The Turnaround of Ispat Imexsa

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTA007 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Case Length : 11 Pages
Period : 1992 - 2003
Pub Date : 2005
Teaching Note : Not Available
Organization : Ispat; Imexsa
Industry : Steel
Countries : Mexico


Lakshmi Mittal of Ispat group takes over a factory in Mexico plagued with technical problems, running at 20% capacity and producing low quality slabs. The new management emphasises cost consciousness and discipline, overhauls the plant's existing cost accounting system, and dismisses the external consultants.

Ispat also starts looking at overseas markets for Imexsa's products internationally to ensure that the entire production is sold. The management strives for constant improvement through daily meetings and reports, quality programmes, global integration and stretch goals.


  Page No.
Introduction 1
Background 1
The Acquisition 1
The Turnaround 2
Looking Ahead 4
Exhibits 6


Mexico, Ispat, Imexsa, Turnaround, Sircasta, Nair, Steel, DRI (direct reduced iron), Cost cutting, Product mix, Marketing steel

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