Recently I discovered an article on the Globe and Mail referring to the U.S. Steel shutting the Hamilton mill due to a struggle in maintaining the factories output at full capacity. The heading immediately stuck me as I considered the “domino” effect that would result from this initial action. Not only will the production and supply of steel decline, but also a great loss in work for laborers who rely on the mills income. In addition, the loss of employment will have a negative impact on demand, as less people will have the money to purchase the products they want and need. After observing the cause-and-effect that could potentially occur after shutting down the Hamilton mill, I recognized the impact an individual business can have on the economy. The success or failure of a company can have a great influence on individuals who rely on the products or profits of the organization. An example would be auto manufactures who depend on the production of steel in order to yield a sufficient amount of cars that fulfill the consumers demand. The downfall of one business can create a somewhat “domino effect”, the shortage of steel leads to a shortage in cars as well as a loss of employment. It is crucial for a business to analyze the effect other businesses can have on them and outline a strategy to avoid any possible consequences. I was drawn to this article as it made me acknowledge the critical and strategically thinking that must be made in order to have an efficient and successful business.
http://www.theglobeandmail.com/report-on-business/us-steel-shutting-hamilton-mill/article1737578/