In Depth Analysis of Corus Group PLC


Term Paper, 2003

8 Pages


Excerpt

Table of Contents

Introduction:

History and Business Overview:

SWOT Analysis:

Porter’s 5 Forces:

Strategic Choices for Corus Group:

Works Cited

In Depth Analysis of Corus Group PLC

Introduction

Corus Group, formerly known as British Steel, is one of the world’s largest steel companies, formed in 1988 with the United Kingdom’s privatization of their major steelworks. Corus primarily manufactures coated and uncoated strip products. In addition, they manufacture sections and plates, as well as wire rod, engineering steels, and semi-finished carbon steel product. Corus also produces both rolled and extruded aluminum products, in addition to their steel products. This paper will discuss in depth analysis of Corus’ current positioning in the marketplace, their current strategies, and what future strategies they may wish to employ. (“Corus Group PLC Overview”)

History and Business Overview

Government regulation of the steel industry in Britain began with price-control measures in the 1930s. In 1950, the Labor Party nationalized steel producers, as they felt these organizations “represented an unduly powerful oligopoly.” (“History”) Yet, by 1951, a Conservative government change in the UK oversaw the sale of many of the nationalized firms, back to their original shareholders. And, instead of nationalization, an Iron Steel Board was established and given the power to regulate the industry, including setting maximum pricing and whether or not large investments would be allowed.

The steel industry, in Britain, after the formation of the Iron Steel Board, was one plagued with doubt. The fear that companies would be renationalized lingered in the back of investors’ minds. In addition, price controls created a setting that was not conducive to capital investment.

Yet, despite these challenges production soared thanks to technological advancements. Production doubled between 1954 and 1960, due to innovations such as continuous casting and oxygen-based production allowed British steelmakers. However, increasing competition was felt from Europe and Japan. (“History”)

In 1967, with the return to power of the Labour Party, 90% of the UK’s steel manufacturers were renationalized, under a new holding company, British Steel Corporation (BSC). When the energy crisis of the mid-1970s hit, BSC was in the midst of a large investment program which entailed consolidating their smaller facilities and implementing advanced equipment in the larger ones. However, with the reduced demand for steel, BSC had to close many of their outdated steel mills. Trouble continued further with the 1980 strike, which showed Britain that their steel requirements could be imported. Along with sizably reducing their workforce, “during the 1980s BSC disposed of about $1 billion in noncore assets to focus on efficient steelmaking.” (“History”)

With the advent of the British Steel Act of 1988, BSC was privatized and British Steel emerged. In 1999, British Steel purchased a majority of Dutch rival company, Koninklijke Hoogovens, for $2.4 billion and changed their name to Corus Group. This name was “chosen because it has no significant meaning in any language.” {“History”)

The beginning of the 21st century has been tumultuous for Corus. The company cut more than 6,000 jobs in 2001. And, in 2002, sold its stainless steel operation to Finnish metal producer, Outokumpu Oyj. A failed deal to purchase Brazil’s largest steelmake, Companhia Siderúrgica Nacional added to their financial concerns, and in 2003, president Anthony Pedder resigned.

[...]

Excerpt out of 8 pages

Details

Title
In Depth Analysis of Corus Group PLC
College
University of Phoenix
Author
Year
2003
Pages
8
Catalog Number
V60722
ISBN (eBook)
9783638543163
ISBN (Book)
9783656808497
File size
410 KB
Language
English
Tags
Depth, Analysis, Corus, Group
Quote paper
Kimberly Wylie (Author), 2003, In Depth Analysis of Corus Group PLC, Munich, GRIN Verlag, https://www.grin.com/document/60722

Comments

  • No comments yet.
Read the ebook
Title: In Depth Analysis of Corus Group PLC



Upload papers

Your term paper / thesis:

- Publication as eBook and book
- High royalties for the sales
- Completely free - with ISBN
- It only takes five minutes
- Every paper finds readers

Publish now - it's free