Us Steel and Globalization
Overview: an introduction to U.S. Steel
J.P. Morgan and Elbert H. Gary founded Pittsburgh-based steel company United States Steel Corporation in 1901.1 By combining Gary’s Federal Steel Company with steel operations owned by businessman Andrew Carnegie and several other smaller companies, U.S. Steel effectively became the world’s first billion-dollar corporation.2 With a two-thirds share in the market industry, U.S. Steel emerged as one of the premier companies in the world economy. Perhaps its dominance can be best described by the fact that U.S. Steel was once known as “The Corporation” on Wall Street.
Once the world’s largest steel producer, U.S. Steel has experienced a considerable dip from its hey-days. Its fall in prominence can be attributed to its failure to adjust to an ever-changing global market. While there can little argument of its initial innovative nature, over the decades, U.S. Steel has seen its market share steadily decrease as a result of increased domestic and international competition. In the new millennium however, U.S. Steel has made the necessary strides by outsourcing its production and demanding U.S. government protection from international competition, particularly from the Chinese steel market.
As U.S. Steel enters its second century of business, it has identified several objectives, which need to be met. Firstly, it has placed special priority on the need for establishing a stronger position in the global marketplace in order to remain competitive with other companies. Additionally, U.S. Steel is looking to develop increased value for its stakeholders while continuing to expand and bolster steel and other subsidiary production.3
The Importance of Outsourcing in Today’s Global Market
Globalization, defined as a “trend away from distinct national economic units and toward one huge global market” by Hill and McKaig in Global Business Today, has provided companies around the world with the opportunity to effectively reduce the
J.P. Morgan and Elbert H. Gary founded Pittsburgh-based steel company United States Steel Corporation in 1901.1 By combining Gary’s Federal Steel Company with steel operations owned by businessman Andrew Carnegie and several other smaller companies, U.S. Steel effectively became the world’s first billion-dollar corporation.2 With a two-thirds share in the market industry, U.S. Steel emerged as one of the premier companies in the world economy. Perhaps its dominance can be best described by the fact that U.S. Steel was once known as “The Corporation” on Wall Street.
Once the world’s largest steel producer, U.S. Steel has experienced a considerable dip from its hey-days. Its fall in prominence can be attributed to its failure to adjust to an ever-changing global market. While there can little argument of its initial innovative nature, over the decades, U.S. Steel has seen its market share steadily decrease as a result of increased domestic and international competition. In the new millennium however, U.S. Steel has made the necessary strides by outsourcing its production and demanding U.S. government protection from international competition, particularly from the Chinese steel market.
As U.S. Steel enters its second century of business, it has identified several objectives, which need to be met. Firstly, it has placed special priority on the need for establishing a stronger position in the global marketplace in order to remain competitive with other companies. Additionally, U.S. Steel is looking to develop increased value for its stakeholders while continuing to expand and bolster steel and other subsidiary production.3
The Importance of Outsourcing in Today’s Global Market
Globalization, defined as a “trend away from distinct national economic units and toward one huge global market” by Hill and McKaig in Global Business Today, has provided companies around the world with the opportunity to effectively reduce the