| Summary: | 碩士 === 國立中興大學 === 高階經理人碩士在職專班 === 107 === This thesis analyzes the sales and costs structure of a case company (S Co.) that operates in the scrap steel industry, in order to find out appropriate strategies for its operations. The results show that the case company can adopt the following internal improvement alternatives: (1) using business scale to reduce costs and enhance production efficiency, (2) increasing purchasing amount when the prices of steel scrap rise, and (3) going abroad (Mainland China) to establish joint venture companies. I also consider the following external improvement alternatives: (a) investment in shares or acquisitions of their upstream firms or horizontal peers and (b) development of the copper and aluminum scrap businesses. However, S Co. is unlikely to control risk of other firms and the NPVs of the related scrap businesses appear to be lower than that of expanding the steel scrap business. Hence, S Co. can barely benefit from these two businesses. Overall, this study suggests S Co. to pursue economies of scale, sufficient capital, and operating flexibility to deal with the price volatility of steel scrap.
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