Nucor Weaknesses

3/ What is your recommendation regarding Nucleon’s long-term manufacturing strategy? What should this company look like in 10 years (e.g. an R&D boutique, an R&D boutique with pilot scale manufacturing capabilities, or an integrated manufacturing enterprise)?

Opportunities for Sharp Corporation increase over time as the demand for technology is constantly increasing in the world. This presents the company with many potential opportunities to explore new and emerging markets in order to expand its international market share (Dubovskiy, 2012). In addition to the steadily growing market, Sharp’s new Sakai facility involved numerous partners including co-located suppliers as well firms using the output from the plant (Lehmburg, 2012). These opportunities to create partnerships offer a variety of potential advantages for the company.

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.

As the market and industry changes, minimills and CSP would mature to improve quality, and further widen the gap between themselves and integrated producers such as USS. Sooner or later, USS would have to modify its production and business models to survive the industry. If it does not do that right now, there is a good possibility that it will be too late.

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

The core strategy of Nucor is that of cost leadership via the use of technology. Through innovation and the use of high quality technology to process their steel, Nucor was able to achieve this cost advantage.

They are always looking for ways to improve, to grow as a company and to reduce impact on the environment. Duke energy also use, quality, and service etc. Duke energy wants to be known for its steady, high quality renewable energy and they taught all their employees to focus on the importance of customer service because is the drive for the business. They taught employees effective ways of dealing or serving customers. Duke energy is also taught to possess and practice a strong values like loyalty, dedication, and service in maintaining their edge in the market. Mostly duke energy place huge stress on providing a very affordable renewable energy, help served clean energy to all its users to meet their

The challenges faced by Nucleon, Inc. present more of an issue with how to take full advantage of an opportunity in front of them, rather than a problem that poses a threat to the company. As a company in its early stages, only putting out its first product, it is critical that it is done in a manner that allows the budding firm to grow. The main issue here is determining the most effective means by which they are to manufacture and market their first product, CRP-1. Doing so requires in-depth evaluation of three strategic options, all with their own benefits and potential risks. The problem statement, therefore, is as follows:

Being a small player in the copper industry, is both an advantage and disadvantage for MCM. They are able to do co-locations with customers that are local, which provides a value-added feature for the customer; often, shipping can be a heavy

Also, Nucleon is mainly a R&D firm and lacks core competencies and capabilities to support large scale manufacturing. As discussed earlier, the changes in organization required to pursue large scale manufacturing for the first time with no significant skill sets, manufacturing know-how and experience can pose a very high risk and detrimental impact on Nucleon’s long term success. Licensing with a proven partner will be a low risk and safe strategy in short term.

In light of the surplus steel products in the U.S., Nucor along with other steel producers had to lower their prices in order to compete with the extremely low priced foreign steel that flooded the U.S. market. Nucor was not adversely affected by the price change; in fact they were able to maintain their financial health (Thompson, 2007).

Nucor Corporation is the largest steel producer in the United States and had net sales of $12.7 billion in 2005. Nucor is the nation 's largest recycler. In 2004, Nucor recycled approximately 17 million tons of scrap steel, with 5 million of those tons being automobiles. Nucor 's origins are with auto

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

Nucor Steel is one of the major steel producers in the world and a market leader in America that is facing a threat of competitive pressures from potential international players.

Capital Intensive: The new entrants faces high start-up cost and will take them long time to improve manufacturing efficiency. NutraSweet since an incumbent, had process improvement and capital investment in