...producers of steel in the United States with a production capacity that exceeds 26 million tons. Nucor was among the first steel companies in the United States to use electric arc furnaces to melt recycled steel. In 2007, Nucor recycled nearly 10 million cars in its production processes, the equivalent of one SUV every four second (Nucor.com). Trends in the Steel Industry Steel Industry Trends are not at all static in this industry and is a very dynamic. The country that is producing the maximum amount of steel may not be in the first position in the coming years. Analysis of the Steel Industry Trends show that from the period starting from 1910 until the year 1960, the first position in terms of producing the largest amount of steel in the whole world was captured by United States of America. During this period, it was observed that almost half of the total steel production around the globe was produced by USA. However, the scenario started to change after the countries like Japan and China came to the fore. Again, in the recent years, India as well as Brazil has shown tremendous performance in the steel production side. According to the recent Steel Industry Trends, China is the largest steel producing nation. However, it has also been seen that the production of quality steel in China is very low. Thus, they have to import large quantities of the same from the foreign countries, especially Brazil. The rising of India as a key player in the world steel industry scenario is...
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...Corporation: Competing against Low-Cost Steel Imports SWOT, PESTEL, Success Factor and Competitive Advantages Analysis Course Title: Strategic Management Course Code: FNB 309 Prepared For Hare Krisna Kundo Lecturer Department of Public Administration Prepared By Name | Student Id | Md. Shohag Ali | 1265 | Md. Khairul Islam | 1286 | Md. Nazrul Islam | 1292 | Md. Waish Hasan | 1295 | Nawshad Haque | 1959 | BBA, First BatchDept. of Finance and Banking | Date of Submission: September 6, 2012 Department of Finance & Banking Jahangirnagar University Savar, Dhaka-1342 * Problem Statement * Right now Nucor’s main problem is an excess of steel in the market. Foreign steel is being dumped in US, the market is flooded and supply exceeds demand. This decreases the steel companies’ profits and puts pressure on them, forcing some of them into bankruptcy. * Another problem they face is lack of innovation of technology. In order for Nucor to maintain, and continue to post profits in the future they must identify areas to increase technology to lower production costs and increase throughput. * Solution To Problem Statement: Chronologically * Nucor Corporation General Information * Timeline of History and Development * Industry Analysis * Primary Competitive Forces * Driving forces * PESTEL * Porter’s Five Forces Model * Failure of US Market in 2005 * Nucor Analysis ...
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...Nucor Corporation: Competing against Low-Cost Steel Imports Week 8 Assignment Bus 599 Nucor Corporation is today one of North America largest steel maker company. Although the company has a strong position in the steel market today, things have not always been as positive. According to Crafting & Executing Strategy, Nucor was first known as Nuclear Corporation of America, a company involved in the nuclear instrument and electronic business in 1950’s and early 1960’s. Facing bankruptcy, the company changed direction and decided to invest in the stable steel-joist business. The new name, Nucor Corporation, came along with the change in 1972 to break away from the nuclear image and embrace the new venture. This transformational change was due to the vision of new CEO and president, F. Kenneth Iverson. His strategic initiatives revealed to be a blessing as Nucor Corporation has been successfully growing since its creation. Discuss the trends in the steel industry and how it may impact Nucor’s strategy. The electric arc furnace technology was introduced in 1960. The “mini-mills” was limited when compared to integrated mills in the industry. In addition, the operating costs of companies are lower compared to integrated mills because they use electric arc furnaces that can produce various steel products to minimize production costs. (Thompson, Strickland, & Gamble, 2010). Nucor Corporation started using thin-slab casting during the 1980’s and it was their...
