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 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
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 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
 m
   

 m

   

 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
 m
   

 m

   

 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
 m
   

 m

   

 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
 m
   

 m

   

 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
 m
   

 m

   

 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
 m
   

 m

   

 Bankruptcy Of Nuclear Corporation Of America-

Formation Of Nucor
 Commodity Nature of Steel Product
 Cyclic Nature Of Steel Demand
 Strong Demand with tight domestic supply in US
 Foreign Currency Fluctuation
 Dumping of steel in US
 Limited Supply of Scrap Steel & rising energy prices
 Weakened Steel Purchase due to recession in 2000-
2001
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 m

   

„imeline Description 2000 1757.7

1800
1954 ʹ Operations as a mini-conglomerate, beginning with 1600
1965 the formation of the Nuclear Corporation of America 1400 1310.3
1121.5
1200
NCA Bankruptcy & F. K. Iverson appointed as CEO & 1000
1964
President 800
600
1965 ʹ Streamlining of the business, and strategic 400 274.5310.9
113 162.162.8
1966 realignment around the Vulcraft steel joists division 200 1.1 7.6 45.1 58.5 75.1
0
1966 ʹ Expansion in steel joists, and the introduction of
1970 minimills
1972 Company was named as Nucor Corporation
NE„ EARNINGS( Mn$)
1970 - Rapid growth in steel production and fabrication
1986
25000 22118
1985 7th largest Steel Company in America(R=$758 million) 19109
20465
20000 17473
1986 ʹ Expansion of product line
15000 13442
1996 11189 12237
1996- Made > 16 acquisitions 10000 7943
2006 5000 3648

Having 49 facilities in 17 states became the 2nd 0

2006
largest Steel producer in North America
1990- 1995- 2000- 2001- 2002- 2003- 2004- 2005- 2006-
Paid a dividend for 135 consecutive quarters- a truly
2007 remarkable accomplishment in a mature & cyclical PRODUC„ION(000 tons)
industry
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 Strategies:
 New Acquisitions
 New Plant Constructions
 Continued plant upgrade & cost reductions efforts
 Joint Ventures
Worlds 4th largest steel producer in the World
Nucor use scrap steel from recycled steel products
Nucor runs mostly minimills that utilize mostly modern steel making
techniques that gives Nucor a ROA of 16.7% far exceeding the industry
avg of 10%
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V 
 Strong Leadership team at all levels  Almost all Nucor plants are in the US
 Highly motivated, productive, flexible & innovative  Energy Intensive
work force  Dependent on Scrap Metals
 Close relationship with major customers  No internal R & D
 Risk taking & innovative culture  No coordination between division for purchase &
 Strong financial credibility sales activities
 Larger recycler

m


  

 Expansion to outside of US through Mergers &  Increased competition by F„As

acquisitions  Scarcity & rising raw material & energy costs
 Perform market research to understand customer  Cyclical Demands for steel Products
roadmaps  Bought over by competitors
 Perform R & D to find new products , technology &
process
 Improve inbound & outbound logistics
 Export products to emerging markets
 m
   

 m

   



V 
 Strong Leadership team at all levels  Almost all Nucor plants are in the US
 Highly motivated, productive, flexible & innovative  Energy Intensive
work force  Dependent on Scrap Metals
 Close relationship with major customers  No internal R & D
 Risk taking & innovative culture  No coordination between division for purchase &
 Strong financial credibility sales activities
 Larger recycler

m


  

 Expansion to outside of US through Mergers &  Increased competition by F„As

acquisitions  Scarcity & rising raw material & energy costs
 Perform market research to understand customer  Cyclical Demands for steel Products
roadmaps  Bought over by competitors
 Perform R & D to find new products , technology &
process
 Improve inbound & outbound logistics
 Export products to emerging markets
 m
   

 m

   



V 
 Strong Leadership team at all levels  Almost all Nucor plants are in the US
 Highly motivated, productive, flexible & innovative  Energy Intensive
work force  Dependent on Scrap Metals
 Close relationship with major customers  No internal R & D
 Risk taking & innovative culture  No coordination between division for purchase &
 Strong financial credibility sales activities
 Larger recycler

m


  

