Managing and Developing Innovations

This report explains the problems related to the centering of the blast furnace and the products that can be utilized in order to undertake the same. It also includes market research, target market, market strategy, financial data, growth potential, and sustainability.

Running head: MANAGING AND DEVELOPING INNOVATIONS
Managing and Developing Innovations
Name of the Student:
Name of the University:
Author’s Note:

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MANAGING AND DEVELOPING INNOVATIONS
Table of Contents
Introduction......................................................................................................................................2
Team................................................................................................................................................3
Market Research..............................................................................................................................3
Target Market..................................................................................................................................4
Market Strategy...............................................................................................................................5
Distribution Channel........................................................................................................................6
Grants and other supports................................................................................................................6
Competitors......................................................................................................................................6
Competitive Advantage...................................................................................................................7
Assumptions....................................................................................................................................7
Financial Data..................................................................................................................................7
Breakeven Analysis.........................................................................................................................9
Growth Potential and Sustainability................................................................................................9
Exit Strategy....................................................................................................................................9
Conclusion.....................................................................................................................................10
Bibliography..................................................................................................................................11

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Introduction
This report has been prepared in order to explain the address the problems related to the
centering of the blast furnace and the products that can be utilised in order to undertake the same.
It is seen that there are several ways centering of the blast furnace can be done and it is the
operational process of the company as well as the management to decide which of the products
can be used for the purpose of doing the same.
It is seen that the problem is related to the centering of the blast furnace and this process
three significant threats and challenges and they are known to be increased level of expenses,
high and expensive cost of maintenance and increased level of wear and tear. The tool is known
to be in the form of a conical shape and this shape makes the tool very much vulnerable to the
wears and tears as the tool can take up pressures up to 5.4*10^10 Pascals.
However, the product that has been taken into consideration has been a centering tool
with a transformation in the internal design and shape of the apparatus so that the life cycle of the
apparatus becomes longer without having an impact on the rate of the material flow.
The product that has been proposed has increased amount of resistance toward the wear
and tear for a high period because of its shape of their lower segment of the apparatus is altered
from the conical form to a cylindrical form.
Furthermore, the stress focus on the product will be distributed unevenly in such a
manner that it would not deviate the flow of the material and the reason for damage to the other
parts.

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Team
The team that is associated to this process is as follows:
Somasekhar Donavalli: He has masters in the mechanical design and is even an experienced
design engineer in the simulation and modelling.
Swaroop: He is masters in advanced manufacturing and is even a trained engineer in the line of
the production of the automobile parts.
Chatainya: He has a degree of MBA in the field of marketing and has been working in this field
for almost 10 years.
Mrudala: MBA in finance and is even a well established Chartered Accountant in India.
Richard: He is masters in business accounting and has the work of a analyst who assesses the
market and develops the business.
Swetha: Masers in information technology and therefore has effective amount of skills and
experiences in the line of IT.
Market Research
The research that was undertaken by the World Steel Association, the industries
associated with the production of steel was US $754 billion in the year 2015 and forecasted to
reach US $866 billion by the end of 2020. The graph that is provided below explains the
investments that have been made in the upgradation of the plants.

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MANAGING AND DEVELOPING INNOVATIONS
Target Market
The information that is available in the graph explains that the development in the
consumption of steel was effectively high in India in comparison to the other nations.
Furthermore, it was developing at a swift pace each and every year with a growth of 6.2% in the
year 2015 and 7.3% rise in the year 2016 in comparison to the consumption that was seen in the
year 2014. It is due to this reason that India has been selected as the target market.

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Market Strategy
The market strategy can be explained with the help of undertaking a SWOT analysis.
SWOT Analysis
Strength
 Geographical site and location
 Effective level of management
 Good supply chain
 Availability of technology
 Product is unique
 Consumer loyalty
Weakness
 Increased level of pressure and burden
 Maintenance of online presence
 Cost Framework
Opportunities Threats

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MANAGING AND DEVELOPING INNOVATIONS
 Sustainable innovation
 Incorporation of new technologies
 New and developing markets
 New and unique products
 Market development
 Bad economy
 High level of competition
 Alterations in the requirements and the
demands of the customers
 Regulations of the government
 Alternate products
Distribution Channel
The distribution channel is constructed with the help of the distribution plans and the
online presence of the products. The products are supplied directly from the manufacturer and
the installation and the other services are provided by the manufacturer with the help of skilled
personnel.
Grants and other supports
The supports are received from the international as well as the domestic investors and
assistance from the government is even received in the form of tax benefits.
Competitors
The extent of competition in India is significantly low as there are limited firms that
provide the centering equipment and other plant tools. The two of the main competitors are
Beekay Engineering Corporation and Paulworth.

