Entrepreneurship and Effectuation Theory
Added on 2020-02-17
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International new venturesand born global policy
TABLE OF CONTENTSIntroduction......................................................................................................................................3TASK A...........................................................................................................................................3TASK B ..........................................................................................................................................7What inspired him to set the business..........................................................................................9What makes entrepreneur to be entrepreneurial..........................................................................9CONCLUSION..............................................................................................................................102
INTRODUCTIONEntrepreneurship is defined as the process of designing, launching and running a newbusiness. Every business is begins as a small business which offers product and services to itscustomers in order to earn profits. The present report is about the Lakshmi Mittal and his journeyto become a successful international business persons. This report covers the whole journey ofLakshmi Mittal and its business activities (Arend, Sarooghi. and Burkemper, 2016. ). It's alsocover the different types of venture which started by him and different types of strategy which isexecuted by him in order to make his business successful. TASK ALakshmi Niwas Mittal, a steel magnet was born in Rajasthan, India on 15th June 1950and lived in UK. He is a chairman and CEO of Arcelor Mittal, the world's largest steel makingcompany (Arend, Sarooghi. and Burkemper, 2015). Mittal owns 38% of Arcelor Mittial andholds a 34% stake in Queens Park rangers F.C. He completed his graduation from St. XaviersCollege Kolkata, Indian in bachelor of commerce. He is brilliant in accounting and mathematics.In 2005, Forbes ranked Mittal as the third richest person in the world and in 2007 he ranked asthe richest person in Asia and Europe (Baum, Frese. and Baron, 2014). As per the Forbesestimation, his total net worth is US$12.6 billion and also considered as the 57th most powerfulindividual in the world. Lakshmi Niwas Mittal is an Indian business man based in UK. Mittal ismajor player in steel market and his sells its products at the international level (Chetty, Ojalaand Leppäaho, 2015). He is the largest steel maker in the world and earning profits over $22billion. After completing his graduation in accounting from St. Xaviers College Kolkata, he itsown steel plant in Indonesia at age of 26. He was brilliant in accountancy and mathematics butrefused to join any job (Miner, 2013). He was only passionate about business and decided toopen its own venture. In initial stage of his career, Mittal handled iSpat's steel export to SouthEast Asia and Middle East (Miner, 2013). He established his first steel mill in Indonesia 26000tonnes and annual profit is $1 million. Mittal soon realized to become a major player in the steelmarket. For making his company global he started acquiring different types of company which3
belonged to the steel industry (Kuratko, 2016). Major acquisitions were taken place in Canadaand Germany and then he moved to Kazakhstan. For becoming global player in steel industry, heexecuted many strategies which assist to him for expanding his business. Strategies includespurchasing Karmet steel in Termirtau in $400 million (Kirzner, 2015). This single strategyproved very profitable for Mittal because Kazakhstan happens to share a border in China wheredemand of steel was very high. After this acquisition, he became global steel prouder whooperated its business in 14 countries (Heinrichs, Oser. and Lovat, 2013). Lakshmi Mittal also has good management skills. For expanding his business he broughtIndian manager, double production and started selling its products in East. With the help of goodfinancial knowledge and time skill he rescued Kazakhstan form financial ruin and started largescale production (Fayolle and Liñán, 2014). Mittal also good considered as good visionary hetook his steel company at acute over capacity and sold its products at high level of margins i tocreate profits (Faludi, 2013). In Kazakhstan, Mittal entered into new agreements with the localgovernment that no new environmental laws would apply on the plant for the next ten years formthe date of privatization.Mittal is also considered as the good visionary and expanded its business in Africa, Australia andChina. In order to improve sully chain delivery, he also invested in shipping and rail to cuttransport costs (Arend, Sarooghi. and Burkemper, 2016). The main aim of Mittal is to producecost effective products to its customers and for that he involved many cost effective strategies inits firm's activities. When supply chain costs increases at that time steel magnet exploretransportation by shipping and introduced multi modal transportation which proved as effectiveway to control costs (Arend, Sarooghi. and Burkemper, 2015.). For making products and servicesmore cost effective he focused more on development of infrastructures facilities. In 2004, Mittal created its own company which named as Mittal steel and converted hisprivate company into the public one. After, converting its entity into public company he becamethe largest steel maker in the world. His company made profits of $22 billion in 2004 along withthe shipments of 42.1 million tons of steel (Baum, Frese, and Baron, 2014). In 2006, Mittalcreated ArcelorMittal. The biggest steel company on earth and now the organization is worthover £100 billion. The group, led by Lakshmi Mittal launched worldwide. ArcelorMittal becamethe first company which produced more that 100 million tonne of steel in a year. At present,4
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