logging in or signing up SPACE CHART ANALYSIS-SAIL (Bokaro Steel ujjwal_028 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 1710 Category: Education License: All Rights Reserved Like it (4) Dislike it (0) Added: December 23, 2009 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... By: navneetbali68 (18 month(s) ago) dear Ujjawal, could you please email this presentation to me on navneetbali68@gmail.com warm regards navneet Saving..... Post Reply Close Saving..... Edit Comment Close By: janakiram.108 (21 month(s) ago) please send this ppt to janakiram.108@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: varungrox (30 month(s) ago) can i download d presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: ujjwal_028 (35 month(s) ago) FOR FEED BACK OR PPT. MAIL TO : ujjwal_028@in.com / ujjwal_028@rediffmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: parinita9485 (39 month(s) ago) hey ujjwal,i am from ranchi. i want to ask u that have u done any internship in bokaro steel plant.if yes then how.i need to make one project.i took admission in christ college 2010-2012 batch.they have given this work,before joining classes,my class will start in june.i dont know what to do .plz help me Saving..... Post Reply Close By: ujjwal_028 (28 month(s) ago) yes i ve done my summer internship overthere. u need to ask the concern person overthere ( Ravindranathan Sir) for knowing the procedure to join as a management trainee at sail By: ujjwal_028 (33 month(s) ago) sorry as after a long time i have logged on to this site Saving..... Edit Comment Close Premium member Presentation Transcript Strategic positioning & action evaluation : Strategic positioning & action evaluation Space chart analysis SAIL STEEL BOKARO STEEL PLANT ACKNOWLEDGEMENT : ACKNOWLEDGEMENT An endeavour is not complete and successful till the people who make it possible are given due credit for making it possible. I take this opportunity to thank all those who have made the endeavour of mine successful for me and for all. First and foremost, I am very thankful Prof. ABHIJEET NAAG (Chief Academic Advisor, ISMR, Pune) who really helped a lot and guided me for the completion of the SPACE APPROACH (an initiative of Prof Abhijeet Naag, which gives an overall status and position of the firm/company in the present market scenario), without his help I would have been unable to complete my analysis. Slide 3: I would like to thank to Mr. S.K Singh (AGM,HRD), Mr.K.K.Sanyal (AGM,BPP), Mr. A.J Kachhap (DGM I/C.M.M.,Stores) Mr. N. Khasnobis (Sr.Manager,SSD) Mr.A.K Mishra (AGM,S&C) and Mr.N.Thakur (Sr.Manager,Marketing) and I must pay special thanks to Mr.C.R.Ravindranathan (Jr.Manager Marketing) of Bokaro Steel Plant. Also I would like to thank all my friends who contributed their valuable time in the completion of this work. These people have really been kind enough in providing me all kind available data and information. Ujjwal Abhishek Regn. No: 8051 ISMR, Pune PREFACE : PREFACE The present analysis was done to understand the position of BSL in the current market scenario. As per the BCG matrix (2-D matrix) and GE Nine-Cell matrix (3-D matrix) the SPACE framework, (given by Prof. Abhijeet Naag) positions a company on the basis of four criteria i.e. 4-dimensions, which is further described in the report. Data were collected by mostly all the departments of BSL to have an approximate estimation of the company and also from different websites. Slide 5: BSL is the largest Steel manufacturing sector of India and is top ranked in the global fortune 500 companies. During my analysis I passed through various stages of problems and difficulties to accomplish the task of work but it was a privilege for me to take this opportunity a challenging work to study and observe "STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) of B.S.L", which is a unit of SAIL. CONTENT : CONTENT An introduction : An introduction The fourth integrated plant in the Public Sector - started taking shape in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited company on 29th January 1964, and was later merged with SAIL, first as a subsidiary and then as a unit, through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968. An introduction [CONT…] : An introduction [CONT…] The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how. Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT ingots steel was completed on 26th February 1978 with the commissioning of the third Blast Furnace. The new features added in modernisation of SMS-II(Steel Melting Shop) include two twin-strand slab casters along with a Steel Refining Unit. An introduction [CONT…] : An introduction [CONT…] The Steel Refining Unit was inaugurated on 19th September, 1997 and the Continuous Casting Machine on 25th April, 1998. Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanised Plain and Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw material base for a variety of modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel and drum producing industries. People - The moving force : People - The moving force Bokaro Steel values its people as the fulcrum of all organisational activities. The saga of Bokaro Steel is the story of Bokaroans erecting a gigantic plant in the wilderness of Chhotanagpur, reaching milestones one after another, staving off stiff challenges in the liberalised era, modernising its facilities and innovating their way to the top of the heap. Directions : Directions Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in India. The modernisation plans are aimed at increasing the liquid steel production capacity, coupled with fresh rolling and coating facilities. The new facilities will be capable of producing the most premium grades required by the most discerning customer segments. Profile : Profile Type PSU (BSE: SAIL) Founded 1954 Headquarters India Key people S. K. Roongta (Chairman) Industry Steel Revenue USD 36.4 billion Employees 131,910 (2006) Website http://www.sail.co.in About the Plant : About the Plant Formerly it was known as Bokaro Steel Limited (BSL). Bokaro Steel Plant is hailed as India's first swadeshi steel plant. Its first blast furnace was started on 2nd October 1972. At present it houses five blast furnaces with total capacity to produce 4.5 MT of liquid steel. The plant is undergoing a mass modernisation drive after which its output capacity is expected to cross 10 MT. The first shop of Bokaro Steel Plant got the ISO 9001 certification way back in 1994, and its SAIL JYOTI branded products enjoy a loyal market. Plant's yearly profit stood at 1,120 crores Indian Rupee (INR) for the financial year 2003-04 and has increased every year since then reaching to 8,426 crores INR in the financial year 2007-08. Products : Products Bokaro Steel Plant is designed to produce a wide range of flat products: Hot Rolled Coils Hot Rolled Plates Hot Rolled Sheets Cold Rolled Coils Cold Rolled Sheets Tin Mill Black Plates (TMBP) Galvanised Plain and Corrugated (GP/GC) Sheets By Products Steel Authority of India Limited (SAIL) : Steel Authority of India Limited (SAIL) SAIL is one of the largest steel makers in India. With a turnover of Rs. 45,555 crores, the company is among the top five highest profits earning corporate of the country. It is a public sector undertaking wholly owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 131,910 employees. The company's current chairman is S.K. Roongta. With an annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer in the world. Steel Authority of India Limited (SAIL) : Steel Authority of India Limited (SAIL) Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol) and Salem. SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units. SAIL’s VISION : SAIL’s VISION To be respected world class corporation and the leader in Indian Steel Business in Quality, Productivity, Profitability and Customer Satisfaction. SWOT ANALYSIS : SWOT ANALYSIS STRENGTH: In Bokaro Steel Plant there is a reservoir of skilled and experienced personnel's. In marketing department of 130karo Steel Plant, there is a respect for hierarchy. This enables management to ensure proper planning and implementation. Good corporate image of SAIL enhances the level of confidence in managers. Slide 19: STRENGTH: There is a good record of harmonious customer relation that strengths the committed progress in revenue generation of plant. Good management information system in the marketing department of Bokaro Steel Plant enables to tap potential customer. Slide 20: WEAKNESS: Lack of teamwork and co-ordination and lack of internal customer orientation inhibits implementation of plants to a substantial extent. Complex pre sale and post sale activities hinder most of the potential customers. Since there is no control on the quality of by-products they are unable to fetch handsome revenue. Lack of individual initiative for effectiveness of department. Slide 21: OPPORTUNITIES: With the establishment of continuous casting, the capacity to produce primary product has increased and this will increase the production of by-products. The Jharkhand government has been putting emphasis on establishing new industries in the outskirts of Bokaro. So there is a chance for Bokaro Steel. Slide 22: THREATS: With the opening up of economy this public sector giant is facing threats from new companies for its chemical products. With the coming up of Haldia Petrochemical the eastern region is almost lost. It is possible that the setting up of other such units will affect the sale of Bokaro Steel Plant in its present market also. BCG MATRIX : BCG MATRIX 1. Stars (=high growth, high market share)- Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. BCG MATRIX : BCG MATRIX 2. Cash Cows (=low growth, high market share)- Profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high- Foundation of a company 3. Dogs (=low growth, low market share)- Avoid and minimize the number of dogs in a company.- Beware of expensive ‘turn around plans’.