Organisational Strategy for Severstal: Challenges, Opportunities, and Future Directions

Organisational strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................4
The key external challenges and opportunities facing Severstal................................................4
The most important aspects of the internal business situation of Severstal................................6
Future strategic options and directions that Severstal should consider.......................................7
Steps would you recommend for Severstal to take over the next decade...................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The business strategy is considered as a major planning framework which helps a
company to develop systematic business operations (Andriani, Samadhi, and Suryadi, 2019). In
the recent times due to increase in competition between different companies, the importance of
business strategy is increasing at a rapid pace. All major companies in the international and
national marketplace focus on implementation of a perfect business strategy for desired success.
In this project different external challenges and opportunities which are faced by Severstal
company are explained in a precise manner. This report includes strategic options and directions
that the company should consider in the international marketplace. In this report example of
Severstal company is taken into consideration which is a Russian company founded in 1955.
The company is associated with steel and mining based industrial operations and has its
headquarters in Cherepovets. The company is also listed on the Moscow exchange and LSE and
it is one of the largest steel companies of Russia.

TASK
The key external challenges and opportunities facing Severstal
In the functioning of a business there are various challenges and opportunities that are
faced which impact on its working. Challenges and issues which are present in the external
environment can cause negative impact on profitability of Severstal. In order to understand key
external challenges and opportunities faced by Severstal which are mentioned below:
 Political factors- The political factors are associated with the rules and regulations that
are developed and formulated by government (Antony, Gupta, and Gijo, 2018). It is
essential for Severstal to focus on all the major political factors in order to lead the
marketplace. The corporate laws which are developed by the government of Russia are
impacting on its functioning. It is also one of the crucial responsibility of a company to
follow the rules of government. The implementation of rules and regulations can be a
major challenge for the business. On the other hand, government of Russia is also
supporting industries with help of policies and plans that can be a major opportunity for
Severstal.
 Increased competition- There are various emerging economies of South America and
middle east which is giving tough competition to Severstal. The Market of steel products
is increasing in the world and is also expected to grow at a faster pace in the coming
times. The mature markets of steel including Japan, EU and North America are also
creating a major challenge for Severstal. The future growth prediction is five per cent in
global construction, automotive and other transport markets by 2021. This analysis is
performed on the basis of future growth of Asia-Pacific, Africa and the Middle East. The
China is also increasing as an major steel producer which can be a major threat or
challenge to Severstal (Carvalho, and Madeira, 2020) South Korea is also a major threat
to Severstal as it is growing as a major threat to Severstal in terms of steel production.
 Emerging steel market- In the recent times, there is a significant growth rate recorded in
the international marketplace which can be a major challenge for Severstal. The company
has to expand in the international marketplace with development of good volume of
trade. In order to capture the steel marketing in the year 2022, Severstal should focus on
key practices related to development and strategies. In order to go ahead in terms of steel