Nucor at a Crossroads Case Study Essay Example
Nucor at Crossroads
Q1. What is bothering Mr. Iverson?
Whether to go for CSP plant developed by SMS or sustain
with Hazelett thin-slab caster?? Potential benefits of CSP
Cost reduction Increase in efficiency Consent of the project team Nucor will gain maximum share of low end flat sheet business SMS is highly confident on CSP that it will improve on
company’s own developmental effort. Discount of $10-$20 million on immediate purchase.
Q1. What is bothering Mr. Iverson?
Constraints of using CSP plant
Expensive Difficulty in operating It is still in embryonic stage Technological leapfrogging First mover advantage wouldn’t sustain for long.
Q2. What are the strengths & weaknesses of Nucor?
Strengths Strong market position with 2.1 million tonnes of
production capacity. “Nucor Culture”. Decentralized management philosophy Performance based compensation Egalitarian benefits Customer service and quality Highly efficient labour force. Employee’s loyalty to the firm.
Q2. What are the strengths & weaknesses of Nucor?
Weaknesses Decentralized profit center Decisions being taken at the division level will lead to
divisions competing against each other. No dedicated R&D team. No long-term strategic vision of plan. Presence only in the US market.
Q3. what are the opportunities & threats in US steel market?
Opportunities
Most steel companies in the US are in major cities and much
higher operating costs. Import’s share is low in flat sheet segment. 52% of total steel consumption is in flat sheet segment. Opportunities for joint ventures
Q3. What are the opportunities & threats in US steel market?
Threats
Heavy competition in the industry with excess capacity Only experienced players can enter and sustain in the market. Plastic industry taking over market share of steel in future. Raw material availability Technology
Q4.If you were Mr. Iverson, what
Q1. What is bothering Mr. Iverson?
Whether to go for CSP plant developed by SMS or sustain
with Hazelett thin-slab caster?? Potential benefits of CSP
Cost reduction Increase in efficiency Consent of the project team Nucor will gain maximum share of low end flat sheet business SMS is highly confident on CSP that it will improve on
company’s own developmental effort. Discount of $10-$20 million on immediate purchase.
Q1. What is bothering Mr. Iverson?
Constraints of using CSP plant
Expensive Difficulty in operating It is still in embryonic stage Technological leapfrogging First mover advantage wouldn’t sustain for long.
Q2. What are the strengths & weaknesses of Nucor?
Strengths Strong market position with 2.1 million tonnes of
production capacity. “Nucor Culture”. Decentralized management philosophy Performance based compensation Egalitarian benefits Customer service and quality Highly efficient labour force. Employee’s loyalty to the firm.
Q2. What are the strengths & weaknesses of Nucor?
Weaknesses Decentralized profit center Decisions being taken at the division level will lead to
divisions competing against each other. No dedicated R&D team. No long-term strategic vision of plan. Presence only in the US market.
Q3. what are the opportunities & threats in US steel market?
Opportunities
Most steel companies in the US are in major cities and much
higher operating costs. Import’s share is low in flat sheet segment. 52% of total steel consumption is in flat sheet segment. Opportunities for joint ventures
Q3. What are the opportunities & threats in US steel market?
Threats
Heavy competition in the industry with excess capacity Only experienced players can enter and sustain in the market. Plastic industry taking over market share of steel in future. Raw material availability Technology
Q4.If you were Mr. Iverson, what