Nucor Essay examples

1893 Words Jun 1st, 2011 8 Pages
INTRODUCTION Decisions form the basis of strategy. Each firm must make choices regarding what resources and capabilities to invest in, as well as what to do with such resources and capabilities in order to achieve sustainable competitive advantage. The star of this week’s case, Nucor Steel, finds itself at a critical inflexion point: Should it invest in a new steel mill to commercialize thin-slab casting? This paper examines why Nucor is considering making such an investment and what risks are involved if they choose to adopt the technology. Based on this analysis, the paper will conclude with a recommended path for Nucor Steel. YOU CAN NEVER BE TOO RICH OR TOO THIN The flat sheet segment accounts for 52% of the U.S. market for steel. The …show more content…
The technology permits efficient entry into the flat sheet segment on a much smaller scale, allowing minimills to compete for a slice of the hitherto forbidden flat sheet market. Without entry into the flat sheet segment, minimills are forced to compete for niches in the non-flat categories or to stake out geographic strongholds. In 1983, Nucor experienced its first sales decline under CEO Ken Iverson – perhaps a telling sign that the company must expand outside of its traditional focus. FLIES IN THE OINTMENT The promise of thin-slab casting is indubitably enticing, but is it practicable? What are the risks that could throw a spanner in the steel works? Technological Chief among the risks is the uncertainty surrounding the very technological viability of thin-slab casting. The two most promising approaches in the 1980’s were the Hazelett Caster…

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