Analysis of POSCOs Global Spread
POSCO is a firm based in South Korea which the company headquarter is located in Pohang. According to Bloomberg (2009), POSCO is the second biggest steelmaker in the world by market value. Meanwhile, it is the most profitable steelmaker in Asia which attracts a huge amount of investment from India (Bloomberg, 2010).
In this stage, POSCO has two steel mills in the country while it has a joint venture with an American steel company. Moreover, it has a subsidiary company which is also a steel manufacturer. Based on the data of Reuters (2011), the production of POSCO is recorded as around 31.7 million tons of crude steel in the end of 2009. It has a spread of steel products which are hot rolled and cold rolled products, plates, wire rods, silicon steel sheers and stainless steel products.
For judging POSCO whether it is a successful company or not, it is important to review its last five years company’s performance. From figure 1, it describes the financial performance of POSCO in recent five years.
Figure 1. Financial Performance of POSCO
Source: Reuters 2011
According to the figures shown above, it indicates that POSCO is a fast growing company which includes drastic increase of sales with five years period. Moreover, its earnings per share have a significant improvement in recent five years. It jumps nearly four times in three years period. Therefore, it is crystal clear that it is a company with profitability going upwards. Practically, compared the percentage sales of growth in recent year and 3 years ago, it almost increases triple in the latest year which is a very impressing performance for a steelmaker.
Hence, it further proves that it is a prospective profitable and growing company. According to Lugus principle mentioned in the lecture, it is necessary for manger to understand and make sense of the world in a contemporary company. Therefore, the success of POSCO is mainly due to its good management and sustainable visionar…
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