Friday, October 5, 2012

Alcoa Company

The moment corporations realize the issues involved in developing an highly effective strategy, they're ready of evaluating their internal strengths and weaknesses as well as the opportunities and threats of environment.
Alcoa is a processing company in The us that deals of the production of steel and Aluminum items and located within the globe. The company has faced many criticism by non-governmental companies for its poor environmental management and social issues each from investing and customers.
Many consumers and investors argue that Alcoa has often tried to monopolize the marketplace of Aluminum item inside U.S industry with an intention of maintaining its overwhelming share on the market.
The Alcoa Business for that reason works on the antitrust approach by trying to raise the production cost of its competitors so that you can enjoy the monopoly of dominating the market. The business in turn increases the costs of its products. The customers are for that reason complaining in the high costs of fuel and other products created by the company. For that reason the Alcoa need to be responsive to reasonable rules of competition to reduce the market dominance. A question that ought to be from the investors mind is how to arrive up with feasible measures to prevent the wrongful monopoly must it exist. (Dominick, 2003).
 According to books Alcoa is rated as 1 from the top ten toxic businesses during the world. It produces some hazardous gases which are either dangerous towards the ozone layer or to human health. Residents where the plant or company is located has also complained within the water pollution produced by the company, Because it discharges its toxic chemicals over a ware creative many wellness impacts on a area. But this has not been addressed. (John, 2005)
Issues on high emissions of hazardous gases have also been raised wherever smelters employed for production of aluminum produces many gases. Alcoa therefore was to jobs on a production or invention of low emission aluminum smelters to address the issue. This calls for ones need of selection source of energy that is environmental friendly. An additional trouble which the customers’ lament about may be the price of damping wastes. The plastics can not be recycled consequently the disposed rates are continually increasing (Dorn Busch, 1985).
Because from the monopolization with the marketplace by Alcoa and shortages of their items within the market, the Japanese have come up having a project in South East Asia to add hydro-electric power plants to curb power shortages during the smelting of aluminum. Aluminum merchandise are on a decline. The Asahan project can also be considered capital and pollution free of charge trade zone thus doing away with elevated pollution. In summary the non-governmental organizations the following raised issues just like pollution of water and air by Alcoa gases, production of wastes that are non-renewable thus increased disposal costs of wastes and marketplace monopoly (Hendrik, 1985)
Therefore for powerful competition over a globe marketplace appropriate laws need to be made to stop companies like Alcoa to dominate the market. Appropriate strategic management analysis needs to be put in place.