Nucor Case Study
Case Analysis – Nucor at a Crossroads
Case Analysis:
Value Chain Annalysis:
TOWS MATRIX Opportunity:
• Continued acquisition.
• Aggressive technological advancement.
• Innovative and reduced cost with improvement in R&D.
• Patent Technologies.
• Expanding operations- increased market share. Threats:
• Decreasing Demand.
• High corporate taxes.
• Rising debt to equity ratio.
• Increasing raw material & labour costs.
• Foreign steel imports
Strengths:
• Increased capacity and production of steel over the last 5 years.
• Strong Financial Position.
• Calculated Risk Taking.
• On the forefront technology.
• Experience Curve.
• Innovative production process.
• Performance based compensation.
• Efficient supply chain management.
• Decentralization.
• Autonomous. SO (Using strengts to take advantages of opportunities)
- Good financial position, should go for more projects and acquisitions.
- Good HR culture and a decentralization would help in smooth addition of operations.
- Can go for trying new technology. ST (Use strengts to overcome Threats)
- Can come out with more innovative products to enter new markets.
- New technology can help in inc production and help to curb rising labour cost.
- Use performance based compensation to fight rising labour cost.
Weakness:
• Over Diversification.
• High dependency on US domestic market.
• Lack of R&D.
• Declining market share. WO (Take advantage of opportunities by overcoming weakness)
- Go for own R&D centers so as to improve more on technology.
- Expanding operation towards new products to enter new markets.
- WT (Bring changes to overcome your weakness and threats)
- Inc in quality to improve on exports.
- Open R&D centers to reduce cost on aquiring new technologies.
- Stop non-profitable products, divert resources to wards more profitable ones.
Porter’s 5 forces Model
Case Analysis:
Value Chain Annalysis:
TOWS MATRIX Opportunity:
• Continued acquisition.
• Aggressive technological advancement.
• Innovative and reduced cost with improvement in R&D.
• Patent Technologies.
• Expanding operations- increased market share. Threats:
• Decreasing Demand.
• High corporate taxes.
• Rising debt to equity ratio.
• Increasing raw material & labour costs.
• Foreign steel imports
Strengths:
• Increased capacity and production of steel over the last 5 years.
• Strong Financial Position.
• Calculated Risk Taking.
• On the forefront technology.
• Experience Curve.
• Innovative production process.
• Performance based compensation.
• Efficient supply chain management.
• Decentralization.
• Autonomous. SO (Using strengts to take advantages of opportunities)
- Good financial position, should go for more projects and acquisitions.
- Good HR culture and a decentralization would help in smooth addition of operations.
- Can go for trying new technology. ST (Use strengts to overcome Threats)
- Can come out with more innovative products to enter new markets.
- New technology can help in inc production and help to curb rising labour cost.
- Use performance based compensation to fight rising labour cost.
Weakness:
• Over Diversification.
• High dependency on US domestic market.
• Lack of R&D.
• Declining market share. WO (Take advantage of opportunities by overcoming weakness)
- Go for own R&D centers so as to improve more on technology.
- Expanding operation towards new products to enter new markets.
- WT (Bring changes to overcome your weakness and threats)
- Inc in quality to improve on exports.
- Open R&D centers to reduce cost on aquiring new technologies.
- Stop non-profitable products, divert resources to wards more profitable ones.
Porter’s 5 forces Model