Examples of Students Essays

Critical Thinking of Fast Food Restaurant Essay Example

Critical Thinking of Fast Food Restaurant Essay

Fast food industry has a very long history and story, but does everyone know why they are so success to operate and have thousands of branch stores right now? – Critical Thinking of Fast Food Restaurant Essay introduction?? In this paper I would explain how fast food industry success, what makes them to be success and how they use competitive advantage to be success. Also discuss the pros and cons of speed and location strategy. I believe everyone know what is McDonald’s, which is a very famous fast food restaurant and expanded to almost every corner next to you. Why McDonald’s is so success? It is because they work very well with their competitive advantage.

As a fast food restaurant, very obvious that speed is very important and emphasized. Another that I want to talk about is location. Why speed and location are so important? Then you should ask people why they want to go to fast food restaurant. 8 out of 10 people said that they are in hurry and just have certain minutes for breakfast or lunch. Those people would be the target customers of the fast food restaurant, speed is use to attract busy people who want to finish their meal in a short amount of time. Although speed is very important, it doesn’t work very well without choose a suitable location.

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Opening a restaurant you should concern about your location, think about which location has more busy people. McDonald’s does it very well; you can see it in every corner not only in U. S. but around the world. Fast food restaurant can success mainly because of people’s lifestyle become busy and busier. Times to have a breakfast or lunch become less and less, some people even do not eat breakfast and the reason is no time at all. In my opinion, fast food restaurant succeed not only because they have good strategy but also related to public’s lifestyle.

If people are not busy, how many people would still go to there? After talking about the strategy, now start to discuss the pros and cons of them. Speed can be a good thing to the people that are very busy, but can be a bad thing to the people who don’t really care how fast the speed is. For example, the setting of a printer has slow, normal and fast, but what they mean is the quality level. Slow means high quality, normal means average and fast means poor quality. That is true, if you want to keep high speed, the quality level of the foods are going to be lower, just like the printer example.

Now talk about location, you may want to open a restaurant at an area that cloud of people, business area would be the best choice because there are many people and they all busy, but what will be the cost if I open a restaurant in a business or commercial district? The rent or the land should cost a lot more. When we start our business, there are so many things you need to concern about; I can say everything has pros and cons, no perfect idea in reality. You need to find out all pros and cons of every decision that you make, try to limit the negative impact as less as possible.

Examples of Students Essays

Fast Food Industry Essay Example

Fast Food Industry Essay – Part 2

The term fast food relates to the food that can be prepared very quickly – Fast Food Industry Essay introduction. Most of this popular type of food is availed in packaged forms called take away. The fast food industry has its roots in the food for sale stand that were part and parcel of ancient roman and East Indian societies. The fast food industry also known as quick service restaurants, has been serving up tasty morsels for as long as who lives in cities.

The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson on franchised his second location to a friend as a means to expand operations during the great depressions. As cars become commonplace the drive thru concept brought explosive growth to the idea of food-on-the-go. Fast food was added to the Merion websites dictionary in 1951 and U. S. fast food companies are now franchised in over 100 countries.. In the U. S. alone there are over 200000 restaurants locations.

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Revenue has grown from $6 billion in 1970 to $160 billion in last year and 8. % annualized rate. Fast food franchises focus on high volume low cost and high speed product, frequently food is preheated or precooked and served to go through many locations also offer seating for-on -sale consumption. There have been challenges for the fast food industry in recent years that have been pressuring profit margins. The industries as a whole proven robust enough to withstand these challenges through some players have done better than others. The global fast food manufacturers like MC D, KFC, and dominos, have already occupied a firm position in India.

Examples of Students Essays

Case: Weymouth Steel Corporation Essay Example

Case: Weymouth Steel Corporation Essay

Weymouth Steel Corporation in September, 1990 is having a critical time in finding out the ways to communicate the bad and good news to its salaried employees – Case: Weymouth Steel Corporation Essay introduction. An erroneous selection of time and communication channel selection may demoralize the workforce completely resulting in a disaster for the company. The good news is that the company management has decided to increase the salary and benefits of almost all the salaried employees regardless of their grades while on the other hand the bad news (because of the long time slump in the steel industry), the management has decided to go for downsizing of the salaried workforce.

The chairman of the board Carl Weymouth and the management realized the sensitivity of the task, however, if the management is able to inspire its workforce with a new vision and hope for future success; this dilemma can easily work as a catalyst for company growth. But once the management will speak out the downsizing news to Is this Essay helpful? Join OPPapers to rea its employees, the challenge to reduce the arising stress will be higher.

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Therefore I will recommend the following strategy with time lag to communicate the good and bad news to employees and to curb the rumors in the media. But firstly the new changed vision of the company should be: Proposed Vision: “Weymouth steel corporation will endeavor to become a leading steel corporation, committed to excellence in product quality and continuous innovation to best satisfy our customers, where all people grow to their best potential in safe, positive and nurturing environment”.

The underline theme and its explanation are given in the exhibit 1. A vision is a crucial underpinning for change and management should repeat it again and again to get it absorbed by the employees. Recommended Communication Strategy: I believe that there should be multiple stage announcements of the bad and good news with the time lag, as if the management announced the good news and bad news…

Examples of Students Essays

Nuclear Corporation of America Analysis Essay Example

Nuclear Corporation of America Analysis Essay

Nuclear Corporation of America was involved in the nuclear instrument and electronics business – Nuclear Corporation of America Analysis Essay introduction. In 1964, the company’s board of directors opted for new leadership due to suffering several money-losing years and facing bankruptcy. F. Kenneth Iverson was the new leader, president, and CEO of Nuclear Corporation. F. Kenneth decided that the best way to rebuild the company was to expand around its profitable South Carolina. Iverson was already the head of Vulcraft before adopting Nuclear Corporation. He had a vision that by joining Vulcraft and Nuclear together it would be great opportunities.

Iverson concluded that the best way was for Nucor to make a different path altogether with their successful Vulcraft subsidiary in the steel business. In 1972, Nucor Corporation was adopted as a steel import company. Nucor is a steel company based in North Carolina (headquarters). This company had become the seventh largest steel company in America. This company was very profitable and its revenue was out the roof. Nuclear became the leading steel manufacturer that offers steel bars, steel joints and girders, reinforcing bars, and steel decks that are made of scrap.

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Within several years Nucor had became the largest steelmaker in North America. Nucor has been the most successful American steel maker for more than 35 years. It has a unique company culture and is recognized as the technology leader in its field. In an industry that is heavily unionized, Nucor’s work force is non-union. By the end of 2007 the company had 20 plants in its steel mill segment, 32 in the steel products segment, and one reduced iron ore plant in Trinidad. The organizational structure is flat and decentralized with only four levels of management.

Despite its long track record of growth and financial success, Nucor’s business sank like a stone in the fourth quarter of 2008. Context The steel industry is often considered an indicator of economic process, because of the critical role played by steel. The U. S. steel industry is a $60 billion enterprise, with more than about 800 firms operation in a few states. The industry employs over 189,000 people nationwide. The industry of steel has invested more than $8 billion in the environmental controls as being the largest energy consumers in the manufacturing sector.

Steel is an alloy of iron and other elements that involves mainly carbon. Carbon and other elements act as a hardening that prevents dislocations in the iron from sliding past one another. Other elements that add to modify the steel and its characteristics are nickel, titanium, and manganese. Steel uses both energy to supply heath and power for its operation. Iron and steel are used in the construction of roads, railways, and other appliances and buildings. Variety of large structures as bridges airports and skyscrapers are supported by steel skeleton.

Steel skeleton is a steel frame with a variety of of vertical steel columns and horizontal I-beams, constructed in a rectangular grid to support the floors, roof and walls of a building which are all attached to the frame. The development of this technique made the construction of the skyscraper possible. But all these things and developments started from steel. Steel is a major component in the world. Today, the steel industry is vital to both economic competitiveness and national security. Steel is the backbone to most operations and items that we view and see on a daily.

