Cliffs Natural Resources Paper
Cliffs Natural Resources Inc.
Leisha Coronato
International Business (BUS 616)
John Theodore
August 5, 2013
I have done my paper on the company Cliffs Natural Resources Inc. This company operates as an international mining and natural resources company, which engages in exploration and production of iron ore and high and low volatile metallurgical coal. I have included the culture of this organization and their values and norms. The organization has ethics for international dealings, they do foreign direct investments, accounting practices, how they convert currency, international strategies, strategic positioning and lastly their marketing tactics.
I have done my paper on the company …show more content…
Cliffs Natural Resources Inc. This company operates as an international mining and natural resources company, which engages in exploration and production of iron ore and high and low volatile metallurgical coal. I have included the culture of this organization and their values and norms. The organization has ethics for international dealings, they do foreign direct investments, accounting practices, how they convert currency, international strategies, strategic positioning and lastly their marketing tactics.
Company Overview Cliffs Natural Resource Inc.
is a larger supplier of iron ore products. North America steel industry, and it’s the largest producer of iron ore pellets in the world. They manage six iron ore mines in Michigan, Minnesota, and Eastern Canada and hold equity interest in five of the mines. It operates an international mining and natural resources, that engages exploration and production—high and low volatile metallurgical coal. The Australian is 80.4 percent Portman (third largest in Australia). This company sells the ore in North America, also Europe and Asia (Reynolds, 2011). It is growing with interest in Asia/Pacific region and also Latin …show more content…
America. The Latin American segment is comprised of Amapa which is in Brazil. The Cliffs Natural Resource was founded in 1847 and is headquartered in Cleveland, Ohio.
Culture, Values, and Norms Culture is the aggregation of beliefs, norms, attitudes, values, assumptions, and ways of doing things that is shared by members of this organization and is taught to new employees. Competitive culture is leadership that encourages and values high competitive work environment.
Ethics in International Dealings International dealings of ethics commitment to the highest standards of business conduct and ethics, integrity, and attendant reporting according to all applicable laws. It is to the company’s directors, officers and employees and it extends agents and representatives that include consultants that are in conducting the company business. Their code of ethics is to protect and enhance the company’s integrity and reputation to maintain the highest degree of honesty in all their business relationships. There are three areas Cliffs Natural Resources use they are: (1) company responsibility to abide by laws that apply to the company’s business; (2) company’s obligation to conduct internal and external business fairly and ethically; and (3) company’s responsibility to interact fairly and respectfully with each other, its customers and suppliers and its host countries. It is the responsibility of all employees to operate the company effectively and ethically in order to produce value for stockholders. A violation of this code is a serious matter. It can cause losing your job or put on disciplinary action. The company conducts business in different countries around the world. They respect the authority of the government in these countries. They maintain honest relationships with government and their officials, personnel and other agencies (Tichy, 1983).
Foreign Direct Investment This company Cliffs Natural Resources is partners with Amapa in Brazil and Sonoma in Australia respectively.
Amapa
This one is a 30 percent minority interest owner in Amapa consists of iron ore deposits, a 120 mile railway that connects the mine to existing port facility and 71 hectares of real estate (2011).
Sonoma
This one own 45 percent economic interest in Queensland, Australia. Production and sales are near 3.5 million and 3.1 million metric tons of coal in 2011.
Entry into Markets
Accounting Practices Cliffs Natural Resources for accounting is following policies to be beneficial in understanding judgments involved in the preparation of consolidated financial statements and uncertainties that might impact their financial condition; the results of operations and cash flows. This company prepares their financial statements in accordance with the GAAP they make estimates and assumptions that affect reported amounts like assets, and liabilities (Hill, 2011). Actual results could differ from estimates. Changes in the circumstance may alter estimates and affect the results in operations and financial position in future periods.
Currency
The Cliffs Natural Resource Inc. prepares with the United States dollar as the reporting currency. The functional currency of the Australian subsidiaries is the Australian Dollar (10-k, 2012). This means the financial statements of international subsidiaries are translated into United States dollars using the exchange rate at each balance sheet date for assets and liabilities and weighted average exchange rate for each period for revenues expenses, gains and losses. Where local currency is functional currency, the translation adjustments are recorded. It accumulates other comprehensive income (loss). United States dollar is consolidated operations (10-K, 2012). The income taxes are not usually provided for foreign currency translation adjustments.
International Strategy Cliffs Natural Resource Inc. strategy is continued to achieve the grater scale and diversification in the mining industry to focus on serving the world’s largest and fastest growing steel markets. They are driven by core values of social, environmental and capital stewardship. Cliffs Natural Resource Inc. is international mining and natural resource company. They are members of the S & P 500 index, the company is a major global iron ore producer. Cliffs Natural Resource Inc. operates under strong framework at core values globally. Here is what the core values include: safe production, group and individual accountability, customer focus, integrity, creating economic value, teamwork, bias for action, recognize and reward achievement, trust, respect and open communication, and lastly environmental stewardship.
