Article Case Study Introduction: S steel companies faced several challenges which forced them to change their strategies or adapt new strategies.
A A Contents 1. A Case Study Review: Strategic Competition of Nucor Corporation 1. Nucor was among the first steel companies in the United States to use electric arc furnaces to melt recycled steel primarily from junked automobiles.
The report further referred about the success of Nucor based on the five most apparent values in Nucor, which is the decentralized management philosophy, performance based compensation, egalitarian benefits, customer service and quality, and technological leadership.
A limitation for Nucor is the inability to address environmental concerns and achieve corrective milestones, and is one of the top ranked polluters of waste toxic.
Much of the drawback of this study is the lack of a quantitative strategic method leading to an accurate decision making. In summary, Nucor has long been the biggest steel producer in America.
Its business portfolios are mainly in joist girders, scrap steel, steel mills, steel fasteners and deck. Nucor traces its origins to auto manufacturer Ransom E.
Through a series of transactions, the company Olds founded eventually became, inNuclear Corporation of America. Nuclear bought several companies over the next few years, including a South Carolina maker of steel joists and joist girders called Vulcraft Corp.
The new management quickly sold many of the company's wide-ranging operations to focus on profitable Vulcraft. A bar mill opened in Darlington, South Carolina, in The first of several regional bar mills, it became the prototype for today's vast mini-mill industry and launched Nuclear Corp. They are as follows: By using the PEST model, the variables of politics, economy, society and technology can be better understood.
The government took anit-dumping measure to restrict overseas imports into US. Other advances include advanced metallurgical practices, and process control sensors and refinements in casting and rolling. Research development costs must be recouped. Such overseas markets require much persuasion and acceptance before implementation.
Nucor manages to increase its growth capacity and economies of scale by improving on the process of rolling and cutting. At the mature stage, sales tend to level out due to competitors entering the markets with even newer innovative products.
This can be done by giving added value or base discounts to their long- term customers. Salesperson demonstrations and account tracking would be required.
For example, the automobile industry is continually looking for lower prices, but in competition with plastics, steel seems to be faring worse. Registration of manufacturing process rather than products is more useful. Many such products would slowly decline, and with international markets supplying these cheaper and better steel, sales and profits would drop resulting in: PorterCompetitive Strategy, Free Press 5.
Much of the customers in North America are consolidated, and servicing these segments is imperative that leads to: It is difficult to keep old customer and win new ones if buyers control the distribution channels. With better credit and storage facilities, Nucor can move up the value chain and retain old customers.
They must predict how steel prices or demand will be in foreign lands. The primary consideration for substitutes are: Steel is a standard homogenous product and is easily copied.
Some substitutes like aluminum maybe a poor alternative to steel, but is still a threat in the lighter industries.
If the use of other transportation increases, indirectly, Nucor would have less business coming from the automobile sector. Global collaborations had become the norm. It would not be effective as a standalone firm with no strong connections.
Being a large company, there are many employees to be paid, and any closure would be substantial in costs.P17 To: Nucor Management From: A Case Study Review: Strategic Competition of Nucor Corporation Executive Summary The purpose of this case study is to address the strategic issues of Nucor Corporation (Nucor) in the American steel industry.
Nucor steel case 2 1.
Kristin DeSouza Travis Jernigan Nicholas Morrison Sujan Patel Oksana Seeley 2. Largest Steel Producer in the US 3. Largest Steel Producer in the US Fortune Rating 4.
Largest Steel Producer in the US Fortune Rating Unconventional 5. Nucor Corporation a fortune in company headquartered in Charlotte. profitability and delivery of high quality products at low cost structure.
depends on the entire corporation’s return in equity. in Nucor. P17 To: Nucor Management From: A Case Study Review: Strategic Competition of Nucor Corporation Executive Summary The purpose of this case study is to address the strategic issues of Nucor Corporation (Nucor) in the American steel industry.
provided by F. Kenneth Iverson, Chairman, Nucor Corporation in preparing this case study is greatly appreciated. It was written for class discussion and not to illustrate effective or ineffective management practices.