![Page 1: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/1.jpg)
Best In France
Mon, 10 Dec 2007Prof. Michael SEGALLA
Corus Group In France
Beniamin SMOLIJSandor ERDEIKitty LIANGGa-Eun OH
![Page 2: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/2.jpg)
Executive Overview
■ Introduction■ History of Corus & recent acquisition■ Steel Market ■ Corus in France
![Page 3: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/3.jpg)
Introduction
■ Corus Group Aerospace, engineering, automotive, packaging,
construction, energy & power generation, consumer products, rail
■ Corus French subsidiary provides a range of rail products and railway
infrastructure services to the international rail industry
![Page 4: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/4.jpg)
Corus Group Financial Performance
![Page 5: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/5.jpg)
Sogerail
■ A subsidiary of the Usinor group(French company)
■ Employees : about 430 ■ Products: rail products■ Location : at Hayange in the Lorraine region of
France. ■ Turnover : 170 million euros
(March 1999 Recorded)
![Page 6: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/6.jpg)
Birth of Corus Group
■ British Steel acquired Sogerail on 2nd October 1999 ■ British Steel merged with the Dutch steel producer
Koninklijke Hoogovens to form Corus Group on 6 October 1999
■ After this merger, conflicts led bad performance In 2001, operating loss touched £ 1.152 billion In 2002, losses stood at £ 458 million
■ In 2003, new CEO, Philippe Varin implemented ‘Restoring Success’ program
cost savings touched £ 680 million in 42 months, employee productivity rose by 5% in 2005
![Page 7: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/7.jpg)
Acquisition by Tata Steel
■ In Oct 2006, the board of Corus decided to accept Tata’s proposal to acquire
■ Brazilian steel company CSN announced to participate in acquiring Corus Group
■ The price was getting increased due to competition
■ Tata Steel acquired Corus Group at 608p per share in April 2007
■ Tata Steel Group consists of Tata Steel & Corus Group Ltd
![Page 8: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/8.jpg)
History of Corus Group
Koninklijke Hoogevens N.V..(Dutch)
Corus
British Steel
British Steel Sogerail
Tata Steel Corus
![Page 9: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/9.jpg)
2006 Global Steel Industry
![Page 10: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/10.jpg)
After the acquisition
![Page 11: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/11.jpg)
World Steel Consumption
0
100
200
300
400
500
600
Mill
ion
Ton
s
EU-25 143 152 152 159 156 155 158 160 160 167 169 173 177 183
USA 108 116 111 115 102 103 101 116 104 110 111 113 115 117
JAPAN 82 70 69 76 73 72 73 77 78 81 81 81 82 83
CHINA 103 110 123 125 154 186 233 270 315 356 403 443 470 489
MIDDLE EAST 16 17 17 20 23 25 30 31 35 37 40 44 46 48
1,997 1,998 1,999 2,000 2,001 2,002 2,003 2,004 2,005 2,006 2,007 2,008 2,009 2,010
![Page 12: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/12.jpg)
Sogerail British Steel
![Page 13: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/13.jpg)
Entering the French Market
■ Rail is a steel niche market■ Access to European market through France.
Know-how Transport, logistics
![Page 14: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/14.jpg)
Personnel Merge in France
■ Commercial unit moves to new French base■ 10 French employees laid off■ 30 British employees moved to France
■ British Nationals: 30■ French Nationals: 20
![Page 15: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/15.jpg)
Differences in style emerge
■ Centralization■ Limited autonomy■ Bureaucracy
![Page 16: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/16.jpg)
Cultural differences
■ Meetings: Highly organized Nice presentations Less decisions
■ Contacts The boss speaks only
to immediate subordinates
■ Language Bonjour, Merci..
■ Meetings: Less organized More discussions Faster decisions
■ Contacts The boss speaks to
every employee■ Language:
High expectations of English proficiency
English French
![Page 17: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/17.jpg)
Corus rail today
■ Only 5 British employees remained from the original 30
■ These 5 settled down in France■ The British and the French couldn’t work
together in long-term
![Page 18: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/18.jpg)
Negative effects of the merger
■ British tried to launch new products with their model, ignoring the French objections
■ Mr. Dabas and 3 other French managers left the company
![Page 19: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/19.jpg)
Positive effects of the merger
■ More control than before the merger
■ less accidents, the factory is safer for the workers
![Page 20: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/20.jpg)
Merger with Tata
![Page 21: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/21.jpg)
Merger with Tata
■ We do not know the results of the Tata takeover
■ Mr. Dabas thinks: Tata doesn’t even know that Corusrail exists
■ Tata is too far from France
![Page 22: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/22.jpg)
“Test of interests of Tata”
■ Corusrail will ask at the end of 2007 for investment
■ Increase Rail length 80 108■ Competitors have 120, but 108 can easier
transported■ Mr. Dabas advice: sell off Corus Rail
![Page 23: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/23.jpg)
Conclusion
■ Give confidence to the former employee■ Don’t control everything■ Send people who know French culture or at
least are interested in it■ If the objectives are not met than discuss
![Page 24: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/24.jpg)
We Thank
■ Mr. Gerard Glas CEO ■ Mr. Hubert Dabas Commercial Manager■ Ms. Laure Lafare Andministrative Assistant
![Page 25: Best In France Mon, 10 Dec 2007 Prof. Michael SEGALLA Corus Group In France Beniamin SMOLIJ Sandor ERDEI Kitty LIANG Ga-Eun OH](https://reader035.vdocuments.site/reader035/viewer/2022062619/551829e155034684678b4c11/html5/thumbnails/25.jpg)
Thank you for your attention!