Nucor Case Analysis Essay Example
Nucor Corporation Case Analysis
Section 1: Recommendations
Recommendation 1: To expand more internationally by building plants in lower property taxed areas with low tariffs to ship products out.
Recommendation 2: To put in place job descriptions for employees. By doing this it will save Nucor litigation fees and troubles if something arises in the workplace between the employee and Nucor about job duties, injuries, etc.
Recommendation 3: Other than expanding internationally, Nucor should make joint ventures with suppliers to keep the cost down of the product. A lot of scrap that is used is imported so it would be a good idea for Nucor to utilize that to reduce costs of making their products.
Section 2: Problem(s)
Even though Nucor is a solid competitor in the steel industry, there are still problems that Nucor has and that are facing the company. There are market problems that will ultimately affect Nucor in the steel industry. One of those problems is that steel and steel related products are having a worldwide decrease in demand. One reason for this decrease is the whole new “green” fad that is occurring lately to protect the environment. Another problem with the market is that foreign markets don’t have enough markets in their own country and dumping their product in the United States which in return is hurting United States steel companies. Clean air rules are also a problem in the market due to more and more pollution. Even though Nucor does really well with keeping harmful substances from getting in the air, don’t be surprised to see a government regulation put on pollution which will also be more of an expense to Nucor. Finally one of the biggest market problems is that there are many companies in the steel industry. Even though barriers to enter the market are low because of high capital investments there are still many companies present in the steel industry. Yes, there will be many competitors in any market, but what Nucor has to
Section 1: Recommendations
Recommendation 1: To expand more internationally by building plants in lower property taxed areas with low tariffs to ship products out.
Recommendation 2: To put in place job descriptions for employees. By doing this it will save Nucor litigation fees and troubles if something arises in the workplace between the employee and Nucor about job duties, injuries, etc.
Recommendation 3: Other than expanding internationally, Nucor should make joint ventures with suppliers to keep the cost down of the product. A lot of scrap that is used is imported so it would be a good idea for Nucor to utilize that to reduce costs of making their products.
Section 2: Problem(s)
Even though Nucor is a solid competitor in the steel industry, there are still problems that Nucor has and that are facing the company. There are market problems that will ultimately affect Nucor in the steel industry. One of those problems is that steel and steel related products are having a worldwide decrease in demand. One reason for this decrease is the whole new “green” fad that is occurring lately to protect the environment. Another problem with the market is that foreign markets don’t have enough markets in their own country and dumping their product in the United States which in return is hurting United States steel companies. Clean air rules are also a problem in the market due to more and more pollution. Even though Nucor does really well with keeping harmful substances from getting in the air, don’t be surprised to see a government regulation put on pollution which will also be more of an expense to Nucor. Finally one of the biggest market problems is that there are many companies in the steel industry. Even though barriers to enter the market are low because of high capital investments there are still many companies present in the steel industry. Yes, there will be many competitors in any market, but what Nucor has to