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Critical Success Factors - Term Paper Example

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This paper demonstrates recommendations for action in the light of the current market situation and options for product branding. Also, the author describes how to balance the concerns of customers with the long-term objectives of the company…
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Critical Success Factors
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Download file to see previous pages AS is in steel supply business. Its source of input is from the auto industry. Its customers are in the light engineering industry including sub-contractors of the auto industry. In the current situation of economic downturn, steel and auto industries are facing seriously reduced demand, in all major economies of the world (steelonthenet.com, 2008). This has serious implications for AS both for securing raw materials and for sustaining business revenues.
The auto industry is a major consumer of steel followed by the construction industry. Both these sectors are hit hard by the current events. The dramatic increase in the price of crude oil on the one hand and the crisis in the US housing industry on the other led to a significant reduction in the demand for steel. The crisis in the housing sector has impacted the financial industry not just in the USA but also in Europe including the UK and elsewhere, leading to credit squeeze and an all-around economic slowdown. These developments do not augur well for AS. In addition, the demand for steel in the developed nations like the USA, UK, and European Union has reached saturation levels even while global environmental concerns and pleas for pollution control are becoming louder.
Steel manufacture is a highly polluting industry. From mining operations for huge quantities of iron ore, coal, coke, and other minerals like limestone & magnesium, ferro-alloys etc., transportation across great distances, crushing, screening, melting, refining, rolling and finishing – all operations consume prodigious quantities of energy and produce all varieties of pollutants like wastewater, toxic gases & suspended particulate matter (UN Conferences on climate change). Since steel is the backbone of any economy, being the major construction material for all sectors, economic growth in any country is gauged by its steel production and per capita consumption. The growing economies of major countries like China, India, and Brazil are still in the stage of increasing demand for steel materials, in their quest for improving the lifestyles of their high populations. AS has to find answers to its growth constraints in this scenario. ...Download file to see next pagesRead More
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