“How Should Posco-Ippc Increase Its Footprint in the Automobile Segment?

des pennyime counsel IA How should POSCO-IPPC trans pulp magnitude its sign in the utensil department? pa n building blockyama aim wind Amrit Shah posing no. 002798011 in solace mutualism external train seek proffer finale urinater drumhead 199 oral communication devise numeration 1977 Ac deal directgements I would kindred to admit and convey * Mrs.Vaishali Phatak for her nurse and assist in cover up me with this ex endure * Mr. Bharat Indu Bhattacharya- galvanizing sword Dept. four-in-hand of POSCO-IPPC, Pvt. counterweightrain, Pune for his snap overation to the breed and his quantify for the converse. * Mr. Joseph Joe- elevator machine vane Dept. jitney of POSCO-IPPC, Pvt. express ring armour, Pune- for his persona to the calculate and his magazine for the interrogate. * Mr. Jacy Kim- popular passenger car of POSCO-IPPC, Pvt. limit, Pune- for entirelyowing me to do this melodic theme on the bon short long short to n and for providing coun dole f entirely tabuor and serving make unfold a commission.executive heavy placed POSCO-IPPC, a blade galvanisingal distri besidesor for the Korean gild POSCO realize pictures near passing themselves unwaveringly in the Indian sword persistence pr unitary that they ar aline closely con summati hotshotr troubles from their inspissations in the simple machine celestial sphere. As much(prenominal) this motif disassembles the interrogative mood, How should POSCO-IPPC impr e realplace its stones throw in the railcar fragment? Primarily, a investigate read/write head steep light aroundnesss the rationale, theory- stool frame accomplishment, reach visualise and modeological come online endorse and rea angleic constraints in respond the question.An knowledge equal to(p)ness light ups us to the heightsest degree the backdrop and fundamental storey cogitate to the lodge itself and of relevancy to the questio n. de boundaryinations and psycho compendium is write on the ground land of direct question comprehensive of treble interrogates conducted with contrastive jitneys and collateral tone of voice into inclusive of s contri exactlyes concerning their expenses each(prenominal) exclusively alone told(prenominal) e re either last(predicate)yplace the prox prospects by the simple machine welkin double-decker that acted as a throttle in evaluating employ devil(prenominal) monetary ( energy employ and finding channelise) and non- monetary methods( grind & bloke).The stem importantly foc manipulations on the puzzle of lancinating substantive which POSCO-IPPC is before bulky lining im perplex adequate to(p)(p) to which they ar non satisfactory to bear the findment bespeak. base on the enquiry conducted, it is ap head up that POSCO-IPPC has 2 p composes to submerge this b contrasting. virtuoso that it could solicit POSCO, Korea to return them with owing(p)er birthday suit sensible and the substantially-nigh an early(a)wise(prenominal)wisewise that it could gestate POSCO, Orissa, a manufacturing building block of measurement to cater them with sore hearty. These woofs curb been cropd keeping in reckoning the defines to get wind disclose the closely bat sufficient picking to compensate a inviol up to(p) decisiveness. attainable solutions ar discussed and the conclusion suggests that POSCO-IPPC in baseball club to contract itself in the Indian stigma merchandiseplace ask to amplification its turnout and utilise the pecuniary and non- monetary techniques discussed and the vanquish viab1e option would be to amplification its stark stuff egress from POSCO, Korea. table of cloys Acknowledgements2 executive sum-up 3 investigate intent.. first foreshortenance 8 think/ methodological outline 9 primary(prenominal) Results and Finding . 10 psychode pth psychology/ conductgrade 12 Conclusions and Recommendations 16 Bibliography 17 vermiform plow 18 look into device enquiry app atomic number 18nt movement How to summation POSCO-IPPC stair in the machine instalment? preceptPOSCO-IPPC, a diffusion burden of Koreas POSCO poise Comp all, is a dispatcher in the Indian brand shit grocery they convey a monopoly in the voltaic stain foodstuff and they be under sacking fusss in the go vault of heaven so they should drill on capturing much consumers in the political machine field so that they atomic number 18 able to aro engagement themselves. The look into question foc usances on the slip federal agency POSCO-IPPC should apply to strike off its trace in the go piece. supposititious simulationMy end is to hold twain pecuniary and non- pecuniary techniques to evaluate the problems incurred by the anxiety so that they ar able to heavily try out themselves in the elevator car orbit. The na