The steel that is used today is high-strength steel that is lighter and more versatile to the world. Steel is one of the most common materials that have more than about 1. 3 billion tons produced annually. However, modern steel is generally identified by assorted organizations. External Analysis In the 1960 steel was produced in huge plants using capital-intensive basic oxygen blast furnace technology and open hearth furnace technology where steel was made from scratch. The advent of electric arc furnace technology spurred new start-up companies to enter the steel business.

Minimills were introduced to produce steel on a much smaller scale than integrated mill. Technology improved and by the 1980 minimills were able to compete in the market to produce even more steel. However, at one point in time minimills were only able to make low-end steel products using electric arc furnace technology at one point in time. Electric arc furnace technology begins to take over the steel industry. By 2005 electric technology produce an average of 33 percent of the world’s steel. Nucor was now at a good stage in their plants when a new technology was introduced called thin-slab casting technology.

This was another technology that was produced that many integrated producers begin to use in order to protect their profit margins and market shares. Thin-slab was developed by SMS of Germany that pioneered in the United States to Nucor because of the knowledge of usage to the plants. Competing successfully in the industry of steel simply means to be above and beyond. From 2003-2006 an average of 90 percent of the world’s population involved the use of casting technology. Conversely, open hearth technology was neglected and was only used in pans in Russia, India and majority Eastern European countries.

That major transformation from hearth technology to electric arc technology and the use of casting technology presented that hearth technology was no longer the best option in the United States when producing steel. Internal Analysis Nucor and its technology play a major part as one of the company strengths. After several years of testing Nucor introduced in 2005 a new technology at its Crawfordsville facilities, a process called Castrip. This was one of Nucor biggest and most recent success in pioneering its technology. The company’s minimill technology brought innovation to the product and to the company.

Minimill lowers production cost and pollution that made their price to the market substantially low. The use of these kinds of technology is their edge in the steel industry. These technologies have made the business grow because of developing innovation. Nucor was looking for other opportunities for global growth. This was the fourth component of Nucor’s strategy by jointing ventures and licensing new technology. Unfortunately, the company did not currently have any plans to build and operate outside the United States. The only company operated foreign plant was in Trinidad.

Location is considered Nucor’s weakness. The company only has 59 facilities in 17 states, but don’t have plants in different countries. With this limitation, completion becomes involved and all potential clients begin to look for other options to buy from other steel company closest to their location. Nucor’s vision was to continue to promote growth and be a technology leader. They were also promoting to be aggressive in constructing new plant capacity such as construction. The key vision was for Nucor to continue making capital investments to improve plant efficiency and to keep down the production at a low cost.

Nucor management believed that focusing on the introduction of technologies it would give Nucor a commanding market advantage. Nucor continues to carry their title as the industry’s innovator that starts a new trend. Financial Analysis Nucor has been doing very well in the past 5 years by developing the right strategy. This company is presented with new threats and opportunities. CEO Iverson of Nucor made a decision that could present an opportunity into the financial operation of Nucor to bring them out of bankruptcy. Nucor, which was a leader they wanted to enter a very good market. Year 2005 Current Ratio $4,071. /$1,255. 7=3. 24 Working Capital $4,071. 6-$1,255. 7=$2,815. 9 Year 2006 Current Ratio $4,675. 0/ $1,450. 0=3. 22 Working Capital $4,675. 0-$1,450. 0=$3,225 By year 2005 and 2006 there was a decrease in current ratio but a rise in working capital. Nucor financial summary shows that in year 2005 current assets were $4,071. 6 and liabilities of $1,255. 7 which showed an average current ratio of 3. 24 for 2005. Working Capital for that same year reflected a balance of $2,815. 9. In year 2006 current assets were $4,675. 0 which went up and liabilities of $1,450. 0 came out to an average 3. 22 which went down from 3. 24 in 2005.

Capital went up by a total $409. 10, reflected by the end of 2006 the working capital for Nucor was substantially higher. Business Strategy Nucor operates in a relatively mature market. Their productivity and cost efficiency through optimized operations help moderate their pricing. Nucor’s strategy is to acquire a source of raw material or integrate some new technology into their operations. The goal is to expand in higher value-added sheet markets. Nucor’s strategy to become competitive includes introduction of new steelmaking technology and seek growth through acquisitions and joint ventures to source one-third of its raw material equirements. The company is leaning toward acquiring new business that increases production capacity, participation in downstream steel projects, and provides resources of raw materials. The objective is to rise against costs of raw materials, reduce on imports, and better manage costs. Five Forces Analyses Suppliers of Raw Materials: Nucor started several small plants that were close to suppliers & customers, thereby reducing transportation costs. Also, the sites chosen had inexpensive electricity. Their policies resulted in them having steady supply of new employees which the supplier power was low.

Buyers: Nucor employed the latest technology & competitive prices, with imported steel available, the buyers had more options to choose from. Nucor’s customer service was that buyers were willing to pay for. Firms in other Industries: Minimill technology was a great invention. This technology was also for existing integrated steel makers which adapted to newer technology. Smaller businesses were discouraged into the market of the minimills. This helped Nucor as their point of view. Potential New Entrants: Nucor had a wide availability of substitutes such as aluminum, and plastics which was for the demand of steel.

The threat of others in the future was highly unattractive. Rivalry: Nucor always had the cost advantage & efficiency force with technology & innovation. It was a challenged for the steel makers which resulted in lowering of prices & lower margins. Nucor however was highly focused on its customers so its degree of rivalry was high. Current Situation Today Nucor is preparing for even more growth. Nucor expect to see full benefits of about $7 billion in investments made from 2007 through 2011. They invested more in 2013 and looking forward to 2013 to grown during the next cyclical peak in the economy.

Nucor is also planning to optimize and continuously improve existing operations and their teammates. Nucor plan to execute and grow their raw materials strategy. Expand through Greenfield growth and tax advantage of new technology and unique market niches. They want to seek international growth still through via joint ventures and grow through strategic acquisitions. Recommendation * Nucor should expand internationally, as talked about in this paper. Nucor should make joint ventures with suppliers to keep the cost down of the product as the book reflects that Nucor never fell through with the venture. A lot of scrap that is used is imported so it would be a good idea for Nucor to utilize that to reduce costs of making their products. * Identify more products and technology to advance Nucor as a business. * Discover alternative materials that can be used in Nucor plant to reduce the reliability n scrap metal. * To put in place job descriptions for employees. By doing this it will save Nucor fees and troubles if something arises in the workplace between the employee and the company’s job duties or injuries. Nucor didn’t use job descriptions because management believed job descriptions caused more problems than they solved.

Examples of Students Essays

Answers to Questions About the Book Guns, Germs and Steel Essay Example

Answers to Questions About the Book Guns, Germs and Steel Essay

Throughout the book; Guns, Germs, and Steel, Jared Diamond answers a very controversial question; why is it that European people developed so much cargo and brought it to New Guinea, but the natives of New Guinea had little cargo of their own? – Answers to Questions About the Book Guns, Germs and Steel Essay introduction?? Societies prosper depending on the abundance of natural resources which are at their disposal. Therefore, It’s not because Europeans were smarter that they prospered but as a result of their natural resources. In Chapter 3, Jared Diamond uses an example of an ancient society to help us answer Yali’s question.

They Spanish and the Incas have distinct differences in the way their societies prospered as well as their way of everyday life. The Incas had a much larger population than the Spanish, but lacked a few technological advancements that the spanish had developed. Pizarro, leader of Spain, was able to conquer the Incas because of these advancements, along with a large military force. The Inca military consisted of men with little to no armor and they used wooden bats. The weak Inca Military was no match for the Spanish guns and artillery..

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The Spanish also carried diseases such as measles and smallpox which wiped out the Inca population due to their lack of medical knowledge and medicine. In the end, although the Incas had a larger population, the Spanish were able to defeat them with their knowledge of military and technology. Part 2: In Part 2 of the book, Diamond explains the the change in the various ways to obtain food,such as domesticating animals and plants. Some areas of the world that were less advanced than others still used the hunter/gathering method of acquiring food.

