External Analysis Tools Pest, Porter 's Five Forces And Major Strategic Groups

While foreign nations set lower prices on their products to disrupt the American market, the government simply imposed taxes on foreign exports to promote people to purchase more domestic products. The process of putting lower prices in order to ruin the market was known as dumping. In order for the nation to survive, the Federal government had to heavily aid the weak and needed American economy through tariffs and taxes (Doc. D).In response to the crippling economy, the government imposed protective tariffs to boost the economy. Then, such support spurred new industrial developments such as new legal arrangements, improved transportations, and new schools that would educate the people (Doc. B). Furthermore, during the Embargo and War of 1812, the government heavily invested in canals, banks, railroads, and manufacturing to contribute to the industrial advancements and continue to improve the economy by creating new, American industries (Doc. I). With the support of both legislatures, people began to trust that the government imposes protective tariffs to protect its citizens’ rights. Moreover, protection of individual rights contributed to numerous inventions and new discoveries that led to industrial society in United States (Doc.

Another recommendation that I have for Nucor is instead of buying existing plant capacity, make new plants elsewhere or form a joint venture with a supplier to help save money. (Exhibit 3) This would decrease cost of supplies so they would have the extra money to build elsewhere or build a ne plant. By using the SWOT analysis (Exhibit 1) it let me break up Nucor into different parts to see what their strengths and weaknesses are. Nucor is solid with technology and treating the employees correct but the weaknesses that affect Nucor are more market based with some internal problems. Nucor has products for many different industries including automotive and housing. This can cause issues for Nucor if those industries take a fall, which they have over the last 5 years. It’s a good idea to be in these industries but Nucor has to realize what can happen to sales and revenues when one or both of those industries take a fall. Nucor has been expanding more in the United States, recently just building a plant in Louisiana (Exhibit 5). This plant will be a 750 million dollar purchase and will be a mill for pig iron. Nucor is expanding all over the United States but needs more presence internationally plan and simple. Nucor is a solid company with shareholder equity increasing each year; they have a solid stock in the NASDAQ market and continue to be a healthy steel company. They can and will

This report discusses the challenges that The Nucor Corporation faces during this era of social and economic climate change. Using Porter's Five Forces Analysis and Four Generic Strategies, we will assess the steel industry standards as it relates to the strategies implemented by the Nucor Corporation. We will also assess what Nucor’s strengths and weaknesses are, and if they will be able to continue

Over the years Nucor emerged as a market leader in the American steel producing industry due to its sustainable growth strategies and incorporation of sophisticated technologies that enables the company to grow exponential and become a market leader by offering high quality steel products at lower costs. The company backed its growth strategies by massive integration in the American market. However, this growth strategy proved to be predominant in capturing the American market thus ignoring the potential competitive threats that could come from foreign steel producers. This included both steel producers integrating with American minimills and foreign producers who used America as a lucrative export market and dumped their products.

Nucor Corporation is one of the three largest U.S. steel producers with production capacity of more than 26 million tons and 20,400 employees. The company is also the world's largest steel recycler,

Nucor has been facing many industry challenges including the overall development of the industry. They are competing with foreign firms on cost and efficiency. Nucor has a low cost strategy because as they say their product is not necessarily very attractive. It does not have attractive or unique selling features other than its cost. The commodity of steel is in a very competitive market. Nucor understands that innovation and productivity are going to be key factors to keep their buyers satisfied with their prices. Nucor is facing many challenges with a growing world market and many of their competitors merging in order to create stronger more dominate

More attention to own business than to competitors is their strategy. South magazine observed that Nucor is “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 has created a company that is both internally and externally fit to the environment. The firm responds well to the driving forces of the industry and has opted to take a low-cost strategy with the relentless pursuit of innovation and strong employee productivity in order to combat the issues of the steel industry. In 2000, Nucor decided to expand its operations by acquiring new firms and new factories while continuing with its low-cost operations. The competitive strategy of Nucor has helped it become one of the leading manufacturers of steel and steel products in the United States.

The threat of new entrants refers to the threat posed by new competitors within an industry. If it is easy for new firms to enter the industry barriers to entry are low and the threat of new entrants is high. A profitable industry attracts more competitors. Economies of scale, learning curve effects and other macro factors impact the nature of an industry 's

Additionally, there are many vacant buildings and lots in these towns where production facilities used to sit that could still be used and would not take away necessary farming land. Furthermore, incentives could be offered to the plants if they opened in these rural areas. Local government (not state or national, as that could cause even more issues) could provide small tax cuts to the business for opening in their town, such as a lowered taxes on the land on which they build their facility, or lowered tax rates on the water supply for the building. Because these towns will be receiving more income from sales tax as new people travel to the area, these small cuts will be minuscule in the eyes of the money that will be flowing in from the new jobs being formed. Luckily for these plants, in many rural areas, there are already abandoned buildings that could be bought and used for production. Additionally, these businesses will benefit by opening in small towns by having committed workers who live nearby and will be willing to work their hardest for the company. In recent times, many politicians have promised to bring jobs back to the United States. If these politicians stay true to their word, unemployment single caution light that hangs over the center of my town is a warning to those who are entering the town. It says, “Turn around; there absolutely is nothing here.”

There are many competitive forces that are affecting Nucor Corporation. Some of the primary ones are the market size, number of rivals, and pace of technological change.

We have all heard this joke. Only now the horse has been replaced with consumers of steel in the US steel industry. Why? Many companies in our economy that use steel as an input to produce their goods are staggering due to recent extraordinarily high steel prices. President Bush dropped a tariff on imported steel on Thursday March 4th; according to basic economics, this cancellation of the steel import tariff should have dropped the price for US domestic consumers. Unfortunately though, that hasn't happened. Steel prices are currently at record highs and many forecast even higher prices to come. This puts huge pressure on small businesses that are dependent on steel for their well being. With higher prices

Each industry must have an idea about how to conduct an environmental scanning particularly the Porter's five forces. Each force may affect the profitability of an industry. These five forces include bargaining power of buyers, rivalry of competitors, threat of substitutes, threat of new entrants and bargaining power of suppliers. Cocoa industry uses these as an analytical tool to determine the competitive market.

The first factor that I will appoint is a political/legal issue, according to PESTLE analysis, and consists in the fact of some of the steel companies were subsidised by their respective governments, which are not worried about making profits. Besides this, individual nations or groups of nations had set up trade barriers to

An external analysis looks at the general macro environment and industry attractiveness. A PESTEL analysis will be used to look at the macro environment and Porter’s Five Forces framework will follow to provide a clearer picture of industry attractiveness.