StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Nucor Corporation - Essay Example

Comments (0) Cite this document
Summary
ANALYSIS OF NUCOR’S PERFOMANCE IN THE STEEL INDUSTRY Date Competitive Forces in US Steel industry In a liberal market economy where the forces of demand and supply are the major determinants of price and terms of trade, businesses have to formulate strategies that are aimed at positioning it for competitive advantage…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.4% of users find it useful
Nucor Corporation
Read TextPreview

Extract of sample "Nucor Corporation"

Download file to see previous pages To begin with, there is competition for the inputs that are required in the production of steel. The industry core input is from recycling of scrap metal. The many firms in the industry thus compete for these metals used in production. There is also competition for market share between the players. Market share determines the level and volume of sales that a firm makes and therefore influence e the profits to a firm (Porter, 1998). The foreign suppliers further tighten competition for market share in the steel industry. Firms in this industry as well are faced by the threat of entry by new firms as this may influence negatively on the performance of the already existing firms. Michael Porter five forces model can be applied to explain the competitive forces in this market. According to porter, the five factors that influence the performance of firms are the threat of entry of new firms, threat of substitute products, bargaining power of suppliers, bargaining power of customers, and the rivalry among firms (Porter, 1998). These five forces will affect operations and determine the policies to be adopted by firms to ensure that the competitive edge against competitors is attained. In this market for instance, there is high bargaining power of customers. ...
The fight for market share is a zero sum game where if one firm increases its market share then the others will lose their share. In the US industry, there is threat of entry of very new firms or formation of partnership, alliances, or mergers that will make the competition stiffer. Nucor Corporation has therefore increased its acquisition of new firms and reduced the bureaucracy to ensure flexibility and better performance. The industry is thus highly competitive. The bargaining power of suppliers also exists in the industry because of the many firms in the industry. In this industry, firms have to look for scrap metals that are molted and used in producing steel products. The companies must therefore offer good prices for input for them to have continued supply of raw materials and reliable suppliers. The third force is the threat of substitute products. Substitute products have similar uses and satisfy the same need, therefore becoming important for competition. Industries that are characterized by the existence of closer substitutes are highly competitive and must ensure quality production and good pricing. Continuous restructuring and strategies are also important for the success of the firms. Presence of substitute products in the steel industry, together with the imports from china, turkey and other foreign countries have made competition stiff in this industry (Thompson, 2010). The four forces together with the rivalry among firms are the component of the five forces model. The rivalry among firms is determined by the ease of exit, branding, product identity, product difference and switching cost. The low cost of switching and the ease of exit makes the steel industry in US ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Nucor Corporation Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Nucor Corporation Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/business/1437184-nucor-corporation
(Nucor Corporation Essay Example | Topics and Well Written Essays - 1000 Words)
Nucor Corporation Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/business/1437184-nucor-corporation.
“Nucor Corporation Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1437184-nucor-corporation.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Nucor Corporation

Organisational Change of Sinopec Corporation

The justification behind the establishment of Sinopec Corp. was to "diversify the ownership structure, abide by the rules of the market economy, and establish a modern enterprise system". Sinopec Corp. issued 16.78 billion H shares in Hong Kong, New York and London on Oct. 18th and 19th, 2000. The Company floated 2.8 billion A-shares in Shanghai Stock Exchange on July 16th, 2001. The Company’s current total number of shares is 86.702 billion, of which 67.92% is held by the State through Sinopec Group, 9.5% by domestic banks and assets management companies (AMCs), 19.35% by foreign investors and 3.23% by investors at home.
The Company is acknowledged as one of the biggest energy and chemical firms in China. The scope of...
7 Pages(1750 words)Case Study

Analysis of McDonald's Corporation

PEST (Political, Economic, Social and Technological Factor) analysis is a useful tool for understanding and analyzing the market. Pest analysis is used to scan and assess the overall environment in which McDonald’s operates, and to provide useful insights into the company’s competitive standing in the market.

Political Environment - McDonald’s operates in the US market where the political system favors less government intervention in the market dynamics but has strong legal systems to safeguard against anti-competition practices as well as promote consumer interests. However, since the company operates in diverse countries – from the Middle East, China, the Asia Pacific to Europe – it is fa...
16 Pages(4000 words)Case Study

Business Strategy of the Able Corporation

Now that Walden International has shown its intentions to acquire the company, it presents a fresh lease of life for Able Corporation and an opportunity to recoup and consolidate its position. For a successful acquisition to take place the potential acquirer needs to have a high degree of clarity on the kind of acquisition that one would want, knowledge about the key distribution channels and the industry segmentation. The acquirer takes a proactive role. Walden International, therefore, must have done some pre-acquisition studies and analysis and the aggressive manner in which the company has been presenting itself to the world by explaining each quarter its financial gains, will help Able Corporation to pool its resources, put i...
10 Pages(2500 words)Assignment