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...AGAINST LOW-COST STEEL IMPORTS Nucor Corporation Sheri Johnson Dr. James Glenn BUS 599-014016 November 28, 2010 Assignment 4 Abstract This paper will explore articles that I researched regarding Nucor Corporation as well as research that I conducted from online articles and material that I read from the book. This paper will discuss the trends in the steel industry and how it may impact Nucor’s strategy; discuss the organizational structure and management philosophy at Nucor. Identify three HRM issues related to strategy implementation and recommend actions to address these issues. I will be given my own recommendations for related or unrelated diversification that the company would need to address. 1. The trends in the steel industry Nucor Corporation is the second-largest steel producer in the United States and has had net sales of $4.6 billion in 2000. Nucor recycles approximately 10 million tons of scrap steel. It operates in 9 states and produces carbon and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. The company emerged from near Bankruptcy in 1966 to become one of the fastest-growing steel. The steel industry is a dynamic, innovative sector, which is constantly adapting and refining itself to become more competitive in the market. The industry does this by developing new, improved steel grades and production...
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...THE UNITED STATES STEEL INDUSTRY * Porter’s five forces model * Risk of entry by potential competitors * Absolute cost advantages: From this case we can identify that steel industry in different categories has various type of cost advantages. For eg: those small steel makers minimills who used arc furnaces to smelt and produce scrap steel which usually cost lower than large established companies who used iron ores that requires huge investment and tends to raise their cost. More over another absolute cost advantage that had over established companies are that they used and located in rural areas where labor costs were relatively low and established companies used unionized labor and in flexible work rules that increases their cost. As a result we can say that absolute cost advantage was achieves by small steel maker but established industry did not have any cost advantage * Customer switching cost: Basically customer considers steel as a commodity type good as mentioned in the case for which they could easily switch from company to company and they took this as an opportunity to bargain down prices further. * Government regulations: as mentioned in the case low trade barriers took away market share away from companies that once dominated the industry. This led to creation of many new small companies that could operate at low cost which resulted in intense competition and lost profits * Rivalry among established companies: Rivalry among established...
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...Discuss the trends in the steel industry and how it may impact Nucor’s strategy. The trend had been major steel production using blast furnaces. New technology using arc furnaces adopted by Nucor led to increased production and cost savings. The arc furnace technology took less labor, increased production, and was considered the new most cost-effective strategy among the steel industry. It was Nucor’s decision to adopt this process and be the first to introduce this new process to the United States. Many steel companies were going out of business due to reduced demand for steel and failing economies across the globe in the late 90s into the 2000s. Nucor chose to buy these failing plants when easily convertible to their production lineup. This also in many cases was a cheaper route than building new plants. The acquisition strategy proved to be essential as these failing firms were already setup for steel production at mass quantities and Nucor was able to inherit their ties and partnerships as well as their presence in their surrounding geographical area. The constant drive for efficiency and cost effective production was another strategy chosen to increase competitive advantage, market share, and ultimately become the number one steel producer among heavy competition. Discuss the organizational structure and management philosophy at Nucor. The management structure of Nucor was very different than the usual structured management layout of other steel firms. The typical firm...
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...STUDY EXECUTIVE SUMMARY Nucor is the world’s leading mini-mill producer of a diverse range of steel products such as bars, beams, sheets, plates joists and fasteners. With a production capacity exceeding 27 million tons, it is the largest producer of steel in the United States, as well as North America’s largest recycler. Nucor’s growth and success are driven by its low-cost strategy and technological leadership. By pioneering the use of electric arc furnaces and creating a network of mini mills, the company eliminated the need for excessive costs in production processes, capital equipment, raw material, distribution and manpower. COMPANY HISTORY 1950s-60s – make of nuclear instruments and electronics 1964 – exited nuclear to focus on profitable steel joist bsiness 1972 – adopted the name Nucor and began long-term strategy to grow into a major player in the US steel industry 1985 – became the 7th largest steelmaker in North America 2012 – surpassed US Steel as the largest steel producer in North America 2014 – made 166 consecutive quarterly dividend payments, having earned profits in every quarter of every year since 1966 VISION, MISSION, VALUES Nucor is made up of over 20,000 employees guided by the following vision and mission: “Take care of our customers by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world.” The company broadens its definition of “customers” by including...
