Strengths of Nucor:
- Strong management team and strong leadership
- Efficient lean organization structure
- Has highly productive, motivated, innovative and non-union workforce
- Has risk taking culture
- Has highly productive technology for the mills
- The large size of the company provides Nucor with more bargaining power
Weaknesses of Nucor:
- Lack of diversification in international presence
- Rely too much on U.S. market, and all of Nucor’s facilities and equipment are in U.S., so Nucor faces more restrictions and expenses than in other countries
- Nucor lacks of internal R&D, which makes it too dependent on searching other’s new technologies
Core competencies:
One of the core competencies is the management and culture. As mentioned in questions 2, Nucor has decentralized and lean structure. Each division managers have their own autonomy, and thus being able to operate in their own management styles in order to increase profit margins. The excellent leadership and the decentralized culture are valuable for Nucor, and it is also rare and difficult for competitors to imitate. In addition, they can bring long term benefits. Therefore, it is a sustainable competency which passed VRIO test.
Another core competency is the commitment to employee intensive system. Nucor’s employees are highest paid in the steelmaking industry. The efficiency is rewarded by bonuses and the workforce in Nucor are highly productive and innovative. Because the employees are treated very well,
More attention to own business than to competitors is their strategy. South magazine observed that Nucor is “stripped down, no nonsense” organization. It keeps maintaining low cost and efficiency, which is the key to making profit in steel industry, by keeping the employee force at the level it should be, empowering them, being totally honest, involving them in decision making process, and using effective incentive compensation system.
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.
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 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:
Describe the values and experience of this unit and how the knowledge gained may help in your managerial techniques in the future. (Around 300 words)
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.
Nucor Corporation is made up of 11,500 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.
Recommendation 3: Other than expanding internationally, Nucor should make joint ventures with suppliers to keep the cost down of the product. A lot of scrap that is used is imported so it would be a good idea for Nucor to utilize that to reduce costs of making their products.
Nucor Corporation is one of the three largest U.S. steel producers with production capacity of more than 26 million tons and 20,400 employees. The company is also the world's largest steel recycler,
Nucor is a classic case in how a firm can develop sustainable competitive advantages through resources that fit the VRIO criteria. It is worth noting that Nucor has achieved this in an industry that few would describe as attractive.
Nucor must now consider the need to keep up with the changing dynamics of a globalized corporate world. Nucor already has a business model that proved to be successful in the American markets. Using the same business model, Nucor should now consider penetrating and exploiting other international markets that promise low costs of production and higher revenue generation such as India and China. This could be done by either setting up operations in those countries or getting into
Core Competencies: The Company is full of assurance and potential. Each and every day represents a new opportunity to share Vision, strategy and style.
Nucor has created a company that is both internally and externally fit to the environment. The firm responds well to the driving forces of the industry and has opted to take a low-cost strategy with the relentless pursuit of innovation and strong employee productivity in order to combat the issues of the steel industry. In 2000, Nucor decided to expand its operations by acquiring new firms and new factories while continuing with its low-cost operations. The competitive strategy of Nucor has helped it become one of the leading manufacturers of steel and steel products in the United States.
The company was too reliant on orders from the US Government. They need to expand its operations into other areas.