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Low Cost Steel Innovator

Mission Statement
Nucor Corporation is made up of approximately
20,000 teammates whose goal is to "Take Care
of Our Customers." We are accomplishing this
by being the safest, highest quality, lowest cost,
most productive and most profitable steel and
steel products company in the world. We are
committed to doing this while being cultural and
environmental stewards in our communities
where we live and work. We are succeeding by
working together.
Introduction
Nucor traces its origins to auto
manufacturer Ransom E. Olds, who
founded Oldsmobile and then, in 1905,
REO Motor Car Company and in 1950
Nuclear Corporation. The companies
were innovators in their field. Producing
the first commercial cars with electric
lights, an electric starter, pneumatic tires,
nuclear instruments and electronic
business.
History
Nuclear Corp. suffered through several money-losing
years and was facing bankruptcy in 1965, when it
installed Vulcraft's top executive, Ken Iverson, as
president, and Nuclear Corp's controller and Sam Siegel,
as financial vice president.

The new management quickly sold many of the
company's wide-ranging operations to focus on their
profitable Vulcraft subsidiary.

The company moved its corporate office from Phoenix to
Charlotte, North Carolina, in 1966.
History Cont.
The high cost of steel soon led Iverson to
believe that the company would be more
profitable if it supplied its own bar steel.
The bar mill opened in Darlington, South
Carolina, in 1969.
In 1972, the company officially adopted the
Nucor Corporation name, which was proposed
by Sam Siegel.

What they produce
Carbon Steel
Fasteners
Alloy Steel
Stainless Steel
Engineered Steel
Sheet Steel
Heavy Structural Steel
Steel Plates

SWOT Analysis
Strength- Innovation
Nucor's rebirth was sparked by innovation --
making steel from recycled scrap on a larger
scale than had ever been tried.

Based on the success of its bar mills, in the late
1980s, Nucor adopted a technology developed
in West Germany to make sheet steel starting
from a slab much thinner than standard mills
were making.
Strength-Employees
Nucor's lean
management
supports strong
employee relations
Nucor's employees
respond positively to
Nucor's production
incentives.
Value their
employees

Strengths cont.
Nucor has continued to explore and invent new
technologies.
Nucor also introduced the world's first
integrated DC power supply arrangement in the
manufacture of steel plate.
Decentralized management philosophy,
performance based compensation, egalitarian
benefits, customer service and quality, and
technological leadership




Weaknesses
Global expansion
Industry Standards
Profits/Productivity of Employees



Opportunities
Mergers
Industry Consolidations
Acquisitions
Global marketing
Technology Advances

Threats
Environmental
Increase in competition
Foreign Steelmakers
Cost and upgrades
Currency Manipulation and Free Trade
Down cycles
Dumping of foreign-made steel into the
U.S. at below market costs


Core Competencies
Innovator in steel process
Fewer production steps
Fearless Capital investment
Less labor
Small plants
J.I.T Inventory
Strategy-Growth
New Acquisitions
New Plant Construction
Continued Plant Upgrades
Cost Reduction/Joint Ventures
New Innovations and Technology
Continue recycling scrap

Competitors - Financials
Problem Statement
With a long-term goal of remaining on
top of the industry and staying
innovative, what are some strategies that
Nucor must take to make this happen?
Alternatives - Options
New markets (global, regional, &
national)
The global market, in which they
compete both today and into the future,
is far more complex than ever
before. The company must continue to
grow in order to compete.
Alternatives-Options
Having captive raw material has a number of
advantages, most notably lower costs and
giving the company more control over the
supply, it also adds a fixed cost component vs.
variable cost of buying scrap and substitutes on
the marketplace. It is important that this gives
Nucor a good return on investment across the
entire business cycle.
In a really low-priced market, you could possibly
have a production cost that might temporarily
be higher than the market price of scrap.
Try and expand globally by operating a few
plants outside of the U.S.


Recommendations
Continue being innovators in steel
production
Maintain competitive advantage
Continue expansion/growth strategies
Corporate Culture w/ Management &
Employees
Recognition