Nucor Steel : Competitive Analysis
. Executive Summary Upon Review of Nucor Corporation’s current findings, analysis of internal strengths and weaknesses, as well as a comparative analysis at the industrial level of the steel industry, the following includes a summary of findings and recommendations for Nucor Steel Corporation:
• We recommend to have an on staff legal team
The steel industry has a very hazardous work environment, which in return arises many cases of workman’s compensation issues. An on staff legal team at Nucor allows a more adept knowledge about the steel industry and therefore assists in helping safeguard Nucor from many lawsuits.
• Bring back the Organic Hierarchy
Seeing that autonomy is one of the most important factors for this company, it is best if Nucor brings back the organic hierarchy that made the company what it is today. In doing so, it helps Nucor to keep their communication channels short so they are able to make quick and decisive decisions.
• Restructure the Incentive Systems
Nucor, like many other companies, has a relatively high cost of goods sold. In order to reduce their COGS, it would be beneficial to the company if they would rethink restructuring their incentive system. Restructuring would allow Nucor to make the changes that are necessary in this highly competitive industry.
• Decrease to five week rolling cycles
Nucor needs to cut back the casting cycles from sixteen weeks to five weeks in order to regain the lost market share. This is important to implement because it will help keep contractors from buying their steel from warehouses, even if they have to pay a slightly higher price for their products.
• Tap into the scrap producing industry
If Nucor taps into the scrap producing market they will be able to cap the price increase, as well as eliminate the markups that scrap producers are putting on their steel.
• Stick to what they do best
While we believe the above recommendations will strengthen the company, we encourage them to stick
• We recommend to have an on staff legal team
The steel industry has a very hazardous work environment, which in return arises many cases of workman’s compensation issues. An on staff legal team at Nucor allows a more adept knowledge about the steel industry and therefore assists in helping safeguard Nucor from many lawsuits.
• Bring back the Organic Hierarchy
Seeing that autonomy is one of the most important factors for this company, it is best if Nucor brings back the organic hierarchy that made the company what it is today. In doing so, it helps Nucor to keep their communication channels short so they are able to make quick and decisive decisions.
• Restructure the Incentive Systems
Nucor, like many other companies, has a relatively high cost of goods sold. In order to reduce their COGS, it would be beneficial to the company if they would rethink restructuring their incentive system. Restructuring would allow Nucor to make the changes that are necessary in this highly competitive industry.
• Decrease to five week rolling cycles
Nucor needs to cut back the casting cycles from sixteen weeks to five weeks in order to regain the lost market share. This is important to implement because it will help keep contractors from buying their steel from warehouses, even if they have to pay a slightly higher price for their products.
• Tap into the scrap producing industry
If Nucor taps into the scrap producing market they will be able to cap the price increase, as well as eliminate the markups that scrap producers are putting on their steel.
• Stick to what they do best
While we believe the above recommendations will strengthen the company, we encourage them to stick