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...Name_______________________________________________ Nucor Steel Corporation Case___________________________________________ ------------------------------------------------- Section I ------------------------------------------------- What is the setting of the case i.e. the type of industry, the firms, operations, and nature of the environment/market[s]? ------------------------------------------------- ------------------------------------------------- What appears to be the issue(s), concern(s), problem(s), challenge (s) and/or opportunities and their significance for the organization? ------------------------------------------------- Nucor Corporation with 24 plants/divisions and 8,000 employees, operated in nine states recycling more than 10 million tons of scrap steel annually. Producing carbon and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; and metal building systems, the corporation was known as the most modern and efficient, having streamlined organizational structure, incentive-based compensation and rigorous quality systems in the United States. Nucor Corporation entered the 21st century as one of the leading U.S steel producers. At the same time, steel industry was experiencing crisis and steel production capacity was exceeding the market demand. Drop-offs in revenues and price cuttings forced many steel producers declare a bankruptcy. Economic recession of late...
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... Nucor Corporation was the most profitable steel producer in North America in both 2005 and 2006. It is regarded as a low-cost steel producer in the United States, and one of the most efficient and technologically innovative steel producers in the world. Nucor is known for its aggressive pursuit of innovation and technical excellence, rigorous quality systems, strong emphasis on employee relations and workforce productivity, cost conscious corporate culture, and ability to achieve low costs per ton produced (C-194). Offering a streamlined organizational structure, Nucor uses its ability to achieve incentive-based compensation systems that rewards goal-orientated individuals for their performance. Over the years Nucor has expanded progressively into the manufacturer of a wider and wider range of steel products, which has gotten it to be able to offer steel users one of the broadest product lineups in the industry. In this industry steel products are considered commodities, and most steel plants turn out products with comparable quality to other companies. This makes one producer’s reinforcing bar essentially the same as another producer’s reinforcing bar, which in turn makes a particular grade of sheet steel made at one plant almost identical to the same grade of sheet steel made from another plant (C-195). Because of this, steel producers are forced to be price-competitive with the market price of each individual steel product being driven by demand-supply conditions...
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...------------------------------------------------- Portfolio management Financial Investment Danang university of economics 37k16-clc D.I.D Group Contents I. Introduction 2 II. Macro environment 3 II.1 The world macroeconomic: 3 II.2 Vietnam macroeconomic 6 III. Industrial sectors analysis 10 III.1 Tire Industry 10 III.2 Steel industry 12 IV. Company analysis 14 IV.1 Danang rubber JSC (DRC) 14 IV.2 Hoa Phat group (HPG) 19 V. Calculation 24 V.1. Rates of return measurement 24 V.2. Risk measurement 24 VI. Efficient frontier 25 VII. Application 27 VIII. Conclusion 32 Group members 33 I. Introduction Since Vietnam carried out economic innovation in 1986, after 26 years, Vietnam economy had a lot of significant changes. Our country had overcome the poor period and start to join the global development in all aspects. Along with economic development, there are more and more investment opportunities available for potential investors. Vietnam market offers so many channel of investment such as gold market, real estate, bank account, especially stock market.11/07/1998 Vietnam stock market appeared. This establishment created a remarkable point for internal investors. In the global economic situation of recession, Vietnam as well as most of countries in the world have to face many difficulties in improving economic growth. The negative points in economic indicators and economic events as well as the rising of political issues...
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...trends in steel industry and how it may impact Nucor’s strategy. In addition, the paper will describe the organizational and management philosophy at Nucor. Furthermore, the paper will identify 3 HRM issues related to strategy implementation and recommend actions to address these issues. Recommendation whether a related or unrelated diversification should be used will also be discussed. Finally, we will be looking at Organizational structure issues the company would need to address to implement the strategy. Trends in Steel Industry and Its Impact on Nucor’s Strategy An analysis of the steel industry trends shows that from the period starting from 1910 till the year 1960, the first position in terms of producing the largest amount of steel in the whole world was captured by United States of America. During this period it was observed that almost half of the total steel production around the globe was produced by USA. But things started to change after the countries like Japan and China came to the fore. Again, in the recent years, India as well as Brazil has shown tremendous performance in the steel production industry. According to the recent steel industry trends, China is the largest steel producing nation. However the production of quality steel in China is very low. Thus, they have to import large quantities from the foreign countries, especially Brazil. The rise of India as a key player in the world steel industry is also evident while analyzing steel industry trends...
