Article Analysis Nelson D. Schwartz, Fortune Magazine senior writer in the article Emperor of Steel presents readers a story of the worlds fifth-richest man Lakshmi N. Mittal, an Indian billionaire, and surveys the steel market from the perspectives of entrepreneurship. The article incorporates great effort to interpret the history of Lakshmi N. Mittals participation in steel business from the bottom up. While the general business events are quite briefly described, greater emphases are laid on documenting Lakshmis skillful acquisitions.
The author of the article dwells on acquiring Arcelor and says that this acquisition will be Mittals 20-years dream of consolidating the fragmented steel industry (Schwartz n.p.) (the combined company that controls 10% of world production).
Mittal Steel is described as an unusual mix of publicly traded company and family firm (Schwartz n.p.), as Mittals son is the president of the company and the daughter Vanisha is on the board of directors. Billionaires family is often described as a |string of three generations of canny businesspeople (Schwartz n.p.).
Nelson D. Schwartz mentions that Lakshmi N. Mittal was quite familiar with the steel industry. The billionaire was born in Rajastan, where his father had an entrepreneurial bent, building a steel company in Calcutta, where Lakshmi got his start in the mailroom.
The Essay on Ford Focus and Ford Motor Company
When Alan Mulally took over as Chief Executive Officer at Ford Motor Company in 2006 the organization was losing billions of dollars. According to Tony Schwartz (2010), “It had just come off reporting a $14. 6 billion loss for 2008, its fourth losing year in a row” (para. 1). The article Alan Mulally-Making Ford a Model for the Future illustrates the progress of Alan Mulally and the four simple ...
Lakshmi liked the atmosphere of this hard business and further decided to focus on international opportunities, leaving India to his father and brothers (Schwartz n.p.).
He acquired Inland Steel in Chicago and expanded his business to Trinidad, Kazakhstan, Poland, and Romania. He did all his best to purchase the United Steelworkers union in April 2005. Lefler claims that the key to Mittals approach is gathering reams of data, then using it to fine-tune each plant for minimum cost and maximum profit (Schwartz n.p.).
This article surveys a variety of reflections and discussions of different aspects of social, personal and business life of Lakshmi Mittal from the beginning of his career up to the present. As the title runs, the focus is very much on Lakshmi Mittals success in steel industry and events contributed to his success, although there are some comments on overview of the steel industry in general.
Nelson D. Schwartz aims to combine explanation and description of life of the king of the steel market focusing attention on completely different view of Lakshmi Mittal. Nelson D. Schwartz is obviously anxious about the destiny of global steel market: thats why he examines the development and establishment of it. He also tries to show complicated business mergers and acquisitions made by Lakshmi covering the whole period of Lakshmis career. The article definitely shows integrity of business development and social conditions for Lakshmis successful business formation. Nelson D. Schwartz presents us a good attempt to synthesize wide-ranging information on examined theme.
Schwartz has clearly examined a lot of data to write his article Emperor of Steel and his knowledge covers a lot of information. I would also like to admit that this article is a summary of long-term researches on business life of Lakshmi Mittal against a personal background. Nelson D. Schwartz presents us a timeline of Mittals career and writes this review in an interesting manner. However, the author of the article doesnt speak much about the current attempt to acquire Arcelor that is an issue of the day throughout the steel market. Lets dwell further on the acquisition of Arcelor. What happens when the duelists cross their swords? The cascade of sparks flow and the suburbs are resounded with the clank of steel. Something like this takes place in the number of European capitals.
The Term Paper on Arcelor V Mittal Steel Major League
Arcelor v. Mittal Steel: Major League The companies located in areas with good perspectives of growth of steel consumption and relatively cheap energy vectors enjoy great popularity. However, the owners pay a high price for keeping the companies in the market. By the example of Erdemir we can see that the presence of company in a certain region is more important than incredibly high price for it. ...
The attempt of the owner of steel corporation Mittal Steel to acquire Arcelor is the reason of this steel war. This attempt is interpreted as the hostile act. Moreover, the Indian billionaire is often called the unceremonious and unmannerly businessman as he started the operations against Arcelor and even didnt get around to finding out whether the management of Arcelor has the intention to merge with Mittal Steel at all. The billionaire desires to create a giant holding company that will be producing more than 10% of the worlds steel. To purchase Arcelor the billionaire plans to spend approximately 10.6 billion EUR. As far as more than 85 percent of shares belong to numerous private owners and financial institutions, he considers that Arcelors owners will not be able to prevent him from purchasing shares.
There are several ways to prevent the acquisition. The management of Arcelor should convince at least one third of their shareholders not to sell their shares to the Indian billionaire. They can do it using several methods. One of them is to announce the merger with the other steel manufacturer. I believe the management of Arcelor examines this opportunity. The second opportunity to win the steel war is knock for knock alternative.
The Arcelor can try to crush down Mittal Steel using the same methods. Unfortunately, this method can rarely bring to success as the Indian corporation belongs to Lakshmi Mittal and the members of his family. Europe speaks about Lakshmi Mittal in an anxious voice. We know that Lakshmi visited the Minister of economy and finance Thierry Breton but in vain. Lakshmi wasnt able to convince the minister in brilliant perspectives of the acquisition. On the other hand, French authorities together with the European Commission have limited opportunities to influence the steel war as long as the company was registered in Luxemburg. Nevertheless, France will be able to use the law regulating foreign investments.
The Review on Steel Industry
INTRODUCTION It is very important for a company to change with time. Success of any company depends upon how well it rectifies the flaws in its system and sees the future trends and adjusts accordingly. Steel industry is one of the major industries in a country more especially in a developing country like India; it has a very wide array of utility. The case here is set in a steel industry in ...
It means that the acquisition should be coordinated with the Ministry, and, namely, with its head Thierry Breton who is the strongest opponent of the acquisition..
