collaboration with the Department of Trade and Industry,” reveals
Nucor Corporation was the largest manufacturer of steel and steel products in North America, with a production capacity of approximately 27 million tons. On an international scale, Nucor was ranked as the 14th-largest steel company in the world based on tons shipped in 2013. Amongst the five generic business strategies, Nucor is known as a low-cost producer, with a known competitive advantage of innovative steelmaking technology. The purpose of this paper is to perform a business analysis of Nucor Corporation by analyzing it using management tools such as SWOT, PESTEL, and Porter’s Five Forces (Thompson, Peteraf, Gamble, & Strickland III, 2014).
John Deere Component Works (JDCW), subdivision of John Deere and Co. was in charged specifically of the manufacturing of tractor component parts. The demand for JDCW’s products had problems due to the collapse of farmland value and commodity prices. Numerous and constant failures in JDCW’s competition for bids, alerted top management to start questioning their current costing methods. As an outcome, the analysis has to be guided to research on the current costing methods with the intention of establishing legitimacy and to help the company in adopting a more appropriate costing system.
The presentation of the material is in dollars only. Overhead is applied to products as a percent of direct labor dollar cost. Factory profit for each year is found by subtracting direct material, direct labor, and direct overhead costs from total sales. The overhead percentage is calculated at the same time budgeting and is applied as a single overhead pool throughout each model year. The consulting company used 435% of direct labor costs in 1987 for their study; the budgeted was actually 437% (OH/DL=107,954/24,682). A similar percentage applies in the following year (109890/25294=434.5%). However in the next two years, after the outsourcing of oil pans and mufflers was enacted, the allocation of overhead in...
Dramatic Irony is when an author allows the reader to know more than his/her characters in the story. This technique is used by the authors to add suspense to their literature. Edgar Allen Poe created many suspenseful stories using dramatic irony for the purpose of creating themes about human nature. In the short story “The Cask Of Amontillado,” Edgar Allen Poe uses dramatic irony to develop the theme that one should be careful about insulting another because he/she will seek revenge.
Nucor achieved its position as one of the largest steel producers in the United States by carefully monitoring costs and paying attention to the needs of its markets. This strategy of providing its customers with a competitive product at competitive prices has brought success and growth to Nucor, in sales, income, and stock price. Recently, however, the control of the organization has been brought into question. The recent announcement of a joint venture between Nucor and U.S. Steel to develop, test, and bring on line a new method for turning iron ore into steel added to the concern over the ability of company management to maintain the entrepreneurial spirit for which the company is famous.
The extraordinary power of the steel industry to shape the life of its communities and the people in them remain...
BHP Billiton has a strong, unrivalled and enviable portfolio of the best quality opportunities for growth as they intend to continue meeting the ever changing needs of its esteemed customers and the demand for resources of economies across the globe. An Anglo-Australian company, based in Melbourne, Australia, BHP Billiton is the world’s largest mining firm as per 2011 estimates, with revenues of approximately $65.968 billion, and the third largest in the world by market capitalization. It’s key products include aluminium, iron ore, coal, copper, diamonds, gold, manganese, natural gas, nickel, petroleum, silver and uranium.
...h the full expenses included. Challenge overseeing and incorporating over a huge supply change and developing patterns.
[4] Colin Drury, Management and Costing Accounting, (7th edition), Chapter 3, Cost Assignment, p. 54-59
"College Accounting Coach." Process Costing-Definitions And Features(Part1) « Process Costing « Cost Accounting «. Feb. 2007. Web
Process costing relies on a very distinct flow of units through the company’s production system. Homogenous goods flow through several various production processes. Each process has a specific amount of costs linked with producing products. Costs may include direct materials, production labor and manufacturing overhead. These items represent the direct costs related to specific production of goods. Manufacturers have different types of processes they use when producing goods. In the wine industry...
Problem: Mr. Nakamura must decide on what action plans to pursue for the rest of the year (i.e., the "Value Creation 21" and the 5 emergency measures)
Tata Steel's products include hot and cold rolled coils and sheets, tubes, wire rods, construction bars, structural, forging quality steel, rings and bearings. In an attempt to 'discommodities' steel, the company has recently introduced brands likeTata Steelium (India's first branded cold rolled steel), Tata Shaktee (galvanisedcorrugated sheets), Tata Tiscon (re-rolled bars), Tata pipes, Tata bearings, TataWiron (galvanized wire products) and Tata Agrico (hand tools and implements).Tata Steel is also exploring opportunities in the ferro-chrome and
Companies like TATA steel has very fewer buyers as generally companies have their raw material or secondary material fixed from their respective dealers and in B2B market one company has few purchasers. Steel is used by construction companies so they are the target groups.
Campbell (2004), Ammer (1999), Stukhart (2007)): Procurement and purchasing, expediting, materials planning, materials handling, distribution, cost control, inventory management/ receiving/warehousing and