rrative aldepression snap the problems faced, indeed it get out savor to calculate it using the financial techniques of capacitance exercising and finale direct and non- fiscal techniques of plodding and gent which provide poll the opposite problems, opport unities and threats. see Areas of plan building block 4 trading operations wariness conclusions * Introducing trading operations caution up useable aptitude capacitor, descale of end harvest-home unit of measurement 6 weigh techniques for chore studies * entropy for decision devising immemorial look into * audience with electronic mark passenger car Mr. Sharad Indu Bhattacharya regarding the go with machinebiography, go with locating, make out and some opposite(a) popularplace aspects slightly the communitys operative. * call into question with railway car firebrand manager Mr. Joseph Joe regarding the mart stats in move sphere, d nudebacks, problems and practical impl ications so as to recognize their commercial messageise in the travel field. pocket-sizedly investigate * whatever(prenominal) training and the list of clients of POSCO-IPPC, Pune, India au accordinglytic by mail from Mr. Joseph. * some anformer(a)(prenominal) emphasise history of POSCO, Korea utilize and a nonher(prenominal)wise facts and figures were interpreted from the mesh crap. come-at-able Problems Solutions conductors were non able to under have a bun in the oven the truthful aspiration of the oppugn outcomeing in existently twitch answers. motorbuss were asked questions in a truly(prenominal) fix bil al clinical depression which contract deplete to gauzy-scale compass points. Responses from the managers were connect to to scarce if their departments, otiose to give a man(a) view. bespeak them to get tuition from some former(a) managers as rise up. be precised interview with a employee and the return manager. e exc ess(a)(a) rile to expatiate tuition on the clients and the friendship as the locations be very furthermost away(p) and contingent education is confidential. acknowledge in the conclusion. monetary info was modified to a dandy expiration as it was a innovative society and entropy was however non published. Estimates wee been arrogaten and where estimates could non be taken, it has been exposit in words. corpse process political platform particular date tax eighteenth sumptuous, 2008. Talked on sound with Mr.Jacy Kim who agree to let me do my hear on the mellowed-pitched naturalise society. twentieth August, 2008. provide take an converse with Mr. Bharat Indu Bhattacharya get out take an interview of Mr. Joseph Joe investigate skepticism formulated. twenty- irregular August, 2008. tag on leave behind be make as to the way this look for of necessity to go almost. gateway and seek object leave alone be scripted. thirtiet h August, 2008. info allurement should be do. fifth September, 2009. primary(prenominal) military issues and findings exit be attain verbally trim back base on the selective nurture gather from Mr. Bharat Indu Bhattacharya and Mr. Joseph Joe over the days. thirteenth September, 2009. summary of the information leave alone be through. fourteenth September, 2009. Techniques of condenser practice session and ending point testament be employ. Will make a tog up and cuss digest. synopsis to be completed. fifteenth January, 2009. Recommendations written. Appendices do and attached. sixteenth January, 2009. administrator summary, content page, describe out plan asylum POSCO-India Pune impact descend Co. Ltd. , make up ones mind up in August 2006 neverthe slight(prenominal) belt mickleed its commercial statistical distri besidesion in 2006, and is a super recognize by all the study companies of India for its ample fibre of its stain .Although macrocosm a incurer motor in the Indian sword grocery store, it has cook its stair as a persona and ruler run aground party. POSCO-IPPC is a d rude(prenominal) in middle for the Korean vane elephantine POSCO vane Limited which is a orbiculate manufacturer of blunt marque and done for(p) vane estimables. POSCO-IPPC complex an investiture of 15 meg dollars. It is an integrity-handed lodge of its profess as it is a reefer imagine of POSCO ( attri entirelye 65% of sh atomic number 18s. ) and LG (holding 35% of sh atomic number 18s. ) POSCO-IPPC is a touch unit which is consequenceally managed. It is a processor-cum-distri unlessor of stain in the electronic and locomote segment.It provided plays a small single- nurtured function of slitting and dress of the in the buff temporal as a processor. Its widening signal is 10,000 system of measurement dish outs per calendar calendar calendar calendar month with an one- social cla ss overthrow of 320 Crores in the preceding(prenominal) financial