Strategy-1

• Enter into long-term contracts with the customers wherein the

customer have to state minimum requirement for the month and
make a down payment for it.
• Immediate effects:
1) Will push customers to become more loyal.
2) Increase the order predictability rate.
3) Down payment made at beginning of the year would help the
company maintain an effective working capital ratio.
 Strategy- 2
Facts: (pie chat ya bar graph bana dio)
Loyal Customers with Predictable demand: 35%
Loyal Customers with unpredictable demand: 15%
Opportunistic Customers: 50%
1) Finished goods should be sold at a discounted rate or below market price to the
customers entering into a yearly contract.
2) Extra or above the market price should be charged from the 50% opportunistic
customers if they place an order at the end of the month.
Immediate effect:
3) The extra charged would discourage customer from placing a late order. This would
help reduce the skewness in the order books.
4) Increase the share of loyal customers with predictable order rates.
Strategy 3
• The rate of consumption for last 7 years has
increased at a constant rate, making it
increasingly predictable for the coming years.
Production of stainless steel should be
downsized by 12.5% to match the current
demands.
Immediate effect:
1) Will increase the rate of capacity utilization.
2) Save costs and maximize returns from the
fixed investments.
 Strategy 4
• The sales should try convince customers to
move to 200 from 300 grade series
especially the ones in the consumer
durables segment because Increasing use of
200 series in consumer goods owing to its
low cost and high strength is anticipated to
drive demand for stainless steel in the
coming years.
• The demand for consumer stainless steel in
highest in consumer goods (2).
• The company has a lot of scope of doing so
in the south region.
Immediate effect.
1) Save cost.
2) Divert the saving to other departments.
Strategy 5
Increase export of copper and nickel from
nations in Asia Pacific such as:
Indonesia, Japan, Malaysia, Mayanmar,
Phillipines, Singapore, South Korea and
New Caledonia. Research Sources: Exports (fob) of Copper and Articles Thereof: Euromonitor International from United
Nations (UN), International Merchandise Trade Statistics
Immediate effect:
1) The lead procurement time will reduce
drastically.
2) Spreading out the sources for
procurement will help minimize the risk
arising from price fluctuations.

Research Sources: Exports (fob) of Nickel and Articles Thereof: Euromonitor International from
United Nations (UN), International Merchandise Trade Statistics
 Strategy 6
North America is expected to witness a CAGR of
5.1% in terms of revenue over the forecast
period owing to the growing construction
industry on account of high investments in
infrastructure development in the region (1).
The company should look out for newer market
in that region.

Immediate effect:
1) Expansion to newer markets will help the
business safeguard itself from frequent
price fluctuations.
2) Would to
3) Capacity utilization would increase.
Over all benefits derived if all the strategies
are implemented successfully:
• Logistics' and Sourcing’s cost would stop overshooting budget targets.
• With better scheduling of production orders, quality diversion will be
less.
• Finance would be able to strike a better balance between receivable
and payable ratio.
• Finance will be able to properly hedge the supply side as well.
• Creation of a larger loyal customer base.
References
1. https://www.globenewswire.com/news-release/2020/02/26/1990800/0/en/Global-Stainless-Steel-Market-Insigh
ts-2020-2027-by-Grade-200-300-400-Duplex-Series-Product-Flat-Long-and-Application-Building-Construction-Hea
vy-Industry.html
2. https://www.grandviewresearch.com/industry-analysis/stainless-steel-market