Nucor Case Analysis :: Finance Business Essays

Nucor Case AnalysisCase summary Nucor is the knowledge domains largest recycler, recycling over 10 hoagieion tons of dapple marque annually. Nucor descended from auto shaper Ransom E. Olds, who founded Oldsmobile. The company evolved into the Nuclear lot of America, which was involved in the nuclear instrument and electronics business in the 50s and early 60s. Over the next five years, valley Sheet Metal, Vulcraft club and U.S. Semi-conductor Products joined the Nuclear Corporation. After suffering some(prenominal) money-losing years, in 1964 F. Kenneth Iverson was installed as president. Management then decided to integrate rearwards into steel making, and in 1972 they adopted the name Nucor. Since then Nucor has naturalised itself as a leader in the steel industry by means of force and innovation. It now employs more than than 7,000 people worldwide and has experienced tremendous ontogeny under its new CEO Daniel R. DiMicco. SWOT Analysis Strengths Low constitute Producer Employee/Managerial Relations Leading Innovator Low Debt misdirect Overall industry leader Weaknesses Dependency on scrap alloy Company Profile - Nucor Corporation is the largest steel producer in the fall in States and had net sales of $11.3 billion in 2004.-Nucors origins are with auto manufacturer Ransom E. Olds, who founded Oldsmobile and then Reo Motor Cars.-The reorganization resulted in restructuring and eliminating money-losing businesses which left however the steel joist business called Vulcraft-Vulcraft operated in Florence, South Carolina and Norfolk, Nebraska-Management then decided to integrate backwards into steelmaking by building its first steel mill in Darlington, South Carolina in 1968-In 1972 the company adopted the name Nucor Corporation-By 1985 Nucor was the seventh largest steel companySituational AnalysisGeneral External surroundSociocultural- Nonunion workers got paid more than 85% of the states they worked in-Recycled more than 10 millions t ons of scrap metal annuallyTechnological-Began employ a twin shell electric furnace to increase production and commence be and increase market share-Developed and implemented strip stamp overseas to eliminate a step in the steel making processDemographic-Economic slow down in early 90s led to a reduced demand for steel-By 1995 the steel industry was the best it was for 20 yearsEconomic-Import values decreased for all steel products from 1998 to 1999-U.S. steel producers facing higher energy costsGlobal-Increasingly tough environmental rules-Cheaper imports for steelIndustry Analysis Nucor has established itself as a leader in the steel industry through efficiency and innovation.Industry Driving Forces of ChangeIncreased demand on a global scale due to increase in manufacturing across the world, opposite in U.