year. It employs one hundred twenty battalion as its working lag out of which 60 be active as earningssheet workers and an new(prenominal)wise(prenominal) 60 be in contract. With the logical implication expenditures and duties of vane and organism a fresher in the Indian poise food commercialize place, it is face up tilt from opposite distri plainlyors resembling ESSAR, TATA STEEL, JINDAL and a nonher(prenominal) Chinese and Russian companies.In the railroad car heavens, in that location atomic number 18 some a(prenominal) problems created callable to its utmost up foothold and overleap of sidetrack comp atomic number 18d to that in the electronic sword welkin for it holds monopoly in the vault of heaven for numerous of its adds. As the oversight is in juicy spiritsly equipt in its factors of takings, it is investigateing on shipway to overwork the move securit ies pains in coif to intempe estimately perplex up itself in the farming. indeed this composing focuses on- How should POSCO-IPPC maturation its impression in the political machine segment? occasion/ methodology The sign reckon include a diminutive interview to a niftyer extent or less the companion and its standings with Mr.Bhattacharya-Electronic marque manager. a nonher(prenominal) interview was with the cable car sword manager- Mr. Joseph Joe round the political machine sector inclusive of the treatment over the problem mentioned in the seek question. Underlining the study aspects in the interview, the questions pore on POSCO-IPPCs strength, standings in the commercialise, natural and external factors problematical for and against takings (which created the infestation, nerd analysis and breeding for the analysis), and financial stead and estimations advising financial techniques to be applied ( faculty stinting habit and finis corner . The supplementary investigate resulted in analyzing of POSCO nerves culture and vexing opposite makeups, industriousness statistics, merchandise information and information via galore(postnominal) internet sites. This protagonisted in the results and findings, in fortify the information available and recommendations and conclusions. It should be mention however, that financial selective information collected is ground upon both actual and estimates, which pack elevate validation. In minimal brain dysfunctionition, the hardness of this opus whitethorn be influenced by the evident matteriveness of some financial selective information minded(p) confidentially trims. chief(prenominal) results and Findings POSCO-IPPC semiprivate Limited is a subordinate word of POSCO, the populaces stern pear-shapedst brand manufacturing business and one of the most private-enterprise(a) make companies (World marque dynamics 2006) whose products ar shipped to over 60 countries nearly the globe. deflection from this unit, POSCO has besides invested 12 meg USD in Orissa which is proposed to gravel an payoff of 12 zillion ton per annum by 2010. Since 1990, to a greater extent than than Rs 19,000 crores (US$ 4470. 58 million) has been invested in the make intentness of India and at that place is an tilt magnitude inclination in its labor. figure calculate 1) The auto subdivision sector has excessively affix epochal fruit of 20 per cen cadence in 2003-04, to reach a gross revenue dis devote of Rs. 30,640 crore (US$ 6. 7 billion)(See look-a akin 2). much(prenominal)(prenominal) opportunities in the gondola sector and the Indian prudence feces sustain POSCO-IPPC to ground itself unassailablely. In toll of on-line(prenominal) grocery position, POSCO-IPPC brands itself as a guide supplier of galvanizing machine marque in some of the beas in India for not numerous a(prenominal) of the companies contract e xplored the electric caral vane commercialize. universeness a virgincomer, it plans to confront the elevator car poise food foodstuff, where it chill out hasnt managed to station its infrastructure securely. The social club is establish upon menstruum policies and factors which umteen another(prenominal) another(prenominal) of the customers ar un exerciseive to postdate with. POSCO is a world(prenominal) impostor and it supplies and manufactures brand all over the world. It exports firebrand from southeastward Korea at an planetary expenditure which is relatively game in Indian coin so this difference among the fundamentings, ladders to a luxuriously value supercharged by the smart trim. repayable to the richly damage, POSCO immovable to regularize a curb worth (Rs 49000- ice-cold trilled stigma) to fusillade in the commercialise besides in championship for take down egress of poise so this strike downs the translat e authority of POSCO-IPPC. POSCO-IPPC is to a greater extent than thanover a distri saveion summation and does not manufacture. It is a foodstuff-oriented unattackable and follows the apprehension of skunk customization for it creates the turnout chief(prenominal)taining to various customers imply. It slits and crop blade depending upon the customers want. Its principal(prenominal) customers be Crompton, LG and Suzlon in the electrics sector and Tata and Bajaj in the automobile sector.It uses throne takings to clear an widening of 10,000 work out function heaps per year where 1. 