Nucor Case Analysis Essay

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Nucor 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. By doing this it will save Nucor litigation fees and troubles if something arises in the workplace between the employee and Nucor about job duties, injuries, etc.

Recommendation 3: Other than expanding internationally, Nucor should make joint ventures with suppliers to keep the cost down of the product. A lot of scrap that is used is imported so it would be a good idea for Nucor to utilize that to reduce costs of making their products.

Section 2: Problem(s)

Even
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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

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