Other advanced societies used domestication of food and animals to make their land more fertile as well as gaining a higher rate of food production. Domesticating animals and plants had its positives including being able to choose which plants or animals you’d like to plant in your region, however, often times farmer societies experienced malnutrition from their unvaried diets. Hunter and gatherers didn’t have control of what food they ate because it was all nurtured from the environment they live in. Sometimes, the gatherers could even come across a poisonous plant and doom their nomadic village.

Contributing factors such as the environment, climate, and geographical limitations aided in domestication of plants and animals. In Chapter 11, Jared Diamond explains the relationship between domesticated animals and its connection to the evolution of germs. Animals are the cause of why humans have diseases. When humans started to domesticate animals, many germs evolved into more formidable diseases. Hunter gatherers were less likely to have diseases because they dealt with a small population of select animals.

Farmers who domesticated animals had a bigger problem with managing diseases because there were so many animals; and with more animals comes a higher chance for infection. however to prevent this from happening the human body develops an immunity to these diseases. Humans without these antibodies are susceptible to getting sick which is why foreigners bringing strange diseases into the new world had such a profound effect on the native population. In Chapter 12, Diamond discusses the evolution and spread of writing throughout the world.

Writing was crucial to a society for it to prosper so that they could write down records of animals and agricultural growth in an area. Later on in a more advanced society, writing served to record stories and to write down and depict laws. Over time, civilizations such as Mesopotamia, America, China and Egypt, created simple writing systems which changed over time into more complex, growing languages. Writing was spread through trade and cultural diffusion and aided ancient civilizations by allowing them to keep records. Chapter 13:

In Chapter 13, Diamond says, “…. invention is often the mother of necessity, rather than vice versa. ” He means here that an invention is usually invented just before a real use is found for it. He views that inventors just love inventing and don’t find a real use for their products until the invention has a breakthrough and critical use in society. An example of this would be Thomas Edison’s invention of the phonograph which was used to help blind and deaf people hear well. It later became used for playing musical records.

Personally, I agree with Diamond because an inventor will invent something without any thought for its needs and eventually will be used when a society finds a purpose for it, however, I also believe that there will also be invention when it is needed to aid society. Chapter 14: Diamond’s explanations for the development of governments and religions are based on “conflict between unrelated strangers”. When you have a small group of people relying off of different rates of domestic production, you have to keep the group to a minimum.

Because the clan is so small, you see no conflict between people because: a) everyone is related or b) everyone knows each other too well to make controversy. Because there is no conflict there is no need for control or political structure on a group. In a larger population of people, the food demand is greater as well as their society. When a large group of people don’t know each other and are not related, this leads to conflict within a group as well as potential to form a centralized government and political structure.

These large groups of people later grew into our first civilizations which needed trade, labor, and especially laws. Kleptocracies, complex governments, were formed to keep everyone sane and have some sort of unity within a group. Religions were developed to aid the government in keeping a cool, rational look on one belief system which everyone in the group followed and related to. Religion gave everyone something to relate to one another in a society as well as aiding the new government system.

In Chapter 15, Jared Diamond explains how Australia and New Guinea were colonized by Europeans. Europe was very advanced, far more advanced than the Oceanic natives living there. Australia was very dry with little fertile ground. The locals had no knowledge of domestication of plants or animals. Because of their limited development, the Europeans were able to sweep over and conquer all of what today is Oceana. Once it was conquered, both became a ground where domestication flourished. In Chapter 16, Diamond talks about how China’s role in East Asian history.

China was a very successful civilization and had developed a great many technological advancements. Some of these advancements benefitted travel such as the compass and chariot, while others like gunpowder served both the military and recreational activities. A major key advancement is a writing system which aided and their spoken language and government. Diffusion of ideas throughout different dynasties to Japan and Korea shows East Asia was influenced by China. In Chapter 18, Diamond asks, “Why did Europeans reach and conquer the lands of the Native Americans, instead of vice versa? First of all, there were many differences between Europe and the Americas which led to the European conquer. The Americas lost many animals in a mass extinction which left very few animals for the natives to live off of. Europeans had many animals to chose for domestications. Europeans were inventing the iron weapons and complex tools while the Native Americans lacked in these resources due to a lack of variety in the culture of their natives. Government and literacy were much more advanced in Europe due to practice and advanced tools.

With advanced navigation, animals, military technology, literacy, and government, the Europeans were easily able to conquer the Americas and wipe out their simple life style. Chapter 19: In chapter 19 of Guns, Germs, and Steel, Diamond discusses why Europeans conquered Africa instead of vice versa. According to Diamond, Europe was a stronger, more advanced civilization with many technologies, animals, plants, and a strong centralized government (as stated in Chapter 18). On the other hand, Africa had a small number of native crops as well as no domestication of animals.

The difficulty to acquire food in Africa was the main reason why they didn’t have production of anything (domesticated animals, plants, etc. ) Another part of Africa’s flaws would be its divided society with many different clans that had different beliefs, religious views, cultures, and languages. Europe had the exact opposite with one language and a strong, tight civilization. Again stated before, Europeans are not necessarily smarter than Africans but they acquired more tools and had a more intelligent society. Because of all the advancements of Europe, it was able to conquer Africa.

Examples of Students Essays

Marketing research and analysis of the construction of steel in Yemen Essay Example

Marketing research and analysis of the construction of steel in Yemen Essay

In every organization the management carries out research work about how the operations and performance of a company are taking place so that goals and objectives are achieved within the stipulated period of time .The aim of research work is to ensure that all operations within the various departments are taking place within the stipulated period of time – Marketing research and analysis of the construction of steel in Yemen Essay introduction . Market research refers to the process of gathering, recording and analyzing data and information about the customers, competitors and the market at large.

Yemen country is a small country that has been growing slowly due to lack of the necessary resources and personnel who can implement policies that can bring about growth and development within a country. In the past it has been constructing its building using locally available materials, but due to increased demand for modern houses and scarcity of this raw material the management of these organizations has been importing construction material such as steel so that they can construct strong and durable buildings that can last for a longtime.

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The country has been frequently attacked by terrorists and this has adversely affected the performance of the country as investors have been confident in investing in the country. The country has been engaging in various sectors of the economy such as agriculture, tourism, and construction, industrial and manufacturing industries so that it can generate as much revenue for the economy as possible. The economy of the country has been performing poorly this is because of continued wars and attacks, therefore has been venturing in various businesses so as to generate income for their income.

1.1Yemens economy

There were different kinds of wars that took place in Yemen that adversely affected the economy. The different kinds of wars were; American Warship United States Cole’s that occurred in October 2000, attacks that occurred on September 11 2001,and also the Limburge explosion that occurred in October 2002.The effects that were observed during and after the wars were declined oil prices that increased from  United States $8to $12 per barrel. There was low economic growth rate, high inflationary rate, and larger deficiency in commercial expenditure that resulted from the dependency on the oil resources.

The tourism sector as also affected this because visitors could not visit war prone countries. The unemployment rate rose as no investment took place within the country. The other issues that arose as a result of the war were deterioration of the local currencies exchange rate, increase of prices of goods, cost of production was also high and insurance costs also rose up during this time. The government recorded a loss of US$500 million thus it could not continue with its investment project due to this deficit.

The Yemen government assisted the Iraq government in invading the Kuwait government that led to the alienation of the Saudi Arabian and Kuwait government during the Gulf war that occurred in the year 1990-1991.The Saudi Arabian government further on expelled the Yemeni workers from their country and this affected the Yemen’s governmental budget. In the year 1994 there was civil war that affected the economy such that the country sought financial aid from the international agencies such as the World Bank and International Monetary Fund. International Monetary Fund gave the government credit facility that amounted to United States  $190 million which was later on added to United States $500million ,but there were restriction that were  imposed that stated that the government had to restructure the  economy by reducing poverty and enhancing growth so that it could receive more funds from the international agencies.