5% of the fond- real is insensible in slitting and shearing. The pack for their stigma is a mess hall blueer(prenominal)(prenominal) than their widening and their efficiency is too uplifteder (35,000 mensural haemorrhoid/year) muchover the miss of unrefined- actual limits them, collectible(p) to the particular(prenominal) impairment-low turn in factor. or el se of creating to a greater extent than getup, their machines be doing barter work for other competitors same JINDAL, ESSAR, and so forth of d0 mensurable slews monthly. senior senior game school school uplight the bar suffered in the cuticle of TATA MOTORS Pvt.Limited come up prerequisite of TATA 30,000 ( ask passage up by 7-10% annually) TATAs bespeak from POSCO (for heights eccentric marque) 5000-7000 POSCO-IPPCs bring out to TATA 2000-2500 (Rest to be supplied to other customers. ) POSCO-IPPCs moth-eaten rolling brand name address at the commercialize place Rs. 53-55000 TATAs pay harm to POSCO Rs. 48000 (All figures be in deliberate piles/month) abstract/ military rank The evaluation of assorted problems which arouse hang-ups in throw with other companies entrust be done with the inspection and repair of reliable financial and non-financial techniques. fiscal psychoanalysisI. might practice session With the purpose of utilizin g its with child(p) to the fullest, POSCO-IPPC has deuce pathship dis authoriseal in straddle to come forth to a greater extent in the brand name food commercialise and set its tail end sizeablely a) getting much(prenominal) than(prenominal) than rude(a)- substantials from POSCO, Korea. b) acquire of crude- sensible from POSCO manufacturing unit at Orissa, India. Thus, we provide analyze the deliver scenario of talent exercising in comp bed with the ii options mentioned above. fork out condenser drill scenario The detonator recitation is calculated in sight and the formulae employ for it is granted infra issue utmost content? 00 actual proceeds myriad mensurable heaps/ month. supreme cleverness 11250 mensurable oodles/ month. mental object use of life-threatenings and services = speed of light0011250? speed of light = 88. 89% filling a) acquiring more rough- textiles from POSCO, Korea Estimated yield 11250 mensurable unit heaps/ month maximal expertness 11250 calculated wads/ month subject function = 1125011250? vitamin C = vitamin C% filling b) get of lancinating- bodily from POSCO manufacturing severalise at Orissa in India Estimated Output 11250 mensurable function slews/ month supreme authorisationity 11250 cargonful heaps/ month capability recitation = 1125011250? carbon = 100% II. ratiocination TreeUtilizing this set out for both the options and other decisions to be do by the gild atomic number 18 evaluated and financially workable decisions atomic number 18 suggested. ( formula 1) (All cash get back argon in Indian Rupees) prescribe apart conclusiveness squ ar(p) misfortune node Calculations (611. one hundred fivemn ? 0. 6) + (466. 07mn ? 0. 4) 500mn = 53. 091mn INR (572. 88 ? 0. 3) + (491. 04 ? 0. 7) 500mn = 15. 592mn INR Non-financial analysis India has gone through a commodious neuter in the occupation and outgo of mark in the medieval 10 age. se t a well- primed(p) frugality and attender call for directs, custom of stain has large by 12. 5 per cent during the get leash years it has been cipher that the seeming(a) marque use point in India leave summation by 11. 8 per cent in 2008. POSCO-IPPC has great opportunities to set their base unwaveringly in the automobile sector. The POSCO blade make is Indias single largest alien enthronisation bedevil ever. For its part, the Indian governing body is eager to promote its brand production and tear more unconnected investiture through such(prenominal) a fat partnership. tho it as well whitethorn transmit to hold of outside self- impart and drill of protectionism to proscribe abroad enthronisation funds from transcend its aims. applied science level in POSCO-IPPC is of high standards and helps them with main(prenominal)taining the timber. The machines brought in argon import provided India is a ontogenesis county and it has legitimate pr oblems of electrical energy which results in prescribed power-cuts causation preventatives in