Nucor 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 …show more content…
Exhibit 1: SWOT Analysis Pages 4-5
Exhibit 2: PEST Analysis Page 6
Exhibit 3: Porter’s 5 Forces Model Page 7
Exhibit 4: Income Statement (2001-2006) Page 8
Exhibit 5: Article: “Nucor to build plant in St. James Parish” Page 9-10
Exhibit 1: SWOT Analysis
- Earned profit every quarter and every year since 1966 - Paid a dividend for 135 consecutive quarters - Technology excellence - Quality systems - Emphasis on workforce productivity - Ability to achieve low costs per ton produced - Incentive based compensation systems - Modernized and efficient mills in the United States - No executive perks - Increase each year of net sales from 2002 to present - Fabricating Cold finished steel - Nucor Building Systems, Nucor Fastener - Use of electric arc furnace technology - The first to use the thin-slab casting process - Being involved in many joint ventures all over the world - Producing steel plate - To still be in a healthy financial position after the attacks of 9/11 - Making many acquisitions of companies all over the United States - Direct strip casting of carbon sheet steel - Continuing innovations - Strong market position - Non-unionized company - Workforce compensation practices - Just-in-time inventory mode; decreases operating expense - Low employee turnover - Employees receive a variety of fringe