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Taking A Look At Worthington Industries

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Worthington Industries as we know processes steel and manufactures metal products. Worthington Industries is likely to face some challenges in their industry due to declining production in the automobile sector (News, 2009). Fortunately, Worthington Industries offers what most steel mills in the United States do not offer and that is customized products. Some of the factors of the external environment that Worthington Industries is facing are technological problems, growing competition in their industry, lower profitability, cash flow, and government regulations. An increase in operating costs is affecting profitability in their market of pressure cylinders. The political situation in their area of operations is showing potential negative effects. …show more content…

However if one would take a look at the price-to-earning (PE) and price-to-book-value (PBV), it demonstrates that Worthington Industries was far ahead of the competition.

Assess Organization’s Structure & Influence on Performance – Heidi
Organization structure is hierarchy of people within an organization and their functions. They include the following: simple, functional and multidivisional organizational structures.
Multidivisional organization structure is applicable for companies operating in wide and large geographic area having branches in different market regions. The benefit of the structure is that organization needs are met easily and more specifically. Its drawbacks are: communication is hindered because different departments are not working together, and it’s costly because of its scope and size. Hitt, Duane and Hoskinson state, “With continuing growth and success, firms often consider greater levels of diversification” (pg. …show more content…

The steel processing industry is fragmented and highly competitive. According to Wikinvest some of the top competition is Nucor Corp, Tenaris, POSCO, ArcelorMittal, Steel Dynamic, Reliance Steel & Aluminum Co, and Ternium. There are many competitors in the steel industry (Wikinvest, 2016). The competition is primarily on the basis of price, product quality and the ability to meet delivery requirements. To enhance the quality of products, technical service, support for material testing and customer-specific applications can be helpful. However, the extent to which technical service capability has improved Worthington Steel’s competitive position has not been quantified. Worthington Steel’s ability to meet tight delivery schedules is, in part, based on the proximity of our facilities to customers, suppliers and one another. The extent to which plant location has impacted Worthington Steel’s competitive position has not been quantified. This was mentioned previously as a potential weakness, but is unknown. Processed steel products are priced very competitively. It is based primarily on the market factors, which include, market pricing, the cost and availability of raw materials, transportation and shipping costs, and overall economic conditions in the United States and

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