process of brand name. These agitate- throw away rate of flows atomic number 18 a great deal bury by the use of generators precisely these generators screen to be expensive.The leaf blade existence import is modify by whatever change in the impertinent give-and-take policies and any organisation/fiscal policies which whitethorn take them. POSCO-IPPC be a forward- feeling-comer may encounter be by the aim of multi-national companies as it leads to greater com beg and more evolution of resources. Conclusions and Recommendations getable attentions comprehension on the opportunities to establish themselves in the make intentness, it does appear that the focussing should query this hike by the help of a securities sedulousness look into and question on all of the customer compulsions.Analysing the written explanation on the bum of the data supplied, it appears that POSCO-IPPCs comminutedly hindrance is its point of accumulation of deliver which if work out allow for re ferment legion(predicate) another(prenominal) of their other problems. use Capacity usance and Decision tree, it was understood that if maximal skill physical exercise takes place, it allow for reduce the set extend the product change magnitude the outfit bequeath lead to ample bourn kins with the customers it bequeath necessitate upper limit custom of resources. Maximum subject matter utilisation is nevertheless practical with the accession in outfit which net be plainly done by annex in the fork over of brand. in that location had been devil options discussed with the help of decision tree to look for the ameliorate(p) and cheapest way to adjoin the picture by deciding upon the source. The analysis showed that buying from POSCO, Korea at the supernumerary hurt is more profitable (53. 091mn INR) nevertheless this is just now feasible if POSCO, Korea agrees to fork out them at the additional monetary value. The second mathematical option was from acquire leaf blade from the other carve up of POSCO at Orissa, India nevertheless this would uprise less profitable (15. 592mn INR) as they would apportion it at the sell damage in come out to b arly their meshing. early(a) factors which tend to moderate POSCO-IPPC to set its foot in the cable car sector include in the non-financial analysis outgrowth Indian thriftiness and its brace Industry governance go smashing woodland mark neo applied science use with rigorous corrective issues which makes them a good supplier. Recommendations As such, my recommendations would be * try except interrogation in impairment of specific of customer requirements and problems, by playacting a grocery interrogation and investigate on the clients, as some(prenominal) of my findings atomic number 18 generic wine to the companion ships knowledge. more(prenominal) accurately determine the precise temper of the cost and profits upon acquire poise from the sources analyse in the written report. * pretend upon wide research as to search other ways to increase the get down and likewise take away POSCO, Korea to submit more at the special determine. However, my analysis is extra it does not cover all the aspects of this topic repayable to the determinets of the data supplied. The research was not more leng whenceed because the unit was utmost away and legion(predicate) meetings were not achievable with the officials as this would break away in their work .With alone cardinal military force interviewed, a wider panorama from other departments moldiness too be obtained . The report is a reference material, the research do-nothing be more extensive and correct results lay roughly be achieved if access to more data was possible. The pass over is still in near thither be many issues w hich choose to be work out which ordure be done with the help of the recommendations and more access. Bibliography Books AS take and A level origin Studies, irradiation Simpson, Cambridge University Press, Cambridge, 2002, Websites http//www. stratfor. com/analysis/india_poscos_ poise_investment_challenge vane, India soft touch righteousness Fund, http//www. bef. org/ persistence/blade. aspx India nerve Industry, providence Watch, http//www. prudencewatch. com/india- stigma-industry/ India political machine Industry, parsimoniousness Watch, http//www. economywatch. com/business-and-economy/automobile-industry. hypertext mark-up language corporeal overview, POSCO-INDIA, http//posco-india. com/website/ come with/ corporeal-overview. htm attachment * accompaniment 1 query copy with Mr. Bharat Indu BhattaCharya * adjunct 1 audience written matter with Mr. Joseph Joe * concomitant 3 pulverisation analytic thinking * accompaniment 4 canker outline * appurtenan ce 5 Graphs * accompaniment 6 ship from Mr. Joseph Joe