Question answer Essay Example | Topics and Well Written Essays - 750 words - 1

Question answer - Essay Example The details mentioned in the data require that the long run rate of return must be calculated using the formula of present value of dividend using Dividend Discount Model. . PV GROWING PERPETUITY (DIVIDEND DISCOUNT MODEL) Data: Present Value of Share PV O USD.150 Dividend for the First Year D1 USD. 7 Growth g 0.04 Rate of return r ? FORMULA REARRANGED In the above provided case since the value of price was already provided, the formula for such payments has been manipulated and rate of return has been evaluated. The formula for DDM for the current price of shares is rearranged for the calculation of rate of the return. Applying this arrangement, the long term rate of return for the company is as follows: r 0.086667 r 8.67% Hence, the expected long run rate of return is 8.67%.This refers that when company is paying 60 percent of the earning as dividend to shareholders and investors are pricing the share at USD.150, the required rate of return in the long terms is 6.67%. This percentag e assumes that price is based on incorporating all information about the company. The formula can be summarized as the ratio of the cash flows of dividends received in the future periods by the net difference of the discount rate and the growth rate. This formula is developed on the concept that current price of stocks are a series of payments which grows as dividend perpetually at a constant rate. . The formula assumes that the payments of dividends are received for an infinite period at constant growth rate. For the calculation of Present value it is very important that the discount rate used for the calculation is higher than the growth rate.. PART B Dividend discount model assumes that the price of stocks follows constant growth indefinitely across the life of the company (McLaney, 2009). However, on actual grounds the growth of the company varies from time to time. For instance, in the above case, The Company aims to expand and therefore, therefore, has changed the dividend pol icy across for five years (Ross, Westerfield, and Jordan, 2009). In such case, two stage dividend discount model is used to evaluate the price of the stock in current year. In such a system of two staged growth, the price of stocks are measured by calculating the present value of dividend streams by discounting it with required rate of return. For the second staged growth, the price of a stock is calculated for the year in which growth has changed and is then discounted to current year (Gitman, 2003). In the final stage, the present values of two staged dividend growth are combined. The following formula is used for such cases: Following this, procedure the price of stock in second case is USD. 74.99. Given below is the calculation for the case: PART B DIVIDEND CALCULATION STAGE ONE STAGE 2 YEAR 1 2 3 4 5 6 7 Dividend MENTIONED IN CASE ONE 7 Â   Â   Â   Â   Â   Â   earning (calculated using Dividend Information of Case (1) and then growth applied $ 11.67 $ 12.13 $ 12.62 $ 13.1 2 $ 13.65 $ 14.19 $ 14.76 Reinvested $ 10.50 $ 10.92 $ 11.36 $ 11.81 $ 12.28 $ 4.26 Â   Â   Â   Â   Â   Â   Â   DIVIDEND WITH NEW % OF GROWTH Dividend $ 1.17 $ 1.21 $ 1.26 $ 1.31 $ 1.36 $ 9.94 $ 10.33 Â   Â   Â   Â   Â   Â   Â   Â   The above table determines that to get base year information, it is assumed that the earning of company for year one remains same as it is provided in the case. Hence, price is as follows: PRICE Â   Â   Â   Â   Â   Â   Â   Â   Â   PV: dividend 1 / (1-R)^t PV: dividend 7 / (r-g)

The Ku Klux Klan in the Reconstruction Era Research Paper

The Ku Klux Klan in the Reconstruction Era - Research Paper Example Members of the Ku Klux Klan waged underground campaigns of intimidation and violence against white and black Republican leaders and, despite the Congress’s legislation that aimed to curb Klan terrorism, the KKK organization carried out its primary goal of establishing white supremacy by ensuring Democratic victories in state legislatures particularly in the southern states around 1870’s. The Ku Klux Klan has persisted over the decades, sometimes declining in influence, only to re-emerge later, renewed and powerful than before, thereby leading to the different chapters of the organization that have no connection with one another; this paper provides a detailed account of the Ku Klux Klan particularly in the reconstruction era. The reconstruction era The Reconstruction era in the US refers to the period 1865 to 1877, following the American Civil War, during which many efforts towards addressing the inequalities of slavery together with its socio-economic and political leg acy (Ramold 164). Conventionally, the reconstruction period is a time when vindictive radical republicans imposed black supremacy upon the defeated Confederacy, though, the late 2oth century reconstruction period is an experimental moment for interracial democracy. ... ttance into the Union; the laws and constitutional amendments that laid the foundation for the most radical phase of the reconstruction era came in place from 1866 to 1871, granting freedmen equal rights under the constitution. Following these reconstruction amendments, blacks were voting and taking political office; a politically mobilized black community coupled with their white allies brought the Republican Party to power, with a redefinition of government responsibilities. The Ku Klux Klan in the reconstruction era had one primary objective, which was to trounce the Republican attempts to establish equal political and economic rights for the blacks through intimidation and violence that was directed to both white and black Republican legislatures. The Ku Klux Klan fired violence was so pervasive that Congress had to pass the Ku Klux Klan Act of 1871, granting authorization for military protection of the blacks against the Klan violence and terrorism. The reconstruction era was a significant mark in the history of civil rights movements in the US (Wiesenberger 951), though, most historians remain highly critical of this period’s failure to curb white supremacy effectively. The Ku Klux Klan then The Ku Klux Klan was a construct of the former Confederate soldiers and it was very active in the period following the Civil War, lasting throughout the reconstruction era; the group was largely comprised of Democratic ex-Confederate veterans, poor white farmers, as well as, white southerners, who were sympathetic to the declining white supremacy. The Ku Klux Klan of the reconstruction era was a highly organized entity that spread fear and violence systematically; the Ku Klux Klan system was largely a militant politico in nature, and it was meant to influence power

Teaching in Nursing Education discussion posts Assignment

Teaching in Nursing Education discussion posts - Assignment Example This has hampered â€Å"staff development... managers are eager to get nurses into staffing; some are reluctant to send them to classes they should have before they start working.† This has curtailed the educational development of nurses leading to a shortage of specialized nurses (who would be preceptors) as hospitals are less willing to invest in the education of nurses (National League of Nursing, 2011). Nursing is more than a course taught at a college or university, it is a practical subject that has to facilitate hands on learning using hospitals. â€Å"The increase in numbers of students entering nursing programs there has become an increased competition for acute care clinical sites† and this has limited time for practice. This problem can be addressed by requiring that each nursing teaching facility build a teaching hospital before it is certified by the state education agencies (National League for Nursing, 2005). Huang, H. (2002). â€Å"Towards constructivism for adult learners in online learning environments.† British Journal of Educational Technology, 33(1), 27-37. Retrieved from

