BMA6104 Organisational Strategy: Severstal's Future Directions

This report provides a comprehensive analysis of Severstal's organisational strategy, a major steel company in Russia. It examines the key external challenges and opportunities faced by Severstal, including intense international competition, supply chain dynamics, and fluctuating economies, using Porter's Five Forces model. The report also assesses Severstal's internal business situation through SWOT analysis, highlighting strengths like brand goodwill and weaknesses such as machinery innovation. Furthermore, it explores future strategic options, including cost leadership, differentiation, and focus strategies, recommending international market expansion, technology innovation, and virtual marketing adoption. This analysis aims to provide insights into strengthening Severstal's competitive positioning within the steel industry.

BMA6104 Organisational
Strategy Assignment 2

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
Key extrenal challenges and opportunities faced by Severstal:............................................3
Most important aspects of internal business situation of severstral :.....................................5
Some future stratgeic optionsand directions comapny need to consider:...............................6
Recommendations:.................................................................................................................8
CONCLUSION..........................................................................................................................9
REFRENCES.............................................................................................................................9

INTRODUCTION
Organisation strategies plays crucial role in recent time among companies for
extending corporate business benchmarks, within competitive industry framework. Recent
report will be analysing business strategies about Severtal, which is Moscow Exchange and
LSE supplying largest steel company in Russia. The present report will be analysing key
external challenges and opportunities faced by company, and internal business situations.
Some future strategic options and directions faced by company will be also considered,
within recent study for strengthening working competencies in longer time frame.
Key extrenal challenges and opportunities faced by Severstal:
Key external challenges and opportunities, identified by Severstal plays crucial role for
strengthening working engagement priorities innovatively. By developing focus on
challenges, and opportunities prior adherence to varied factors As the industry is expanding
potentially towards extreme compeition, rivalry within existing and new firms coming in
there is determined pac and new market exposure growth needed. External challenges and
opportunities, have been found to be essential as company has been witnessing varied
competitive aspects variedly within recent time. Porter five forc model will enable external
business challenge analyse, and optimally advance on socpe for optimum functional outputs.
 Challenges: Severstal faces challenges of excessive international market competition
within industry, and has to revamp innovation competitvely. There is excessive
challenge of varied international marketing, higher flucatuating business ends and
economies within international domains. It can be analyzed that challenge further

paces excessive competiive business risk, where Severstal has to adopt new exetsnive
strategies for retaining competitive market stability (Pereira and et.al, 2022). Opportunties: There is opppirtunity for comapny to reinvest in mechanism of supply
chain growth internationally, and develop competitive market stability further on
diverse domains. It can be analyzed that Severstal has new opportunity, to expand
rapid vision and innovatively expand international business goals fucntionally within
workoing horizons. With rising competitve industry benchmarks, Severtsal
dynamically has to improvise new scale goals for determined competencies. The
brand has opportunity to leverageb rapid scale competencies by investing on supply
chain mechanism, and strengthening competitive benchmarks rapidly.
Porter five force model inclusion, has been found to be competently essential where
within business grounds there have been various complications rising. External business has
been found to be widely evolving as per demands growth among customers, and varied
benchmarks. The porter five force model, will enable external challenges and opportunities
faced by Severstal where external competitive market will be analysed innovatively.
 Bargaining power of suppliers: Severstal faces medium competition from external
suppliers, as company has its own supply chain and does not depend within external
suppliers. It can be anaalysed that Severstal, has been working towards bringing
external stakeholders. Bargaining power of suppliers has medium impact, as company
has own suppliers internationally and has been further competitvel bringing best
working syenrgies. Bargaining power of customers: The customer’s power is medium, as Severtsal aims
to bring customers best services and has attained brand goodwill informatively within
competitive industry. Customers have strong working pace, where Severstal has been
evolving to attain wider competitive productivity through varied customer’s services.
 Competitive rivalry within industry: Severstal has strong competitive rivalry within
industry, where business demands are widely expanding towards productive working
synergies. Risk is high as international market is expanding into varied new
paradigms and there is fundamental risk from new competitors within industry. The
steel industry, has been functionally rising withihn recent benchmarks where
companyfaces excess competitive rivalry within recent time period (Sutherland,
2022).

