Nucor Case Analysis Essay
Ozell Franklin
MGMT 432
Case analysis
02/13/2012
Nucor 1. What are Nucor’s resources and capabilities
Nucor resources are considered to be the same as any other steel company (equipment, plants, employees, etc.). But to be considered the most cost efficient steel maker in the United States is a different conversation. Nucor manages their resources extremely well from control system, to the company’s culture that promotes efficiency. Management relations are described as “informal, trusting, and non bureaucratic”, that is a winning combo for a company. Another source of success was Nucor’s ability to stop equalizing freight, giving customers price plus shipping.
2. How would you assess Nucor’s resources in terms of heterogeneity and immobility?
Nucor utilized two lines of business; the first line was composed of six steel plants that made steel joist frames. The second line was composed of four steel mills that used a industry leading mini-mill technology to supply the joist plants at first then included customers. Each division operated on its own (selling, manufacturing, accounting, personnel). Nucor’s immobility was exceptional as well, using around 150 trucks to ensure on-time delivery. They strategically placed plants in rural areas near their target markets, I feel that Nucor has a great …show more content…
position when it comes to resources and intern that makes them extremely competitive.
3. Using the VRIO model, how would you evaluate Nucor’s resources.
In terms of value I would place Nucor as high.
The resources they utilize gives them a good competitive advantage, and when you look at their culture internally they promote efficiency. Comprise that will strong outside relationships described as trusting, that is a high value. Rarity I would say low, there are tons of steel firms competing in the marketplace. When it comes to limitability Nucor has well developed a plan that is hard to duplicate (Job security, efficiency, ect.)so I would rate that a high as well. Organization is high also, no other steel company is organized to win as Nucor and that itself differentiates them from the
competition.
4. What strategic recommendations would you offer to Nucor?
Adding more plants is always a benefit, results in an increased market share. Also entering global market would be something I would pitch, countries like India pay top dollar for steel since the country doesn’t produce a lot of it. Keeping up with relationships of current clients to turn them into long term customers would help as well, this also avoids the cyclical demand that excess capacity causes.
http://www.scribd.com/ca_troung/d/63482439-Nucor
MGMT 432
Case analysis
02/13/2012
Nucor 1. What are Nucor’s resources and capabilities
Nucor resources are considered to be the same as any other steel company (equipment, plants, employees, etc.). But to be considered the most cost efficient steel maker in the United States is a different conversation. Nucor manages their resources extremely well from control system, to the company’s culture that promotes efficiency. Management relations are described as “informal, trusting, and non bureaucratic”, that is a winning combo for a company. Another source of success was Nucor’s ability to stop equalizing freight, giving customers price plus shipping.
2. How would you assess Nucor’s resources in terms of heterogeneity and immobility?
Nucor utilized two lines of business; the first line was composed of six steel plants that made steel joist frames. The second line was composed of four steel mills that used a industry leading mini-mill technology to supply the joist plants at first then included customers. Each division operated on its own (selling, manufacturing, accounting, personnel). Nucor’s immobility was exceptional as well, using around 150 trucks to ensure on-time delivery. They strategically placed plants in rural areas near their target markets, I feel that Nucor has a great …show more content…
position when it comes to resources and intern that makes them extremely competitive.
3. Using the VRIO model, how would you evaluate Nucor’s resources.
In terms of value I would place Nucor as high.
The resources they utilize gives them a good competitive advantage, and when you look at their culture internally they promote efficiency. Comprise that will strong outside relationships described as trusting, that is a high value. Rarity I would say low, there are tons of steel firms competing in the marketplace. When it comes to limitability Nucor has well developed a plan that is hard to duplicate (Job security, efficiency, ect.)so I would rate that a high as well. Organization is high also, no other steel company is organized to win as Nucor and that itself differentiates them from the
competition.
4. What strategic recommendations would you offer to Nucor?
Adding more plants is always a benefit, results in an increased market share. Also entering global market would be something I would pitch, countries like India pay top dollar for steel since the country doesn’t produce a lot of it. Keeping up with relationships of current clients to turn them into long term customers would help as well, this also avoids the cyclical demand that excess capacity causes.
http://www.scribd.com/ca_troung/d/63482439-Nucor