Chaparral Steel
Introduction (partial)
By 1984, Chaparral’s existing product had achieved their maximum possible market share, and to increase it further, it would have required additional price cut. So, the option with the firm was to expand its operation in the segment of specialty steel segment, which is typical mini mill product line. The alternative was to increase beam size capacity and directly challenge large integrated steel companies. Due to constraint of the rating of available rolling mill, it could make only small section beam. Manufacturing of medium and large section beams needed higher capacity machines, and it requires big capital investment. Management of Chaparral always focused on the innovation to address the standing challenges. To enter in the new product line with minimum capital investment, it needs to invent its own technology.
SWOT Analysis
INDIAN INSTITUTE OF MANAGEMENT LUCKNOW, Noida Campus
Working Managers Programme (Term I, 2013)
OPERATIONS MANAGEMENT
Assignments, based on
Cases:
1. ‘Chaparral Steel (Abridged)—with the case date of October 1979’
2. ‘Chaparral Steel: Rapid Product and Process Development’ (1991), and
A note:
3. ‘Projects and Teams at Chaparral Steel (1995)’
Weight: 12 % 12 July 2013
Submission Dates for different stages: As specified.
Learning potentials of the case:
The case, Chaparral Steel (Abridged) serves to look at OM issues in an integrated way, as faced (during the period from its inception in 1974, and up to September 1979) in a World Class Company. (The second case and the note on ‘Projects and Teams at Chaparral Steel’ are mainly to give additional information, and are not a formal part of the assignment.)
As one of the pioneers in what came to be known as the “mini-mill” technology, and from the start, Chaparral targeted business in a broader range of bars and shapes than most other mini-mills, which pitted them directly against the integrated mills, and
By 1984, Chaparral’s existing product had achieved their maximum possible market share, and to increase it further, it would have required additional price cut. So, the option with the firm was to expand its operation in the segment of specialty steel segment, which is typical mini mill product line. The alternative was to increase beam size capacity and directly challenge large integrated steel companies. Due to constraint of the rating of available rolling mill, it could make only small section beam. Manufacturing of medium and large section beams needed higher capacity machines, and it requires big capital investment. Management of Chaparral always focused on the innovation to address the standing challenges. To enter in the new product line with minimum capital investment, it needs to invent its own technology.
SWOT Analysis
INDIAN INSTITUTE OF MANAGEMENT LUCKNOW, Noida Campus
Working Managers Programme (Term I, 2013)
OPERATIONS MANAGEMENT
Assignments, based on
Cases:
1. ‘Chaparral Steel (Abridged)—with the case date of October 1979’
2. ‘Chaparral Steel: Rapid Product and Process Development’ (1991), and
A note:
3. ‘Projects and Teams at Chaparral Steel (1995)’
Weight: 12 % 12 July 2013
Submission Dates for different stages: As specified.
Learning potentials of the case:
The case, Chaparral Steel (Abridged) serves to look at OM issues in an integrated way, as faced (during the period from its inception in 1974, and up to September 1979) in a World Class Company. (The second case and the note on ‘Projects and Teams at Chaparral Steel’ are mainly to give additional information, and are not a formal part of the assignment.)
As one of the pioneers in what came to be known as the “mini-mill” technology, and from the start, Chaparral targeted business in a broader range of bars and shapes than most other mini-mills, which pitted them directly against the integrated mills, and