Chaparral Steel Essay

Chaparral Steel Essay

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Chaparral Steel differentiates itself from other minimills because of the various activities at which they excel and the relationship among these activities. Four central and interplaying activity themes were clear in the Chaparral Steel case and will be used to build our first framework. Before modeling the framework-related contributions of the Chaparral Steel case, we want to establish a baseline for our framework. The building blocks or foundation of the framework will be based on what we believe is a "framework tautology": all companies share a fundamental framework that consists of allocating resource to acquire inputs and adding value to them to produce an output, which will be purchased by one or more companies. Using this tautology as a starting point, it is very simple to map Chaparral Steel's business to this rudimentary framework. Chaparral Steel allocates financial resource for the purchase of raw materials (scrap metal) and machinery, devotes personnel resource (manpower) to operating the machinery to reform the raw materials into finished steel products, and sells the finished products to various firms, such as builders.
The Chaparral Steel case gives us insight into the operations and successes of an industrial manufacturing company, which can be used to add to our framework. We identified four activity groups that are at the heart of Chaparral Steel's strategy and decision making process and, therefore, should be modeled. The four items are Chaparral Steel's leadership, its distinct culture, its technological advantage, and its high productivity. Furthermore, each of these critical elements follows a linear pattern. Chaparral Steel's leadership style was the primary influencer of the company's culture, whic...


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...velop new technologies, but unlike Chaparral they wanted this technology to be used across their product lines.
JPL: Similar to Chaparral, JPL employees would first come up with the task that needed to be completed, then try and develop the technology to accomplish the task.

High Productivity
Polaroid: Not similar to Chaparral, in that they didn't want to manufacture anything, they just wanted to be the company that owned the imaging standard.
MTC: Wanted to be like Chaparral since they were not efficient in their manufacturing process at all, their strength was in the development of the technology.
Canon: Similar to Chaparral in the manufacturing of the core technology, but not similar in their outsourcing of the remaining components.
JPL: Not similar in that they build prototype products only, there is no mass manufacturing involved in their business at all.

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