- Deliver cash, otherwise liquidate BCG MATRIX : BCG MATRIX 4. Question Marks (= high growth, low market share)- Have the worst cash characteristics of all, because high demands and low returns due to low market share- If nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. - Either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH : STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH SPACE is an approach to hammer out an appropriate strategic posture of a firm and its individual business. An extension to the two-dimensional portfolio analysis, SPACE involves a consideration of four dimensions: Company’s competitive strength Company’s financial strength Industry strength Environmental stability The factors determining competitive strength(CS), financial strength(FS), industry strength(IS) and environmental stability(ES) are as follows: Slide 27: Application To apply SPACE approach to a company, the following procedure may be followed: Numerically access the firm on the factors which have bearing on the four dimensions. The scale of assessment for the factors relating to the dimension of company is financial strength and industry strength may be 0-7, with 0 reflecting the most unfavorable assessment and 7 the most favorable. However the scale assessment for the factor relating to the dimension of environmental stability and company’s competitive advantage may be 0-7, with 0 reflecting the most favourable assessment and 7 the most unfavourable. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 28: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 29: Average the numerical value assigned for various factors relating to a given dimension to get the numerical score for the dimension. Plot the scores for the dimensions on the axes of the SPACE chart. The SPACE chart is shown as below: Connect the scores for the four dimensions on the axes of the SPACE chart to get a four sided polygon reflecting the size and direction of the assessment. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 30: Strategic Postures The basic strategic postures associated with the SPACE approach illustrated graphically, is detailed below: Aggressive posture: This is appropriate for the company which enjoys competitive advantage and considerable financial strength, belongs to attractive industry that operate in relatively stable environment. An aggressive posture means, a company must fully exploit opportunity available to it. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 31: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 32: Competitive posture: This is suitable for a company which enjoys a competitive advantage but has limited financial strength and belongs to an attractive industry operating in a relatively unsuitable environment. The key planks of the competitive posture are: Maintain & enhance competitive advantage by product improvement and differentiation, wider The product line, improve marketing effectiveness and arrange financial resource. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 33: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 34: Conservative posture: This is appropriate for the company which enjoys financial strength but has limited competitive advantage and belongs to not so attractive industry operating in a relative stable environment. A conservative posture calls for the following actions: Non performing products Reduce cost Improve productivity Develop the product Access more profitable market STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 35: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 36: Defensive posture: This is suitable for company which enjoys suitable competitive advantage as well as financial strength. A defensive posture involve the following actions: Discontinue variable product Control cost aggressively Monitor cash flow strictly Reduce capacity and limit investment. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH SPACE analysis of BSL : SPACE analysis of BSL Company’s Competitive Advantage Slide 38: Company’s Financial Strength Slide 39: Company’s Environmental stability Slide 40: Company’s Industry Strength Slide 41: BSL lies in Aggressive posture Aggressive Posture SAIL enjoys a competitive advantage and also has a high financial strength. It belongs to an attractive industry, which operates in an relatively stable environment. SAIL fully exploits the opportunities available in the steel industry. SAIL concentrate on the resource available and uses it to the maximum which help to achieve high market share. It is similar to generic strategy of cost leadership strategy. Business and Financial Metrics : Business and Financial Metrics Slide 44: Business and Financial Metrics Slide 45: BSL at Glance Main Entrance BSL at Glance : BSL at Glance Ammonium Sulphate Plant Slide 47: Hot Strip Mill BSL at Glance Slide 48: Sulphuric Acid Plant BSL at Glance Slide 49: HR SHEET BSL at Glance Slide 50: Steel Makers BSL at Glance Slide 51: Symbol of Trust BSL at Glance Slide 52: There is a bit of steel in everyone’s life…! Submitted by: : Submitted by: Ujjwal Abhishek International School of Management & Research At Navin Hind High School Campus Tadiwala Road, Behind Pune Railway Station PUNE Website: www.ismrpune.com You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