 Threat of new substitution: Severstal has threat of new substitution, and rising
competition within industry where threat of new substitution holds huge significance.
There is ranging demand and rsing competition within industry, where new
substituion with extended market positioning and wider scale growth synergies in
products are coming in. Threats of new entry: The threat of new entry in industry is widely rising, were
Severstal has excessive competition within industry and has been excessivley facing
competitive rivalry. It can be analysed that threat of new entry, has been widely
evolving towards new customers demands and rapid increasing competition within
business market scenarios. New companiesd and start ups are rising, where business
benchmarks are excessively rising in recent time.
From the above porter five force analysis, it can be analysed that company externally
faces various complications, where rapid scale competitive benchmarks has been rising
functionally within working frameworks. The brand has been also witnessing excessive
fluctuating business determined pace, where functional rise and changing pace has been
found to be essential productivities (Sutherland, 2022).
Most important aspects of internal business situation of severstral :
Internal business situations can be analyzed by determining factors, where Severstsal
faces excessiv competition within industry and has to revamp competitive market stability
functionally. International business situations have been competently growing in recent time,
where untapped businesses have been evolving towrads varied working domains. The
business market has been functionaly evolving with new demands amon customers and
excessive competition rising, engaging towards developed parameters. Swot analysis, will
enable busiess synergies to be explored on as per company internal working procedures.
Business situations have been variedly, based on competitive fucntional domains by scaling
up optimized wellness based on varied untapped goals significantly.
 Strengths: Internal capital strength and strong brand goodwill is the key strength of
Severstal, where this has enhanced brand working pace atcively. Quality of steel
products and mechansims adoption has enabled brand to keep up with , for further
extending new market scenarios (Uhli and Remané, 2022). The business structure of
comapny has been forming best vision to engage on towards productive goals, and
strengthen up mechanism for adopting to new demands. Severstal has best brand

fucntioning, and products range in steel industry for bringing competitive market
share expansion worked on. Weaknesses: Severstal faces internal lack of mahcinery innovation, where market
innovation is rising among steel industry whcih has to be optimised atively. Weakness
of company internal business goals also specifies that there has to be further
expansion worked on towards growing rapid commercial mechanism, and develop
new strategies for supply exoansion.There is wide range of internal competition
growing, where extended new demands have to be furthgr leveraged for improved
working grounds expansion fucntionlly. Weakness such as divere increased cost
demand, furthe paces specific demand for extensive scope for competiive engagement
based on intrciate domains.
 Opportunities: There is competitiv market within industyr and opportunity of
untapped interntional expansion has been rising productively within recent time
period. Oppportunity for higher business marketing, and new extended international
fucntional expansion holds huge role for improved working vision growth
innovatively. There is also opporunity, for international competitive market growth
where mechanism whcih plays crucial role for gaining best benchamrks
competutively (Godin and Terekhova, 2022). Threats: Severstal faces threat from flucatuating international economies , rising
international business growth where competitive makret is there fundamentally
expanding. There is threat of extende business benchmarks, and frther competeitive
market demands growth where steel, manaufactring indystry is rapidly exapnding into
varied arrends.Steel industry also further extends focus on increasing rapid prices,
higher compeition and rapid flucatuatng business goals in industry domains.
Severstal with increased competitive diversity in indystry, has been facing various
challenges in helathcare scenarios where specific new innovative business goals have to be
framed on for gaining global position worked on. Challenges have to be worked on by
developing new extended awareness, digital competitive strategies where there has to be
extended. It can be also analyzed that challenges functionally plays critical role for
improvizing awareness, and developing specific rapport on optimized wellness goal within
longer time run.

Some future stratgeic optionsand directions comapny need to consider:
There are various strategies and options, Severstal need to consider diversley for
strengthening competitive positioning within industry. As industry competitveness is widley
growing, varied strategic options and directions have to evalauted for strengthening new
competitive aspects. Porter generic strategies, advances scope to generate extensive scope
worked on for strengthening working enggement. Cost leadership, differentiation and cost
focus, differentiation strategies are some of the major aspects in Porter generic strategies for
strengthening new diverse domains fucntionally.
Cost Leadership Strategy: Increasing profits by reducing costs, and changing industry
average prices leads to increase market share by charging lower prices and making
reasonable profits on each sales. Cost leadership plays crucial role in developing rapport and
strong market presence in industry, where strategic option integration develops competent
rapport. Cost leadership enables to develop timely expansion within industry, for
strengthening rapid untapped goals worked on for developed goals (Fischer, Kolo and
Mothes, 2022).
 Differentiation Strategy. For adopting differentiation strategy, company needs good research,
development and innovation along with ability to deliver higher quality products and services
extensively. By using differentiation strategy business is able to develop new market
segments entries enhance fundamentally. By intricate functional expansion on working
scenarios, and leveraging rapid differentiation company will be able to synchronize wider
scale technical efficacy. The differentiation will enable business to engage on towards diverse
domains, and generate functional care goals for optimized wellness scenarios proactively.
 Cost Focus Strategy. This factor focuses on ensuring market niche is focused on profoundly,
by determining extra serving within market. It is not enough to focus on market segments,
and deliver broader market within risk competing broad market resourced. By adhering to
cost focus strategy, optimum engaged cost standards are worked on for primitively shaping
competent goals. By adopting cost focus strategy, business will be able to determine rapid
scale innovation in cost fixation for strengthening competitive benchmarks accurately on
fundamental vision.
Differentiation Focus Strategy: The implementation of differentiation focus strategy,
signifies functional demand for correlating potential diverse demand to inculcate best focus
integrated strategies. Severstal has to implement differentiation focus strategy, for

