Corus plc turnover for the last financial year was  9. 509 billion, however there overall net profit was -974 million, the reason for this loss is due to the companies high operating costs.

They occurred a massive 10. 542 billion in operating cost for the last financial year. This can be seen in the chart below.

The reasons for why this has occurred is firstly, the steel making industry is effected greatly by recessions, therefore they are prepared when the market goes into a recession.Another reason is that competitors are over-capacitated and are producing to much steel, therefore they are trying to sell as much as they can, and have been able to lower the price they charge, this has meant that Corus cannot compete with them. However it looks like the company have got through the worst of the situation and they should soon start to make a profit, however some drastic changes may have to take place.Corus mainly rely on their name to promote business, as they are know across the world as one of the biggest manufacturers of steel, when a customer is looking to buy some steel, they will usually ask around to compare prices and Corus will defiantly be on their list to contact.

Then when Corus have open negotiations about the price they can use their best people to try and make the sale. Corus also rely on past customer being happy with the business they carried out with them, and therefore will come back to Corus next time. Corus has a number of long-term contracts with customers, therefore guarantee custom for the foreseeable future.However Corus do spend some money on trying to advertise there product, they produce as number of pamphlets, informing potential customers of the products available and demonstrating the quality of the product, with information about where Corus steel has been used in the past. Corus keep up to date with all the regulations concerning equal rights, the company states “Recognises and values the differences in employee’s backgrounds and skills and provides equality of opportunity for all employees regardless of sex, race, creed, colour, national or ethnic origin, disability, marital status, sexual orientation, religion, political views or age.” This shows how Corus think that equal opportunities it very important in today’s world, and they are making sure people know they are against any form of discrimination. Corus are committed to produce an environment where employees are encouraged to make suggestions about improvements in workplace, they do not have a autocratic style of leadership, where the manage tells the employee what to do, and the staff should just listen and make no suggestions of their own.

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Corus prides itself on having a democratic style environment in its organisations, so that employees will feel happier and more like part of a team, therefore increasing productivity. Corus are very committed to environmental issues, they meet all the requirements of all the relevant legislations and laws, in the countries in which they operate. The company constantly checks there system for ways of improving environmental performance, they also introduce effective environmental managements systems making sure the workforce is well aware and that they act in an environmentally responsible manner at all times.Corus keenly promote the recycling of their products, and Corus respect the general environment and the habit surrounding all of their plants across the world. A Corus supplier would only be interested in the amount of stock they are purchasing, and whether Corus will be a stable customer for the foreseeable future. This is why the supplier will look at Corus’s credit rating, to see whether they can offer the supplier a long-term contract.

Also the supplier will be looking at the viability of Corus, whether they are doing well, or whether they are close to going bankrupt. Because if this were to happen then the supplier would lose any money Corus owed them. Corus’s suppliers would look very closely at how prompt Corus are at paying there bills, whether they pay on time or whether they take a long time to pay their debts, this could mean that the supplier has to demand that Corus pay on time or all future deals would have to be cancelled.Generally Corus have a good record for paying suppliers on time and without complications, however there have been incidents where suppliers have been paid late, due to arguments over the price, but generally they have a good credit rating concerning suppliers. Because of the size of Corus they deal with many different suppliers all across the country, and because many of the plants they own have been established for many years, the company are loyal to the suppliers they have used for many years and therefore have good relation with a majority off them.

A potential investor that was looking to invest a large amount of money into the Corus organisation would look at a number of different aspects of the company before making any decision. Firstly they would look in detail at the company’s finances, whether they are making profit or a loss, and what their current share price is. Corus at the moment are making a loss of over i?? 900 million a year and have a share value of just less than 30p. Not only would an investor look at the financial side of the firm, but also the structure of the organisation, how the employees and management work on a daily bases.Are there to many people employed at the company, and are the managers the right people to motivate other staff members so that the business is being as efficient and profitable as it could be. The future plans of the organisation have to be looked at also, as an investor needs to know where the firm is going what are their plans and ambitions for the future, where do they see the company in 10 years, what are the business objectives and targets.

The physical aspects of the company are important to a potential investor as well, they need to know what sort of equipment and technology is available in the Corus plants, whether the staff are using up to date technology or whether the whole company needs massive investment in that filed, so that it can compete in the market. One of the most important factors that an investor has to do is look at, is when they will get a return on their investment, when will they start to see profit on the money they invested in the firm, and the time that it will take to gain this return.