Managing International Business

This document discusses the decision-making process for Tata Steel's plant in Port Talbot and the interests and concerns of stakeholders. It provides recommendations for the company to continue its operations in Port Talbot.

Managing International
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
COMPARISION OF STAKEHOLDERS INTEREST AND CONCERNS....................................3
RECOMMENDATIONS.................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
In today’s era every business is looking for expansion into foreign market. International
market has been providing businesses with ample opportunities to grow and earn profits. The
following case is based on work of Tata Steels overseas. The decision regarding continuing its
plant in Port Talbot needs to be taken by executives of the company. Business is experiencing
rising costs. Tata also explored for options of merger with Thyssenkrupp which was not accepted
by European commission (Buckley, Enderwick and Cross, 2018). Decision regarding shutting up
the business there or continuing it needs to be done. In order to take decision analysis is done on
stakeholders interests as well as concerns related to it. There are also various recommendations
provided for business in this report.
COMPARISION OF STAKEHOLDERS INTEREST AND CONCERNS
Stakeholders are all those who affect or who can be affected by the decisions taken in an
organisation. Every action, procedure or policy of a business have great impact on stakeholders.
Stakeholders might include employees, government, directors, creditors, suppliers or even
communities in which organisation runs it business and extracts its resources from. In the
following case company needs to decide whether or not it should continue its business in Port
Talbot based on interests as well as concerns of stakeholder (Syed and Ozbilgin, 2019). Workers
and the employees working for organisations are the major stakeholders who will be affected by
this decision of Tata steel. So below mentioned are various interests as well as concerns of the
workers regarding this decision of tata Steel:
Interests:
Tata Steel plant at Port Talbot employee’s half of the employees working for it in overall
UK. All these employees have an employment due to Tata Steel. As long as this plant runs the
workers earn their wages and continue to stay in society. Company is also taking care of workers
as they are trying their best to avoid any job losses and investment of £1bn investment plan have
also been made by company. This plan will benefit employees as some of the amount will also
be dedicated towards development and growth of employees (Polonsky and Waller, 2018). Tata
Steel is a big multinational brand so every employee would want to get associated with it. The
employees at Port Talbot are getting a good working environment with enough pay as
motivation. They have all the reasons to say that company must not stop its operations in Port

Talbot. Also, company is still not in losses and working effectively for cash. Welsh Government
have also came forward saying it will help Tata Steel to safeguard job of its 15000 employees
working in supply chain of company. A number of employees have worked hard for Tata Steel in
order to make it a leading steelmaker in Europe as well. It will not be fair to employees if the
plant is shut down and their future is put in danger. Employees of company have great career
development opportunity ahead with Tata Steel which is another major reason which will
influence them and they will support the decision of company to carry out its work in the Port
Talbot plant.
Concerns:
This decision which company needs to take regarding port Talbot is of great concern to
employees. It can be clearly seen that it employs a number of people. If the functioning at Port
Talbot is stopped all these workers will get jobless. However, government have promised to take
care of 15000 workers but no surety for job requirement can still be made. Also, only those
working in supply chain will be getting this opportunity. Those workers who are engaged within
production department in plant will have to lose their job (Crane, Matten and Spence, 2019). On
the other hand, if merger with Thyssenkrupp is finalised it will the leading steel maker in Europe
which will be very beneficial for company and all its stakeholders including workers. Workers of
company are at great risk of getting unemployed and leaving in poverty without any income
unless they find a new job. Also, a number of workers have been working in this plant for a
number of years in this company. they have all the required knowledge as well as skill sets to run
this business. At this point of time it will be difficult for them to secure new jobs and develop
new skills for those jobs too.
RECOMMENDATIONS
Recommendation to company based on above discussion will be continuing its function in
Port Talbot. The workforce which this plant employs is very high. Once the plant is shutdown all
of them will be unemployed. This will lead to negative effect on reputation of company
worldwide. Due to this sudden closure there can also be some revolts or riots from workers
union. If things take ugly turn the brand image which company have developed overtime, might
get hampered negatively. Also, the investment which company have made might help it in
developing its business and making sure that business earns profit in future. Company must take
steps to formulate flexible planning in order to deal with any negative circumstances affecting

business in future. Also, it should keep on trying to carry out the merger with Thyssenkrupp so
that this deal might take place someday in future benefitting company as well as employees
working in it. Shutting down plant is not an option for company as it may lead to a number of
problems arising for company in future legally as well as ethically. Carrying on production in
Port Talbot plant of Tata Steel will be highly recommended.
CONCLUSION
From the above discussion it can be concluded that it becomes difficult for companies to
manage their international business a number of times. There are always a number of factors
which affect the functioning of a business. There can be internal as well as external factors but
when working in international markets these factors increase. The decision regarding continuing
the plant or stopping its function in Port Talbot is an important decision to be made by company.
The workers in company will be highly affected due to this decision and it has been concluded
that since there are no losses company might continue with its operations there.

REFERENCES
Books and journals-
Buckley, P.J., Enderwick, P. and Cross, A.R. eds., 2018. International business. Oxford
University Press.
Polonsky, M.J. and Waller, D.S., 2018. Designing and managing a research project: A business
student's guide. Sage publications.
Crane, A., Matten, D. and Spence, L., 2019. Business ethics: Managing corporate citizenship
and sustainability in the age of globalization. Oxford University Press, USA.
Syed, J. and Ozbilgin, M., 2019. Managing diversity and inclusion: An international perspective.
SAGE Publications Limited.