Strategy and Transformation in Dell Computer Corporation

The management principles,  strategy, and vision are responsible for all the success of Dell. It was founded in the year 1984 as PC’s limited. In June 1988, when its first stock offering entered the market,  the name officially changed to Dell Computer Corporation. The year 1986 was a memorable year for Michael Dell and his corporation when Dell entered the European market. By the year 1989, Dell acquired sales of $50 million. The last four quarters earned revenue of around $57.9 millions2. Dell always aims to deliver innovative technology and services. This company sells the maximum number of systems than any other computer company.

The main principle of Dell is selling computers directly to the custome...
10 Pages(2500 words)Case Study

Change Management of Singapore Shippping Corporation

Singapore Shipping Corporation (SSC) is a medium-size ship owner with 3 car carriers with a total capacity to carry 13,929 units of cars. Although it has been in business for over 40 years, yet it has not been able to expand appreciably in the ship owning and operation activities. Playing safe it has always offered its tonnage on time charter without taking any risks. It has confined itself to owning and operating car carriers that have a limited market. It now aims to expand its business to enable it to weather recessions and be more competitive in the market with diversified capabilities.

It has been proposed to the management that the company should now move into the more lucrative break-bulk and container cargoes. F...
13 Pages(3250 words)Case Study

Strategic Management of News Corporation

Organizational growth is possible through a strategic approach. Growth is to make business innovations through a combination of theory and practice of business strategy(Koller & Lecher 2007), creation of organizational capabilities (Peter quoted by Kettunen 2007), and bridge-building between what is today, what is desired tomorrow (West-Burnham, 1994 quoted by Kettunen, n.d). The principle of strategic planning is linked to short-term and long-term planning (Kettunen, n.d.). However, “strategies and business change with time and there is no need for loading ourselves with piles of speculation (Murdoch quoted by McQuade, 2006). In light of the above discussion strategic planning assumes a dynamic nature guided by suitabil...
10 Pages(2500 words)Case Study

Operating in India: The Case of Exceed Corporation

On the other hand, it would be required that the firms interested to operate globally can meet the demands of the market in which they plan to enter.

In the case of India, the operation of foreign firms across the country is related to a series of problems. More specifically, private – driven commercial activities cannot be expanded further from a pre-defined framework: there are commercial activities in the country that belong to the exclusive administration of the government and they are conducted by state-owned enterprises. India is a country of low income (referring to the income of the vast majority of its population which is estimated to be approximately 1,165,577,000 in accordance with a recent report publishe...
18 Pages(4500 words)Case Study

Strategic Management: Microsoft Corporation

The firm’s leadership is characterized by strong support to the employee, the development of teams of employees within the organization (for the completion of specific tasks) and the enhancement of innovation by all the firm’s employees. As it is made clear through Figure 1 in the Appendix section (Financial Highlights for the firm in the last 5 years) the firm has managed to keep its performance on continuous growth. The structure of its operations and the style of leadership applied to the particular organization should be considered as the main reasons for the success of the firm internationally. The development of MS-DOS in the decade of the 1980s should be considered as the main reason for the rapid growth of the...
12 Pages(3000 words)Case Study

Hongkong and Shanghai Banking Corporation

Its credit card and banking business have catapulted it to be one of the top banks in the world. The company has been doing well from 2003 until 2007 as evidenced by its financial statements. The company's financial success is explained in the following paragraphs below. The second question below discusses in clear accounting and finance terminologies the sources of the company funds. Also, the corporate governance policy of HSBC is clearly discussed in question three below.

It is said that “The starting point for my analysis of corporate resource allocation and its governance is a concern with the dynamics of enterprise and economic performance. Central to the process through which successful enterprises and econ...
17 Pages(4250 words)Case Study

Globalization and International Business: Starbucks Corporation

The Small Business Encyclopedia defines globalization as the process by which the economies of countries around the world become increasingly integrated over time. This integration occurs as technological advances expedite the trade of goods and services, the flow of capital, and the migration of people across international borders (globalization, Answers.com).
The shreds of evidence of globalization are all around us. For example, Hill (2005) cites an example of an American driving a car designed and produced in Germany that was assembled in Mexico from components made in Japan fabricated by Korean steel and Malaysian rubber. The car is filled with gasoline from oil pumped from off the coast of Africa, at a service station o...
12 Pages(3000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Nucor Corporation for FREE!

Contact Us