Difference in the Approach Each Organization Presents in Its Annual Performance - Essay Example

?Annual Reports Table of Contents Introduction 3 Difference in the approach each organization presents in its annual performance 3 Clarity of data presentation and information 3 Goals, Challenges and Plans emphasised by the organisation in their discussion 4 Role of the format and organisation of each report in enhancing or diminishing from the information being presented 5 Conclusion 5 References 6 Introduction In the given study we will go through the annual reports of Arcelor Mittal and US Steel Corp. and find the different approaches adopted by them. Both the giant companies are from the steel industry. Thus through the study of the annual reports of these two companies we will be able to assess the movement of the companies in the adaptation of its goals, challenges and plans. Even the clarity of the information and the data presentation will be analysed through the annual reports of the concerned companies. The analysis is generally based on the annual reports because by analysing it we can come to the decision that whether the operational and financial activities are in tandem with the policies laid for the same (Weng, 2011, p.9). Difference in the approach each organization presents in its annual performance Steel industry is very popular as far as occurrences of fatal injuries are concerned in factories. Thus Arcelor Mittal has improvised the steps in the prevention of the fatalities and injuries of the workers because this also leads to increase in the LTIFR (lost time injury frequency rate). So health and safety has been the main focus in the present annual report of the company. Since the prevention measure has already been achieved by US Steel they are targeting a zero LTIFR. In the recent annual report the main focus of US Steel Corp. is the investments made for coke and coke substitute products which will take care of both their purpose of long-term self sufficiency as well as environmental performance. Thus both the companies’ area of focus is different from the other in the sense that while Arcelor Mittal is more concerned about the preventive measures; US Steel is concentrating towards the achievement of the environmental performance. Clarity of data presentation and information Presentation of data and information is more systematic and is clearer in Arcellor Mittal as compared to US Steel Corp. Different department of the steel industry has been bifurcated in the annual report of Arcelor Mittal and a proper explanation follows the same which can be even understood by the investors who may not have much idea about the steel industry. The data sufficiently supported by charts makes the presentation of Arcellor Mittal much more acceptable in comparison to US Steel Corp. In US Steel Corp the data though presented in tandem with the information is not easily understood by investors not having much knowledge in this field. Thus Arcellor Mittal is clearer than US Steel Corp. with respect to data presentation and information. Goals, Challenges and Plans emphasised by the organisation in their discussion The study of Arcelor Mittal gives a clear understanding regarding its goals which are, to be the safest steel and mining company in the world, to be the most preferred supplier in iron-ore and coal industry with huge customer base and long duration of contracts, strengthening linkage between company and its employees, to lead in the field of manufacturing, processing and marketing of steel and all metallurgic products. The main challenges of Arcellor Mittal is in maintaining reliable records related to safety of the employees, reviewing the cost structure of the company on a regular basis, work more closely with upstream businesses to manage stocks better in order to reduce the cyclical volatility of the company in the share market. Recruitment of right personnel for the correct designation at right time is another challenge faced by the company and lastly lack of transportation infrastructure and environmental concerns may be a debacle for the company. The plans of Arcelor Mittal to be implemented in the future is to discipline the plans related to the capex of the company, growth plans of increasing the supply of iron ore to 100 million tonnes by 2015, expanding the mining complex of Mont-Wright and provide additional construction at Port-Cartier in Canada. Life of mine plans are mainly to increase the longevity of the mining fields and lastly the company has plans of increasing the production of iron ore and coking coals by 10% in the years to come (Arcelor Mittal, 2011, pp.1-216). US Steel Corp. has prioritised its goals by the achievement of improved liquidity, maintaining strong capital structure, investing in key projects which has long term strategic importance and last but not the least is to attain zero injuries across the entire company. But the challenges faces by US Steel Corp. are in the field of cost and commercial undertaking of the company. The company also faces various technological challenges which results in additional supply of products and services thus increasing the inventory level of the company. International acquisitions are another threat to the company as it increases the risk exposure associated to the foreign countries. US Steel Corp. does not have much of plans to be improvised in future apart from the implementation of compliance plans for the repair of coke oven doors (Surma, 2011, pp.1-170). Role of the format and organisation of each report in enhancing or diminishing from the information being presented The format and the organization has lead to the enhancement of the information thus provided by Arcelor Mittal related to the movement in prices of the raw material plays a significant role in shifting the demand which is responsible for combining both underlying real demand and changes that have occurred in inventory over the year. Arcelor Mittal also plays a major role for the communities in which it operates; establishment of the ethical and responsible business culture is also established to identify the talent in the organization. But US Steel Corp. mainly furnishes information related to the financial reporting and internal control of the organization which can be the factor leading to its decline. Conclusion Majority of the shareholders (about 60%) of the steel industry has got a major setback due to the global economic downturn. From this perspective if we take a note of the two giant steel companies namely, Arcelor Mittal and US Steel Corp. The performance of Arcelor Mittal is better in comparison to US Steel Corp. in respect of its increased sales, ebidta (earnings before interest, depreciation, tax and amortization) and the eps (earning per share) to mention a few. Thus through the study of the two companies Arcelor Mittal surely has an upper hand over US Steel (Yahoo Finance, 2012). References Arcelor Mittal (2011). Annual Report. Retrieved from: http://www.arcelormittal.com/corp/~/media/Files/A/ArcelorMittal/investors/annual-reports/AR2011-2012-03-13-final US Steel Corp., (2011). Annual Report. Retrieved from: http://www.ussteel.com/corp/proxy/annual-report-2011/U.%20S.%20Steel%20Annual%20Report%20and%20Form%2010-K%202011.pdf WengY., (2011). Advanced Steels: The Recent Scenario in Steel Science and Technology. China: Springer. Yahoo Finance, (2012). Arcelor Mittal & US Steel Corp.. Retrieved from: http://finance.yahoo.com/news/zacks-industry-outlook-highlights-arcelormittal-061417747.html Read More