In the year 2002 the bilateral and multilateral agencies together with the World Bank assisted the government by funding it with more money that amounted to United States $2.3 billion whereby 80% of the funds was in form of concessional loans. In the year 2005 the international agencies stated their dissatisfaction with how the government implemented its policies since poverty levels were still higher than was expected of them, therefore it said it would reduce its finances to more than one third percent of the promised funds.

Yemen produced small amounts of oil although it did not belong to The Organization of Petroleum Exporting Countries (OPEC) that produced large amounts of crude oil that was later on sold to the foreign countries so that they could generate income. The amount of crude oil that was produced by the country contributed to 70% to 75% of the governments revenue while 90% of it was exported to the foreign countries.

It was reported that the crude oil reserves amounted to 4billion barrels although after a period of 15 to 20 years the oil reserves and fields were expected to decline with time due to exhaustion. Recently the country has been producing the Liquefied Natural Gas (LNG) so that it could be exported to other countries in the world. It partnered with the privately held companies in order to facilitate production of quality products for its customers. The plant was noted to produce over 6.7 million tons of Liquefied Natural Gas (LNG).According to some analysts they stated that the Liquefied Natural Gas would contribute to over United States $350 million revenue thus would increase amount generate by the government as revenue to its budget .This revenue would be used to facilitate to the development of a petrochemical industry within the country.

 The ways in which the government has been encouraging non-oil business like steel business. The government has been providing funds to various sectors of the economy such as agriculture whereby it has been giving the farmers quality seeds so that they can grow quality foods that can be exported to the foreign countries. For instance it has been venturing in agricultural activities Yemen non-oil products has been agricultural products such as fish and fish products, vegetables and fruits. It exports and imports were reported to be increasing and decreasing due to changes in the oil prices. The agricultural sector faced challenges that were as a result of environmental degradation such as soil erosion, sand dune encroachment and deforestation that hindered the agricultural practices to take place within the country. It irrigated its fields with water from the wells, but they were depleting each day therefore the activities would not be undertaken effectively.

The Yemen government imports steel from the Middle East countries so that they can construction business within the country effectively.

1.2. The importance of the construction industry in Yemen

The government of Yemen stated that it was in the process of constructing an iron and steel plant in the city of Rayan that was located about 50 kilometers in the Northeast Mukalia Hadramount Governnorate.It was noted that the plant would occupy an area of 180,000 square meters and would cost over $26 million .The aim of constructing the steel plant was to meets the increasing demand for steel products that were demanded by the investors who wanted to construct good building that would last for a longtime hence meet the need of the growing population within the country.

At the end of constructing the plant it would be in a position to produce products such as ; steel bars that have different diameters, steel would be used in the hangar construction and other steel structures. Within the plant over 300 domestic workers would be employed within the organization.

The importance of the Yemen construction company has been its construction of rich, characteristic and uniform buildings that have been attractive to the investors. It was reported that the country’s industrial sector led to 47.2% gross domestic product of the country. In this industry it hired over 25% of the labor force who would produce goods and services for the sector. Oil refining industry contributed to the largest number of gross domestic product for the country that led to over 40% revenue of the country.

In the year 2000 there were over 34,000 small businesses that were managed by two to five people who also employed over 115,000 workers. The businesses were involved in the processing of food products, and beverages. They also produced cooking fat and flour which was increasing each day. The agricultural and herding  sector employed  most of the people who were in that country, while the services, construction and commerce sectors was composed of less than 25 percent of the work force within the country.

It was noted that the country’s civil service consisted of large, poorly paid workers who were awarded inadequate salary differential that ranged between high and low skilled jobs such that they did not attract and retain qualified personnel within the country. In the year 2004 civil service salaries was increased from 20 to 40 percent as this had been stipulated within the act of the company. There were different concessions that were implemented within the organization that involved increasing the civil service wages by 10 to 15 percent each year.

2. Construction building products

The country built buildings of different types that depended on the materials that were accessible to the customers. Yemen used the following building products for constructing the building within the country; concrete block was the most preferred building material as compared to the old material that was known as stone that was cheaper since most of the people were low income earners therefore could not afford to purchase expensive raw materials. The traditional type of materials that were used in Ancient Sana of Yemen was; stone, mud straw, with oil and wood. Rocks formed part of the traditional building that was supported by two or more floors. Soil was mixed with straw that was used to make huts, while burnt mud or brick formed part of the building materials that were used in the capital city of Sana. Wood was used for construction was known as Shibam  as it was used on the ceilings of mud house that formed  part of wood  building .Sticking master material was used for sticking interior decorations on the interior wall blinds, internal and external parts of  the building.

Shibam city limestone was used on the walls so they would pick up residential soils that would be used to glaze the glasses .Gravel together with the adhesive material were used on the pool roof ,kitchen and the bathroom so that they would prevent water from seeping out of the organization. Steel was used for reinforcing the constructed buildings. Steel was a rare commodity as one had to import from other international countries such as; Turkey, Russia and Korea since it does not produce steel by itself. The ironsmiths and welders had different skills that enabled them to perform their duties such that they produced swords, shields, arrows and spears that were used by the Islamic soldiers that were present during the Old World Millennium day.

Burnt red bricks were used for decorating buildings while the gypsum and whitewash were used for decorating the inner and outer sides of the building .The above material had been constantly used in reducing the variation in the houses built since the climatic conditions and other factors had been changing rapidly. The climatic conditions included; temperature, humidity while the other factors were their strength to withstand pressure and durability of the materials used.

3. Government organization that are in the construction industry

The government organization that were involved in this industry were Organizations of Economic Cooperative and Development (OECD) and the non-governmental organizations that implemented  policies lead to the improvement of the company’s performance within the stipulated period of time. The policies that could  be implemented within the organization involved creation  of awareness of constructing good projects within an economy, construction documents that showed how the procedures would  be followed within the organization as   stipulated within the companies act, how  labor intensive methods would be used as was   cheaper as compared to the capital intensive systems.

The local contractors and the non-governmental organizations were encouraged to participate in small and medium projects so that they could provide affordable housing projects and thus decrease the work that was undertaken by the informal sectors within an economy.

4. Construction steel market

It was reported by the Chief Executive Officer Mr. Roman Madhok of Trade Line Company that the steel future contracts would be implemented while at same time 10-tonne steel reinforcement would be launched and would have steel billets of contract implemented within the organization so that quicker delivery of services to the customers as this would be strictly adhered to by all the parties involved. It was reported that the implementation of its facilities would be carefully monitored since the fluctuation of the steel prices would adversely affect the performance of a country.

5. Current market situation

The construction industry in the year 2006 experienced economic and technical problems such as use of excess capital, time and resources that affected the national economy and the nations socio economic development .The macroeconomic conditions that were affecting the performance of the industry were unemployment, inflation and the equitable balance of payments. The industry lacked the necessary infrastructure while its administrative and financial institutions were weak therefore could not perform its activities effectively.

According to Mathew Walkins he stated that during the middle year of 1995 steel prices were strong, as this was as a result of regional demand that lead to the soaring demand for the product. The strong demand for the product in North America and Brazil contributed to the increased profits for the construction company. On the other hand steel supply side was affected by the unplanned outages where there were reported cases of accidents that occurred in the North America and Brazil. The cost of raw materials contributed to the high prices of the product .For instance Middle East steel producers required oil ores that came from china, India and Turkey which were expensive to import. While other raw materials and intermediate products such as scrap metals, steelbillets and direct reduction iron were to be imported and this lead to increased cost of production for the company.

The reasons why steel is rare found is that it is found in few countries in the world and the cost of  transporting it is high therefore few investors venture into the steel business. The cost of paying the workers who are involved in the steel business is quite high therefore the reason why it rarely found in the market.

Steel in the construction industry is used for the following purposes; imported steel plates and bars were usually twisted and shaped in ways that would enhance their strength and beauty. It was also used during the process of reinforcing the building so that they would be compatible with the desires of the investors and thus remain stable for a longer period of time. It is used in the construction of roads, railways infrastructure ad buildings within a country. It is also used in the construction related applications such as in making of bolts, nails and screws for fixing the plats and machinery to their respective places within an organization.

