Acerinox- Small Company in a Large Market

Acerinox: Managing the Change in the Global Market Why a much smaller company, compared with its main competitors (Arcelor Mittal, Thyssen Krupp, etc..) can be competitive in a volume industry, like it is the stainless steel? fiscal Policy The first reason why Acerinox shows competitiveness in a volume industry is because of the way it all began. For the first ex years after its foundation, the company applied what they called financial Policy, which meant that shareholders would not receive dividends at the end of the year (for those cristal years). Instead that money would be used to cover expenditures and overhaul as investment to improve surgical operationes. International Orientation The demand in Spain wasnt enough to reach scale economies, creating the necessity to hit the ceiling abroad. In 1975, with the fall of the Spanish government, Acerinox saw the opportunity to expand, outset its doors to other countries and setting up there. The first country where Acerinox establish itself was France. As well, Spains inclusion in the European marriage ceremony also helped increase sales ten times much in a 10-year period. They were able to do this with the help of global agents, creating a joint venture with Nissho Iwai Co., Nisshin Steel Co.

, and Spanish investors (Grupo Banesto, Banesco, and Banco Guipuzcuano). Because of remote interests between the Japanese and Spanish companies, business relations cease early, but this happened only after these alliances provided Acerinox with sufficient information and certify for sales. Efficiency in Production Processes Being part of an global market made Acerinox realize that its products needed high degrees of standardization; because of this they focused large efforts on constantly improving (KAIZEN) there production processes through economies of scale and cost minimization. Also because of this they opted for an merged plant that gave them the advantage to control the whole production process and... If you want to get a full essay, order it on our website: Ordercustompaper.com

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