Mittal Steel 2006 Essay
Before Mittal Steel, most steel companies produced steel for their regions and many were losing millions of dollars yearly. Even though there was a need for steel all over the world, the shipping and tariffs cost were too high to provide services to international customers. Mittal saw an opportunity to …show more content…
When Mittal was interested in acquiring a target, a team of manager specializing in making deals for the company would visit the target to investigate and test their assets to make sure they are feasible. They would also hold discussions with the management of the target to get a feel of their expectations. This type of due diligence would help Mittal define any problems that were within the target company. In the next step, Mittal would work with the target to develop a 5 year plan for the target to help the target succeed. If the target approves the acquisition, Mittal moves into a restructuring phase.
Mittal Steel developed a strategy which is referred to by some as the “Mittal Method”. After the acquisition of the company, Mittal would insert a team of managers that would be responsible for meeting the goals of the new company. Next, they