6. Demand and supply.

The demand for petroleum products increased   to 100,000 barrels per day since the country was intending to expand its business activities within the country. The steel industry of late experienced low demand of its product since the cost of transporting it from one place to another was extremely high and the resolution of the supply of problem resulted to stable prices for the steel products. There has been increased demand for construction of quality building this is because of the locally available material cannot be satisfy the demand for cities that require building  that are made from good quality materials. The population of the country has been growing steadily and this has resulted to the construction of many buildings that can accommodate the people that are living in the country.

The prices of the materials of construction have been changing significantly this is because of economic conditions within the country that has been changing thus have been influencing the prices charged on this construction materials. There are instance where the suppliers of this construction  materials has been hiding  the products so that they can wait to be distributed to the customers when their prices increase in the market and be in a position to maximize their profits

References

Alsaleh, H., 2004, Toward PracticingArchitecture within the Concept of Sustainable

Development,King Faisal Scientific University Journal, Basic and Applied

           Science,Vol.5, No.2, pp107-134. (Arabic)

Ofori, G. (2001), “Indicators for Measuring Construction Industry Development in

Developing Countries”, Building Research and Information, vol. 29, no. 1, pp.40–

           50

Construction in Yemen and sustainable development: Are they sustainable?

By: Dr. Basel Sultan

http://209.85.173.132/search?q=cache:ZkjPOHUHyXUJ:www.yementimes.com/article.shtml%3Fi%3D1123%26p%3Dreport%26a%3D2+how+important+is+the+construction+industry+is+to+Yemen&hl=en&ct=clnk&cd=6&gl=ke&client=firefox-awebsite

Website accessed on November 14 2008

Iraq war could hit Yemen’s economy hard

By Mohammed Bin Sallam and Yasser Al-Mayasi Yemen Times Staffhttp://209.85.173.132/search?q=cache:xMrfNHU-TjoJ:www.yementimes.com/article.shtml%3Fi%3D628%26p%3Dlocal%26a%3D1+Yemen%E2%80%99s+economy&hl=en&ct=clnk&cd=1&gl=ke&client=firefox-a

 

Examples of Students Essays

Rewards for Behavior: Increasing Motivation Essay Example

Rewards for Behavior: Increasing Motivation Essay

Rewards for Behavior: Increasing Motivation Essay introduction.

Rewards for Behavior: Increasing Motivation

In observing the behavior of human interaction within the realm of sociology, one can see a definite increase in the amount of motivation devoted to a certain task when a person is offered a positive gift or reward at the point of culmination of a specified task.  The types of rewards and the types of people offering the rewards may vary from situation to situation, for example, a reward may be self administered or administered by an outside party, friend, coworker, employer, spouse, or parent and may take the form of a monetary reward, affection, favor, or emotional, mental, or material sort of gift.  Within the varied and multiple human systems working on planet earth, rewards are best type of stimulus to encourage people to act or behave in favorable ways or to perform tasks well and in a high quality fashion.  In demonstrating the specific nature and power of rewarding people for achievements, it is good to have a precise and accurate overview of how human beings behave with one another in various social situations.  Understanding the effectiveness of rewards entails discerning between positive and negative behaviors, or constructive and destructive behaviors, and placing value on behaviors which promote the highest level of functioning between human beings (Deci, Koester, & Ryan 658).

More Essay Examples on Motivation Rubric

In family systems and relationships between family members, rewards may constitute both a positive stimulus between spouses as well as a positive stimulus between parents and children in order to heighten the valued, desired, or healthy behaviors demonstrated between family members.  In the case of the husband who desires to have his wife cook regularly at home, he may decide to offer a reward to his wife, such as suggesting a switch from full time to part time employment, allowing her more time at home, in order to have her stimulated to accept his proposal of cooking dinner every night.  If both the husband and wife find the option of her switching to part time work favorable, freeing up her afternoons, then the wife may happily consider accepting the reward of more time at home in exchange for cooking dinner for her family.  As with any reward, it is vital that the two or more people engaging in the agreement both find the reward to be favorable, for if a reward is not favorable and lacks positive attributes in the eyes of the people involved, it ceases to be a reward.  In the case of children relating to parents, it may serve family members well for parents to offer a reward of kisses and praise to their children for tasks well done.  If a parent notices that his or her child is kind to another child or brings the dishes to the sink without having to be reminded, the encouragement of this behavior continuing lies in the reward the child receives in the form of kisses and praise.  It may serve the children well to also note that a parent can be positively affected by a reward system.  If a child desires to be brought to the movie theater more often, then the child may want to extend kisses and praise to the parent every time they see a movie together, perhaps right after the movie as they walk from the building together.

Using rewards in the world of business can be a bit more explicit, such as rewards in the form of money or earnings per well completed tasks, and also more competitive and formal than allocation of rewards in a family setting.  Rewards in employment often come in the form of payment.  Many jobs are set up on a salary bases after careful consideration of an employee’s qualities and attributes, however, an even better pay system would function based on the current quality of the employee’s work delivered.  If people were to always be paid based upon the timeliness and highest quality of work delivered, then the reward system would be geared even more precisely to encourage the best possible products by employees.  Implementing a transparent system where certain tasks are rewarded by a higher rate of pay when completed may require a bit of time and consideration, but it is certainly possible in a variety of, if not all, fields of employment.  The salary earned for a job well done is perhaps the most important stimulus for any economy, and if this stimulus can be tweaked precisely and accurately, rewarding workers in the time and place when the highest quality goods are delivered, then the rewards system could serve in heightening the efficiency and productivity of an individual, company, or even a nation.

Rewards can also be administered within the social systems of friendships in the aim to foster trust and compatibility between people.  When a friend wants to be closer to another person, to a friend, this friend may offer rewards in the form of praises, nice phone calls, lunches, evenings out, or social gatherings in order to shore up the relationship and provide motivation for staying nearby and in contact.  If a person needs a friend and social outlet, a confidant and person to have fun with, then rewarding the friend with kind words, a meal, favors, or fun times together can be the impetus for the person wanting to stay around and to not abandon the relationship.  Friendships, like other relationships, are defined by the bond between people, and the bond is best strengthened by a system of rewards in which one or both people are being sure to gift one another with nice behaviors in order to ensure the worth of the other’s presence and contribution to the relationship.

More examples of family relationships where rewards function to better the relationships and provide stimulation to achieve positive goals are apparent in a variety of situations.  If a wife is unhappy with her romantic life, she may encourage her husband to be more romantic with her by decidedly and clearly remarking favorably on the small moments of romance which are present in their relationship or by commenting tactfully on the wonderful aspects of another couple’s relationship, in the hope of providing a reward or shedding positive light on situations which she considers to be romantic ones.  When a husband is lacking self esteem due to the high powered career of his wife, he may offer wife thanks and appreciation when she values his contribution to the family or he may even decide to reward himself by buying himself some nice leather shoes or a nice suit when he takes on the second job teaching adjunct classes at the local college.  Children may reward their parents by excelling in school, such as getting all As on a report card, which is a testament to the parent’s time and devotion as well as the children’s.  Kids have so many various ways of rewarding their parents and making them proud, providing them extra motivation for parents to reward their children and themselves.  Parents may want to reward themselves and their children simply by remarking to one another and to other people about the wonderful achievements of their kids, highlighting their unique attributes and successes.  The ways in which family members are able to reward one other are as varied as individuals and families themselves, and noting how rewards work within families, seeing them functioning in action, can serve to strengthen the family unit.

Other examples of rewards systems working well in the world of employment are demonstrated in multiple ways and take various forms.  A self employed woman, working from home, may reward herself for a long morning of work by resting on her back porch and sipping an iced tea as she looks over the new growth of her garden.  A man who supervises the work of twelve employees may be able to view the number of completed bids and reward the quickest and most efficient and high quality worker of the week with a $50 bonus award for that time period.  Even a young girl who waitresses on her free evenings while attending an out of state university is motivated to smile and attend to her customers as they enjoy their meals, because the reward of higher tips in her pocket at the end of the night is an impetus for her to be as attentive and interesting as she can be.  Use of rewards in the realm of business occurs all the time and motivates workers to be quicker and better producers for the world markets.