Malcolm Gladwells 'Blink' Essay Example | Topics and Well Written Essays - 1000 words

Malcolm Gladwells 'Blink' - Essay Example For one, Gladwell is on a sticky wicket. The techniques and reasons are too complex to explain. For another, Gladwell knows what he is talking about. And finally, everyone else knows what Gladwell is talking about. On the spur moment decision, off the cuff remarks, gut feelings, intuition, quick thinking, customarily yield positive results, oftentimes because the person making the decisions and statements know very well what is going on and the reasons behind his or her decisions. Anyone who has read 'Blink' may understand the author's core issue. In simple terms, he is talking about the power of perception. One finds it difficult to disagree with the notion that he or she has never been in a situation when an intuitive stand or decision yielded positive results. The situation may be as varied as the ones author has touched upon, viz. deciding whether a statue is a fake, deciding whether a surgeon is likely to get sued for malpractice, and deciding whether the inhabitant of a particular dorm room is likely to be conscientious. In each case on which the author has elaborated the one making the decision did so with minimum information on hand, two seconds to decide, and with formidable consequences should the decision go wrong. Dr Atul Gawande is more succinct on the issue. ... Dr Atul Gawande is more succinct on the issue. In his book, 'The Bell Curve.' he cites examples of the Cincinnati Children's Hospital and Fairview University's Hospital at Minneapolis to illustrate background, the prevalent status, and the determination to turn around from mediocre to achievements, by skilled team of doctors to improve results from below average practitioners to trail blazers. They do so without any recourse to fresh medical training. They do so with determination, discipline and professional aggressiveness to ensure patients' recovery. Gawande's point of view is that it is not only professional qualification and capabilities, but practice and personal determination to succeed that drives one to achieve feats which may otherwise look impossible. [Atul Gawande].1 Correlation and Calculation In the instances of both Malcolm Gladwell and Atul Gawande the risk factors are overwhelming and possible solutions depend on 'thin slicing' - filtering the very few factors that matter from an overwhelming number of variables. [Malcolm Gladwell].2 Normally everyone is taught not to make hasty decisions, look before leaping, think, look at all angles, don't go by feelings, and to make maximum efforts at information gathering and consultation before making a decision. However, not everyone is instructed on how to go about handling a life and death situation, a crisis, walking tightrope over the Niagara, or accompany a close relative on his or her last walk to the gallows. Moreover, it is natural to pass the buck in a crisis situation or as a last resort, leave difficult, dangerous, embarrassing, debilitating situations to the Almighty in prayer! The person facing the crisis is a lone ranger facing the most unfortunate situation in his or her life.

Discussion of the history of cosmetics Essay Example for Free

Discussion of the history of cosmetics Essay The dawn of modern cosmetics began divided into the following categories: Grolier (2005: 188-191). a. Powders face powder usually contains talk, chalk, kaolin, and mixtures of zinc oxide, titanium oxide and various powdered pigments. Properly prepared, this mixture spreads easily, adheres to the skin, and absorbs some moisture. b. Emulsions these are fine particles of oil dispersed in water. Vanishing creams and cold creams are examples of emulsions. Thinner emulsions, which contain more water relative to the oil content, are used as cleansing lotions and hand creams. c. Lipsticks this is made up of oils, such as castor oil, mixed with waxes and pigments or dyes, and hardened into molds. Since the materials used in manufacturing lipsticks are actually taken into the body, the choice of ingredients is limited to those which are known or assumed to be non-toxic. d. Eye Makeup these are eyebrow pencils, eye shadow, and mascara are, like lipstick, compounds of oil, wax and pigments. They, too, must be made of non-toxic or non-injurious materials. Cosmetics have come a long way in modern history and played a significant role in adorning both men and women for various occasions. It has been so widely-used that its functions have traversed into extremes for beautification purposes – it can either conceal or flaunt an asset of a person. It can serve as mask or a highlighter. This just means that it has the ability to change the appearance of the person according to the manner it was used. At the end of the day, personal psyche dictates that every person intends or strives to become pleasant to the eyes of the millions of people around him or her. What is beautiful has also changed over the years. The definition of what is beautiful goes across regions, beliefs, religion and societal perceptions. Burke (2003:75-77): According to the twentieth century philosopher Charles Hartshorne, â€Å"Beauty is the centerpiece of this classical trinity and that nothing in our experience is exempt from the touch of the beautiful†. Beyond aesthetics, what is beautiful is how one perceives it to be, in that if he or she can find beauty in there. Therefore, the quality of what is beautiful has emerged from mere prettiness or elaborate ornamentation into an instrument of life towards survival in the continuous evolution of life in this planet. It can be found that the link between biology and beauty has dictated the development of humans and other species. Scientific studies strengthens the debate that the beautiful will emerge as the survivors given that their counterparts find them more attractive than the rest and that they are perceived to produce the most beautiful offsprings. In this biological quest for a successful and healthy reproduction process, the preference is indeed given to those mates who appear healthy. A healthy individual is visually manifested in their skin and hair, by the movement of their body, by a proportioned and toned body. These are the people judged to be beautiful. If the experts are correct in these assumptions or scientific observations, men usually look for women who appear young and fertile. This is where cosmetics leverage onto. Burke (2003:75-77): The cosmetic industry tries to address this so-called â€Å"need† that women continue to appear young despite already going beyond their fertile or child-bearing years. Nevertheless, beyond the need to reproduce our genes, the core of beauty still delves on the ability of a person to identify and bring out the beauty in their lives. We need not generate only life in this world, but also generate beauty that will make life even more worthwhile. It is the appreciation of beauty in our surroundings even without the use of any form of artificial adornment such as cosmetics that will enable one to realize the beauty of life, that it is worth-knowing and worth living after all. Given how important the nation for beauty is perceived across nations, and beyond borders, how cosmetics value this perception and its effects to the human well-being is crucial. Dermatological diseases have sprung in the recent years that come in a range from minor cosmetic problems to even life-threatening problems, as displayed in some disorders commonly due to skin differentiation processes. Zeeuwen (2004:176). With this statement, one should also be vigilant and be a knowledgeable end-user of these products that attempt to change certain elements of your natural state of appearance or being to some extent. The law of economics reminds us that with in every level of quality increased, price is directly affected as it is directly correlated.

