The paper "Operations Management and an International Perspective" Is a great example of a Management Case Study. Baosteel is a Chinese State-Owned Enterprise that serves the global steel industry. The company was established in 1978, and it has experienced growth that has been primarily driven by the evolution of the Chinese economy. The establishment of a successful subsidiary in Germany is a testament to the success of the organization as many successful Chinese firms find it difficult to transition to global operations (Linke & Klossek, 2009). This paper considers operations management in Baosteel’ s international business.
A critical challenge for many global companies is finding the right workforce to facilitate the attainment of organizational objectives. The purpose of this report is to examine how the Chinese firm has approached the human resource function and whether its strategies have worked in an international environment. The first section provides an overview of the global steel industry. This is followed by the use of the PESTLE framework to gain an understanding of the environment in which Baosteel Europe operates and how the factors in the external environment affect human resource strategies.
International Human resource management issues at Baosteel Europe are then identified, followed by recommendations on the course of action that the firm should take to solve its human resource problems. Global Industry Analysis Steel is a commodity that has been central to the progress of humanity as a whole since its invention. The features of steel that have made it an important component in construction are its strength and durability when compared to other materials. Steel also meets sustainability requirements owing to its ability to be recycled and reused with zero waste (World Steel Association, 2015).
However, the cost of steel is also high when compared to alternative materials. The overall importance of steel means that the steel industry plays a significant role in the global economy. According to the International Trade Administration (IDA, 2016), steel is a heavily traded commodity that has experienced many challenges in recent years as a result of changes in the market, shifts in export and import levels, and reducing global demand for the product. The financial crisis of 2008 and 2009 also had a dampening effect on an industry that was experiencing growth as a result of the development of China (IDA, 2016). Despite the challenges, the global production and capacity for steel-making have increased over the past decade.
Total production in 2005 was 1.1 billion metric tonnes, a figure that grew to 1.6 billion metric tonnes in 2015. It is also worth noting that 2014 witnessed the highest steel production in history with the industry producing 1.67 billion metric tonnes of steel (IDA, 2016). When it comes to location, 69% of steel is produced in Asia and Oceania.
The European Union follows with 10% and North America with 7%. In 2015, China was the leading producer of crude steel in the world, followed by Japan, India, the US, Russia, South Korea, Germany, and Brazil (IDA, 2016). In the period between 2005 and 2015, most steel producing nations have invested in increasing their capacity to produce steel, with Asia and Oceania accounting for an outstanding 89% of global steelmaking capacity (IDA, 2016). These statistics point to a trend where the region will retain its position as the dominant steel producer for the foreseeable future if it utilizes its enormous capacity.
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