International Business (IB) Assignment
12 Pages2851 Words302 Views
Added on 2019-12-04
International Business (IB) Assignment
Added on 2019-12-04
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International Business
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Critical evaluation of the current situation facing British Steel Industry (BSI)..........................1Factors affecting UK steel manufacturers...................................................................................5Expected future of British steel Industry.....................................................................................7CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
TABLE OF FIGURESFigure 1: International competition of British steel Industry with other countries.........................2Figure 2: Contribution of BSI in UK economy...............................................................................3Figure 3: Profit of UK steel exports................................................................................................3Figure 4: Workers employed in the UK steel industry....................................................................5
INTRODUCTIONInternational business includes all commercial, private and governmental transactionssuch as sales, investment, logistics and transportations that take place between two or moreregions, countries and nations beyond their political boundaries, etc. There are number of factorsthat affect these businesses in positive and negative manner (Ball and McCulloch 2012). Thecurrent research project is based on international business and regarding this, study will focus onBritish Steel Industry (BSI). There are number of organisations of this industry which areoperating their business in number of countries. Study will evaluate the different issues andcurrent situations of BSI. Along with this, it also focuses on different factors affecting the UKsteel manufacturers. Expected future and recommendations for British steel industry are alsodescribing in the following paragraphs of the present report. Critical evaluation of the current situation facing British Steel Industry (BSI)British Steel Industry is one of the major parts of the UK economy but currently, it is incrisis. Steel industry is facing crucial problems at global level (Forrester and Maute, 2013). Thisindustry is facing this issue since 2011 and major reason behind it is general rout in the price ofcommodities. Along with this, due to the recession in 2009, value of steel products and serviceshas decreased. According to the evaluation of the current business scenario, most of the Britishsteel multinationals has occurred financial loss. Due to this reason, in 2015 Tata steel becameannounced its UK job cuts. Similarly, South Korean giant Posco (the world's fifth largest steelproducer) reported its biggest quarterly loss in the five years (Stahl and Tung, 2014). Includingthis, state-owned Chinese steel trader Sinosteel faced the issue of interest payment due to its highdebts. The World Steel Association (WSA) has forecasted that in future, demand of steel will bedeclined by 1.7%. Major issues of the BSI are described as under:High competition with China: As per the current business scenario, total world steel production has increased by 96%between 2000 and 2014. Here, most of the steel were produced by China (Wild, Wild and Han,2014). Therefore, steel production of China is increasing year by year which lead highcompetition for steel manufacturer of other countries. Therefore, it is one of the majorcontemporary issues for steel manufacturers. According to the statistical figures, in 2013, BSIproduced 12 million tonnes of steel and on the other hand; promotion of China was 779 milliontonnes. It has reflected that 48% of world’s total steel was produced by China. Due to the high1| P a g e
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