In 2011 BANZ lost around 1000 jobs due to a restructure that would fundamentally alter the Australian steel industry. However, before we assess whether this decision was economically and managerially sound we must first assess why this occurred.
Following the Global Financial Crisis (GFC) of 2009 BlueScope was in its worst ever market position. As of 2011 the price of shares had hit record lows of 38c compared to $12.03 of just three years earlier, showing a 93% reduction in share prices. Huge financial losses were also recorded. In the 2010/2011 financia...
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...d of supply chain control and market share domination it could have adverse effects.
Therefore, from the analysis provided in this report the strategic decision to implement the restructure was sound. Through the consideration of the economic climate both before and after the restructure we can see a clear trend of cost reduction and an increase in profitability. Major investments in companies such as Nippon have allowed all areas of the business to profit and have opened a range of new markets in areas previously difficult to access. Movement towards future growth and profitability have also been evidenced locally in the acquisition of Orrcon and OneSteel which have allowed for product diversification and more lucrative supply chains. Thus, it is apparent that BANZ is completing its strategic goals, increasing profits and moving towards a more prosperous future.
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