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Gustavo Murtha, Matthew Coleman, Nils Roth, Paul Suarez
Case #27 Nucor Steel Nucor Steel Corporation faced problems regarding the threat from low-cost international
imports and decreasing demand for the raw material of steel products. It's essential that Nucor
Corporation can turn this problem into an opportunity through analyzing and strategizing their
operations to import their market share and thus profits. Situation Analysis:
Generic Strategies:
Cost Leadership:
Nucor had an advantage since it implemented the steel mini-mill production method,
significantly reducing production costs. Using this method, Nucor provided an extremely
competitive process and underpriced competitors. Premium Steel Products:
Nucor has a superior steel product, which enables them to stand out from competitors. They
have a good R&D focus, continuously providing impressive and excellent products. Competitor Analysis:
International Steel Manufactures
There is an increase in international steel producers from places such as China. This increase in
competitors leads to increased competition as companies look to reduce prices, improve goods,
and attract buyers. Since international interests benefit from government incentives such as
subsidiaries, they can export goods at lower costs. Domestic Steel Manufacture Competition:
The difference in production strategy across domestic competitors allows for different
companies to perform better in other conditions. U.S. Steel uses an integrated steel approach,
which enables them to produce more goods but can be more costly. At the same time, Nucor
uses its mini-mill method, which is a cheaper production method and allows for a more efficient
quantity output. Decreased Demand:
Gustavo Murtha, Matthew Coleman, Nils Roth, Paul Suarez
After the recession of 2008, many industries that previously had relied heavily on the use of
steel to function could have less expansive operations, meaning that the steel demand
decreased.
Excessive Supply:
Given the extreme decrease in demand for steel after the recession, there was an excess in the
steel supply. This causes intense competition for companies competing against each other with
high-quality products and low prices. This overall means a reduction in costs for all. Solution Statement
Nucor Steel Corporation must adopt a strategic framework that encompasses product
diversification, brand enhancement through partnerships and advertising, and the optimization
of its supply chain. This comprehensive approach is a response to the multifaceted challenges
posed by intensified competition from cost-effective global imports, diminished demand
stemming from the 2008 financial crisis, and an oversupply of steel in the market. With the help
of these objectives, Nucor will be able to improve its standing in the market, address changing
conditions, and take advantage of opportunities for continued growth and financial success.
Evaluated Alternatives and their Justification.
An intelligent strategic step that can help Nucor stay profitable and competitive over time is
diversifying its product line. This could involve significant research and development
expenditure. Nucor should be proactive regarding expanding the range of products it offers
beyond just standard steel. They can lessen their reliance on unpredictable demand for
construction steel by moving into specialized steel products for developing markets like
renewable energy, airliners, or electric automobiles. This will minimize the negative impact of
recessions on their income. Partnerships can result in lower expenses and more effective operations. However, because of
industry disputes and competing interests, their implementation might be complex. Nucor must
select its associates sensibly and carry out arrangements that would prove profitable to all
sides. To share resources, minimize expenses, and improve their standing in the market, Nucor
must search for strategic partnerships and alliances with national steel producers. These
partnerships may involve combining assets for production facilities or collaborative efforts in
research and development. Although it demands an initial investment, supply chain optimization is crucial for cost
management. Long-term benefits mean that Nucor can preserve its competitiveness in an
environment where consumers are price sensitive. To reduce expenses while enhancing
flexibility, Nucor must optimize its supply chain. This could involve employing modern
technology, improving organization, and reducing the complexity of inventory control. By doing
this, they can compete more efficiently with foreign producers who receive government
backing.
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Spring 2020
Homework Assignment #2-Revised
MR
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Market Structure
Price
Quantity
Economic
Profit
Consumer Surplus
Dead Weight Loss
Competition
500
400
Monopoly
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Market
Retailer Share (%)
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Question in the attached image
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economics
Assigned company Name: BAXTER INTERNATIONAL
analyze strategy threats using Michael Porter’s Five Forces analysis.
Provide a brief introduction to your assigned company (e.g. what is its business, in what market is it, how long has it been in business, etc.)
Apply each of Porter’s five forces to your assigned company, indicating the threat level (e.g., high, moderate or low), why you have made this assessment.
Do NOT make recommendations for addressing these threats; only provide your assessment of the threats.
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) d) International trade will provide the company with an absolute advantage.
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D Question 25
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Problem 11-23 (algo)
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$
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TC
FC
VC
A-Average, then
АТС 3 AFC + AVC
TC
:AFC=
FC
: AVC =
VC
ATC
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AQ
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MCQ
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TC=1000+40+0.0502
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c-) What is the marginal cost of producing 10 units?
I
P(S)
15
ATC
10
S
A
125 150 160
4-) How much profit does the profit-maximizing monopolist pictured in the diagram have?
MC
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900
600
850
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600,000
600,000
600,000
600,000
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900,000
1,500,000
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250,000,000
250,000,000
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