Nucor at a Crossroads - 2764 Words

Nucor at a Crossroads On December 7, 1986, F. Kenneth Iverson, chairman and chief executive officer (CEO) of Nucor Corporation, awaited a delegation from SMS . Iverson had to decide whether to commit Nucor to a new steel mill that would commercialize thin-slab casting technology developed by SMS. Preliminary estimates indicated that the mill would cost $280, and that start-up expenses and working capital of $30 million each would push the total cost to $340 million. Successful commercialization of thin-slab casting would let Nucor enter the flat sheet segment that accounted for half the U.S. market for steel. The U.S. Market for Steel In 1986, U.S. producers shipped 70 million tons of steel mill products. Subtracting exports of one†¦show more content†¦By the second half of the 1970s, the market for low-end structural products was beginning to reach saturation. Minimills responded by looking for new market outlets. The more aggressive ones expanded beyond their traditional 200-300 mile, typically by acquiring existing mills or by adding large new ones with up to several hundred thousand tons of steelmaking capacity. They also began to move into new product segments. They accounted for 16% of domestic steelmaking capacity. up from 7% in 1975. and a slightly higher percentage of domestic shipments. While 36 companies operated a total of 51 mini steel plants, 43% of all minimill steelmaking capacity was controlled by the five largest competitors: Nucor Corporation Nucor s roots went back to 1904 when Ransom Eli Olds, resigned from Olds Motor Works, It emerged from reorganization as Reo Motors, a manufacturer of trucks and, eventually, luxury lawnmowers. Reo Motors neither made nor lost much money. In 1954, it sold off all its assets, at a 15% book loss, and began to distribute the proceeds-approximately $16 million-to its shareholders. Takeover prevented Reo fromShow MoreRelatedNucor at Crossroads1352 Words   |  6 PagesNucor at a Crossroads Nucor at a Crossroads Case Analysis In 1986, three distinct segments defined the U.S. steel industry; integrated steel mills, mini-mills, and specialty steel makers. The integrated mills have the capacity to produce a maximum of 107 million tons of steel per year, mini-mills produced a maximum of 21 million tons of capacity a year, and the nation’s specialty steel makers could produce a maximum capacity of 5 million tons of stainless and specialty grades of steel. This leadsRead MoreNucor at a Crossroads1363 Words   |  6 PagesNucor at a Crossroads Case Analysis In 1986, three distinct segments defined the U.S. steel industry; integrated steel mills, mini-mills, and specialty steel makers. The integrated mills have the capacity to produce a maximum of 107 million tons of steel per year, mini-mills produced a maximum of 21 million tons of capacity a year, and the nation’s specialty steel makers could produce a maximum capacity of 5 million tons of stainless and specialty grades of steel. This leads to a total capacityRead MoreNucor at a Crossroads3122 Words   |  13 Pagesï » ¿ Nucor at a Crossroads MGMT XXXX-XXX Nucor’s Historic Performance, Competitive Advantage, and Five Forces Analysis With roots dating back to 1904 in the automobile manufacturing industry, Nucor’s business strategy has morphed many times over the course of the past century in response to struggling sales and unrealized business strategies. Since F. Kenneth Iverson’s appointment as Nucor’s President in 1965, however, Nucor has performed very well. With a focusRead MoreNucor at a Crossroads11794 Words   |  48 PagesHarvard Business School 9-793-039 Rev. January 20, 1998 DO Nucor at a Crossroads On December 7, 1986, F. Kenneth Iverson, chairman and chief executive officer (CEO) of Nucor Corporation, awaited a delegation from SMS Schloemann-Siemag, a leading West German supplier of steelmaking equipment, at his company’s headquarters in Charlotte, North Carolina. Iverson had to decide whether to commit Nucor to a new steel mill that would commercialize thinslab casting technology developed by SMSRead MoreNucor Corporation : The Face Of Innovation Essay1953 Words   |  8 Pages Nucor Corporation Millennials The Face of Innovation Nasheemah L. Kennedy 12/6/2016 â€Æ' Abstract Nucor Corporation is an American producer of steel and related products founded in 1940 and presently headquartered in Charlotte, North Carolina. Currently Nucor Corporation is the largest mini mill steelmakers in the United States. Nucor also ranks as the largest steel producer in the United States of America. Nucor prides itself on focusing on its commitment to the growth and their team matesRead MoreNucor - Porters 5 Forces2126 Words   |  9 PagesNUCOR AT A CROSSROADS CASE ANALYSIS NUCOR’S SUSTAINED PERFORMANCE RECORD PORTER’S 5 FORCES ANALYSIS †¢ Supplier Power: With the eventual exit of integrated steel companies from buying scrap, the options available with suppliers to sell, reduced. Nucor started several small plants that were close to suppliers customers, thereby reducing transportation costs. Also, the sites chosen had inexpensive electricity. Their employee-centric policies resulted in them having lowest attrition levelsRead MoreNucor Case Study5777 Words   |  24 PagesNucor Corporation (A) We are a cyclical business... Basically when you are at the peak of the cycle—times are good, interest rates are low, people are building—our margins increase. When we go to the trough, of course, the margins are squeezed. But over the last 25 years Nucor has never had a losing quarter. Not only a losing quarter, we have never had a losing month or a losing 1 week. —John D. Correnti, President and CEO, Nucor In 1998, Nucor was a Fortune 500 company with 6,900 employeesRead MoreCase Studies67624 Words   |  271 Pageswet-shaving market C-76 Incat Tasmania’s race for international success: Blue Riband strategies C-95 Kiwi Travel International Airlines Ltd C-105 CASE 8 Beefing up the beefless Mac: McDonald’s expansion strategies in India: C-120 CASE 9 Nucor Corporation and the US steel industry C-128 CASE 10 Pacific Dunlop: Caught on the half volley C-157 CASE 11 Philip Morris C-173 CASE 12 Pisces Group of Singapore C-188 CASE 13 Raffles, Singapore’s historic hotel C-194 CASE 14 Southwest AirlinesRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesthree international examples helps illustrate how diverse diversity programs can be. In Singapore, diversity has become part of the national agenda. On â€Å"Racial Harmony Day,† street carnivals are held to celebrate the nation’s unique status as a crossroads of Chinese, Malay, Indian, and other cultures. Besides applauding these distinct national identities, the country’s leaders have also prioritized these celebrations as a moment to emphasize the shared identity of being Singaporean. Brazil is