Strategic solutions for arcelormittal: analyzing and addressing current problems in south africa

Abstract

The concept of strategic solutions has become a crucial component of enterprise strategies to manage resources and effectively improve performance. The impact of strategic solutions on enterprise performance during periods of inflation and energy crises has been a topic of significant interest among academic researchers and industry practitioners. This study aims to empirically investigate the relationship between strategic solutions, inflation, and enterprise performance in the context of ArcelorMittal South Africa. The study utilizes a mixed-methods approach, drawing on both quantitative and qualitative data from a sample of ArcelorMittal South African enterprise. The quantitative analysis examines the financial performance of the enterprise, as measured by metrics such as revenue, profitability, and return on assets, and the extent to which strategic management practices and macroeconomic factors, such as inflation and energy supply disruptions, have influenced performance. To achieve this, 103 managers of ArcelorMittal South Africa were conveniently sampled and the structural equation modelling in the PLS approach was utilized to analyse the data collected. The findings from the financial ratio analysis of ArcelorMittal demonstrated both an upsurge and down surge in the performance of the company. The three-analysis explained that the firm was more productive in 2022 compared to 2019, 2021, and 2023. The results from the PLS-SEM showed that energy crises and inflation rates have a positive substantial impact on strategic management. Most significantly, strategic solutions emerged as key predictors of enterprise performance. The findings of this study provide valuable insights into the role of strategic solutions in mitigating the negative impacts of inflation and energy crises on enterprise performance. The study's implications for both theory and practice are discussed, and future research directions are identified.