Inputs in the adding value process.
Financial Resources – Any resource that can be easily converted into cash or have a significant value of capital. Operating Resources – Items that help workers to do the job at hand easier and also to improve work load and productiveness . Equipment , offices , vehicles , machinery, safety equipment , raw materials ect. Human Resources – Workers who have the knowledge to improve the company. These people have the knowledge , skills and are able to grow the company ,working efficient and accurate. Processes for adding value.
ArcelorMittal is working in and around the natural environment, natural minerals are mined from the earth. The company have to respect the environment. They have to leave a as small as possible carbon footprint, so that the area that was mined can recover. ArcelorMittal ‘s process of adding value to their products can be done by their organisation functions and generic management functions. Organisation functions consist of the production process , marketing, and their financial status. The generic functions can be the companies management and human resources. The adding value process is a balance of workers using the resources correctly and adding their skills and knowledge to it to make it a more affordable and valuable product. Outputs which result from the value-adding process.
If ArcelorMittal managed their value adding process correctly the reward are more of value for the company. The company can expect profit from the value adding process but that’s not the only result, managers receive added value through their salaries, government receives added value through taxes. Two types of role players in the value adding process when it comes to outputs, Primary role-players ( customers, employees, owners ,shareholders) Secondary role-players ( natural environment, government, suppliers, mining industry)
Business management , a value chain approach.
The Economical environment is in the macro business environment, the macro environment is made up of all sorts of different environments where economical environment is one of them. Each environment play a specific role and each environment can effect another or be affected. The economical environment consist of inflation, economic cycle, money supply, interest rates and trade unions. All of these factors can have a significant affect on ArcelorMittal. Impacts on ArcelorMittal from the economical environment.
Inflation – inflation can be described as a rise in prices over a specific time period. Two types of inflation , demand inflation where the demand is higher for the product than supply, this causes higher prices. Cost –push inflation where the cost of goods price increases (resources), higher input prices, this automatically means that the company have to increase their selling price to make profit. To help ArcelorMittal cope with this issue the management team have to work and try get debtors money as fast as possible , keep as low as possible raw steel (product) in hand and try to postpone paying creditors for as long as possible without setting a bad image. Trade Unions – Trade Unions play a big roll in the economical sector, a trade union is there to protect the employees from the company and its decisions. If a company decides to lay off a few employees over a economical crises trade unions can help and support those employees while they are not working. Trade unions also stand for the employees rights and helps the employees to not be discriminated. If companies don’t deal with issues of the employees , a trade union can close down a company after a process of interactions and court cases. Employment/unemployment - Unemployment in a country means that there are people which have no income to support themselves or their families. Unemployment have influence on the public sector as well as the private sector. Individuals who have a disposable income now have to pay more of their hard...
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