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Case
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Reference no. 9B07M033
Published by: Ivey Publishing
Originally published in: 2007
Version: 2009-07-03
Length: 11 pages
Data source: Field research

Abstract

This is the second of a two-case series (9B07M032 and 9B07M033). Voestalpine AG, a public company located in Linz, Austria, was examining opportunities for growth. The company considers that to meet the needs of its customers, notably automobile, rail and construction, it has to grow. Further, the steel industry in Europe is in a process of consolidation. The company has a very strong balance sheet but due to its ownership structure (35 per cent is owned by the Austrian government), its market value is considerably lower than its competitors, also providing a rationale for growth. The company is profitable and focuses on value added products. In the (A) case the decision to buy two steel plants in Poland is examined and looks at the strategic issues and concerns relating to this expansion. The (B) case provides opportunity for the student to assess methods of strategic execution.
Location:
Size:
Large
Other setting(s):
1989

About

Abstract

This is the second of a two-case series (9B07M032 and 9B07M033). Voestalpine AG, a public company located in Linz, Austria, was examining opportunities for growth. The company considers that to meet the needs of its customers, notably automobile, rail and construction, it has to grow. Further, the steel industry in Europe is in a process of consolidation. The company has a very strong balance sheet but due to its ownership structure (35 per cent is owned by the Austrian government), its market value is considerably lower than its competitors, also providing a rationale for growth. The company is profitable and focuses on value added products. In the (A) case the decision to buy two steel plants in Poland is examined and looks at the strategic issues and concerns relating to this expansion. The (B) case provides opportunity for the student to assess methods of strategic execution.

Settings

Location:
Size:
Large
Other setting(s):
1989

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