Question:

a) Undertake a suitable industry analysis to critically evaluate the strategic
macro environment of the global steel industry and identify the primary
forces facing Severstal.
b) With use of a suitable model, identify the internationalization drivers in
the world steel industry and the extent of globalization.

Assignment Marking Criteria
While marking your assignment we will be looking for evidence for how well you have
addressed the question / issues. The following part explains the key points you should
consider in preparing your assignment. It is also important to review the specifications
and guidelines outlined in your unit handbook, such as ‘Learning outcomes’ along with
the ‘Assessment Criteria’, ‘the Assignment Strategy’, etc.
1. Introduction: A brief introduction that provides the background and purpose of the
report or its objectives, and how the report is structured. Interpreting the question
– this ideally should be clear within the introduction along with background / context.
2. Addressing the question / topic: The main body of the report where the
question is addressed. (This part may have a few sections / sub-sections). The
key criteria here include:
a. Research – evidence of systematic research approach, depth and breadth
of research undertaken; application of appropriate conceptual (theoretical /
empirical) framework(s), etc.
b. Analysis – well focussed on answering the question, depth and clarity of
argument, evidence of critical engagement, organising / summarising
collected information (e.g. in Tables, Graphs, trends, etc.); answering the
questions/tasks fully.
3. Conclusion and recommendations: A clear, concise, and relevant conclusion
(and recommendations where appropriate). A conclusion where the key points that
have emerged from the discussion are summarised, implications and where further
investigation may be appropriate, are stated. Clear and practical recommendations
that emerge from the findings and the conclusion.
4. Scholarly practice – a proper referencing within the report (citations), employing
Appropriate International Business/ Global Marketing vocabulary, etc., the quality
of the Reference section. (Harvard style of referencing).
5. Presentation: Neat layout, and headings / sub-headings where appropriate.

Solution:

1.0 Introduction

Severstal is an organisation that is vertically integrated steel and other linked mining business with a majority of their assets being located in Russia and investments globally. As noted in Severstal (2019), the company was founded in 1955 at the Cherepovets Steel Mill in Russia. The rationale of the focus of this company in this report is based on its strategy of survival in the competitive global steel industry. The company strategy is founded on an approach of strengthening its financial performance, maximizing value creation and enhancing the overall shareholder returns while capitalizing on their employee’s interests with minimal impact on the environment.  Additionally, the company capitalizes on harnessing their customer’s experience, cost leadership and an embrace on existing new opportunities and the company advanced corporate culture.  The aim of this report is identifying and assessing the strengths and weaknesses of the Severstal in line with its global environment and recommending a strategy that they can adopt for enhancing global competitiveness. The aim is achieved by undertaking an industry analysis for evaluating the strategic macro environment of the global steel industry and identifying the primary forces that face Severstal. Also, through the use of Yip’s globalization framework, the internationalization drivers in the world steep industry and the level of globalization is evaluated. This report content includes a summary of the report, introduction, global steel industry analysis, internationalization drivers, conclusion and recommendations and references.

2.0 Global Steel Industry Analysis

2.1 Strategic Macro-Environment of Steel Industry

In the steel industry, the major players include the ArcelorMittal identified as the largest producer of the steel products followed by the Nippon Steel and Sumitomo Metal Corporation in the second place. The consistent growth of these companies has been informed by the existence of growing and emerging economies of South America, Asia and the Middle East which represent the main growth markets for the steel products (Sainidis, 2017).

2.1.1 PESTEL Analysis

The PESTEL analysis is used in the analysis of macro-environment of the steel industry.

Political Factors Privatization of the government-owned assets in the emerging economies of the BRIC nations and the Middle East present impeccable opportunities for foreign direct investment. This is supported by Hudson and Swanton (2012) study that had pointed out that shifting alliances, mergers and demergers between………………………………………………………………………………………………………………………………………………..Please contact our team to receive this assessment in its entirety based on your company of interest and other expectations

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