Nucor Case Analysis :: Finance Business Essays

Nucor Case AnalysisCase summary Nucor is the worlds largest recycler, recycling over 10 million rafts of scrap steel annually. Nucor descended from auto manufacturer Ransom E. Olds, who founded Oldsmobile. The company evolved into the Nuclear toilet 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 Corporation and U.S. Semi-conductor Products joined the Nuclear Corporation. After suffering several money-losing years, in 1964 F. Kenneth Iverson was installed as president. Management so decided to integrate backwards into steel making, and in 1972 they adopted the name Nucor. Since then Nucor has established itself as a draw in the steel industry through efficiency and innovation. It now employs more than 7,000 people worldwide and has experienced tremendous growth under its new chief operating officer Daniel R. DiMicco. SWOT Analysis Strengths Low Cost Producer Emplo yee/Managerial Relations Leading Innovator Low Debt Load Overall industry leader Weaknesses dependence on scrap metal Company Profile - Nucor Corporation is the largest steel producer in the United States and had net sales of $11.3 billion in 2004.-Nucors origins atomic number 18 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 only 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 EnvironmentSociocultural- Nonunion workers got paid more than 85% of the states they worked in-Recycled more than 10 millions tons of scra p metal annuallyTechnological-Began using a twin shell electric furnace to accession production and lower costs and increase market share-Developed and implemented strip casting overseas to eliminate a step in the steel making processDemographic-Economic soggy down in early 90s led to a decreased fill 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 steelindustriousness 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.