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Case Study

Ternium: Rolling into the future - sustainability

By Omar Toulan and Shih-Han Huang

10 pages

May 2022

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Reference: IMD-7-2354-2

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

Steel, Organization, Human Resources, Climate Action

Settings

Latin America
Ternium, Materials, Steel
2018-2021

Type

Field Research

Available Languages

English

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