SPACE CHART ANALYSIS-SAIL (Bokaro Steel ujjwal_028 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 1710 Category: Education License: All Rights Reserved Like it (4) Dislike it (0) Added: December 23, 2009 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... By: navneetbali68 (18 month(s) ago) dear Ujjawal, could you please email this presentation to me on navneetbali68@gmail.com warm regards navneet Saving..... Post Reply Close Saving..... Edit Comment Close By: janakiram.108 (21 month(s) ago) please send this ppt to janakiram.108@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: varungrox (30 month(s) ago) can i download d presentation Saving..... Post Reply Close Saving..... Edit Comment Close By: ujjwal_028 (35 month(s) ago) FOR FEED BACK OR PPT. MAIL TO : ujjwal_028@in.com / ujjwal_028@rediffmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: parinita9485 (39 month(s) ago) hey ujjwal,i am from ranchi. i want to ask u that have u done any internship in bokaro steel plant.if yes then how.i need to make one project.i took admission in christ college 2010-2012 batch.they have given this work,before joining classes,my class will start in june.i dont know what to do .plz help me Saving..... Post Reply Close By: ujjwal_028 (28 month(s) ago) yes i ve done my summer internship overthere. u need to ask the concern person overthere ( Ravindranathan Sir) for knowing the procedure to join as a management trainee at sail By: ujjwal_028 (33 month(s) ago) sorry as after a long time i have logged on to this site Saving..... Edit Comment Close Premium member Presentation Transcript Strategic positioning & action evaluation : Strategic positioning & action evaluation Space chart analysis SAIL STEEL BOKARO STEEL PLANT ACKNOWLEDGEMENT : ACKNOWLEDGEMENT An endeavour is not complete and successful till the people who make it possible are given due credit for making it possible. I take this opportunity to thank all those who have made the endeavour of mine successful for me and for all. First and foremost, I am very thankful Prof. ABHIJEET NAAG (Chief Academic Advisor, ISMR, Pune) who really helped a lot and guided me for the completion of the SPACE APPROACH (an initiative of Prof Abhijeet Naag, which gives an overall status and position of the firm/company in the present market scenario), without his help I would have been unable to complete my analysis. Slide 3: I would like to thank to Mr. S.K Singh (AGM,HRD), Mr.K.K.Sanyal (AGM,BPP), Mr. A.J Kachhap (DGM I/C.M.M.,Stores) Mr. N. Khasnobis (Sr.Manager,SSD) Mr.A.K Mishra (AGM,S&C) and Mr.N.Thakur (Sr.Manager,Marketing) and I must pay special thanks to Mr.C.R.Ravindranathan (Jr.Manager Marketing) of Bokaro Steel Plant. Also I would like to thank all my friends who contributed their valuable time in the completion of this work. These people have really been kind enough in providing me all kind available data and information. Ujjwal Abhishek Regn. No: 8051 ISMR, Pune PREFACE : PREFACE The present analysis was done to understand the position of BSL in the current market scenario. As per the BCG matrix (2-D matrix) and GE Nine-Cell matrix (3-D matrix) the SPACE framework, (given by Prof. Abhijeet Naag) positions a company on the basis of four criteria i.e. 4-dimensions, which is further described in the report. Data were collected by mostly all the departments of BSL to have an approximate estimation of the company and also from different websites. Slide 5: BSL is the largest Steel manufacturing sector of India and is top ranked in the global fortune 500 companies. During my analysis I passed through various stages of problems and difficulties to accomplish the task of work but it was a privilege for me to take this opportunity a challenging work to study and observe "STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) of B.S.L", which is a unit of SAIL. CONTENT : CONTENT An introduction : An introduction The fourth integrated plant in the Public Sector - started taking shape in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited company on 29th January 1964, and was later merged with SAIL, first as a subsidiary and then as a unit, through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968. An introduction [CONT…] : An introduction [CONT…] The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how. Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT ingots steel was completed on 26th February 1978 with the commissioning of the third Blast Furnace. The new features added in modernisation of SMS-II(Steel Melting Shop) include two twin-strand slab casters along with a Steel Refining Unit. An introduction [CONT…] : An introduction [CONT…] The Steel Refining Unit was inaugurated on 19th September, 1997 and the Continuous Casting Machine on 25th April, 1998. Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanised Plain and Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw material base for a variety of modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel and drum producing industries. People - The moving force : People - The moving force Bokaro Steel values its people as the fulcrum of all organisational activities. The saga of Bokaro Steel is the story of Bokaroans erecting a gigantic plant in the wilderness of Chhotanagpur, reaching milestones one after another, staving off stiff challenges in the liberalised era, modernising its facilities and innovating their way to the top of the heap. Directions : Directions Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in India. The modernisation plans are aimed at increasing the liquid steel production capacity, coupled with fresh rolling and coating facilities. The new facilities will be capable of producing the most premium grades required by the most discerning customer segments. Profile : Profile Type PSU (BSE: SAIL) Founded 1954 Headquarters India Key people S. K. Roongta (Chairman) Industry Steel Revenue USD 36.4 billion Employees 131,910 (2006) Website http://www.sail.co.in About the Plant : About the Plant Formerly it was known as Bokaro Steel Limited (BSL). Bokaro Steel Plant is hailed as India's first swadeshi steel plant. Its first blast furnace was started on 2nd October 1972. At present it houses five blast furnaces with total capacity to produce 4.5 MT of liquid steel. The plant is undergoing a mass modernisation drive after which its output capacity is expected to cross 10 MT. The first shop of Bokaro Steel Plant got the ISO 9001 certification way back in 1994, and its SAIL JYOTI branded products enjoy a loyal market. Plant's yearly profit stood at 1,120 crores Indian Rupee (INR) for the financial year 2003-04 and has increased every year since then reaching to 8,426 crores INR in the financial year 2007-08. Products : Products Bokaro Steel Plant is designed to produce a wide range of flat products: Hot Rolled Coils Hot Rolled Plates Hot Rolled Sheets Cold Rolled Coils Cold Rolled Sheets Tin Mill Black Plates (TMBP) Galvanised Plain and Corrugated (GP/GC) Sheets By Products Steel Authority of India Limited (SAIL) : Steel Authority of India Limited (SAIL) SAIL is one of the largest steel makers in India. With a turnover of Rs. 45,555 crores, the company is among the top five highest profits earning corporate of the country. It is a public sector undertaking wholly owned by Government of India and acts like an operating company. Incorporated on January 24, 1973, SAIL has more than 131,910 employees. The company's current chairman is S.K. Roongta. With an annual production of 13.5 million metric tons, SAIL is the 16th largest steel producer in the world. Steel Authority of India Limited (SAIL) : Steel Authority of India Limited (SAIL) Major plants owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur (near Asansol) and Salem. SAIL is a public sector company, owned and operated by the Government of India. According to a recent survey, SAIL is one of India's fastest growing Public Sector Units. SAIL’s VISION : SAIL’s VISION To be respected world class corporation and the leader in Indian Steel Business in Quality, Productivity, Profitability and Customer Satisfaction. SWOT ANALYSIS : SWOT ANALYSIS STRENGTH: In Bokaro Steel Plant there is a reservoir of skilled and experienced personnel's. In marketing department of 130karo Steel Plant, there is a respect for hierarchy. This enables management to ensure proper planning and implementation. Good corporate image of SAIL enhances the level of confidence in managers. Slide 19: STRENGTH: There is a good record of harmonious customer relation that strengths the committed progress in revenue generation of plant. Good management information system in the marketing department of Bokaro Steel Plant enables to tap potential customer. Slide 20: WEAKNESS: Lack of teamwork and co-ordination and lack of internal customer orientation inhibits implementation of plants to a substantial extent. Complex pre sale and post sale activities hinder most of the potential customers. Since there is no control on the quality of by-products they are unable to fetch handsome revenue. Lack of individual initiative for effectiveness of department. Slide 21: OPPORTUNITIES: With the establishment of continuous casting, the capacity to produce primary product has increased and this will increase the production of by-products. The Jharkhand government has been putting emphasis on establishing new industries in the outskirts of Bokaro. So there is a chance for Bokaro Steel. Slide 22: THREATS: With the opening up of economy this public sector giant is facing threats from new companies for its chemical products. With the coming up of Haldia Petrochemical the eastern region is almost lost. It is possible that the setting up of other such units will affect the sale of Bokaro Steel Plant in its present market also. BCG MATRIX : BCG MATRIX 1. Stars (=high growth, high market share)- Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. BCG MATRIX : BCG MATRIX 2. Cash Cows (=low growth, high market share)- Profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high- Foundation of a company 3. Dogs (=low growth, low market share)- Avoid and minimize the number of dogs in a company.- Beware of expensive ‘turn around plans’.