 Expansion to outside of US through Mergers &  Increased competition by F„As

acquisitions  Scarcity & rising raw material & energy costs
 Perform market research to understand customer  Cyclical Demands for steel Products
roadmaps  Bought over by competitors
 Perform R & D to find new products , technology &
process
 Improve inbound & outbound logistics
 Export products to emerging markets
 m
   

 m

   



V 
 Strong Leadership team at all levels  Almost all Nucor plants are in the US
 Highly motivated, productive, flexible & innovative  Energy Intensive
work force  Dependent on Scrap Metals
 Close relationship with major customers  No internal R & D
 Risk taking & innovative culture  No coordination between division for purchase &
 Strong financial credibility sales activities
 Larger recycler

m


  

 Expansion to outside of US through Mergers &  Increased competition by F„As

acquisitions  Scarcity & rising raw material & energy costs
 Perform market research to understand customer  Cyclical Demands for steel Products
roadmaps  Bought over by competitors
 Perform R & D to find new products , technology &
process
 Improve inbound & outbound logistics
 Export products to emerging markets
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 Defensive Strategy: Nucor should have enter into new

strategic alliance, joint ventures for supply of RM to
remain competitive
 Offensive Strategy : Nucor should invest in R & D simply
to try to stay ahead of the competition by innovating
new technologies & improving operational efficiency
 Vertical Integration Strategy: Expansion to outside of
US
 Apart from the common Bonus System the manager
whose facility is performing best should be given
special incentive (pay for performance)
 m
   

 m

   

 Defensive Strategy: Nucor should have enter into new

strategic alliance, joint ventures for supply of RM to
remain competitive
 Offensive Strategy : Nucor should invest in R & D simply
to try to stay ahead of the competition by innovating
new technologies & improving operational efficiency
 Vertical Integration Strategy: Expansion to outside of
US
 Apart from the common Bonus System the manager
whose facility is performing best should be given
special incentive (pay for performance)
 m
   

 m

   

 Defensive Strategy: Nucor should have enter into new

strategic alliance, joint ventures for supply of RM to
remain competitive
 Offensive Strategy : Nucor should invest in R & D simply
to try to stay ahead of the competition by innovating
new technologies & improving operational efficiency
 Vertical Integration Strategy: Expansion to outside of
US
 Apart from the common Bonus System the manager
whose facility is performing best should be given
special incentive (pay for performance)
 m
   

 m

   

 Defensive Strategy: Nucor should have enter into new

strategic alliance, joint ventures for supply of RM to
remain competitive
 Offensive Strategy : Nucor should invest in R & D simply
to try to stay ahead of the competition by innovating
new technologies & improving operational efficiency
 Vertical Integration Strategy: Expansion to outside of
US
 Apart from the common Bonus System the manager
whose facility is performing best should be given
special incentive (pay for performance)
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 m

   

 Nucor have to make research for alternative raw

material & investigate for new supplier whether
they can give the best deal
 Sufficient allocation of financial and human
resources for expansion and also for research and
development activities.
 Proper research on the work culture & political
agendas of the regions for the successful
implementation of company strategy
 Mergers & acquisitions with local partners
 m
   

 m

   

 Nucor have to make research for alternative raw

material & investigate for new supplier whether
they can give the best deal
 Sufficient allocation of financial and human
resources for expansion and also for research and
development activities.
 Proper research on the work culture & political
agendas of the regions for the successful
implementation of company strategy
 Mergers & acquisitions with local partners
 m
   

 m

   

 Nucor have to make research for alternative raw

material & investigate for new supplier whether
they can give the best deal
 Sufficient allocation of financial and human
resources for expansion and also for research and
development activities.
 Proper research on the work culture & political
agendas of the regions for the successful
implementation of company strategy
 Mergers & acquisitions with local partners
 m
   

 m

   

 Nucor have to make research for alternative raw

material & investigate for new supplier whether
they can give the best deal
 Sufficient allocation of financial and human
resources for expansion and also for research and
development activities.
 Proper research on the work culture & political
agendas of the regions for the successful
implementation of company strategy
 Mergers & acquisitions with local partners
 m
   

 m

   

 Difference in culture ,political agenda etc

 Local Competition
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 Difference in culture ,political agenda etc

 Local Competition
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