Nucor
Table of Contents
A. EXECUTIVE SUMMARY
B. Nucor (NUE) was ranked the first of steel producer in the U.S., and the first “mini-mill” operator, with operating facilities in 14 states. Nucor’s products include sheet steel, bar, structural, plate and others. The company was known for its aggressive pursuit of innovation and technical excellence, rigorous quality system, environmentally friendly products. Nucor’s core strategy is that of cost leadership through the use of technology; it is known as being the low-cost provider. Most business is conducted in the U.S., but the company does have foreign operations and looks at international expansion as a strategic opportunity.
C. In the early of 2000, Nucor followed growth strategies which are new acquisitions, new plants construction, continued plant upgrades and cost reduction efforts, and joint ventures. The strategy had helped the company to overcome the recession time and resulted in a glorious success. However, the steel industry is extremely intensive and Nucor had to cope with competitive pressure from both domestic and foreign steel market. Because of recession time, the steel demand was decreasing dramatically while the company was suffered over capacity. In addition, Nucor had to confront with strong competitors which are US Steel (X) and ArcelorMittal (MT). Moreover, the company had to deal with price competition resulting from dumping of foreign competitors. The high material cost is also another challenge which Nucor had to cope with.
D. During the beginning period of the fiscal year 2007-2011, Nucor has made lots of profits (total net revenues of $16,593 million and $23,663.3 million in 2007 and 2008). However, due to the economic recession in late 2008, there revenues dropped from $23,663.3 million to $11,190.3 million in 2009, resulted in about 1,300 employees were cut down. Moreover, the operating income of Nucor dropped approximate $3,518 million compared to those in 2008.
E. Based on
A. EXECUTIVE SUMMARY
B. Nucor (NUE) was ranked the first of steel producer in the U.S., and the first “mini-mill” operator, with operating facilities in 14 states. Nucor’s products include sheet steel, bar, structural, plate and others. The company was known for its aggressive pursuit of innovation and technical excellence, rigorous quality system, environmentally friendly products. Nucor’s core strategy is that of cost leadership through the use of technology; it is known as being the low-cost provider. Most business is conducted in the U.S., but the company does have foreign operations and looks at international expansion as a strategic opportunity.
C. In the early of 2000, Nucor followed growth strategies which are new acquisitions, new plants construction, continued plant upgrades and cost reduction efforts, and joint ventures. The strategy had helped the company to overcome the recession time and resulted in a glorious success. However, the steel industry is extremely intensive and Nucor had to cope with competitive pressure from both domestic and foreign steel market. Because of recession time, the steel demand was decreasing dramatically while the company was suffered over capacity. In addition, Nucor had to confront with strong competitors which are US Steel (X) and ArcelorMittal (MT). Moreover, the company had to deal with price competition resulting from dumping of foreign competitors. The high material cost is also another challenge which Nucor had to cope with.
D. During the beginning period of the fiscal year 2007-2011, Nucor has made lots of profits (total net revenues of $16,593 million and $23,663.3 million in 2007 and 2008). However, due to the economic recession in late 2008, there revenues dropped from $23,663.3 million to $11,190.3 million in 2009, resulted in about 1,300 employees were cut down. Moreover, the operating income of Nucor dropped approximate $3,518 million compared to those in 2008.
E. Based on