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
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...
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.
Nucor is the second largest steel producer (2nd in assets, 1st in profits) in the United States. Its profits of $123 million have made it one of the most efficient firms in the steel industry. Nucor achieved that position by focusing on the manufacturing segment known as mini-mills - the relatively small, electrically-powered mills that melt down scrap steel to manufacture products. This process saves on costly labor, raw materials, and the capital-intensive machinery necessary to produce steel from iron ore. A major concern of mini-mill steel manufacturers is maintaining quality, since their raw material consists of scrap steel of varying quality, containing a variety of alloys and impurities. Another concern it the recent rising price of scrap steel.
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 $65.968 billion, and the third largest in the world by market capitalization. It’s key products include aluminium, iron ore, coal, copper, diamonds, gold, manganese, natural gas, nickel, petroleum, silver and uranium.
Nucor Corporation was the largest manufacturer of steel and steel products in North America, with a production capacity of approximately 27 million tons. On an international scale, Nucor was ranked as the 14th-largest steel company in the world based on tons shipped in 2013. Amongst the five generic business strategies, Nucor is known as a low-cost producer, with a known competitive advantage of innovative steelmaking technology. The purpose of this paper is to perform a business analysis of Nucor Corporation by analyzing it using management tools such as SWOT, PESTEL, and Porter’s Five Forces (Thompson, Peteraf, Gamble, & Strickland III, 2014).
"College Accounting Coach." Process Costing-Definitions And Features(Part1) « Process Costing « Cost Accounting «. Feb. 2007. Web
Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tones per annum. It is now the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Tata Steel Group, with a turnover of US$ 24.82 billion in FY 13, has over 80,000 employees across five continents and is a Fortune 500 company.
When Ford Motor Company saw rapidly changing technologies dramatically impacting how the world did business it also recognized that for the organization to remain competitive incorporating these technologies would be critical. The emergence of e-commerce presented an opportunity to improve company structure for information sharing and process changes that could also enhance relationships with suppliers, dealers and customers. This technology would, in the president's words, " allow us to integrate the diverse processes that make up a complex business in a way that was very difficult to do before." The real challenge would be if and how Ford could effectively implement the change to transform how it did business both inside and outside the organization.
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)
Steel is everywhere in our homes and all around us. Corus Construction & Industrial (CCI), a business unit of Corus, has steel manufacturing facilities in Scunthorpe, Teesside, Scotland and France. The key markets for CCI include construction, energy and renewables, engineering and machinery, mining and earthmoving equipment, shipbuilding, fastenings and rail. The principle manufacturing site at Scunthorpe covers 2,000 acres and employs 5,500 people. The site consumes 6.5 million tonnes of iron ore and 2 million tonnes of coal each year to produce 4.3 million tonnes of steel products.
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...
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
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