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jerryking : steel   10

Wilbur Ross brings art of restructuring to Team Trump
JANUARY 21, 2017 | FT| by: Philip Delves Broughton.

“When you start out with your adversary understanding that he or she is going to have to make concessions, that’s a pretty good background to begin.”

So all this stuff about tariffs and walls and protectionism turns out to be pure gamesmanship.......In his career as an investment banker at NM Rothschild and then running his own business, WL Ross & Co, he has shown repeatedly how he can dive into an industrial dung heap and emerge with a fistful of dollars and not a speck on his silk tie......... Working on his own account, Mr Ross’s most famous deal was his purchase of an ailing group of US steelmakers in 2002, shortly before President George W Bush imposed tariffs on imports of steel. Mr Ross used the protection to fix the operations, cut debt and draft new contracts with workers. He was able to take the company public in 2003 and sell it two years later to the Indian steel mogul Lakshmi Mittal.

He has pulled off similar tricks, mostly successfully in coal mining, textiles and banking, immersing himself again and again in new industries and the minutiae of the laws, trade rules and contracts that govern them.

As a student at Harvard Business School, Mr Ross was mentored by Georges Doriot, a pioneering advocate for venture capital, who said: “People who do well in life understand things that other people don’t understand.”
For bothering to understand things that most people don’t, Mr Ross deserves more credit than he gets. He is often easily dismissed as a vulture or someone who buys low and sells high. But what he has done is hard. The devil in restructuring is in the grinding detail of voluminous contracts and difficult, often highly emotional negotiations.
arcane_knowledge  bankruptcy  contracts  detail_oriented  dispassion  emotions  gamesmanship  Georges_Doriot  hard_work  imports  HBS  inequality_of_information  Lakshmi_Mittal  leverage  messiness  minutiae  moguls  negotiations  new_industries  Philip_Delves_Broughton  preparation  protectionism  restructurings  sophisticated  steel  tariffs  thinking_tragically  unsentimental  vulture_investing  Wilbur_Ross 
january 2017 by jerryking
Today’s Titans Can Learn From Fall of U.S. Steel -

it was the run-up to that strike, as well as the eventual terms of the settlement, that paved the way for the decline of the company and the industry it led. The episode opened the door for surging imports and eventually for wage increases that the companies could ill afford...The United States economy is no longer so dependent on heavy manufacturing, a development that would have taken place even if the men running U.S. Steel had far more foresight than they did. But they might have coped with it far better than they did. They might have found a way to better use newer technology that enabled companies like Nucor, which remains in the S.&P. 500 and whose market value is four times that of U.S. Steel, to prosper making steel.

More broadly, the descent of U.S. Steel from all powerful to also-ran might be worth contemplating by those who now seem to be astride the world economy, a list that could include companies in Wall Street, Silicon Valley and China.

Michelle Applebaum, a now-retired steel analyst whom I have relied upon for insights since the 1980s, when she was at Salomon Brothers, says that one reason the 1959 strike proved disastrous for the big steel companies was that it showed customers they had choices...When the strike did end, workers received minimal wage increases, but they also obtained a cost-of-living provision to ensure that wages and benefits kept up with inflation. That would prove to be valuable for them in later years. Steel users had learned how to deal with imported steel, a lesson they did not forget.
steel  lessons_learned  '60s  unions  labour  S&P  JFK  strikes  history  Salomon_Brothers  U.S._Steel  cost-of-living  Nucor  imports  research_analysts  foresight  decline 
july 2014 by jerryking
Business School, Disrupted -
MAY 31, 2014 | NYT | By JERRY USEEM.

The question: Should Harvard Business School enter the business of online education, and, if so, how?

In the Porter model, all of a company’s activities should be mutually reinforcing. By integrating everything into one, cohesive fortification, “any competitor wishing to imitate a strategy must replicate a whole system,” Professor Porter wrote.

In the Christensen model, these very fortifications become a liability. In the steel industry, which was blindsided by new technology in smaller and cheaper minimills, heavily integrated companies couldn’t move quickly and ended up entombed inside their elaborately constructed defenses.
HBS  deanships  disruption  Michael_Porter  competitive_strategy  steel  competitive_advantage  Clayton_Christensen  Colleges_&_Universities  Ivy_League  MOOCs  business_schools  Nitin_Nohria  blindsided  blind_spots 
june 2014 by jerryking
What's the most versatile frying pan?
Jan. 01 2013| The Globe and Mail | BONNY REICHERT
best_of  kitchens  utensils  steel 
january 2013 by jerryking
Learning to do in the Soo
Apr 01, 2001 | Profit . Vol. 20, Iss. 2; pg. 55 | Mike Delfre.

A one-industry town built on steel, Sault Ste. Marie, Ont. is not exactly an entrepreneurial hotbed. But it didn't used to be that way. Sault Ste. Marie began just over a century ago as a place where native trade flourished. Eventually it attracted entrepreneurs such as Francis Clergue, who built an industrial empire on the area's natural riches.

Entrepreneurialism seems to have vanished in recent years, as generations of Soo residents grew accustomed to holding jobs that someone else created. For years, Sault Ste. Marie has meant Big Steel. Like most people who grew up in single-industry towns, Saultites appear to have some difficulty recognizing the opportunities in a "knowledge-based" economy. We have checked our brains at the gate for so long.

While my entrepreneurship pitch often meets with glazed eyes, we've tapped into a high degree of latent interest in business creation. There is no shortage of ideas, or the desire to be rich. What has been lacking is a comprehensive process to nurture fledgling entrepreneurial spirits and turn ideas into action. Now that we have a process that seems to work, we have noticed a growing number of inquiries and more talk about business creation. In time, the need to "sell" entrepreneurship may be a thing of the past.
ProQuest  entrepreneurship  steel  single-industry_towns  Sault_Ste._Marie  process-orientation 
november 2011 by jerryking
Mittal & Son
APRIL 16, 2007

By Stanley Reed
steel  Lakshmi_Mittal  Aditya_Mittal 
october 2011 by jerryking
Thyssen's High-Tech Relay -
DECEMBER 14, 2010 By ROBERT GUY MATTHEWS. Thyssen's High-Tech
Relay. Steelmaker Uses Computer Networks to Coordinate Operations on
Three Continents
Thyssen-Krup  steel  supply_chains 
december 2010 by jerryking

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