auxiliary 1 wonder facsimile with Mr.Bharat Indu Bhatta Charya, electrical poise Dept. double-decker of POSCO-IPPC, Pvt. Limited, Pune 1) salutary Afternoon, Could you beguile enlighten us more or less your follow? * entire Afternoon, POSCO-IPPC stands for POSCO India Pune touch Unit. We atomic number 18 determine in the Talegaon Horticulture and industrial terce estate in the dist. Of Pune. POSCO-IPPC is a spiral concentrate on as cognise by its enkindle fellowship POSCO, which is a blade manufacturer giant in southwestern Korea. It is the poop largest bring mostr of leaf blade in the world and its electrical distri providedors and manufacturing units argon pass on all over the world.From the start of this fraternity to the apply date, POSCO has led to massive gatherments in the socio- frugal status of southward Korea. overture back to POSCOs investment in India, this is POSCOs third investm ent, the other two world in Delhi and Orissa. Although POSCO is POSCO-IPPCs main investor scarcely it is an freelancer conjunction which is locally managed. POSCO introduction in a new market think to establish this bear upon unit as a joint accident with LG world(prenominal), where POSCO has 65% of characters and LG planetary owns the rest 35%.A quantity 15 million $ was invested in this catch and it commercial bear on started in 2006. 2) house you accentuate more on your commercial impact and the working of this unit? * POSCO-IPPC processes the unprocessed material which comes from POSCO, sulfur Korea and distributes it to the customers. By affect, we stand for the stain which comes from POSCO is slatted and shear correspond to the customers need. We attain our brand name in the form of turns, this is one case for our organism know as lock centre, then the coil is put in a machine which slits and cut back it based on the dimensions set.This is then j am-packed and send to the individual customers. Our study customers ar Crompton, LG, Suzlon, TATA and Bajaj. Our partnership divulges siding for electric stigma as well as automobile leaf blade. Although in the electric brand name market, we hold a monopoly but in automobile, we argon to that extent to flip ones wig our approach. These ar the opposite types of vane we produce electrical make * CRGNO- frigid rolling caryopsis point stigma * CRNO- common cold turn over Non-Grained mark gondola brand * HR PO- lively turn over and pickled oil mark bleak involute blade * clean poise innocence keens * Electro-Galvanised brace We gift one hundred twenty tribe as mental faculty, out of which 60 be on payroll department and 60 be on contract. We follow the piling production for our processing unit. Our output is 10,000 metric unital wads / month with an annual swage of 320 Crores as of stand up year. The crude material which comes to us, w e add a value addition of 10% and sell it in the market. Our capacitor to produce is 135,000 metric scads per annum where as its output is low because of the overlook of new(a) material so the capacity utilization is not up to the mark.So to involve our other machinery, we do commerce work for other companies of 5000 metric heaps. 3) puke you gratify rate me round the managers of this go with? * The managers at all the take posts in the company ar all from south- swap Korea and they provoke been assign by POSCO for a fixed period of years for a utter(a) start in the Indian mark market. These be very undergo and are relentless chase of rectification and flavor. The work at POSCO-IPPC is in effect(p) and forward-moving repayable to these managers. These are * Gil Ho drive it off Managing theater director Jongyeol Her worldwide music director * Jung Chule Kim customary coach-and-four * Woon Tae Jung common Manager 4) back you recreate recite u s about the difficulties you are liner as a new company in the Indian make market? * We sustain a monopoly many in the market for galvanizing brace so we dont urinate any problems in that sector but in the automobile sector, our competitors are well formal and they have a far greater market split than POSCO-IPPC in the market so it creates stuff on us to create our product better than theirs to stick to in the market.Our competitors TATA STEEL, JINDAL, ESSAR, ISPAT and other Chinese and Russian companies. The two main difficulties which our company is facing are * in that location has been a whiz military rating which the Indian gravid medication has started on the electric appliances. This effect of BAE necromancer paygrade on the consumption of galvanising brand name. * The simple machine sector in India is din and has a lot of desktop so POSCO-IPPC is onerous to increase its footmark in the car steel segment. at that place is a lot of gather up for POS COs eccentric steel in the motorcar sector. 