Globalization has reduced the boundaries in business

qwertyuiopasdfghjklzxcvbn
mqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzx
cvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghj
klzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdf
ghjklzxcvbnmqwertyuiopas
dfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyuio
pasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwerty
uiopasdfghjklzxcvbnmqwer
tyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmq
THRIVING IN A
COMPETITIVE GLOBAL
CONTEXT
[Type the document subtitle]
8/17/2019
acer

THRIVING IN A COMPETITIVE GLOBAL CONTEXT 1
Contents
Introduction......................................................................................................................................2
Strategic macro environment of global steel industry.....................................................................3
PESTEL factors...............................................................................................................................4
The internationalisation drivers in the world steel industry............................................................6
Yip's theory of internationalisation..................................................................................................7
Porter’s five forces model................................................................................................................9
Severstal acquisition strategy........................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

THRIVING IN A COMPETITIVE GLOBAL CONTEXT 2
Introduction
Globalization has reduced the boundaries in business between two nations across the globe and it
provides an opportunity for the companies to offer goods and services across the domestic
boundaries, which also comes with major challenges and competition. Environment is one of the
major factors that influence the business in any industry. The competition has been observed in
every industry, which also influences the company’s conduct of business and phase of the
industry (Baker & Bowen, 2015). The report’s purpose is to critically evaluate the macro factors
influencing steel industry as a part of case study analysis.
The case includes steel industry statistics related to supply and demand in the global context.
There are some of the market leaders in the steel industry. One of the company discussion
included Severstal that is one of the largest steel producer across the world. This is a competitive
industry as there are various top steel companies, which had taken over the maximum portion of
the industry. the case also discuss Severstal, that is one of the Russian steel producers who has
developed a unique overseas strategy for instance, which would be discussed in the report further
as well reflecting its objectives and suitability (severstal, 2019).

THRIVING IN A COMPETITIVE GLOBAL CONTEXT 3
Strategic macro environment of global steel industry
The current environment of the global steel industry and the forecast by world steel association
suggests that the demand forecast for the industry will reach up to 1735 million tonnes by the
end of 2019. The demand tends to increase as per the forecast that is expected to increase by 1.0
percent demand is projected by 2020 (Curry, 2018). It has been observed that the demand seems
to grow however, the growth rates would be moderate, as the global economy tends to slow.
Among the global steel industry, china steel owing to the government stimuli found demand to
be robust and continue to decelerate, the reason being integration of trade tension and economic
rebalance that is leading to reflect sluggish manufacturing and slowing of the investment in the
industry. Other than this, governmental stimulus was responsible for 2018’s economic slowdown
as a major macro environment influencing the global steel industry. One of the macro
environmental activities forecasted in china is minor contraction in 2020 as expected to subsidise
by effect of stimulus (Bird & Mendenhall, 2016).
As per the statistics of 2017 to 2018, it was observed that US benefitted in the form of demand
increase due to strong economy growth driven by the national body that result into fiscal
stimulus, and reflect through robust job market and higher confidence. However, the US growth
pattern was expected to slowdown in 2019 with the adverse effect of monetary policy
normalisation. EU economies were also identified to face uncertainty over the Brexit reflecting
deteriorating trade environment. This makes the forecast in steel industry depicting slower
growth considering demand in 2019. Japan also observed the steel demand growth in 2018 that
as the result of continued construction activities and favourable investment environment that also
increased the consumer purchasing power and spending. The macro environments factors across