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International Business Assignment - (Solved)

   

Added on  2020-12-30

14 Pages4504 Words481 Views
Internationalbusiness

EXECUTIVE SUMMARYThis report is based on international business, case study of merger of Tata Steel and Corusis consider in this report for study. Tool called PESTLE analysis is taken in this report for doanalysis. One of the major finding of this report is that various factors are there that affect thebusiness operations of an enterprise. Proper analysis should be done by entity in order to operatewell in international environment. In order to get all benefits related with operate on a globallevel it is very essential for a business organisation to carry out analysis of international businessenvironment as this make the manager about the major forces that impact on business activitiesand affect the profitability of enterprise. All this provide guidance to manager which help informulate and develop effective policies related with operate on a large basis. Porter's five forceanalysis is a affective tool that can be utilise by the manager of firm to identify and examine theconditions of international market. This help firm in identify the which are the elements whohave the power to affect the decisions take by entity to serve its customers and to increase thenumber of its profits. With all this profits can be maximised and company can sustain ininternational market for long run. Merger provide benefit to both entities as Corus get qualitysteel in minimum prices and Tata Steel can utilise the patent of Corus and its research anddevelopment skills. One of the major finding of this report is that various factors are there whichaffect the functioning of a business organisation that operate on a global level.

CONTENTSEXECUTIVE SUMMARY.............................................................................................................21.0 INTRODUCTION ....................................................................................................................11.1 Objective of the research...........................................................................................................12.0 Findings......................................................................................................................................43.0 Analysis......................................................................................................................................74.0 CONCLUSION..........................................................................................................................8REFERENCES..............................................................................................................................10

1.0 INTRODUCTION International business refers to all those business transactions that takes place betweencountries and nations and between more than two regions. As all commercial operations occursacross national boundaries so high risk and complexity is involve in this. All transactions thattake place beyond national boundaries is come under international business. One of the mainbenefit of this is that it provides an opportunity to capture larger market share and ensuresustainability of firm in long run. Before expand its activities on global level various factors arethere that require to be consider by entity(Forsgren and Johanson, (2014). With this entity canget all benefits related with international business. Acquisition of Corus by Tata Steel was one ofthe biggest deal in steel industry. This incident happens at the time when steel sector was inconsolidation process. According to steel association this was a landmark deal in steel sector. Atthe moment of takeover Tata Steel ranked 56th position in steel production and Corus stood 5thposition in that. After the acquisition of Corus Tata Steel is positioned 7th largest steel producer.Tata steel has a long history since 1907. Mainly Tata Steel is a part of Tata Group which is thebiggest corporate. On the opposite of this Corus was formed of merger of two Europeancompanies known as Koninklijke Hoogovens and British Steel and both these firms has was alegacy of more than 100 years (Birkinshaw, 2016). Tata Steel was limited to India only while onthe opposite of this Corus was an international organisation and have its presence in more than40 countries. Corus operate in matured market while on the other hand, Tata Steel operate indeveloping country. Tata steel has large amount of raw material as firm has its own iron oremines and opposite of this, Corus face scarcity of raw material and had less control andinvestment over raw material. Case of study take cover of Corus by TATA Steel is consider inthis report for study. Various tools that can be use by business enterprise to analyse internationalbusiness environment before expand its operations there is all given in this report. Furtheradvantage and disadvantage for both the firms TATA Steel and Corus due to merger of theiroperations is all given in this report. In addition to this report also highlight the relevant datarelated with operate on global level. International trade theoryThere are various international business theories. There is a theory that is absoluteadvantage. It says that trade between many countries cannot be restricted by the governmentpolicy. Trade can be done between the two countries through market forces. If one country has1

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