strengthening market presence and developing international benchmarks rapidly. Role of
differentiation focus strategy, will enable business to scale up extensively enhance diverse
goals for company to extensively expand competitive growth paradigms (Blomsma, Tennant
and Brennan, 2022).
By adopting to differentiation strategy, there has been extensive developed goals worked on
towards optimized wellness goals based on wider scale avenues. The brand by developing
extensive diverse market expansion, will enable to further determine optimized awareness
based on functional long term goals within industry. Severstal by determinng rapid scale
innovation implementation, will be able to generate optimized fucntional growth and
technically enhance goodwill within industry benchmarks.
Recommendations:
There are various strategic options and directions, Severstal can adopt business and
expand commercial goals fruther on new paradigms. As steel manufatcuring industry has
been expanding towards varied directions, there is further extended competition growth
worked on. Strategic growth options and directions analysis, can be analyzed by determining
longer term factors and competitive paramters whcih are as follows:
 Severstal by further working towards international makret expansion will be able to
synchronize best competitiveb business ends, and develop untapped positioning
within new market. The steel industry working demnds are rising, where Severstal has
scope to invest on new iternational expnasion goals mchanism and innovate on
products.This further also signifies market demands to be ideally worked on, where
corporate competitive expansion futher paces competitive busines goals to be
revamped.Severstal by further leveraging best training investments within
employees, will be able to determine rapid scale mechanism growth fucntionally and
determine rapid competitive market growth (Knezović and Hamur, 2022).
 It can be analysed that Severstal, by extending rapid international globa positioning of
products and servics will be able to serve new goals. Overall technology innovation
expansion, further paces excessive potentialities for new business benchmarks growth
and rapidly improvises extensive scale motivation on new domains. There is wider scale demanded on productive domains, where Severstal has socpe to
synergise international market products and develop produtive untapped goals within
longer time frme rapdily. Severstal, will be able to determine new vision by taking up

virtual marketing and adopting rapid mechanism expansion within inetrnational
business domains in recent time. Steel industry is going through transformation stage,
where Severstal comapny further demands rapid scale growth and internationalisation
pace.
CONCLUSION
Recent report has concluded importance of framing new business strategies, and
developing competitive market growth functionally within internationalisation factors
competitively. Study has summarized internal and external parameters related to business
domains within Severstal, for gaining rapid working pace fucntionally within longer extended
paradigms.

REFRENCES
Books and Journals
Blomsma, F., Tennant, M. and Brennan, G., 2022. Exploring resource-service systems—
Beyond product-service systems and toward configurations of circular
strategies, business models, and actors. In Circular Economy and
Sustainability (pp. 127-144). Elsevier.
Fischer, T.S., Kolo, C. and Mothes, C., 2022. Political Influencers on YouTube: Business
Strategies and Content Characteristics. Media and Communication, 10(1),
pp.259-271.
Godin, V. V. and Terekhova, A. E., 2022. Research on Business Models Evolution and
Strategies of Digital Companies. In Proceedings of the International Scientific
Conference “Smart Nations: Global Trends In The Digital Economy” (pp. 12-
19). Springer, Cham.
Knezović, E. and Hamur, A., 2022. Porter’s Business Strategies and Business Performance in
SMEs. In Entrepreneurial Innovation (pp. 7-23). Springer, Singapore.
Pereira, C. S., and et.al, 2022. The influence of technological innovations on international
business strategy before and during COVID-19 pandemic. Procedia computer
science, 196, pp.44-51.
Sutherland, D., 2022. The Business of Ambiguity: Demystify the Unknown with Five Key
Thinking and Behavior Strategies. Greenleaf Book Group.
Uhlig, M. and Remané, G., 2022. A Systematic Literature Review on Digital Business
Strategy.