Strategic Positioning
Marketing Tactics Advertisements feature a photo of two identical mining trucks, one has the Cliffs logo and the other has the consolidated Thompson logo on it. The advertising campaign is to reinforce Cliffs brand as growing, dynamic global industrial company that supplies the raw materials to the steelmakers around the world and the advertisement features the ad copy. Steve Baisolen said, “Consolidated Thompson fits well within Cliffs Natural Resources’ strategy to build scale by owning expandable and exportable steelmaking raw material assets serving the international markets.” The rapid growth in the steel production in China over recent years has been partially met by a corresponding increase in domestic Chinese iron ore production. Chinese iron ore deposits, although there only substantial are lower grade (less than half the equivalent iron ore content). Than current iron ore supplied form Brazil and Australia (2011). The key challenges are the result of global market conditions and lack of existing infrastructure. Cliffs Natural Resource is optimistic about global demand for chromite and ferrochrome, the market is extremely volatile and this project is aggressive in the market. The global developments like the Chinese demand heavy economics and stability of their operation.
In conclusion I hope that I have answered the questions that were necessary for this week’s research paper.
I have answered the questions regarding the paper the company I choose was Cliffs Natural Resource Inc. It was fun looking up the information like the culture of the company—values and norms, ethics, investments, markets, accounting, how currency is converted for the country, international strategy, the strategic positioning, and the market tactics.
References
Cliffs Natural Resources Inc. Launches “together, it starts here” Corporate advertising campaign (2011, May 16) PRNewswire. Retrieved from http://proquestsearch.com
Gedex, Inc and Cliffs Natural Resources exploration Inc. Sign strategic agreement (2010, Dec 06). PRNewswire. Retrieved from http://proquestsearch.com
Hill. (2011) International Business: Competing in a Global Marketplace (8th edition). McGraw-Hill http://cliffsnaturalresources.com 10-K (2012) Cliffs Natural Resource Inc.
Kilmann, R.H. (1995). A holistic program and critical success factors of corporate transformation, European Management Journal, Volume 13 Number 2, pp 175-186.
Reynolds, Terry (2011). Iron will Cleveland-cliffs and the mining of Iron ore pp. 1847-2006. Wayne State University Press
Tichy, N H (1983). Managing Strategic change technical political and cultural dynamics, New York:
Wiley
Leisha Coronato
International Business (BUS 616)
John Theodore
August 5, 2013
I have done my paper on the company Cliffs Natural Resources Inc. This company operates as an international mining and natural resources company, which engages in exploration and production of iron ore and high and low volatile metallurgical coal. I have included the culture of this organization and their values and norms. The organization has ethics for international dealings, they do foreign direct investments, accounting practices, how they convert currency, international strategies, strategic positioning and lastly their marketing tactics.
I have done my paper on the company …show more content…
Cliffs Natural Resources Inc. This company operates as an international mining and natural resources company, which engages in exploration and production of iron ore and high and low volatile metallurgical coal. I have included the culture of this organization and their values and norms. The organization has ethics for international dealings, they do foreign direct investments, accounting practices, how they convert currency, international strategies, strategic positioning and lastly their marketing tactics.
Company Overview Cliffs Natural Resource Inc.
is a larger supplier of iron ore products. North America steel industry, and it’s the largest producer of iron ore pellets in the world. They manage six iron ore mines in Michigan, Minnesota, and Eastern Canada and hold equity interest in five of the mines. It operates an international mining and natural resources, that engages exploration and production—high and low volatile metallurgical coal. The Australian is 80.4 percent Portman (third largest in Australia). This company sells the ore in North America, also Europe and Asia (Reynolds, 2011). It is growing with interest in Asia/Pacific region and also Latin …show more content…
America. The Latin American segment is comprised of Amapa which is in Brazil. The Cliffs Natural Resource was founded in 1847 and is headquartered in Cleveland, Ohio.
Culture, Values, and Norms Culture is the aggregation of beliefs, norms, attitudes, values, assumptions, and ways of doing things that is shared by members of this organization and is taught to new employees. Competitive culture is leadership that encourages and values high competitive work environment.
Ethics in International Dealings International dealings of ethics commitment to the highest standards of business conduct and ethics, integrity, and attendant reporting according to all applicable laws. It is to the company’s directors, officers and employees and it extends agents and representatives that include consultants that are in conducting the company business. Their code of ethics is to protect and enhance the company’s integrity and reputation to maintain the highest degree of honesty in all their business relationships. There are three areas Cliffs Natural Resources use they are: (1) company responsibility to abide by laws that apply to the company’s business; (2) company’s obligation to conduct internal and external business fairly and ethically; and (3) company’s responsibility to interact fairly and respectfully with each other, its customers and suppliers and its host countries. It is the responsibility of all employees to operate the company effectively and ethically in order to produce value for stockholders. A violation of this code is a serious matter. It can cause losing your job or put on disciplinary action. The company conducts business in different countries around the world. They respect the authority of the government in these countries. They maintain honest relationships with government and their officials, personnel and other agencies (Tichy, 1983).