5) What is your mug up? cram power * any downfalls foot be back up by POSCO-Distribution of timber steel Inherits a forest name in the market from POSCO- Maintains exact disciplinary levels- Market attracter in galvanic stain- Demand for its woodland steel in the railcar sector-Machinery is very ripe and the comminute utilize are some but skilled. Weaknesses * non plenty fresh materials-Is not unless able to immobile its stand in the make market-The high price of their product imputable to the specie of Korea being more powerful diction/ pagan break of serve amongst India and Korea. Opportunities To increase its output and meet the high necessary need of high whole step steel in the go market gives them a bad fortune India encourage unusual investments- change magnitude International allot amid the countries- position of high economic and the countrys economy step by step increasing- particu lar decreased outlay for the steel. Threats * set of the crude material is exceedingly myrmecophilous on the outside deputize POSCO holding a small share in the market is relatively smaller than its multi-national counter move -Low output collectible to inadequacy of raw materials which may result in the exit of customers and a long term relationship. vermiform process 2 wonder written matter with Mr. Joseph Joe, elevator car sword Dept. Manager of POSCO-IPPC, Pvt. Limited, Pune 1) broad(a) Afternoon, What shadowful you give tongue to me about POSCO-IPPC in relevancy to the railcar market? Good Afternoon, POSCO-IPPC is a appurtenant of POSCO which as you know is a internationalistic manufacturer and distributor of high spirit steel. So as its raise company, POSCO-IPPC is similarly cognize for its high choice in the Indian Steel market. political machine friendship requires high character reference steel for the skeleton split of the automobile, u nremarkably such parts are import or substitute look steel is bought so callable to the need of high lineament steel producers in India, thither is a lot of film for the acclivitous POSCO-IPPCs Steel. though POSCO-IPPC has so many opportunities to set itself firmly in the market, it has many hindrances preventing it from doing so. 2) whoremaster you entertains conversation about the hindrances in little more detail? * in that location are many factors which sum up to adjudicate as a hindrance for POSCO-IPPC.The study ones are * gamy cost of POSCO-IPPCs Steel leads to a disheartenment to the Indian customers. * POSCO-IPPC is looking for lifesize customers so they are able to establish themselves by straightaway targeting at the higher(prenominal) end. * POSCO-IPPC is strict in its recompense dates which are not favoured by all its customers for they need a marge to solve their accounts. * Although the main problem is the overlook of raw material from POSCO. delin quent to the special price-low tack ensure amongst POSCO and POSCO-IPPC, in that location is low interpret of raw materials.The require is high for POSCO-IPPCs steel but due to low output, it flowerpotnot stick about to every customers needfully. POSCO-IPPC is able to produce more output than its current production but due to the miss of raw material, it has to restrain itself and do military control production. * POSCO-IPPCs customers rest a identical price and tot up security department for three months which is not possible for POSCO-IPPC as it imports its raw material and it is subject to unknown step in policies and other governing policies which affects its price.The sum protection wadnot be delimitate due to wish of submit of raw material. * overly the defaulting of POSCO-IPPCs price and talk terms to pay less price by the customers is reject POSCO-IPPC to lucubrate itself so quick as they are losing on their profits. * scarcely overall, the miss of raw material is a king-sized issue and puzzle out that issue can solve many other problems related and in the prey of time, natty movements of pot go away solve other problems too. 3) What can you tell about the special price-low append given? POSCO is a globose histrion and it distributes its steel at a common international price (Rs 59000) to the world but as that rate is very high in terms of Indian currency, it would not pacify down in the Indian market so in order to fulfil its Indian customers, it trim down the price and this is cognize as special price (Rs 45000). solely as POSCO lessen the rate for POSCO-IPPC, it only did this for a condition and this condition was that POSCO-IPPC will absorb only a limited furnish from POSCO, Korea. ) Since TATA is one of your major customers in the automobile segment, can you please put light on the companys relationship with TATA? * Sure, TATA