Read the case study Nucor Corporation in 2012: Using Economic Downturns as an Opportunity to Grow Stronger on the internet or attached files below and answer the following question:- Case Study should be 8-10 page (double spaced), References page in correct APA format. Write in the third person (avoid I, we, my, etc.).
1. What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new steel products via recycling scrap steel in particular? Please do a five-forces analysis to support your answer.
2. What driving forces do you see at work in this industry? Are they likely to impact the industry’s competitive structure favorably or unfavorably?
3. How attractive are the prospects for future profitability of U.S. steelmakers? Should Nucor consider expanding in this type of industry environment? Why or why not?
4. What type of strategy has Nucor followed? Which of the five generic strategies discussed in Chapter 5 is Nucor employing? Is there any reason to believe that Nucor has achieved a sustainable competitive advantage over many of its steel industry rivals? If so, what type of competitive advantage does Nucor enjoy?
5. What are the specific policies and operating practices that Nucor has employed to implement and execute its chosen strategy?
6. What specific factors account for why Nucor has been so successful over the past several decades? Do these factors have more to do with great strategy, great strategy execution, or great leadership?
7. What does a SWOT analysis reveal about Nucor’s situation? Does Nucor have any core or distinctive competencies?
8. What is your assessment of Nucor’s financial performance the past several years? How strong is the company’s financial condition?
9. What issues does Nucor management need to address?
10. What recommendations would you make to Dan DiMicco?
Page 2 of 6 Nucor Corporation : Competing against Low-Cost Steel Imports The market opportunities would be to expand in the below areas: a.1. Expansion in US market through mergers and acquisitions a.2. Going Global: Entry into Asia (China, Indonesia) and Europe markets through joint ventures a.3. Technological advancement and Innovation of new products through research and development. 2. Explanation of #1 – 3 points Their current strategy is: They are low cost producer They differentiate by using electric arc furnace to convert scrap to steel. They also differentiate by having no frill, no fat compensation for executives. Yes, their strategy is working which can be seen by below financial and strategic facts. Financial Facts: (In Millions) Nucor Corp 2006 2005 2004 Net Sales $14,751.3 0 $12,701.0 0 $11,376.9 0 Net Earnings $1,757.70 $1,310.30 $1,121.50 % of net earnings to net sales 11.9% 10.3% 9.9% We can see an increase in % of net earnings to net sales which is nothing but the profit margin. Profit margin is very useful when comparing companies in similar industry . When comparing the % of net earnings to net sales of Nucor with its competitors in year 2005, we can see in the below table that Nucor was on the top. Company % of net earnings to net sales (2005) Nucor Corporation 10.30% US Steel 10.30% Mittal Steel 4.00% AK Steel Group 2.00% Strategic facts: Also looking at the strategic facts, Nucor’s ranking moved from 7 th position in 1985 to 2 nd position in US in the year 2000 . Even though Mittal Steel was in first position, a European company which made series of acquisitions in the United States in the year 2006, Nucor steel shipped more tons of steel to customers than Mittal Steel, which is an indication that customer satisfaction was high.