Onesteel

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Student Name: ZUIJIA LIU Student Number: 42280099

MGTS3301 ASSIGNMENT

A Strategic Analysis of OneSteel Limited

Student Name: ZUIJIA LIU Student Number: 42280099 Tutor: Alexander Stathakis Lecturer: Martina Linnenluecke

MGTS3301-Business Policy and Strategy (A Strategic Analysis)

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Student Name: ZUIJIA LIU Student Number: 42280099

Contents 1. Introduction……………………………………………………………….…..…3 1.1 Report Overview………………………………………………………….…...…3 1.2 Organisation Overview……………………………………………….…………3 2. External Environmental Analysis…………………………………….……...…4 2.1 Analysis of Macro Environment………………………………………..………4-5 2.2 Analysis of Industry Environment………………………………………..……5-6 2.2.1 Threat of New Entrants……………………………………………….….…6 2.2.2 The Bargaining Power of Buyers……………………………………..….…6 2.2.3 The Bargaining Power of Suppliers…………………..………………..…...6 2.2.4 The Threat of Substitutes………………………………………………....…7 2.2.5 Rivalry among Existing Competitors…………………….……………....…7 2.3 Opportunities and Threats………………………………………………………7 3. Internal Environmental Analysis……………………………..…………………8 3.1 Competitive Advantages………………………………………...……………….9 3.2 Strengths and Weaknesses……………………………………...………………9-10 4. Strategic issues……………………………………………………..……………10 4.1 Strategic Issue1: Improving Performance by Changing Business Focus……11 4.2 Strategic Issue2: Maintaining a Sustainable Development……………….…..11 4.3 Strategic Issue3: Improving its Own Competitiveness………………………..12 5. Strategic Actions...………………………………………………………...……..12 5.1 Strategic Action1………………………………………………………..………12-13 5.2 Strategic Action2………………………………………………………………..13-14 6. Recommendations………………………………………………………………14-16 7. References……………………………………………………………………….17-19 MGTS3301-Business Policy and Strategy (A Strategic Analysis)

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Student Name: ZUIJIA LIU Student Number: 42280099

1. Introduction 1.1 Report Overview The purpose of this report is to present a critical strategic analysis and provide inclusive implementation on Australia’s steel business, Onesteel Limited. Firstly, the report provides a brief of overview of Onesteel Limited. Secondly, the external and internal environments were analysed to identify the recent positioning of the company in this paper. Then, the report recognised three major strategic issues, and two feasible strategic actions will be stated. Finally, the study interprets various recommendations to implement the identified actions and strategically position itself by the company. The strategic analysis of the OneSteel Limited has adopted acknowledged strategic theories and models in this report. The contents of data conducted within this report have been collected from an extensive range of credible sources, including the articles, the company’s website, and press releases. However, due to the data and the information presented is built on secondary data in public access. There are limitations to the comprehensiveness of the report due to the availability and the accessibility of the information.

1.2 Organisation Overview OneSteel was formed combining eight businesses to form a vertically-integrated steel manufacturing, mining, and steel and metal products distribution company, which was established in 2000, by way of spinout from BHP (OneSteel 2011). The company operates in Asia Pacific, the UK and the US, which is a diverse portfolio of iron ore, recycling, mining consumable, manufacturing, Australian distribution and New Zealand distribution. The mission of OneSteel is to deliver superior and sustainable returns at a leading market position (OneSteel 2011).

MGTS3301-Business Policy and Strategy (A Strategic Analysis)

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Student Name: ZUIJIA LIU Student Number: 42280099

2. External Environment Analysis 2.1 Analysis of Macro Environment In this report, the PESTEL framework was applied to analyse the general environment of the company. It is required that companies understand each PESTEL segments and its implication of the proper strategies due to the firms cannot...
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