- Deliver cash, otherwise liquidate BCG MATRIX : BCG MATRIX 4. Question Marks (= high growth, low market share)- Have the worst cash characteristics of all, because high demands and low returns due to low market share- If nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. - Either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH : STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH SPACE is an approach to hammer out an appropriate strategic posture of a firm and its individual business. An extension to the two-dimensional portfolio analysis, SPACE involves a consideration of four dimensions: Company’s competitive strength Company’s financial strength Industry strength Environmental stability The factors determining competitive strength(CS), financial strength(FS), industry strength(IS) and environmental stability(ES) are as follows: Slide 27: Application To apply SPACE approach to a company, the following procedure may be followed: Numerically access the firm on the factors which have bearing on the four dimensions. The scale of assessment for the factors relating to the dimension of company is financial strength and industry strength may be 0-7, with 0 reflecting the most unfavorable assessment and 7 the most favorable. However the scale assessment for the factor relating to the dimension of environmental stability and company’s competitive advantage may be 0-7, with 0 reflecting the most favourable assessment and 7 the most unfavourable. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 28: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 29: Average the numerical value assigned for various factors relating to a given dimension to get the numerical score for the dimension. Plot the scores for the dimensions on the axes of the SPACE chart. The SPACE chart is shown as below: Connect the scores for the four dimensions on the axes of the SPACE chart to get a four sided polygon reflecting the size and direction of the assessment. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 30: Strategic Postures The basic strategic postures associated with the SPACE approach illustrated graphically, is detailed below: Aggressive posture: This is appropriate for the company which enjoys competitive advantage and considerable financial strength, belongs to attractive industry that operate in relatively stable environment. An aggressive posture means, a company must fully exploit opportunity available to it. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 31: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 32: Competitive posture: This is suitable for a company which enjoys a competitive advantage but has limited financial strength and belongs to an attractive industry operating in a relatively unsuitable environment. The key planks of the competitive posture are: Maintain & enhance competitive advantage by product improvement and differentiation, wider The product line, improve marketing effectiveness and arrange financial resource. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 33: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 34: Conservative posture: This is appropriate for the company which enjoys financial strength but has limited competitive advantage and belongs to not so attractive industry operating in a relative stable environment. A conservative posture calls for the following actions: Non performing products Reduce cost Improve productivity Develop the product Access more profitable market STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 35: STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH Slide 36: Defensive posture: This is suitable for company which enjoys suitable competitive advantage as well as financial strength. A defensive posture involve the following actions: Discontinue variable product Control cost aggressively Monitor cash flow strictly Reduce capacity and limit investment. STRATEGIC POSITIONING AND ACTION EVALUATION (SPACE) APPROACH SPACE analysis of BSL : SPACE analysis of BSL Company’s Competitive Advantage Slide 38: Company’s Financial Strength Slide 39: Company’s Environmental stability Slide 40: Company’s Industry Strength Slide 41: BSL lies in Aggressive posture Aggressive Posture SAIL enjoys a competitive advantage and also has a high financial strength. It belongs to an attractive industry, which operates in an relatively stable environment. SAIL fully exploits the opportunities available in the steel industry. SAIL concentrate on the resource available and uses it to the maximum which help to achieve high market share. It is similar to generic strategy of cost leadership strategy. Business and Financial Metrics : Business and Financial Metrics Slide 44: Business and Financial Metrics Slide 45: BSL at Glance Main Entrance BSL at Glance : BSL at Glance Ammonium Sulphate Plant Slide 47: Hot Strip Mill BSL at Glance Slide 48: Sulphuric Acid Plant BSL at Glance Slide 49: HR SHEET BSL at Glance Slide 50: Steel Makers BSL at Glance Slide 51: Symbol of Trust BSL at Glance Slide 52: There is a bit of steel in everyone’s life…! Submitted by: : Submitted by: Ujjwal Abhishek International School of Management & Research At Navin Hind High School Campus Tadiwala Road, Behind Pune Railway Station PUNE Website: www.ismrpune.com