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1、InternationalBusinessStrategy:Presentation1.MittalSteelwasaresultfromastringofinternationalacquisitionswhichwasranwithaverticallyintegratedbusinessmodelwhereas,Arcelor,whohadagreaterdownstreamconcentration,wastheproductofthreeprimarilyEuropeansteelcompanies.Thesetwola
2、rgecompanieswerebothrelativelyyounganddespitehavingseparatemanagementteams,salesandproductgroups,operatingassets,andprocurementdivision,theiroverallgeographicandmarketstrengthswereremarkablycomplementary.2.ThemotivationsfactorforbothfirmArcelorandMittalsteeltomergeris
3、moreoroverabouttheirpositiontobecomethebiggeststeelcompanyintheworld.AstheyweretworelativelyyoungcorporationswithroughlyequalofproportionsalongwiththatArcelorandMittalsteelwerebothextraordinarycomplementaryingeographicandmarketstrength.WhereasMittalsteel’sconcentratei
4、nverticalintegratedbusinessmodelandArcelorfocusesmoreondownstreamconcentration,astheyhaveshowedalimitedoverlapinthebusinessmodel.Themergerbetweenthetwocorporationsiswinningtobethegloballeadershipofitsmajorcustomermarket,includingAutomotive,constructions,householdappli
5、anceandpacking.Furthermore,theyhavegeneratedrevenueofapproximate$105Billionin2007andareresponsiblefor10%ofworldsteelproductionasaresultofsuccessfulmerger.3.Whatwasthestrategyunderlyingthenewfirm?Thesteelindustrywasundergoinggreatamountofconsolidation.BothArcelorandMit
6、talsteeldecidedtomergersandacquisitionstomaketheirpotentialin2006.Inthattime,manycompaniestriedtomergerstogethertogetownmarketpower.Butitwasnotalwayssuccessfulforeveryfirm.InthecaseofArcelormittal,theyhavesettheirowngoalsasitentersthenextphaseofitsjourneytowardstransf
7、ormationwhichisaimingforhigherlevelofmarketdominationfromtheshareofbusinessmodels.Thesetwocompanieshaddifferenttypesofmanagement.Therefore,themainpointofthiscompanyisacrossculturemanagement.Whattheyneedwastosharethemanagementskills,cultureandevenintermsoflanguages.Itw
8、asessentialtounderstandeachother’smethodsandcommunicationinordertomaketwocompaniesunited.4.Thechallengesfacedfromimplementin