ASPECTS OF INTERNATIONAL BUSINESS

Presented By:
Aditi Jindal
Atin Dhara
Kumar Pritam
Prithviraj Dasgupta
Shainkey Gupta
Tanmayee Bindrali
• ArcelorMittal is the successor to Mittal Steel, a business originally set up in 1976 by Mr. Lakshmi N
Mittal
• ArcelorMittal was created through the merger of Arcelor and Mittal Steel in 2006
• Since its inception, ArcelorMittal has rapidly grown through a successful consolidation strategy
with a number of significant acquisitions
• At the beginning of 2008 ArcelorMittal continued to make investments, with significant
transactions
• Post-crisis, ArcelorMittal cautiously restarted certain projects to capture growth in key emerging
markets and mining
• ArcelorMittal has put considerable emphasis on growing its mining business. The company has re-
started a number of steel development projects, including the optimisation of the galvanising
operations in Dofasco, the first phase of the Monlevade expansion in Brazil
• Strategic acquisition of ThyssenKrupp's Calvert facility in the US, demonstrates the company’s
industry leadership and continued ability to capture value-enhancing opportunities
 The world's
largest crude steel
producers in
2017, by
production
volume (in million
metric tons)
 ArcelorMittal's
revenue from FY
2006 to FY 2017
(in billion U.S.
dollars)
ArcelorMittal’s performance by reportable segment for the year ended December 31,
2017, 2016 and 2015
 5%
6%

6%

35%

6%

6%

7%

9% 10%

10%

ArcelorMittal Nippon Steel JFE POSCO BaoSteel U S steel Nucor Tangshan Corus Group Riva Group
Current
 HR Issues

• Change in its Human Resources

Leadership
• Mr. Bernard Fontana replaced
Mr. Inder Walia, Executive Vice
president, Human Resources
• Cross cultural issues
• Work culture Differences
(Hofstede’s Dimension)
India Luxembourg
 Manage HR Issues

Cultural Training: Health & Safety: Technical Training: Managerial Training:

• Cross border cultures • Risk prevention • related to the core • adapt quickly to
business everyday life
• allows employees to • problem solving,
develop their skills to management,
strengthen their communication,
internal employability change
and versatility for management, stress
today and tomorrow
 Key factors related to global Expansion

• Manufacturing plant implementation

• Overseas facility construction
• Global production line design, planning,
and implementation,
• Overseas mechanical equipment design
and construction,
• International globalization project
management,
• Overseas manufacturing planning,
supervision, and quality control,
• International purchasing and supply
chain management & Overseas product
quality inspections.
Operational Issues

• general economic conditions

Cyclical availability of • consumption trends
raw material • Capacity fluctuations
• Principal consumers

• An active decision to reduce the sales

Destocking & inventory ratio.
Decreasing in Demand
• Impact on inventory movement
 • Deal was not getting pushed because of
Lakshmi Mittal’s Indian nationality

• Air emission act

Political Issues

• Government pressure on environmental

issues

• Government stability
Ethical Issues

Each employee of Any behavior that deviates from
ArcelorMittal is the Code of Business Conduct is to
required to sign and be reported to the employee’s
acknowledge the Code supervisor, a member of the
of Conduct upon management, the head of the legal
joining the Company department or the head of the
internal assurance department
Code of Business Conduct
training is offered
throughout ArcelorMittal
on a regular basis in the
form of face-to-face
trainings, webinars and
online trainings
 Avoid Cultural Issues
Communications The Money Part
Redundancy
 Engagement With People:
• Local People
Social Issues • Local Government
• Global organizations
Understanding people nature:
• To avoid protests in the host
country
 Legal Issues

• Disclosure is provided based on article 11 of the

Luxembourg law of 19 May 2006 transposing Directive
2004/25/EC of 21 April 2004 on takeover bids (the
“Takeover Law”)
• Articles 11 (1) (a) and (c) of the Takeover Law, the
Company has issued a single category of shares (ordinary
shares)
• Article 11(1) (b) of the Takeover Law, the ordinary shares
issued by the Company are listed on various stock
exchanges including NYSE and are freely transferable
• Article 11(1) (d), each ordinary share of the Company
gives right to one vote
• Any acquisitions, disposals, exchanges, contributions or
transfers of shares by the Company or other companies in
the ArcelorMittal group must be in accordance with
Luxembourg laws transposing Regulation 2014/57/EU
 Key Constraints in Internationalization

Volatility in the Unfair trade Laws and Risks associated Fluctuations

prices and supply of practices regulations with mining in foreign
raw materials, restricting activities exchange
energy and emission of rates
transportation greenhouse gases
 Future Directions of the ArcelorMittal

• Global ASC to grow further in 2018 by between 1.5% and 2.5%.

• In U.S. is expected to grow 1.5% to 2.5% in 2018 (including pipes and tubes) (versus 1.3% in 2017)
driven by demand in machinery and construction.
• In Europe, it is expected underlying demand to continue to grow, supported by the strength of the
machinery and construction end markets, and overall demand is expected to be 1.0% to 2.0% in
2018 (versus growth of 1.5% in 2017)
• In Brazil, apparent steel consumption is expected to grow by 6.5% to 7.5% in 2018 (an
acceleration of growth versus 4.6% in 2017).
• In the CIS, ASC is estimated to grow 2.0% to 3.0% in 2018 (a moderation of growth versus 5.4% in
2017).
• In China, ASC grew by 3.5% in 2017, higher than the Company's initial expectations. Overall
demand is expected to remain close to this level in 2018 (between -0.5% and +0.5%).