Analysis of organization British airways

Analysis of organization British airways The details about the organization overview and organization process of the British airways. First it look at the company profile and history of the organization including organization chart to give overview of the organization it focus on the organization process like (1) changes within the organization (2) organizational culture (3) Recruitment, Training, Job placement and promotion policy. How these process are related and affected to each other. Finally, it will give recommendations for the organizations to deal with organizational process in future. Company profile: British Airways is the UKs largest international scheduled airways, which provides international domestic services for cargo and cargo. British airways which are approximately compromise 150 destinations in 75 countries. It includes Asia, Africa, North and Eastern Europe (plus the Eastern Mediterrean), Western Europe, North America, Central and Latin America (plus Sweden). The head quarter of the British airways is located in London. Gatwick airport and London Heathrow airport is the main hubs for British airways. British airways had more than 280 aircrafts, which is mainly for boeing jets and Airbus and it has more than 40,000 employees to work for a company (Hoovers 2006). Organizational chart: The structure of the organization is fat type because it has one level of hierarchy that separates the directors at top from bottom line employees. (Buchanan D. Huczynski A., 2004). Mr. Willaiam and M. Walsh is the head of the company, presently he are working as a chief executive. The British airways organization departments are includes planning, Engineering, Flight operation, Investment and Alliances, IT, Law, Finance, HR, Ground operations. History of British airways: British airways and imperial airline are merged together at the beginning of Second World War. The two airlines formed new subsidy companies. This is British Overseas Airways Corporation (BOAC) to operate short haul service in Europe (Papadogiannis, 2006). In 1980 British airways ran in the financial problems and Sir John King (CEO) was appointed to handle privatization and it was succeeded in 1987. (Datamonitor 2005). Objectives of British airways: Like all the business one of their first main objectives was to maximizing profits. However after September 11th they had to change their aim to having an increasingly in security and they needed to keep their customers safe. Objectives to increase profit by the end of the tax year 2009: A British airway is planning to increase profit by the end of the tax year 2009 than the last year profit. The last year profit was  £694 million. Annual reports of 2006/2007 shows that they had 148.3 million customers are within the UK. They need to monitor regularly the customers amount that they fly with them. Perhaps giving such as offerings on certain flights to increase their promotions. Changes within the organizations: The factors of the organizational change can be categorized into two factors. (1) External trigger and (2) Internal trigger. The first factor External trigger is innovations of competitors, requirements, and changes in customers, government policies and legislations. The second factor is Internal trigger it includes appointment of a new senior manager, new product and service design innovations, new ideas about how to deliver services to customers. (Buchanan D. Huczynski A., 2004). By the external and internal trigger have impacts on British airways, the company is responded by initiating privatization program to change ownership from government to private sector. According to Lewins change, changes within the organizations will occur in 3 stages. The first stage is unfreezing. The second stage is Movement to develop new behavior. And the third stage is Refreezing which is stabilizing change at the new level (Mullins, J., L., 1999) Human Resource Management policies in world airline industry: For the past 15 years there has been undergoing the research on the human resource policies and competencies differentiating the business performance. Companies are looking for the ways to gain a competitive advantages and the implication of human resource policy choices for companies performance is certainly to the key factor recently researches of the business strategy turned their attention into international attributes of the top companies looking at the industry is likely to evolve; and the way how that the evolution can be exploited to earn a profit. The greater and the extent to which of these assumptions and hypothesis are reflects accurately. The international airline and hypothesis is currently following with the similar trends. HRM policies in British airways: Human resource management policies are followed by the British airways in 1980s before and after privatization by the British government. When the British airways are in public ownership it had been unprofitable in the financial year of 1981/82 and it suffered in a severe financial loss. Following the market research showing that the airlines passengers were dissatisfied with its service. In 1982 British airways launched on extensive campaign called putting people first for all of 12000 staffs who had direct contact with customers. Up to 150 staffs at a time from baggage handlers to engineers and pilots took a part in servicing customers and later the campaign were extended so that eventually all of British airways staffs attended one of the events. Customers first teams were set up to look at the ways to improving customer service. Memberships of the team cuts across to the organizational boundaries with staff from different sections are working together for the ten years later 75 of the teams were still actively working. On 1990s British airways had come to focus on key performance indicators as a principle tool for managing staff. These were six such indicators for its managers: leaderships, communication business competence, managing performance, valuing others and customer focus. These are the basis of decisions about the manager selection pay and performance management. Further market research shows that the customers satisfaction with the quality of British airways service has increased. Since British airways moved to spectacular profit from financial loss over the period when these initiatives took place (in 1995 February recorded profits reported of  £443 million with total passenger of 23.7 million, and it had 65600 staffs are early 2000). The human resource initiation of its financial success has been partly attributed. However it should be noted that some of the problems are lingered. In common with all the airlines are operating to the transatlantic routes of the attack on the world trade center in September 2001. Despite in Human resource management initiatives of a staff survey in 1992 shows that the staff rates British airways poorly as the employer for sustaining a work environment that attracts develops committed employees and retains. British airways also lost a damaging strike following an attempt to impose a new pay deal on its staf f without negotiation in the mid of 1997. British airways Raises Retirement Age: On 24th march 2006, British airways change its New Aircrafts Pension Scheme (NAPS). For the recent joiners, including chief executive Willie Walsh who joined in 2005 May, British airways Retirement Plan (BARP) has been available. The New Airways Pension Scheme (NAPS) has 33,794 active members, 15,185 pensions and 20,269 deferred. There is no increase in staff contribution values for the final salary pension scheme in British airways earned. But, there will be the changes under the new proposals to members benefits relating to future service. Key changes to future services are: For cabin crew members normal retirement age raised from 55 to 60 years initially. For pilots normal retirement age raises from 55 to 60-65 years. Such countries like USA and France remove the restriction on older pilots overflying them. Pensionable pay increases not more than the inflation. On retirement capped pension increases every year at 2.5 percent. Chief executive Mr. Willie Walsh said, this is the solution that will provide for the future affordable pensions. The airline will make a payment of  £ 500 million into fund after the changes accepted. The company will have paid towards the past deficit by December 2006 on top of the  £ 350 million. Mr. Walsh added: The future benefits are changes to members will reduce the anticipated deficit by the  £ 480 million. And also they may able to make contributions for future service can afford. British airways cut management jobs: On 30th November 2005- British airways announced plans to re-structure the business on March 2008 by cut 35% (357). This includes: Reduction of 50% from 414 jobs to 207 on senior managers. And reduction of 30% from 1,301 to 911 on middle level management jobs. British airways chief executive Willie Walsh said that when we reported our second quarter financial results last month that our costs were needed to re-energies our efforts to deliver a competitive cost base. The management job reductions are intended to reduce British airways costs by  £ 50 million as part of its  £ 300 million to cost reduction program on 2007 march. The number of senior manager reduction will be phased: 23% (94) of top executives left the business on 31st March 2006. After the next two years more jobs go with the 50% target to achieve on 2008 March. On March 2006 30% reduction in middle manager should be developed and communicated. British airways are going to cut jobs for cabin crew and introduce two year freeze pay. British airways were lost  £ 401 million last year and they announce earlier last month that they would need to cut 2,000 full time jobs. During the recession the British airways instead press ahead with