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...Division of the School of Arts and Sciences In Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Philadelphia, Pennsylvania 2006 NUCOR CORPORATION: A STUDY ON EVOLUTION TOWARD STRATEGIC FIT Approved by: ________________________________________________ Program Director ________________________________________________ Advisor ABSTRACT For much of its century long history, Nucor Corporation and its predecessors displayed turbulent financial performance. Several attempts at a strategic realignment proved unsuccessful, and in 1965, the company faced insolvency. Since that time, however, the company has rallied around its steel operations to become the largest steel producer in the United States, with $12.7 billion in net annual sales. This thesis examines Nucor’s development from an unprofitable conglomerate to a highly efficient enterprise. Specific focus on the evolution of the activity system underlying the...
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...Running Title: Nucor corporation Nucor Corporation Discuss the trends in the steel industry and how it may impact Nucor’s strategy. Nucor Corporation started as a Nuclear Corporation of America. The latter was a highly diversified and marginally profitable company; the company products included instruments, rare hearths, semiconductors and construction. One of the company potential acquisitions was Coast Metals, a family owned producer of specialty metals. When the acquisition fell through, Nuclear hired one of the top engineers as a consultant to recommend other acquisition targets. Ken Iverson who was the president and CEO of the Nucor Corp. had strong technical skills and general management experience. The Nuclear Corporation of America was involved in the nuclear instrument and electronic business. The company went through many years of severe financial strains; he was responsible for the supervising the joist operations as well as the research, chemical and construction segments. Shortly after Iverson became the CEO of the company, he concluded that the best way to put the company on sound footing was to exit the nuclear instrument and electronics business and rebuild the company around its profitable South Carolina based Vulcraft subsidiary which was in the steel joist business. So Iverson moved the company’s headquarter from Phoenix, Arizona to Charlotte, North Carolina, in 1966 and proceeded to expand the joist business with new operations in Texas and Alabama...
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...b. Industry Financial Analysis Industry financial analysis will be conducted with the following companies: The Nucor Corporation, United States Steel Corporation, AK Steel Holding Corporation, Steel Dynamics Incorporated, Allegheny Technologies Incorporated and Carpenter Technology Corporation. The selection of these companies were based on the following: * These six companies belong to North America Industry Classification System (NAICS) code 331110 and have financial data from 2007-2012: Ratio comparison is consistent if all companies are from the same industry. * Firm Size/Geographic Location: Major U.S. companies that account more than 40% of market share according to IBISWorld 2013. Table 1 contains an overview of these six companies. Company | NAICS Code | Geographic Market | Products | Market Capitalization | Company Founded | The Nucor Corporation | 331110Iron & Steel Manufacturing US | U.S. | Carbon SteelAlloy SteelSteel ProductsRaw MaterialsFasteners | 15 Billion | 1940 | United States Steel Corporation | 331110Iron & Steel Manufacturing US | Worldwide | SheetTinTubular | 2.53 Billion | 1901 | AK Steel Holding Corporation | 331110Iron & Steel Manufacturing US | Worldwide | Carbon SteelsStainless SteelsElectrical Steels | 463 Million | 1899 | Steel Dynamics Incorporated | 331110Iron & Steel Manufacturing US | U.S. | SteelFabricated Steel ProductsMetals Recycling and Ferrous Resources | 3.46 Billion | 1993 | Allegheny Technologies...
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...Division of the School of Arts and Sciences In Partial Fulfillment of the Requirements for the Degree of Master of Science in Organizational Dynamics at the University of Pennsylvania Philadelphia, Pennsylvania 2006 NUCOR CORPORATION: A STUDY ON EVOLUTION TOWARD STRATEGIC FIT Approved by: ________________________________________________ Program Director ________________________________________________ Advisor ABSTRACT For much of its century long history, Nucor Corporation and its predecessors displayed turbulent financial performance. Several attempts at a strategic realignment proved unsuccessful, and in 1965, the company faced insolvency. Since that time, however, the company has rallied around its steel operations to become the largest steel producer in the United States, with $12.7 billion in net annual sales. This thesis examines Nucor’s development from an unprofitable conglomerate to a highly efficient enterprise. Specific focus on the evolution of the activity system underlying the...
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