| Summary: | The steel industry in South Africa is of considerable significance to the
economy. It is a major contributor to the country's GOP and is important
in terms of employment and foreign exchange. Given the importance of
the industry to South Africa, it is essential to ensure its competitiveness.
The steel industry is already in the mature phase of its life cycle, thus it is
inevitable that competition is feared and price cutting takes place on a
regular basis. ISCOR VEREENIGING had the monopoly for speciality
steel in the Southern Africa market. In the days of sanctions, the market
was free of any international competition, thus price and cost was not a
major concern. In the new South Africa, the market is open for
international competition. Given the history of ISCOR VEREENIGING
and the current rivalry in the speciality steel market of South Africa the
implementation of a low cost strategy is essential for the survival of the
company.
The process described in this paper describes an approach, on how to
implement a low cost strategy in the steel industry of South Africa. This
process includes principles of benchmarking, participative management,
management by objectives (MBO) and the Thompson & Strickland's eight
major managerial components of implementing strategy.
This process is not only generically explained in this script but the
practical implementation of it, in a steel company is described as well.
This script will provide managers with a framework on how to implement a
low cost strategy. === Thesis (MBA)--PU vir CHO, 1999
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