plans to recruit news staffs on different terms and conditions to the current employees in an attempt to save costs. On 25th June 2009, British airways announced almost 7,000 British airways staffs has volunteered to take unpaid leave, voluntary pay or part time working cuts as part of companys plans to cut costs. British airways chief executive Willie Walsh said, It is a fantastic first response. I want to thank everyone who has volunteered to help us to pull through this difficult period. Walsh himself has agreed to not to take salary during the July month. The latest news of the British airways is British airways staffs are unwillingly agreed to work in new schedules with reduced staffed pending. British airways are presently battle with the unions over changes to jabs and pay. They want to cut cabin crew staffs on long-haul flights from 15 to 14, this changes imposed from 16th of November. Privatization in British airways: A British airway has a change within its organization which is privatization project in 1980s. The company faced the financial problem at that time. The long term debt which is more than  £ 1 billion, and the British government not willing to give public money to wipe out companys debt because of the criticism fear. Then for these reasons British airways decided to make changes within the organization. (Shibata, K., 1993). This privatization made the British airways to change many things in the organization such as mission statement, corporate culture, and organizational structure and so on. Retirement, Training, Job placement, Promotion policy: British airways were considered to be bureaucratic, awkward, inefficient and large in the past. According to privatization, it changed corporate culture from militaristic and bureaucratic to market-driven and service oriented which it made the company to effective in the airline industry. (Poole, R., 1988). These changes which are also involve in HR policy as following. Recruitment, job placement policy: Recruitment and job placement policy are involved in Refreezing stage to Lewins model. According to the stage, British airways have to stabilize the changes and make the behavioral pattern in the organization. British airways needed improve and redesign the recruitment policy and the process in order to increase the new employees who is able to share organizational new value system and management style. (Goodstein., D., L., Burke, W., W., 1991). To achieving these objectives, British airways changed the job placement policy and recruitment which is supported by the diversity concept and equity to identify the right candidates to fit in a new system. Employee recruitment scheme and process: In recruitment and job placement policy, British airways developed recruitment methodology it is looking at the competencies including skills, knowledge and behavior using these competency based interviews made British airways to ensure those candidates will be in success in their jobs and they will fit in to the new organizational system. Selecting right people to work in business field, British airways needs to focus on strong leadership qualities, high motivation, team working skills, passion for customer service and so on (British airways 2006). There for, British airways developed assessment methods in job placement and recruitment process for senior level positions and new entry-level such as the interviews, presentations, role play, group exercises, fact finding psychometric tests (British airways 2006). Training and promotion policy: Privatization transformed British airways to more service airline industry that emphasize on servicing customer. According to unfreezing stage, British airways had stop to introduce new behavior and present pattern and culture of employees. So British airways launched new training program is putting people first for the bottom line employees. And for management-level-employees British airways has introduced a training program Managing people first (Goodstein., D., L., Burke., W., W., 1991). Putting people first program According to corporate goal British airways wanted to be The worlds favorite airline in airline industries. At the time of privatization British airways changed them self to be marker-led company rather than a process-driven company as it had in the past. Putting people first training program is aim to create employees awareness of competition, market place, and to educate employee to know the awareness of team work. As a result of this training program make the organization to reach goal in order to be best and most successful company in the airline industry (Street, M., 1994). Managing people first program: In the second stage of changes in British airways, they needed to bring vision of top management into his employee. For the management level of employees they were implemented during this stage was the special training program Managing people first. The module of the special training program includes support team, training, active senior management participation, multi source feedback and linked performance appraisal system. After participating the management level training program made British airways to have a new leadership to focus on servicing customer and this key factors in better customer retention and it increase more revenue (Tosti, T., D. Jackson, F., S., 2006). Employee promotion policy: British airways changed to private company successfully in 1987, because of one factor that facilitated changes in organization which is Employee promotion policy. British airways used promotion policy to top management levels to promote employee who was the role model of the new British airways values in higher level. This strategy was used to promote employees in top management levels to value in organization. (Goodstein., D., L. Burke, W., W., 1991). Organizational culture: Organizational culture is to consider each organization to how the things are doing around here because each and every organization has different values, belief and different culture. But we can easily explain about the organization culture is the collections of traditions, attitudes, policies, beliefs and values. (Mullins, 1999). Culture changes in British airways: For the organization culture is very important for setting creating tradition and organizations internal and external environments are change, an organization must adapt its present culture and in the order to survive the industry (Salama, A. Easterby-Smith, M., 1994). Recommendations: It is not easy for any organization; it is a general acceptance to make changes into structure and systems. Sometimes leads to have a resistance from its employees to make any changes in the organization. There are four reasons of resistance to organization change from employee including 1) Misunderstanding and lack of trust, 2) Low tolerance for change, 3) Contradictory assessments, 4) Parochial self-interest. (Buchanan D. Huczynski A., 2004). British airways try to change behavior both in organizational level and individuals, such as changing the management style from participative and authoritative. Sometimes new behavior or pattern makes employees to unfamiliar and awkward that it can make them to slip and reject back to the comfortable pattern instead. British airways needed to have more participation in the management decision; but it difficult decision arises; it may not be possible to get it difficult decision arises; it may not be possible to get a consensus decision. (Good stein., D., L. Burke, W., W., 1991). In the British airways history, British airways used tactics to manage resistance and conflicts mostly were HR policy such as training policy. The effective tool to educate employee is HR policy and convenience them to comply with new system. For example, to many new competitors emerged to overcome during 1990s with incumbents in the airline industry such as Easyjet and Ryanair. The CEOs of British airways declared the organization may need the second revolution. British airways tied with American airlines by sourcing new alliance to reducing labor cost in both core staff and non-core staff by recruiting newly hired employees on lower pay to replace the existing staffs, and restructuring payment system. And some of the employees felt that is unsecured and unfair on their jobs. (Wilkinson, A. Grugulis, I., 2002). Many of the organizations including British airways desire to make the changes in their organization when problem arise and they make changes successfully in the less conflict way and harmless. In the past, British airways used often HR tool such as recruitment, training policy and manpower planning to reduce assistance and facilitate changes in organization. Another way to changes in organization is change agent the change agent is a person who leads the project change by planning, researching and building business support. (Bhardwaj, M., 2003). Change agent is an external consultant that the organization hires her/him to take the responsibilities for a specific project. (Buchanan D, Huczynski A., 2004). But the internal consultants have narrow view and more bias. The external agent is another way to handle the project change effectively. Conclusion: A British airway has a long history regarding the organizational changes in the worlds leading airline industry. British airways adapt itself such as value, belief, corporate culture and company mission to improve the organizations performance because of external and internal pressure. HR policy is the most popular tool to handle and facilitate changes and resistance in the organizational. A British airway is successful in privatization in 1987; but during that time there was a strike occurred, which gave an expensive lesson to British airways in 1990s. Finally, organization to facilitate changes is to use change agent which is better to external consultants better than the internal consultants.