Friends utilize the rewards system just as people in other types of relationships rely on rewards, and understanding more about how friends motivate one another can illustrate the effectiveness of the use of rewards in friendships.  If a teenager needs a ride to the dance, and her parents are busy and cannot take her, a good friend may offer her and her date a ride and the chance to go on a double date.  The rewards for the kind actions of the friend who has a car for the night may be for the other people to offer gas money to the driver or for everyone to chip in for the driver’s meal.  Kind actions which take notice of another person’s generosity are the foundation of the rewards system.  If a man is very nervous about the birth of his twin sons and feels like he needs a good friend nearby, he may call his buddy at 2 AM and ask him to come to the hospital for support.  The friend who wakes up in the middle of the night and sits in the hospital waiting room in order to offer a kind of emotional assistance may be rewarded later by a hug from his friend, a few minutes with the new little boys and the tired mom, and a nice breakfast in the morning.  The administration of rewards in friendship helps to seal the bond and provides stability in social relationships.

Many people understand and work within the system of rewards, and some people know that the rewards system is always in effect, in a multitude of ways.  Illustrating the concept of rewards and the influence of human motivation by administration of rewards for good behavior can be done in various ways and proven by controlled experiments which take specialized rewards in specialized situations into consideration.  Although the rewards system has a long and enduring history, it would do humanity well to focus more attention on the concept of rewards systems within human social systems, because having an impetus to do something, being genuinely encouraged to do something, has much more power and positive effects than coercion or manipulation, negative force which does not promote inspiration or further activity.  It is good to understand the difference between forced behaviors lacking rewards, which cause stagnation and even dysfunction, and rewards for jobs well done, which promote good will and general functionality in human systems.  If a true rewards system is in place, either in the form of self-rewarding behaviors or other-rewarding behaviors, then the social system will function in a flowing and high quality fashion, calling attention to the constant positive relationship between rewards and motivation and the constant positive effect of rewards and motivation on human interaction and human societies.

Works Cited

Deci, Edward, Koestner, Richard & Ryan, Richard.  “A Meta-Analytic Review of Experiments Examining the Effects of Extrinsic Rewards on Intrinsic Motivation.”  Psychological Bulletin

125.6 (1999): 627-668.

Examples of Students Essays

Blue Nile Case Questions Essay Example

Blue Nile Case Questions Essay

Blue Nile Case Questions 1 – Blue Nile Case Questions Essay introduction. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Which one of the five competitive forces is the strongest? Do a five-forces analysis to support your answer. The competitive forces that are confronting Bule Nile and other online retail jewelers are strong. The threat of new entrants is high because the brick-and-mortar stores have a low cost of entry into the online retail of their jewelry. The threat of substitutes is low because there are not substitutes readily available that are of the same quality or performance.

The bargaining power of the suppliers is moderate because there is not a surge in the availability of supplies, products are differentiated, and the products are critical to the production process. The bargaining power of the buyers is moderate to high. The buyers in the industry are the customers because the online jewelers normally sell directly to the individual. The cost to switch to competing products are low, buyers have the ability to postpone purchases and even though the products can be differentiated almost all jewelers sell the same products.

More Essay Examples on customer Rubric

The last competitive force is rivalry among competitors. This force is moderate to high because the buyer demand is growing but buyers are still skeptically about purchasing jewelry before seeing it in person. Buyer costs to switch brands is low and there are numerous competitors because they not only have to compete with other online retailers but also with brick-and-mortar stores. The strongest competitive force in my opinion would be rivalry with bargaining power of buyers as a close second. 2.

What key factors will determine a company’s success in the online jewelry business in the next 3-5 years? The first key factor that will determine a company’s success in the online jewelry business is if their website has features that are consumer friendly and if there website is functional. The next key factor is the speed of delivery. Is the turnaround time of purchasing and receiving the product more beneficial then getting it from a brick-and-mortar store. Are the products that they sell and the customer service they offer of high quality. . What is Blue Nile’s competitive strategy? Blue Nile’s competitive strategy is a best-cost provider strategy. They strive to provide a user-friendly website, to empower their customers with knowledge and confidence as they evaluate, select, and purchase diamonds and fine jewelry. And they strive for 100% on time delivery rate, lean operating costs and a lower price because of lower inventory and fewer employees. 4. What type of competitive advantage is Blue Nile trying to achieve?

Blue Nile is trying to achieve a competitive advantage by having exclusive arrangement with diamond and gem suppliers’ so that it will give significant pricing advantages as well as, gain sales and market share by having high quality products that are backed by certifications, a wider product selection, and a user-friendly website. They also strive for high customer satisfaction and lean operating cost. The resources stated above are valuable because they are directly relevant to the company’s strategy. The resource of exclusive arrangements and the lean operating costs are rare.

The only two resources that are hard to copy are the exclusive arrangements and the customer satisfaction. 5. What does a SWOT analysis of Blue Nile reveal about the overall attractiveness of its situation? The strengths of Blue Nile are they have a lean operating cost, high quality products that are backed by certifications, user-friendly website and on time deliveries. A weakness is the customer can’t handle the product before they buy it. The opportunity of Blue Nile is to expand their online presence.

The threats that Blue Nile face are intense competition by other online retailers, blood diamonds, and change in consumer tastes. The overall attractiveness is that it has high strengths and opportunities but need to make sure that they have a good defense against threats so that it can lower the risks that profits will decrease. 6. What is your appraisal of Blue Nile’s financial performance based on the data in case Exhibit 5 (see Case Exhibit 4. 1)? Their net profit margin is lower in 2009 than 2005 but from the recession is 008 their net profit margin is increasing. An average return on equity is 12-15% and Blue Nile has an average of 32% and the spike in 2008 is because of their repurchasing of stock but if you disregard 2008 they have had a steady increase. With a low debt to equity if they needed to borrow money it is signals creditworthiness and with a low debt to asset they have less of a risk to go into bankruptcy. Their current ratio is higher than one but decreasing until 2009 and now it is back to increasing which means that they will be able to pay current liabilities.

Please see the excel worksheet for graphs and calculations. 7. What strategic issues and problems does Blue Nile management need to address? The strategic issues and problems that face Blue Nile are their lack of marketing and advertising. They also face the issue of lacking to expand into global networks. 8. What recommendations would you make to Blue Nile management to strengthen the company’s competitive position and future strategic and financial performance?

One suggestion that I would recommend is a possible partnership with a brick-and-mortar store so that customers will be able to go to a store and handle the merchandise before purchase. A second recommendation is to increase advertising they should advertise of TV and in magazines. A third recommendation is that they need to expand their markets. To achieve this recommendation they should do research into different markets and see which one that fits their strategy best and go into that market.

Examples of Students Essays

MCI Takeover Battle: Case analysis questions Essay Example

MCI Takeover Battle: Case analysis questions Essay

MCI Takeover Battle: Case analysis questions

1 – MCI Takeover Battle: Case analysis questions Essay introduction. What are the strengths and weaknesses of Verizon, MCI, and Qwest? Where are the synergies in the proposed combination?

More Essay Examples on Management Rubric

2. Evaluate the two offers in Exhibit 7. What explains the two structures? In each case, what is the value to MCI shareholders?

3. Merger arbitrage (or risk arbitrage) funds speculate on the completion of stock and cash mergers, typically buying the target and hedging the risk of the acquirer’s shares accordingly to exchange ratio in stock mergers. What positions would risk arbitragers take in this deal? How would their positions change if the board appears to favour Quest offer?

4. Consider the Worldcom-MCI merger and the Qwest-US West merger. Trying to avoid hindsight bias, should the board of MCI and US West have accepted these offers? What is the obligation to shareholders? Was that obligation fulfilled? What about WorldCom and Qwest? Did their shareholders benefit?

