Ref: IMD-7-2354-1

Case study

Reference: IMD-7-2354-1

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Ternium: Rolling into the future - organization

Omar Toulan

By Professor Omar ToulanOmar Toulan and Shih-Han Huang

Ternium is a Latin American steel company that has earned a reputation as one of the best-managed steel companies in the world, skilled in navigating turbulent markets. Driving the company are a long-term strategic focus, an engineer’s mindset of constant process innovation as old as its roots, and a goal to become the leading steel company in the Americas. What is next for Ternium, and how could it maintain sustainable long-term growth? Also, how can it build an aligned strategy across various strategic elements to achieve this growth? The case series features a standalone strategy main case and three subcases on firm organization, sustainability and human resources to be used in conjunction with the main case. These sub-cases can be used to explore the dimensional nature of strategy. The organization subcase looks at the implications of USMCA, NAFTA’s replacement, on the steelmaker’s regional coordination strategy. The sustainability subcase dives into Ternium’s commitment to reduce carbon intensity by 20% in 2030, and the broader ramifications of this goal. The final case examines what is needed on the human resources side to get a firm ready to face the demands of the future.

Learning Objective

  • Understand the importance of aligned strategy across different strategic elements
  • Analyze factors that contribute to sustainable long-term growth
  • Determine the keys to an integrated organizational strategy and how one can go from a decentralized to coordinated organizational strategy
  • Recognize the different ways stakeholders can influence a company’s sustainability strategy
  • Analyze HR’s role in operationalizing a company’s strategy
Keywords Climate Action, Human Resources, Organization, Steel, Strategy, Sustainability
Settings Argentina, Mexico, United Kingdom
Ternium, Steel
Type Field Research
Copyright ©IMD 2022
Language English
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Reference: IMD-7-2354-1

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