Growth And Evolution Of Steel Industry India Economics Essay

Growth And Evolution Of Steel Industry India Economics Essay Indians were familiar with iron and steel during the Vedic age more than 4,000 years ago. It is evident from the Iron Pillar at the outskirts of Delhi. But the seeds of modern steel industry were sown by Sir Jamshedji Tata in 1907 when Tata Iron Steel Company Ltd. (TISCO) was set up. The first steel ingots were rolled in TISCO in 1911. This was followed by the establishment of the Mysore Iron and Steel Works in 1936, later renamed as Visvesvaraya Iron Steel Works. Three years later in 1939, production of steel started in another private steel company, the Indian Iron Steel Company, now a subsidiary of the Steel Authority of India Limited (SAIL). In India, a major part of steel is consumed in engineering applications, followed by automobiles and construction. The growth of steel, as is well known, is dependent upon the growth of the economy, industrial production and infrastructure sectors. Over the last few years the performance of the Indian steel industry has been adversely affected due to overcapacity, cheap imports, economic slowdown, declining global steel prices and also anti dumping duty imposed by USA on Indian exports. In the era of planned economy, iron and steel, a core and basic sector, received the full attention of the Government. It became a key sector for public investment for the first Five Year Plan itself. The year 1953 saw the first agreement being signed with the Germans to establish a 1 million tone plant at Rourkela in Orissa. Two more agreements for setting up steel plants, at Bhilai with the erstwhile USSRs assistance and another at Durgapur with the help of U.K. was signed in 1956. Successive capacity augmentations at Bhili, Durgapur and Rourkela saw their capacity increase to 2.5, 1.6 and 1.8 million tons per annum respectively by the end of the 60s. A new plant at Bokaro with a capacity of 2.5 million tones per annum went into production in 1973-74. The year 1978 witnessed a major restructuring of these steel-making public sector units giving birth to the public sector giant, SAIL, having a Navaratna status today, with an aggregate capacity of over 10 million tones. The first shore-based public sector integrated steel plant, viz. The Rashtriya Ispat Nigam Limited of 3 million tones per annum capacity went into production in August, 1992. During the first two decades of planned economic development, i.e. 1950-60 and 1960-70, the average annual growth rate of steel production exceeded 8 per cent. During 1970-80, this growth rate in steel production came down to 5.7 per cent per annum and gathered up marginally to 6.4 per cent per annum during 1980-90. Until the 1990s the iron and steel sector was by and large the exclusive preserve of only the public sector, the sole exception being TISCO. The new economic policy announced in 1991 was no doubt a significant milestone in the evolution of the Indian economy. The process of the economic reforms ushered in substantial liberalization of the policies and institutions governing trade, industry and finance. With this the complexion of Indian iron and steel industry has undergone a sea change. Iron and steel industry became one of the foremost sectors to be opened under the New Economic Policy. Substantial private investments flowed in with the consequent changes heralding a new beginning for the interplay of free market enterprise in this vital sector. Changes A glance at the pre-and post-1991 era reveals some interesting and significant structural changes. At the consumer or demand end, the market for steel has been transformed from a seller to a buyer market. Control and regulation have been replaced by competition. Administered prices have been replaced by supply-and demand-determined market prices. In the post-liberalization era, the structure of the steel industry is significantly and vastly different with the advent of major steel producers in the private sector which have come up with the world class technologies and capacities. There has been a clear shift towards the selection of the product mix. During the pre-1991 era, the private sector was mainly confined to the production of long products. The only producer of hot-rolled flat products was SAIL in the public sector. Now there are 5 additional major producers of flat products of steel in the private sector. There has been a clear focus on the state-of-the art technology. Presently, India can boast of new technologies like Corex, Thin Slab Casting and Compact Strip Mill Technology, DC Electric Arc Furnaces, Twin Shells AC EAFs etc. in the steel industry. The industry has now to focus on customer satisfaction and outstanding quality of steel products in a competitive environment. Steel producers in the public and private sector have taken upon themselves with determination and commitment to overcome the new and arduous challenges to come up to the Governments expectations as also the people of our country in the most difficult and trying period for the last couple of years. Indias Competitive Position India is a very competitive country with regards to steel production. India is next only to Brazil if I have to compare the competitiveness of the steel industry. The first and foremost is the availability of iron ore, the next being the adaptability to technology and last but not the least, the labour costs are very competitive as compared to the rest of the world. India is more competitive than countries like US, Europe, Posco of South Korea and Japan and even China. China does not have iron ore resources. China imports almost all of its iron ore requirements. Indias competitiveness in steel is a good one. But the competitiveness gets eroded a little due to various high infrastructure costs like freight rates in rail as well as through road are very high. Port charges are uncompetitive. The time it takes for loading and unloading of the ships is uncompetitive. For a comparison, export of steel in bulk to London works out to be more cost effective the sending steel to Mumbai from Kolkata. Impact The response of the private sector in particular has been quite encouraging in the post-liberalization era. Many all-India financial institutions also came forward to support these initiatives and had sanctioned financial assistance to 19 steel projects involving an investment of about Rs. 30,000 crore covering an additional capacity of 13 million tones per annum during the post -liberalization era. Today, India is the tenth largest steel producer in the world. Government Initiatives The Government has been making all-out efforts to help the domestic steel industry to overcome the problems faced by them. To boost the demand and consumption of steel, an Institution for Steel Development Growth (INSDAG) was set up involving leading steel producers in the country. The Development Commissioner for Iron Steel had launched a National Campaign for increasing the demand for steel in non-traditional sectors, particularly in the construction, rural and agro-based industrial sectors. Other areas include reduction in power and railway tariffs, reduction in input costs, strengthening of antidumping mechanism, setting up a steel exporters forum and an empowered committee for research and development. Current Scenario for Steel Industry Global steel demand is rising on the back of accelerated infrastructure activity in China, CIS and India, housing boom in USA, and white goods resurgence in Europe. During the recent recessionary phase, the industry has consolidated in terms of ownership as well as mothballing of inefficient capacities. Steel prices continue firming up. For the first time in last 20 years, there is demand growth all over the world for steel. In US, the demand is led by the booming housing industry. Additionally the auto industry is showing signs of recovery as auto sales hit their strongest levels for the year in July even as US posted a 2.4% GDP growth. In Europe, there is demand from a buoyant housing and white goods industry according to industry sources. In India, China and other Asian countries the demand is led by emphatic investment activities in infrastructure. Russia and other CIS nations are also witnessing strong internal demand. Iraq reconstruction work is expected to fuel further demand for steel over the next three years. China is consuming steel like never before for its infrastructure with investments such as Three Gorges project on Yangtze as well as part of its build up to the Beijing Olympics in 2008 and the Shanghai Expo in 2010. 