5. Which offer should MCI accept? Why?

6. What approach should Verizon take to win takeover context?

Qwest? 1.How much confidence do you have in your estimate of synergies? We believe that the estimates of synergy given by the management is fairly reasonable. Based on the following factors

•Both the firms had a complementary line of business. The merger created a securities servicing and asset management behemoth that can rival any bank or asset manager in the world. BNY will be able to piggyback off mellon and the presence they have established in the asset management world.At the same time Mellon can take advantage of BNY’s corporate trust business . The merger would make available BNY’s institutional funds to Mellon financial clients .

•In addition to cross selling , the executives believed that new product offerings could be designed to give combined enterprise new source of growth •Despite their past rivalry , the cultures of the two companies were highly compatible

•The expected reduction in workforce of about 10% and streamlining of operations in New York and Pittsburg will further help in reducing the cost •The managers were conservative in their estimate of synergies as they did not take into account the revenue synergies Some of the possible risk were

•The possibility of client loss which is higher then expected •The integration of two large diversified financial companies could pose a distraction to managers and divert attention from the important task of growing business •There was a possibility of regulatory interference and delays

Examples of Students Essays

Profitability Analysis of Steel Industry Essay Example

Profitability Analysis of Steel Industry Essay

Industrial Organization and Competitive Strategy Analysis of competitive advantage of Tata Steel in the Indian Steel Industry – Profitability Analysis of Steel Industry Essay introduction. Submitted by:- Himanshu Singh, G12024 Paul Jacob, G12034 Aninda Goswamy, G12008 Objective: This study has multiple goals:- 1. To find out if Tata Steel does enjoy a competitive advantage vis-a-vis other players in the Steel industry in India. 2. To ascertain the source of this competitive advantage. 3. Find out if this competitive advantage is sustainable. Industry Overview India today is one of the topmost producers of steel in the world.

With the industry attributes like low cost manpower and abundance of iron ore and coal reserves India today is a highly competitive market. The reasons for expansion of the sector can be primarily attributed to the huge expansion of the oil and natural gas sectors on infrastructure projects coupled with growth in housing, and the increase in demand for consumer durables and automobiles. According to the World Steel Association, India is the fourth largest producer of crude steel. India has an annual capacity of 80 million tons.

More Essay Examples on Steel Rubric

With the government laying a lot of emphases on the infrastructure space the sector is poised to grow. The 1991 economic reforms has propelled the industry and its growth, and the steel industry has been positively been affected by it. With the licence requirement being removed and the Automatic approval of foreign equity investment up to 100 per cent is now available. Price and distribution controls were removed 20 years ago in an effort to make the steel industry more efficient and competitive. Restrictions on external trade, both on imports and exports have been abolished.

Meanwhile, import duty rates have been reduced considerably. Certain other policy measures such as the reduction on import duty of capital goods, the convertibility of the rupee on trade accounts, the ability to mobilise resources from overseas financial markets, and the simplification of the existing tax structure for a period of time have all benefited the Indian steel industry. There has been focus on setting up of more steel plants and thus 222 memoranda of understanding (MoU’s) in conjunction with state governments have been signed for a planned capacity expansion of around 275. MT by 2020. The construction industry is what amount to 61% of the consumption of steel. Govt expects steel consumption to rise to 120 Mn by 2020 . Government steps to Promote the steel industry * 100% FDI is allowed in the steel industry * Public-Private- Partnership (PPP) mode are being encouraged * R&D in this sector is a prime focus * Custom duty have been reduced * National Steel Policy (NSP) to encourage the steel industry to reach global benchmarks Market Size The current market size at US$55. 1 billion. And SAIL is a dominant market player of 20. % while tata has 10. 2% of the market. Total demand of steel is today looks at 65. 2 million tons during FY11 Investments: * Rashtriya Ispat Nigam Ltd (Visakhapatnam Steel Plant) has announced US$970 million worth of new units through expansion of its plants. * The Steel Authority of India Ltd (SAIL) is to set up processing units in Uttar Pradesh (UP). * India’s largest iron ore miner, National Mineral Development Corporation Limited (NMDC) and Russian steel maker Severstal signed the implementation protocol in Moscow for setting up a joint venture steel plant in Karnataka. Notable overseas investments in the sector include: * JFE (Japan) investment of US$1 billion in JSW Steel – Technology tie-up and acquisition of minority stake * ArcelorMittal (Global) investment in Uttam Galva * Joint venture between Nippon Steel (Japan) and Tata Steel for production of Automotive Steel. * Bao Steel (China) entered in a Joint Venture with Visa Steel for production of Ferro Chrome in India. * POSCO Steel (South Korea) has announced an investment of US$12 billion for setting up a 12 million ton geenfield steel project in India. Future * Indian Crude Steel projected CAGR growth is 10% Availability of raw materials, cheap labor, favourable government policies will continue to drive demand. * International steel conglomerates may look to partner with local players with capacities in the range of 0. 5 million tons to 2 million tons Company Profile: TATA Steel Tata Steel is one of India’s largest steel organizations. Established 1907 in Mumbai as “TATA IRON AND STEEL COMPANY” it has a production capacity of 40 Mn. tonnes a year. It is also world’s sixth largest steel company. With a presence in more than 60 + countries and manufacturing units in 30+ countries the company can be called truly global.

It is india’s largest private sector steel organisation in terms or domestic production. Tata Steel is also India’s second-largest and second-most profitable company in private sector in terms of consolidated revenues. Its main plant is located in Jamshedpur, Jharkhand, with its recent acquisitions, the company has become a multinational with operations in various The company was also recognized as the world’s best steel producer by World Steel Dynamics in 2005. In the year 2000,the company was recognised as the world’s lowest-cost producer of steel.

The company manufactures finished steel, both long and flat products like hot and cold rolled coils and sheets, galvanized sheets, tubes, wire rods, construction re-bars, rings and bearings. The company markets its products in brands like “Tata Steel, Tata Tiscon, Tata Pipes, etc. It has captive iron ore and coal mines located in the states of Orissa, Jharkhand, Maharashtra, Gujarat and West Bengal. With its head office located in Mumbai, the company functions through a network consisting of trading arms and operation and projects sites spread across countries in the continents of Asia, Europe and America.

Apart from Steel there are six Strategic Business Units or divisions for Bearings, Ferro Alloys and Minerals, Rings and Agrico, Tata Growth Shop, Tubes, and Wires. With the acquisition of Corus, Tata steel has become the fifth largest steel maker in the world. Analysis: * Competitive Advantage The competitive advantage enjoyed by a firm would manifest itself in higher profits for the firm as compared to the industry average for a period of time. In our context, the industry concerned is the Indian Steel Industry.

For the purpose of our study, we have assumed the composition of Indian Steel Industry to consist of the following companies:- 1. Tata Steel| 2. JSW Steel| 3. SAIL| 4. Essar steel| 5. Bhusan steel. | 6. JSW Ispat| 7. Visa steel. | An analysis of the gross profit margin of these companies was made for the year 2003 to 2012. The results are shown in Table 1. Table 1: Gross Profit Margin (in %) for Steel Companies in India Name of Company| 2003| 2004| 2005| 2006| 2007| 2008| 2009| 2010| 2011| 2012| Tata Steel| 20. 4| 31. 7| 40. 2| 38. 8| 39. 8| 37. 7| 33. 7| 31. | 34. 2| 32. 1| JSW Steel| 7. 3| 20. 1| 28. 3| 22. 4| 28. 6| 23. 4| 14. 5| 17. 3| 14. 1| 12. 1| SAIL| 6. 0| 17. 9| 36. 1| 24. 1| 29. 9| 25. 1| 17. 5| 19. 4| 12. 9| 9. 7| Essar| 7. 0| 10. 5| 24. 5| 19. 3| 17. 8| 14. 8| 14. 4| -| -| -| Bhusan| 12. 2| 13. 1| 13. 0| 12. 4| 15. 1| 14. 9| 17. 2| 22. 1| 25. 2| 24. 0| JSW Ispat| 3. 9| 6. 9| 15. 8| -11. 0| 8. 0| 7. 6| 5. 8| 5. 9| -3. 4| 1. 3| Visa| 5. 1| 3. 7| 6. 0| 8. 2| 10. 0| 12. 8| 5. 9| 13. 2| 11. 7| 2. 1| Average| 8. 8| 14. 8| 23. 4| 16. 3| 21. 3| 19. 5| 15. 6| 18. 2| 15. 8| 13. 5| Source: Moneycontrol. com

A comparison was made between the profit margin of Tata Steel and the Industry for these years. The results are shown below: Table 2: Comparison of profitability of Tata Steel with the Industry Years| Industry Average| Tata steel| 2003| 8. 85| 20. 38| 2004| 14. 82| 31. 65| 2005| 23. 41| 40. 17| 2006| 16. 31| 38. 81| 2007| 21. 31| 39. 84| 2008| 19. 47| 37. 7| 2009| 15. 56| 33. 69| 2010| 18. 22| 31. 36| 2011| 15. 80| 34. 2| 2012| 13. 55| 32. 09| It was decided to test whether the difference in profitability of the two groups is statistically significant or not.

