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Bluescope's Steel Industry Analysis

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Industry brief: The steel industry is one of Australia’s largest and most profitable industries. In 2010, iron ore overtook coal as Australia’s most valuable export – $47.2 billion worth left our shores (The Conversation, 2011). It is Australia’s most successful financial industry and it is a significant contributor to the Australian economy. BlueScope steel is also one of Australia’s most successful steel companies. Its main focus is construction and the manufacturing of steel based products. The company has 16,000 employees that work hard to keep the company at the top of its industry. The company’s 2014 annual report states that there was a $252.8m increase in sales revenue in this financial year. Image from (Aph.gov.au, 2014) This image shows which areas BlueScope acquires the most revenue. They are mainly a …show more content…

The company will be unable to service its clients meaning a heavy drop in revenue. The flow on effect of the revenue drop will result in have less money to fund a work force meaning employees will lose jobs. In future prospects the company will need to develop these skills for their workers or face the negative consequences of not having the required skills and labour to make revenue. 2) The Australian economy is heavily influenced by industries and these industries in turn are a reflection of company performance from within. BlueScope steel is not different and faces challenges in many ways for future prosperity. One area of concern is around Iron Ore trading. Reasons for this are without iron ore and coal, steel can’t be produced. If the ore price increases it can affect the overall production of steel for companies in that industry. “The declining trade performance was driven by a steep $760 million, or 9 per cent, fall in metal ore and mineral exports” (ABC News,

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The impact of this collapse affected many people and these included the people who purchased shares for the company, the people who worked for the company and the parents who sent their kids to the child care centres. The effect on the parents who sent their kids to these ABC child care centres was that they would have to find their children another child care centre to attend which isn’t easy because a lot of child care centres are heavily booked and it is hard to get places for their children. The people who had purchased shares in the company would have been happy when the share price increase due to big increases in the company’s net profit. They then would have been really shocked when the share price decreased asking the questions how

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