2) PRODUCT PROFILE ESSAR STEEL LIMITED (ESL) Hot Briquetted Iron (HBI) Essar steel took various technical initiatives to increase the production and reduce the cost. The capacity utilization improved after the company made various modifications. The HBI plant produced 1,65,052 tons in March 2000. With this the annual production capacity of the plant is close to 2mn tons. Hot Rolled Coils (HRC) ESL is one of the largest exporters of hot rolled coils. It increased its exports by 32% from 161,000 tons to 213,000 tons in the last quarter The company has increased its hot rolled coil capacity from 2mn tons to 2.4mn tons. Essar steel expanded capacity to take advantage of the increasing demand in the domestic as well as the international markets. During the year Essar Steel shifted from base grade steel to high value grades to get better realizations. Essar steel has developed new products for segments like the automobile sector. ISPAT INDUSTRIES LIMITED (IIL) Direct Reduced Iron (DRI) The DRI plant operated at 90% capacity utilization and produced 1.07mt of sponge iron, with 95% metallisation quality.. The decline in realizations was due to the oversupply scenario caused by the fall in production levels of all induction and arc furnace units. Cold rolling mill and Coating plant The company produced 0.26mt of cold rolled coils/sheets in the last fiscal. During the year the company sold 1.22mt of DRI which was higher by 12% as compared to the previous years sales volume of 1.08mt. The full integration of the steel plant will enable the company to produce value-added products and help them change their product mix. INDAL IRON AND STEEL CORPORATION LIMITED (JISCO) Hot rolled products JISCOs hot rolling facilities are located at Vasind near Mumbai. The plant has an installed capacity to produce 2,80,000 tonnes of HR plates/coils. The company during the year produced 1,61,253 tons of hot rolled plates as compared to 1,97,178 in the previous year, showing a drop of 18.22% yoy. The dip was due to the low demand for HR plates as demand from heavy automobile, construction etc. sectors was low. Cold rolling and galvanizing JISCO has an installed capacity to produce 400,000tpa of cold rolled strips/sheets at Vasind (150,000tpa) and Tarapur (250,000tpa). It also has 550,000 tpa capacity of galvanised coils/ sheets at Vasind (175,000 tpa) and Tarapur (225,000 tpa) and has commissioned a 1,50,000 tpa capacity quality line CSD III. STEEL AUTHORITY OF INDIA LIMITED (SAIL) Product Mix SAIL produces nearly the entire range of steel products. The production strategy was altered in line with shifting demand patterns of the market. The production of crude steel through con-cast route increased by 17% yoy with proportion of BOF- CC production going up from 43% in FY02 to 50% in FY 2003. Modernization SAIL incurred a cost of Rs55bn between FY88 and FY92, on modernization. The second phase of modernization has envisaged Rs130bn investment during FY93 to FY97. The modernization has resulted in significant improvement in energy consumption, coke rate, yield etc Steel Products Semi-finished products (also called semis) are intermediate products, cast from liquid steel prior to further rolling into finished products. Finished steel products, available in a vast range, can be broadly categorized as longs and flats. Long products include bars, wire rods, angles, structural, channels. 3) DEMAND DETERMINATION OF THE STEEL INDUSTRY The global demand for steel is at an all time high nowadays. Much of the tremendous demand for steel around the world may be attributed to the numerous construction projects that are going on around the world. Much of these projects are taking place in the economically developing countries of the world like India, China and Thailand. China is the place where a lot of construction is being done nowadays and much of the construction is for the purpose of the Olympics to be held in 2008 and the Shanghai World Exposition of 2010. Along with being one of the major users of steel, China is one of the major producers of steel as well. During March, 2007 China produced a record 40.16 million tonnes of steel. The demand for steel has gone up in the United States of America as well.   This may be ascertained from the fact that in 2007 the amount of steel used was 2.2% more than what it was in 2006. Thus it may be ascertained that the supply and the demand for steel is at their respective peaks. This bodes well for the Indian steel industry as India has plenty of steel to meet up with both the domestic as well as international demand.  India has a lot of iron ores. This implies that India has a ready base for producing sufficient amount of steel and the experts are also of the opinion that the Indian steel industry would continue to grow in the coming years. In the recent times the production of steel has gone up in the country from 17 million tons in 1990 to 36 million tons in 2003.  The Indian steel industry is trying to reach the 66 million tones mark in 2011. The high levels of production would allow the Indian steel industry to establish a stronghold on a number of areas like housing, construction, and ground transportation. The special steel produced by the Indian steel industry is supposed to be used in high end engineering industries like generation of power, fertilizers and petrochemicals.   The fact that India is not a voracious consumer of steel like some of the major economies like China and the United States of America means that India would be able to use the surplus steel it produces for exporting to other countries. So that their demands are met. This would help the Indian steel industry to be regarded as one of the most prominent steel industries if not the leading one. 4) PLAYERS IN THE STEEL INDUSTRY The performance of steel industry in India has been quite satisfactory over the past decade. Company Share % (2009) Tata steel 35.7% Steel authority of india limited 23.8% Jsw 9.7% Other 30.7% Total 100% The steel industry in the whole of Asia is aided by cutting-edge technology and because of this, the companies in the industry has made great advancements in all their operational areas.The development of steel industry in India is mainly due to the substantial increase in the demand for steel products of India in the global market. The top companies in this industry mainly operate in four different forms like manufacturers of semi-finished steel, producers of finished steel products, manufacturers of stainless steel and producers of pig irons. The list of top companies in the steel sector in India is given below: Top 10 steel companies in India: à ¢Ã¢â€š ¬Ã‚ ¢ Rashtriya Ispat Nigam Limited à ¢Ã¢â€š ¬Ã‚ ¢ Steel Authority of India à ¢Ã¢â€š ¬Ã‚ ¢ Tata Steel à ¢Ã¢â€š ¬Ã‚ ¢ Visveswarayya Steels à ¢Ã¢â€š ¬Ã‚ ¢ Bokaro Steel Plant à ¢Ã¢â€š ¬Ã‚ ¢ Bhilai Steels à ¢Ã¢â€š ¬Ã‚ ¢ Essar Steels Limited à ¢Ã¢â€š ¬Ã‚ ¢ Jindal Steel Power à ¢Ã¢â€š ¬Ã‚ ¢ KVS Ispat à ¢Ã¢â€š ¬Ã‚ ¢ Jindal Steels Limited Some of the details regarding these top players in steel industry is given below: Rashtriya Ispat Nigam Limited: The foundation stone for Rashtriya Ispat Nigam Limited was laid in the year 1971 and this organization is the corporate body of Visakhapatnam Steel Plant. They have three different mines under their control being the blast furnace grade limestone mine, manganese mine and dolomite mine. They are specialized in the production of the following products: à ¢Ã¢â€š ¬Ã‚ ¢ Rounds à ¢Ã¢â€š ¬Ã‚ ¢ Beams à ¢Ã¢â€š ¬Ã‚ ¢ Wire rods à ¢Ã¢â€š ¬Ã‚ ¢ Squares à ¢Ã¢â€š ¬Ã‚ ¢ Billets à ¢Ã¢â€š ¬Ã‚ ¢ Channels à ¢Ã¢â€š ¬Ã‚ ¢ Blooms Steel Authority of India: Steel Authority of India shortly called as SAIL is one of the top public sector steel-makers in India and they produce steel products both for export and for domestic consumption as well. SAIL holds the pride of being one among the four Maharatnas in the Central Public Sector Enterprises in India. They are the major manufacturers and sellers of the following steel products: à ¢Ã¢â€š ¬Ã‚ ¢ Alloy steel à ¢Ã¢â€š ¬Ã‚ ¢ Stainless steel à ¢Ã¢â€š ¬Ã‚ ¢ Rods and bars à ¢Ã¢â€š ¬Ã‚ ¢ Railway products à ¢Ã¢â€š ¬Ã‚ ¢ Structurals à ¢Ã¢â€š ¬Ã‚ ¢ Electrical sheets à ¢Ã¢â€š ¬Ã‚ ¢ Galvanized steel à ¢Ã¢â€š ¬Ã‚ ¢ Cold and hot coils and rolled sheets Tata Steel: Tata Steel is a part of the Indias popular Tata group and they are one among the global steel service and manufacturing companies in India. They have a balance presence in over 50 developed countries in the continent of Europe and they have manufacturing units in 26 different countries all over the world. Visveswarayya Steels: Visveswarayya Steels is actually a unit of the Steel Authority of India and they are dealing in the production of pig iron and alloy steels. The company began as a separate entity in the year 1923 and it has now come under the SAIL. Bokaro Steel Plant: Bokara Steel Plant began its journey as a limited company in the year 1964 and the company is situated in the Bokaro District of the state of Jharkhand. The plant holds the pride of being the countrys first Swadeshi Steel Plant. Even though, the company began its journey as a separate entity, it is now merged with the Steel Authority of India. Bhilai Steels: Bhilai Steels are one of the leading supplier, stockiest, exporter and importer of hast alloy, aluminum, inconel, monel, brass, copper, ally steel, carbon steel and stainless steel. They are also leaders in a wide range of pipefittings like compression type of popes with Ferrules, forges, screwed, SW and BW pipes. The steel products of this company are being used in different industries like cement, power, textile, pharmaceuticals, sugar mills, petrochemicals, fertilizers and chemicals. Essar Steels Limited: Essar Steels are one of the most versatile producers of steel-based products and tailor-made products and these products are the best known for their quality. Their 24-carat steel is a product that got worldwide acceptance. They have international centers in different countries like Indonesia, Vietnam, Canada and the USA. Some of the products manufactured by them are: à ¢Ã¢â€š ¬Ã‚ ¢ Cold Rolled Products à ¢Ã¢â€š ¬Ã‚ ¢ Hot Briquetted Sponge Iron à ¢Ã¢â€š ¬Ã‚ ¢ Hot rolled products à ¢Ã¢â€š ¬Ã‚ ¢ Galvanized products à ¢Ã¢â€š ¬Ã‚ ¢ Iron ore pallets Jindal Steel Power: Jindal Steel Power is a leading player in different industries like infrastructure, gas and oil, coal to liquid, mining, power and steel. They are continuously creating new opportunities by leveraging their core capabilities to venture into new business, diversifying investments and by increasing production capacity. KVS Ispat: KVS Ispat is a flagship of KVS group of companies and the company enjoys a legacy in the industry of steel for the past 22 years. This company is known for its excellence right from its inception and they are consistently making great contribution towards the development of the society. They are dealing with different types of steel products like: à ¢Ã¢â€š ¬Ã‚ ¢ Rounds Squares à ¢Ã¢â€š ¬Ã‚ ¢ Channels à ¢Ã¢â€š ¬Ã‚ ¢ Flats à ¢Ã¢â€š ¬Ã‚ ¢ Angels à ¢Ã¢â€š ¬Ã‚ ¢ Light Structural Steel à ¢Ã¢â€š ¬Ã‚ ¢ TMT Bars Jindal Steels Limited: Jindal Steels are also making a good contribution towards the development of India and they are ranked sixth among the top business houses with respect to their asset holding. They are one among the multi billionaire corporation in India. Their main aim is to become a world player in the industry of steel production and they are committed to maintain world-class quality in their production, to offer products at a competitive price and to do excellent after sales service to their customers. Thus, like any other industry steel industry in India is also offering wide range of employment opportunities to deserving candidates thereby acquiring the required talents for their organizations and by offering the right job to the right candidate. 5. DISTRIBUTION CHANNEL OF INDIAN STEEL INDUSTRY Distribution channel in India is now more smooth after 1991. Distribution maybe the best characterize through alarming consolidation. This consolidation is usually, predictable, also understandable as competitors in industry, which are in same business or substitute, additionally set their niches or produce bigger in a hunt for economies of scale. Distribution channel having their own alteration according to their convenience . for clearing the idea about it , the distribution channel of Indian steel industry are given as below (see  Figure 1). Traditionally, sales have playing an important role in each stage of the steel industry supply chain. sales people are remunerated through sales reward typically makes around 2 % of the product MRP . In the model shown in Figure 1, 16 % of the charge in the channel is associated to sales salaries as well as commissions. As the industry have moved from a home market to a global market, competition has greater than before they face, which help them to earn more profits. To protect profits, or for competing , the channel has upgrade their production technology . several clients begin to analyze sales calls through salespeople as an interruption in their day. A fine proportion of businesses entered in annual contracts with a companies, negotiated price as well as preset, scheduled material releases salary, or through salarwithcommission, although others draw directly . distributer channel.JPG 6. KEY ISSUES AND CURRENT TRENDS 1.New Steel Policy To Facilitate Rapid Growth Of Domestic Steel Sector, Says Government [Friday, Mar 23, 2012] A new steel policy will be aimed to ease the faster growth of the domestic steel sector by ensuring faster capacity addition, as realized by the government. The Steel Ministry-constituted panel is scheduled to finalize the draft within two months and there are expectations that it will be prepared in another three-four months. The government conceived of taking countrys capacity to 145 MT by 2015-16. The new policy assumes importance as it is coming up against the backdrop of huge delays in the multi-billion dollar ventures including those of ArcelorMittal and POSCO which were delayed due to the hurdles of regulatory and land acquisition. ArcelorMittal, which has proposed projects worth Rs 1.3 lakh cr. in Jharkhand, Orissa and Chhattisgarh, is facing land acquisition problems. POSCO, which has proposed a project in Orissa worth Rs 54,000 cr., is also battling regulatory hurdles for several years. 