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)What problems and/or strategic issues are facing the company?

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)What problems and/or strategic issues are facing the company?

Nucor Corp


The written case report involves analyzing a case and submitting a report. I will submit the case reading scanned. Its for a management course, and the professor wants the report according to theses two question in builit points, not in one paragraph. The questions are 1)What problems and/or strategic issues are facing the company? 2)What recommendations do you make to address these problems or strategic issues?. I will attache the reading, and i will provide a 2 page example. SouthWest file attached is an example.

Student:Professor:Course title:Date:Case Study: Nucor CorpI Statement of ProblemThe strategic issues/problems for Nucor Corp include the following: 1 Increasing costs of raw materials 2 Entrance of foreign players into the United States steel market 3 Dumping of steel, particularly from China, into the United States market 4 Strict regulations of pollutants by EPA.IIAnalysis * Industry analysis * Industry economic characteristicsThe steel industry is in the United States is one that is cyclical and mature, in which corporations commonly post losses whenever the demand for steel drops. Increasing competition especially from foreign firms reduces costs of steel for consumers. * Industry driving forcesThere are a number of industry driving forces in the steel industry in the United States. These include the following: government policy changes and regulatory influences; change in efficiency and cost considering that reducing or growing differences in the costs amongst the key competitors may considerably alter the state of competition; and exit or entry of major companies. The other industry driving forces include marketing innovation; technology change and innovation in the manufacturing process; product innovation; changes in the long term growth rate of the industry; as well as increasing globalization. Others are steel technology and processes, as well as advances in materials technology. * Key success factors of industryIn the steel industry, the key success factors include the following: automation; cost control; carefully chosen joint ventures; technology and processes; low cost locations; production; as well as order fulfillment and distribution. * Industry competitive analysis 1 Five Forces of competition * Bargaining power of Buyers: Weak/moderateThere is strong demand internationally particularly in China. The industry is typified by low switching costs and excess capacity. There are many low-volume buyers and a few high-volume customers. Nonetheless, there is increasing feedstock prices partly because of speculation. Due to the increase in domestic competition in the steel sector in the U.S, the choices for customers are increasing. There is low product differentiation and consumers who buy in bulk have strong negotiating power. * Bargaining power of Suppliers: ModerateThere are few suppliers in this industry and there is scarcity of raw materials including recycled steel, coke, iron ore and steel shred. The supply of iron ore is concentrated and there are high prices of the iron ore raw material, although the prices can be negotiated. The supply of scrap steel, a key raw material, is fragmented and its prices are high. Cost strategy drives acquisitions, mergers and joint ventures between manufacturers and suppliers. Nearly all raw materials are imported. * Threat of Substitutes: ModerateIn this industry, consumers have increased choice in the selection of material, which basically include ceramics, wood, plastics and aluminum among oth...

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  • Title: )What problems and/or strategic issues are facing the company?
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  • Post Date: 2018-11-07T11:06:16+00:00
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