Nucor Case Analysis

Nucor\'s Mission

“Nucor Corporation is made up of 11,600 teammates whose goal is to \"Take Care of Our Customers.\"   We are accomplishing this by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world.   We are committed to doing this while being cultural and environmental stewards in our communities where we live and work.   We are succeeding by working together.” (Nucor, 2006)

History of Nucor

The early 1960s was the only time that Nuclear Corporation would face the possibility of bankruptcy.   The unstable company knew changes had to be made.   Ken Iverson was hired as the CEO in 1964 with hopes of revolutionizing this now desperate corporation.   In 1972, Nuclear Corporation became Nucor Corporation.   Nucor’s main source of income was the automobile industry.   Ken knew by experience with Vulcraft, a small joist manufacturer acquired by Nuclear Corp. in 1962, that diversification of product was a way to build sales and profits.   Until 1993, Nucor was on a well planned path and was competing as one of the top steel corporations.   Within the next few years Nucor was screeching towards the bankruptcy situation once again.   In order for Nucor to gain the strength it once had, the review of the environment and a new strategic plan must be formed.   This company would need to review the macro-environment, an industry competitive analysis, corporate structure, strengths and weaknesses, and opportunities and threats.   Through analyzing these particular areas of the overall competitive environment Nucor will be able to define a new strategy.

 

Macro-environment

The economy is the largest Macro-environment force that can affect an industry. There are four important factors that contribute to the change of an industry due to the economy. Economic growth is the first; it is the increase in the value of goods and services produced by an economy. It is...