2.Arcelormittal Eyeing Land In Jharkhand [Saturday, Feb 04, 2012] Arcelormittal, a steel company, is in the process of identifying land in the Bokaro district for recommended 12-million tonnes per annum Greenfield steel plant in Jharkhand. AP Singh, Jharkhand Industry Secretary, said, They are still in the process of searching land in two locations Chas and Kasmar in Bokaro district. Mr Singh, who has been here to take part at a trade fair organized by CII, said that the recommended project of the international steel company will be delayed although the environment department has proposed the environmental approval, since the nod from the forest department has not come yet. The steel firm needs 2,400 acres of land for the recommended project. 3.Ministry Of Steel-(2012-2013) To transform India into a global leader in the steel sector, both as a steel producer as well as a steel consuming nation and to enhance the industrys international competitiveness. Mission Promoting policies, initiatives and incentives for attaining a national steel production capacity approximately 100 million tons per annum by the year 2012-13.Streamlining the regulatory environment for enabling optimal steel production; particularly regarding mineral policy and the mine allocation regime, tariff and taxation measures, and land allocation and environmental and forest clearances .Promoting the development of infrastructure required for enhancing national steel production through coordinated efforts, particularly in sectors like Railways, Roads, Ports, Power and Water supply . Enhancing the domestic demand for steel through promotional efforts and by enlarging the retail network of steel Companies . Improving the techno-economic efficiency of operations of steel Ministrys PSUs. Objective 1. To facilitate creation of steel making capacity and growth in steel production during 2012-13. 2. To oversee the completion of the apex and modernization programs of the PSUs. 3. Ensuring adequate availability of raw material for steel industry from domestic and overseas sources, particularly iron ore and coal by PSUs under the Ministry of Steel. 4. Improving the performance of Iron Steel industry through R&D; intervention, Quality Control and Export Promotion. 5 .To facilitate and monitor mergers, acquisitions and joint ventures by the Steel Ministrys PSUs. 6. Finalization of New Policy Initiatives. 7 To update information and data base in respect of Re-rolling industry 7. PEST Analysis India is the 10th largest steel producer of the world. the huge Integrated producers like SAIL, Tisco and RINL have traditionally dominated steel production in India. Due to excessive Government controls as well as regulations, the Indian steel industry are broadly affected from the environmental aspect. A examine of the external macro-environment in which the companies operates can be articulated in terms of the following factors which detailed as below. Political Economic Social Technological Political Factor Government And Regulatory Interventions The role of the government is crucial, both as a supplier and as a customer, and also as the supra-environment for business, creating the rules for competition. It creates boundaries within which the steel industry must operate. In the case of the Indian steel industry, the government directly or indirectly controls the finance and many of the inputs both raw material and services. The government has opened the field for private power plants. This is, in the long run, expected to improve the power situation in the country, to the benefit of the steel industry. The government as a buyer is very important for the steel industry. The investment of government in infrastructure such as highways, rail, plants, power dams, ports etc are significant key movers for steel demand. In fact, government spending on infrastructure spurs the demand for long products, which is followed, with a time lag, by a demand for flat products. The demand for long products tapers off with a saturation of infrastructure development. This is expected to provide the necessary fillip to the stagnant steel demand. Government regulations also provide protection to indigenous industry, or take it away. The recent liberalization of the economy has had mixed results for the Indian steel industry. On the one hand, they are free to import machinery6 and select raw material without the earlier procedural delays and checkpoints. On the other hand, they have had to continuously fight the dumping of cheap steel from around the world. Environmental norms imposed by the government from time to time have a significant reflact, expected to be about 15% of project cost. Government regulations and concerns regarding discharges from steel plants could become one of the major forces driving development of new technologies. Economic Factor INDIAS steel exports registered impressive growth in 2002-03. Provisional figures suggest that exports stood at highest level, against last five years. The steel industry was finally showing signs of recovery. Major producers started to export to capitalize on rising international prices and to boost bottom lines that had rusted in 1998-99. However, yet again, the good times comes for steel players. Indian economy become the strongest than it is comparing since last many years, it is absolutely good time for Indian steel industry. The analysis shows that the Indian steel industry suffer the low productivity of labour but high capital, energy and transportation cost. The steps needed to enhance competitiveness of the Indian steel industry contain investment towards technology up gradation. There is also a vast scope for quality up gradation. Quality monitoring, inspection and control measure have also to be introduced at all stages of operation as well as technical discipline. computerization in process routes, improved maintenance practices, optimum capacity utilization, extensive automation in all possible areas as well as pollution control measures need to be implemented. The Indian steel industry is at crossroad. It needs to step up values-addition to ensure that the wide fluctuations in HR prices are moderated with greater share of value-added products. Further, it has to modernize itself to bring down production costs. China makes strong impact in Indian economy. Various steel majors are planning to exports in millions of tonnes to china this year. So. Overall there is a good and grooming economy for Indian steel industry. Social Factor In Social point of view, the responsibility of various steel companies towards society and for the community is required to be analyzed. Safety Steel Industry is committed to the task of ensuring the safety and safeguarding the health of all its employees under various companies. In the company like Tata Steel, Importance will be given to continuous training for promoting safety consciousness among all employees. Joint committees of executives and employees representatives will supervise the Companys safety measures. Company is accountable for: Establishing safe and healthy work environment. Ensuring compliance with mandatory safety and health requirements. Proper maintenance and orderly house keeping, to control the risk of damage to plant and equipment. Insisting on safe work procedures being followed by employees, contractors and visitors. Quality Steel Industry shall continually tried hard to improve the quality of life of the communities industry serve with excellence in all facets of its activities. They are committed to create value for all their stakeholders by continually improving their systems and processes through innovation. The policy has reviewed to