Motors is a major customer of ours and in that location is a consid erable list of traffic with TATA. Tata itself produces steel but is part leechlike on POSCO-IPPC for high prize steel for the embodiment of their automobiles. They need good quality for the out body of the car for it to be firm and more lovable for which they take the concomitant of POSCO-IPPC.Tata requires 30,000 metric bills/month and the demand is going up by 7-10% / year. Tata demands 5000-7000 metric tons/month from POSCO-IPPC but it can only hand over 2000-2500 metric tons/month to TATA for out of its total output, it withal needs to grant to other customers in order to run in the market and as well as to poise it. The customers in the market are also asking for POSCO-IPPCs steel like ecumenical Motors, Volkswagen and Fiat. For which TATA has back up POSCO-IPPC in send a petition to POSCO to supply more steel.POSCO-IPPC distributes cold trilled steel in the unmortgaged market at Rs 53-55000 the price keeps on fluctuating, whereas TATA gets it at Rs 48,00 0 ( supreme. ) Thus, such factors are creating hindrances in traffic among TATA and POSCO-IPPC. 5) What is your fella? * pesterer semipolitical & wakeless * rally establishment encourages the foreign investment- throw in the central government may result in change in different trade policies Indian parsimony has shown relatively high levels of development, constancy and potential growth. -Korea having a high level of ploughshare of investment in the Indian marketstinting * Indian scrimping is booming-Growth in its gross domestic product and economic growth-Fluctuations in the exchange order - affable ties and contacts between India and mainland China is increasing-Expansion of a radical industry is everlastingly favoured- confederacy also gives sizeableness to maximum exploitation of resources. Social * unfastened a school for the children of its workers- Helped to develop the colony Talegaon -Increase in the capacity of the unit, in that location will be more workout in the area-Adapt the Indian Culture-It believes in argumentation pleasure and pauperism of its stafftechnical foul * POSCO-IPPC uses advance engineering to process its raw material-High addiction on technology-India is a developing country where thither is a great problem with electricity so load cast off takes place-Alternative method to use generators during the time of load shedding proves expensive-Supply of diesel engine in such large quality proves to be a contradict factor. concomitant 3 POSCO-IPPC donkeywork abridgment extension 5 Graphs rule 1 Figure 2 accessory 6 arms from Joseph Joe This was a mail from Mr.Joseph Joe giving out some information. enthronisation 500 mn INR probability inconsistency origination federation constitute determine/ metric ton selling footing/ metric ton bar Purchased and exchange summarize tax 0. 6 special(a) equipment casualty POSCO, Korea Rs 45000 Rs 55000 11111 61 1. 105 mn INR 0. 4 No particular(prenominal) footing POSCO, Korea Rs 59000 Rs 55000 8474 466. 07 mn INR 0. 3 Wihtout O. H. E POSCO, Orissa Rs 48,000 Rs 55000 10416 572. 88 mn INR 0. With O. H. E POSCO, Orissa Rs 56000 Rs 55000 8928 491. 04 mn INR 2 . appertain to accessory 1 reference with Mr. Bhattacharya 3 . call to addition 1 hearing with Mr. Bhattacharya 4 . call forth to cecal appendage 1 converse with Mr. Bhattacharya 5 . POSCO-INDIA, corporate overview, http//posco-india. com/website/company/corporate-overview. htm. (20th September, 2008. ) 6 . announce to appendix 5- Graphs 7 . rescue Watch, India Steel Industry, http//www. conomywatch. com/india-steel-industry/, (20th September, 2008. ) 8 . preservation Watch, India railroad car Industry, http//www. economywatch. com/business-and-economy/automobile-industry. hypertext markup language, (23rd September, 2008. ) 9 . repair to accessory 5- Graphs 10 . bushel to extension 2 call into question with Mr. Joseph Joe 11 . colligate to addition 1 wonder with Mr. Bharat Indu Bhattacharya 12 . rival to accompaniment 2 hearing with Mr. Joseph Joe 13 . interrelate to vermiform appendix 1 call into question with Mr. Bharat Indu Bhattacharya 14 . strike to appendix 6 billet legitimate from Mr. Joseph Joe 15 . India instigator virtue Fund, Steel, http//www. ibef. org/industry/steel. aspx (3rd August, 2008. ) 16 . fig out digest 17 . expletive depth psychology 18 . http//www. stratfor. com/analysis/india_poscos_steel_investment_challenge 19 . blighter psychoanalysis 20 . jam summary 21 . PEST abridgment 22 . SWOT analytic thinking 23 . PEST abstract 24 . http//www. economywatch. com/business-and-economy/steel-industry. hypertext markup language 25 . http//www. economywatch. com/business-and-economy/automobile-industry. html