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Competitive Advantage
The competitive advantage of the company that has been taken into consideration has
been that the company has been operating their production from India, where there sufficient
availability of resources and manpower. It is seen that most of the organizations focus on the size
and ignores the life time of the production. The company can even exist in the market for a
longer time frame by maintaining low margins till the time they can dominate the market.
Assumptions
The assumptions that have been made have been that there is less amount of competition
in India and the number of steel plants in the country is rising. The level of consumption of steel
has increased as well, which covers the capital that has been given out as the initial investment.
In cases of bad sales, the machines that are used for the purpose of production can be used for the
production of other parts as well.
Financial Data
The tables that have been given below provides the financial information
Initial expenses Cash required
Setting up manufacturing plant $15million
Setting up branch offices and service
centres
300,000$

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MANAGING AND DEVELOPING INNOVATIONS
Website and trademark 100,000$
Resources 600,000$
Employees and labour 500,000$
Sales of goods 60000000$
Cost of sales 44000000$
Gross profit 16000000$
Over heads 1000000$
Net profit $15000000
Retained earnings $15000000
It is seen that the overall initial cost is $30 million and the cost of each unit comes to
$15,000.

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MANAGING AND DEVELOPING INNOVATIONS
Breakeven Analysis
The breakeven analysis explains that the breakeven point in units has been 3750 units.
400 800 1200 1600 2000 2400 2800 3200 3600 4000
-20000000
-10000000
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
Break-even point
Fixed costs per period total costs Total sales Net profit
Sales volume(units)
Dollars
Growth Potential and Sustainability
It is seen that the concerned organization would look to give out free installations for the
product and they would enter the international market after the breakeven point is attained. The
company has the intention of providing products to their customers based on the size and the
specifications as desired from their side. The company can operate in the market for a longer
period of time if they maintain their sustenance towards innovation. The company would even
start to manufacture other plant devices as well after they reach the breakeven point.
Exit Strategy
The company has an effective exit strategy as they would look to exist the market with
the help of acquisitions and mergers and the time frame that has been estimated for making an
exit is 5 to 7 years after their return on investment.

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MANAGING AND DEVELOPING INNOVATIONS
Conclusion
The report has therefore been able to identify the fact that the steel industry in India is a
developing and growing business. The financial information that have been obtained explains the
fact that the centering equipment is a business that is profitable and therefore is worthy of taking
an investment. The company in this report has even highlighted that they have taken India to
their entry market after which they would develop their business internationally.

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MANAGING AND DEVELOPING INNOVATIONS
Bibliography
Choudhary, M., 2016. Macro-trends in Steel Industry in India: Implications for Risk. PRAGATI:
Journal of Indian Economy, 3(2), pp.16-32.
Collard-Wexler, A. and De Loecker, J., 2015. Reallocation and technology: Evidence from the
US steel industry. American Economic Review, 105(1), pp.131-71.
Gu, Y., Xu, J., Keller, A.A., Yuan, D., Li, Y., Zhang, B., Weng, Q., Zhang, X., Deng, P., Wang,
H. and Li, F., 2015. Calculation of water footprint of the iron and steel industry: a case study in
Eastern China. Journal of Cleaner Production, 92, pp.274-281.
He, W. and Lin, Z., 2016. A Comparative Study on International Competitiveness of Iron and
Steel Industry of Four Asian Countries. In Proceedings of 2015 2nd International Conference on
Industrial Economics System and Industrial Security Engineering (pp. 377-382). Springer,
Singapore.
Khandaker, N., 2017. Comment on “Ship Breaking and the Steel Industry in Bangladesh: A
Materials Flow Perspective” An Argument for Saving the Baby while Throwing away the
Bathwater with Caveat. Journal of Industrial Ecology, 21(1), pp.204-204.
Kushwaha, D.K. and Kane, P.V., 2016. Ergonomic assessment and workstation design of
shipping crane cabin in steel industry. International Journal of Industrial Ergonomics, 52, pp.29-
39.

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Mitra Debnath, R. and Sebastian, V.J., 2014. Efficiency in the Indian iron and steel industry–an
application of data envelopment analysis. Journal of Advances in Management Research, 11(1),
pp.4-19.
Paul, P. and Mukherjee, P.M., 2016. A Critical Analysis of the Financial Efficiency of the Steel
Industry in India. Asia-Pacific Journal of Management Research and Innovation, 12(3-4),
pp.242-249.
Singh, N.K. and Raina, D., 2015. Productivity Measurement of Steel Industry in India. Global
Journal of Enterprise Information System, 7(4).
Yadav, V., 2015. APPRAISAL AND IMPORTANCE OF IRON & STEEL INDUSTRY IN
INDIA. EPRA International Journal of Economic and Business Review, 3(9), pp.156-160.