Nucor Corporation Introduction Nucor Corporation‚ the largest U.S. mini-mill‚ continues to gain market share in flat roll and strip steel. Recent successful acquisitions‚ application of new technologies‚ prospects for global growth‚ a strong balance sheet‚ as well as improved economic outlook for the steel industry‚ make Nucor an attractive buy with a near term stock price target of $65 to $70. Background Nucor Corporation (NUE) was founded by auto manufacturer Ranson E. Olds. Through a
Premium Steel
There are many competitive forces that are affecting Nucor Corporation. Some of the primary ones are the market size‚ number of rivals‚ and pace of technological change. The market size is shrinking because of the increase in competing international steel companies. The number of rivals in America is declining due to higher labor costs than in foreign countries. There is a very fast pace of technology in the steel industry and it seems that the company‚ that obtains the newest technology‚ flourishes
Premium Steel Mittal Steel Company Iron
Nucor at a Crossroads On December 7‚ 1986‚ F. Kenneth Iverson‚ chairman and chief executive officer (CEO) of Nucor Corporation‚ awaited a delegation from SMS . Iverson had to decide whether to commit Nucor to a new steel mill that would commercialize thin-slab casting technology developed by SMS. Preliminary estimates indicated that the mill would cost $280‚ and that start-up expenses and working capital of $30 million each would push the total cost to $340 million. Successful commercialization
Premium Steel Steelmaking Pig iron
Harvard Business School 9-793-039 Rev. January 20‚ 1998 DO Nucor at a Crossroads On December 7‚ 1986‚ F. Kenneth Iverson‚ chairman and chief executive officer (CEO) of Nucor Corporation‚ awaited a delegation from SMS Schloemann-Siemag‚ a leading West German supplier of steelmaking equipment‚ at his company’s headquarters in Charlotte‚ North Carolina. Iverson had to decide whether to commit Nucor to a new steel mill that would commercialize thinslab casting technology developed by SMS
Premium Steel Steelmaking Pig iron
Nucor Steel Case Analysis Questions 1. Do a five-forces (Porter) analysis of the competitive forces impacting the U.S. Steel industry. Does your analysis support Nucor’s current basic business model? The competitive forces impacting the U.S. Steel industry are that the buyers have the majority of the bargaining power‚ there are only a few suppliers‚ the internal rivalry is intense because of the price wars and lack of differentiated products‚ there aren’t any substitutes for steel‚ and there
Premium Revenue Strategic management United States
Nucor at a Crossroads MGMT XXXX-XXX Nucor’s Historic Performance‚ Competitive Advantage‚ and Five Forces Analysis With roots dating back to 1904 in the automobile manufacturing industry‚ Nucor’s business strategy has morphed many times over the course of the past century in response to struggling sales and unrealized business strategies. Since F. Kenneth Iverson’s appointment as Nucor’s President in 1965‚ however‚ Nucor has performed very well. With a focus on efficiency‚ Nucor
Premium Steel Steelmaking
Nucor at a Crossroads Nucor at a Crossroads Case Analysis In 1986‚ three distinct segments defined the U.S. steel industry; integrated steel mills‚ mini-mills‚ and specialty steel makers. The integrated mills have the capacity to produce a maximum of 107 million tons of steel per year‚ mini-mills produced a maximum of 21 million tons of capacity a year‚ and the nation’s specialty steel makers could produce a maximum capacity of 5 million tons of stainless and specialty grades of steel. This leads
Premium Steel Barriers to entry
Case: Nucor Corporation in 2012‚ Using Economic Downturns as an Opportunity to grow Stronger. Name and I.D. #: Yue Meng‚ 000755230 Section #: 03 Nucor Corporation is a steel production company that has had tremendous success. The company has the visionary practices of high employee productivity‚ good employee relations‚ a technically superior work environment‚ good quality control‚ and a cost-conscious corporate culture as well as the low-cost production of steel. I. Strengths of Nucor are starting
Premium Corporation Supply and demand Marketing
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
Premium Steel
Nucor in 2009 Case summary Nucor is one of the leading steel producers in the United States. The company was established as nuclear instrument and electronics manufacturer. Later it started steel production and gained new market share by expanding internationally. Despite worldwide economic crisis the company stayed profitable while its competitors went bankrupt. Strengths: • Highly motivated‚ innovative‚ productive and flexible employees. • Good financial results. • Strong relationships with
Premium Profit Mergers and acquisitions Research and development