Foreign Direct Investment This company Cliffs Natural Resources is partners with Amapa in Brazil and Sonoma in Australia respectively.
Amapa
This one is a 30 percent minority interest owner in Amapa consists of iron ore deposits, a 120 mile railway that connects the mine to existing port facility and 71 hectares of real estate (2011).
Sonoma
This one own 45 percent economic interest in Queensland, Australia. Production and sales are near 3.5 million and 3.1 million metric tons of coal in 2011.
Entry into Markets
Accounting Practices Cliffs Natural Resources for accounting is following policies to be beneficial in understanding judgments involved in the preparation of consolidated financial statements and uncertainties that might impact their financial condition; the results of operations and cash flows. This company prepares their financial statements in accordance with the GAAP they make estimates and assumptions that affect reported amounts like assets, and liabilities (Hill, 2011). Actual results could differ from estimates. Changes in the circumstance may alter estimates and affect the results in operations and financial position in future periods.
Currency
The Cliffs Natural Resource Inc. prepares with the United States dollar as the reporting currency. The functional currency of the Australian subsidiaries is the Australian Dollar (10-k, 2012). This means the financial statements of international subsidiaries are translated into United States dollars using the exchange rate at each balance sheet date for assets and liabilities and weighted average exchange rate for each period for revenues expenses, gains and losses. Where local currency is functional currency, the translation adjustments are recorded. It accumulates other comprehensive income (loss). United States dollar is consolidated operations (10-K, 2012). The income taxes are not usually provided for foreign currency translation adjustments.
International Strategy Cliffs Natural Resource Inc. strategy is continued to achieve the grater scale and diversification in the mining industry to focus on serving the world’s largest and fastest growing steel markets. They are driven by core values of social, environmental and capital stewardship. Cliffs Natural Resource Inc. is international mining and natural resource company. They are members of the S & P 500 index, the company is a major global iron ore producer. Cliffs Natural Resource Inc. operates under strong framework at core values globally. Here is what the core values include: safe production, group and individual accountability, customer focus, integrity, creating economic value, teamwork, bias for action, recognize and reward achievement, trust, respect and open communication, and lastly environmental stewardship.
Strategic Positioning
Marketing Tactics Advertisements feature a photo of two identical mining trucks, one has the Cliffs logo and the other has the consolidated Thompson logo on it. The advertising campaign is to reinforce Cliffs brand as growing, dynamic global industrial company that supplies the raw materials to the steelmakers around the world and the advertisement features the ad copy. Steve Baisolen said, “Consolidated Thompson fits well within Cliffs Natural Resources’ strategy to build scale by owning expandable and exportable steelmaking raw material assets serving the international markets.” The rapid growth in the steel production in China over recent years has been partially met by a corresponding increase in domestic Chinese iron ore production. Chinese iron ore deposits, although there only substantial are lower grade (less than half the equivalent iron ore content). Than current iron ore supplied form Brazil and Australia (2011). The key challenges are the result of global market conditions and lack of existing infrastructure. Cliffs Natural Resource is optimistic about global demand for chromite and ferrochrome, the market is extremely volatile and this project is aggressive in the market. The global developments like the Chinese demand heavy economics and stability of their operation.
In conclusion I hope that I have answered the questions that were necessary for this week’s research paper.
I have answered the questions regarding the paper the company I choose was Cliffs Natural Resource Inc. It was fun looking up the information like the culture of the company—values and norms, ethics, investments, markets, accounting, how currency is converted for the country, international strategy, the strategic positioning, and the market tactics.
References
Cliffs Natural Resources Inc. Launches “together, it starts here” Corporate advertising campaign (2011, May 16) PRNewswire. Retrieved from http://proquestsearch.com
Gedex, Inc and Cliffs Natural Resources exploration Inc. Sign strategic agreement (2010, Dec 06). PRNewswire. Retrieved from http://proquestsearch.com
Hill. (2011) International Business: Competing in a Global Marketplace (8th edition). McGraw-Hill http://cliffsnaturalresources.com 10-K (2012) Cliffs Natural Resource Inc.
Kilmann, R.H. (1995). A holistic program and critical success factors of corporate transformation, European Management Journal, Volume 13 Number 2, pp 175-186.
Reynolds, Terry (2011). Iron will Cleveland-cliffs and the mining of Iron ore pp. 1847-2006. Wayne State University Press
Tichy, N H (1983). Managing Strategic change technical political and cultural dynamics, New York:
Wiley