The results are shown below in Table 3. Table 3: Results of Statistical test for difference in profitability Paired T-Test and CI: Industry Average, Tata steel | | Paired T for Industry Average – Tata steel| | N Mean StDev SE Mean| Industry Average 10 16. 73 4. 13 1. 31| Tata steel 10 33. 99 5. 88 1. 86| Difference 10 -17. 260 3. 053 0. 965|  | | 95% CI for mean difference: (-19. 444, -15. 076)| T-Test of mean difference = 0 (vs not = 0): T-Value = -17. 88 P-Value = 0. 000|

The results show that the difference is significant at the 5% significance level as indicated by the P-value which is zero in this case. This suggests that Tata steel does enjoy a competitive advantage over other players as evident in its gross profit margins which are significantly higher. * Source of Competitive Advantage After establishing that Tata Steel does enjoy a competitive advantage, it is now essential to find out the source of this competitive advantage. A research in to the various aspects of the steel production and distribution process suggests the following alternatives:- 1.

Ownership of mines (Resulting in low cost of raw materials). 2. Strong brand image. 3. Superior distribution network. 4. Superior value proposition (Greater benefits to customers). A thorough analysis of each of these factors tells us that although brand image is important, it cannot perpetually be a source of competitive advantage as other players would also endeavour to build their respective brands and eventually may come on par. Also a distribution network can be source of competitive advantage in the short run, however in the long run this is imitable and hence not sustainable.

Moreover steel being a commodity item, it is difficult to only follow the strategy of differentiation and expect long term profits due to this strategy. Hence it is felt that low cost of raw materials could be the source of this competitive advantage. The low cost of raw materials is primarily due to availability of captive mines and these mines being run efficiently. We would like to this hypothesis statistically. To do that we compare the cost of raw materials for the industry with that of Tata Steel and try to see if there is any significant difference.

Table 4: Coats of Raw Materials as a % of Cost of Production Name of Company| 2012| 2011| 2010| 2009| 2008| 2007| 2006| 2005| 2004| 2003| Tata Steel| 26. 16| 28. 67| 31. 71| 30. 91| 26. 99| 28. 93| 27. 33| 27. 76| 28. 77| 22. 79| JSW Steel| 62. 72| 59. 94| 57. 11| 59. 86| 49. 82| 46. 45| 51. 14| 43. 21| 43. 35| 43. 54| SAIL| 47. 10| 45. 81| 43. 32| 45. 47| 37. 21| 40. 46| 43. 21| 34. 59| 36. 96| 41. 47| Essar| | | 43. 39| 32. 49| 33. 70| 36. 52| 31. 60| 30. 98| 35. 28| 31. 80| Bhusan| 52. 70| 51. 30| 60. 17| 61. 29| 63. 89| 67. 02| 71. 27| 73. 55| 65. 24| 60. 52| JSW Ispat| 64. 80| 64. 76| 55. 13| 54. 61| 50. 2| 48. 58| 54. 45| 50. 93| 53. 90| 52. 87| Visa| 93. 35| 77. 10| 74. 10| 75. 22| 68. 38| 74. 68| 70. 33| 74. 38| 81. 64| 73. 77| Average for the industry| 49. 55| 46. 80| 52. 13| 51. 41| 47. 20| 48. 95| 49. 91| 47. 91| 49. 31| 46. 68| Source: Moneycontrol. com We compare the average cost of materials of the industry with that of Tata steel and test if their difference is statistically significant at the 5% significance level. Table 5: Results for statistical test for comparison of cost of raw materials for Tata steel and Industry average Years| Industry Average| Tata steel| 2003| 49. 55%| 26. 16%| 2004| 46. 0%| 28. 67%| 2005| 52. 13%| 31. 71%| 2006| 51. 41%| 30. 91%| 2007| 47. 20%| 26. 99%| 2008| 48. 95%| 28. 93%| 2009| 49. 91%| 27. 33%| 2010| 47. 91%| 27. 76%| 2011| 49. 31%| 28. 77%| 2012| 46. 68%| 22. 79%| Paired T for Industry Average – Tata steel| | N Mean StDev SE Mean| Industry Average 10 0. 48984 0. 01869 0. 00591| Tata steel 10 0. 28003 0. 02498 0. 00790| Difference 10 0. 20981 0. 01759 0. 00556|  | | 95% CI for mean difference: (0. 19722, 0. 22239)| T-Test of mean difference = 0 (vs not = 0): T-Value = 37. 71 P-Value = 0. 000|

We see that the difference is statistically significant at the 5 % significance level as the P-value is 0. So we can conclude that the cost of raw materials for Tata Steel is significantly lesser than for the entire industry. It is also concluded that this low cost of raw materials is the source of competitive advantage for Tata Steel in the Indian Steel industry. * Sustainability of Competitive Advantage By investing in companies like Corus, Millennium Steel and NatSteel Holding, it is seen that Tata Steel has made both manufacturing and marketing network in Europe, South East Asia and the pacific-rim countries.

Another interesting fact is the Tata steel with this kind of scale even today remains backward integrated with own iron ore mines and collieries, The company is also striving for raw material security through joint venture in Thailand, Australia, Mozambique, Ivory Coast and Oman. This is truly a competitive advantage which has sustained over a period of time, and has resulted in effective operations and rampant modernisation of the Tata steel plant. Tata steel is among the lowest cost steel producers today.

Another very important factor is the Research & Development and Scientific Services division of Tata Steel Limited at Jamshedpur, set up in 1937. The research lab is famous for its patents and research capacity across the globe. It has three departments – Research and Development, Scientific Services and Refractory Technology Group which support the Tata Steel group, particularly its operations in India and South East Asia. It has been instrumental in developing new products and processes to create competitive advantage, better environmental performance and enhanced sustainability.

Capacity expansion is a key strategy for Tata Steel in India, it derives much of its competitive advantage as a low-cost producer from the quality and yield of its raw material sources. Work is currently under way to increase steelmaking capacity at Jamshedpur to 9. 7 mtpa of crude steel by 2012. This additional capacity will enable the company to increase its market share in flat products and to use its existing resources more efficiently, including manpower, utilities and its captive mines. Customers are looking for variety of quality products, these products are often tailored individually to their specifications –reliability and lexibility in supply and service; innovation, and technical support to provide them with differentiation and competitive advantage, Tata steel has been in a position to differentiate itself. Another competitive advantage observed is the dedicated and effective staff that ensures the sustained growth Tata steel, with more than 65,000 employees Tata steel is one of the biggest employers today in India. It has developed its own ecosystems which are self sustaining and has grown multi fold over the last few years. Conclusion

The analysis shows that TATA Steel does enjoy a competitive advantage over other steel makers due to its low cost of raw materials. It can be concluded that TATA Steel would be able to maintain this competitive edge over other steel makers primarily because of the following strategies:- * Continual ownership of mines and natural resources. * Acquisition of mines and natural resources in other countries such as Mozambique. * Difficult for other players to acquire mines because of government regulations. * Superior brand image. * Superior product offerings.