THYSSENKRUPP PEST ANALYSIS

Thyssenkrupp Pest Analysis

Thyssenkrupp Pest Analysis

INTRODUCTION

ThyssenKrupp Steel, one of the world's leading manufacturers of steel products, has become the first steel producer to use RFID technology for steel slab identification and streamlined slab logistics. Its Automated Slab Identification Solution was developed with the help of Accenture, the distinguished global management consulting, technology services and outsourcing company. The solution relies on RFID Anywhere from Sybase Anywhere. This recently piloted RFID solution will be used in ThyssenKrupp Steel's new steel mill at the Bay of Sepetiba, Brazil, as well as at the harbors in Rotterdam, in the Netherlands, and Duisburg, Germany, to automatically identify steel slabs and to speed up the unloading process.

POLITICAL

Thyssenkrupp Steel operates from within Germany, which is the largest democracy in the world. With a population of 1.1 billion and15 official languages the country is a complex environment to be in. Government plays a large role in running many of Germany's biggest companies. Thyssenkrupp's independence from state ownership gives it an edge over other companies in terms of freedom and flexibility. Especially when it comes to its only major domestic competitor: the government-owned Steel Authority of Germany Limited. In this environment of excessive government meddling, Thyssenkrupp has managed to avoid becoming nationalized. The company has also intruded on the government's arena by providing social services for its employees and their communities, sometimes even doing a noticeably better job at it. The political arena is supportive of the steel industry in which Thyssenkrupp belongs. Public procurement policies and improvements in public infrastructures to enhance the delivery of manufactured products which benefit Thyssenkrupp are widely propped up by the government. the Additionally, the firm is known to adopt an open approach to dealing with external stakeholders, especially the government, through frequently updating the said stakeholder and discussing issues with national and devolved government, agencies and regulators.

ECONOMIC

Even with new composite materials being invented at an increasingly rapid pace, steel is still an extremely important construction material. It is indispensable for railroads, freight-ship construction, car manufacturing and the building of skyscrapers, among other things. There is money to be made in steel as long as the company is a highly competitive one. In 2000, Thyssenkrupp Steel was honored as the world's lowest cost producer of Steel. Being the low-cost producer is a good position for any company dealing in commodities.

The increased demand for steel products is a result of the global economic recovery witnessed by businesses. The Thyssenkrupp group benefited from the global recovery in steel prices, and together with the development in the manufacturing performance of the company, they have more than offset higher raw materials and energy costs which are part of the production process of their steel products.

SOCIAL

With its potential harm to the environment if resources are not utilised in a correct way, the steel industry is facing the wrath of the society as it is the one who will suffer the most if such problems in the environment ...