Nucor Case Analysis - 4059 Words

Individual Case Analysis BUS490 Comprehensive Examination Nucor Steel Corporation Written by: Lukas Kubilius Professors: Bonnie J. Straight Julian J. Prewitt Lithuania Christian College 2 March 2005 Overview of situation Nucor Corporation with 24 plants/divisions and 8,000 employees, operated in nine states recycling more than 10 million tons of scrap steel annually. Producing carboy and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; and metal building systems, the corporation was known as the most modern and efficient, having streamlined organizational structure,†¦show more content†¦More attention to own business than to competitors is their strategy. South magazine observed that Nucor is â€Å"stripped down, no nonsense† organization. It keeps maintaining low cost and efficiency, which is the key to making profit in steel industry, by keeping the employee force at the level it should be, empowering them, being totally honest, involving them in decision making process, and using effective incentive compensation system. Nucor’s ten year goals are: †¢ Achieving average annual earnings growth of 10%-15%. †¢ Exceeding return on capital †¢ Maintaining minimum 14% return on equity. †¢ Delivering 8%-10% return on sales. †¢ Becoming market leaders of every product group and business where they compete. Key Issues and Problems ïÆ' ¼ Growth in troubled steel industry. How to sustain Nucor’s earnings growth in the industry, which has many marginal competitors and production overcapacity. ïÆ' ¼ Market position. How to protect and establish Nucor’s market position. ïÆ' ¼ Organizational structure. Need for expanding size of executive management team and adding new corporate layers in the corporation. ïÆ' ¼ Human Resource Management. Need for reanalyzing employee wages and bonus system. Finances A typical Gross profit margin depending on the industry may be 25 to 30%. Nucor’s Gross profit margin ratio indicates that industry is intense and cost of goods is one of the main of factor in profitability. After examining the five yearShow MoreRelatedEssay on Nucor Case Analysis1235 Words   |  5 PagesNucor Corporation – Case Study and Recommendations on Strategy Nucor Corporation – Case Study and Recommendations on Strategy Introduction Nucor Corporation: Competing against Low Cost Steel imports deals with leading steel manufacturer Nucor Corporation and trends in the steel industry affecting Nucor. Steel manufacturing is an old business, but is currently facing the fast changes associated with new technologies, the rise of globalization, and changes in cost and efficiency. To date, NucorRead MoreNucor Case Analysis4046 Words   |  17 PagesIndividual Case Analysis BUS490 Comprehensive Examination Nucor Steel Corporation Written by: Lukas Kubilius Professors: Bonnie J. Straight Julian J. Prewitt Lithuania Christian College 2 March 2005 Overview of situation Nucor Corporation with 24 plants/divisions and 8,000 employees, operated in nine states recycling more than 10 million tons of scrap steel annually. Producing carboy and alloy steel in bars, beams, sheet, andRead MoreNucor Case Analysis Essay2164 Words   |  9 PagesNucor Corporation 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. 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