Nucor at a Crossroads - 11794 Words

Harvard Business School 9-793-039 Rev. January 20, 1998 DO Nucor at a Crossroads On December 7, 1986, F. Kenneth Iverson, chairman and chief executive officer (CEO) of Nucor Corporation, awaited a delegation from SMS Schloemann-Siemag, a leading West German supplier of steelmaking equipment, at his company’s headquarters in Charlotte, North Carolina. Iverson had to decide whether to commit Nucor to a new steel mill that would commercialize thinslab casting technology developed by SMS. Preliminary estimates indicated that the mill would cost $280 million, and that start-up expenses and working capital of $30 million each would push the total cost to $340 million, or nearly as much as Nucor’s net worth. Successful†¦show more content†¦A significant percentage of the steel sold to service centers found its way to end-users in the automotive sector and the appliance and equipment industries. Taken together, these three customer groups accounted for half of total domestic shipments and three-quarters of the shipments of flat sheet. Service cente rs emphasized the most basic form of flat sheet, hot-rolled sheet, whereas the others’ direct purchases were weighted toward cold-rolled and coated sheet that had been subjected to further primary processing. Construction accounted for another one-tenth of shipments of all steel mill products and of flat sheet. Price, quality and dependability were the three most important buyer purchasing criteria. Uncompetitive pricing was probably the major reason U.S. steelmakers had lost ground to imports. Integrated steelmakers had been criticized, in particular, for charging excessive premia in periods of tight supply, pressing buyers to purchase higher-grade steel than they needed, requiring minimum orders that were too large for many buyers and arbitrarily favoring some buyers over others. Quality had several dimensions: internal quality, as determined by metallurgical structure and physical strength, which mattered most when durability was important; surface quality, which was a maj or concern in usesShow MoreRelatedNucor at Crossroads1352 Words   |  6 PagesNucor at a Crossroads Nucor at a Crossroads Case Analysis In 1986, three distinct segments defined the U.S. steel industry; integrated steel mills, mini-mills, and specialty steel makers. The integrated mills have the capacity to produce a maximum of 107 million tons of steel per year, mini-mills produced a maximum of 21 million tons of capacity a year, and the nation’s specialty steel makers could produce a maximum capacity of 5 million tons of stainless and specialty grades of steel. This leadsRead MoreNucor at a Crossroads1363 Words   |  6 PagesNucor at a Crossroads Case Analysis In 1986, three distinct segments defined the U.S. steel industry; integrated steel mills, mini-mills, and specialty steel makers. The integrated mills have the capacity to produce a maximum of 107 million tons of steel per year, mini-mills produced a maximum of 21 million tons of capacity a year, and the nation’s specialty steel makers could produce a maximum capacity of 5 million tons of stainless and specialty grades of steel. This leads to a total capacityRead MoreNucor at a Crossroads2764 Words   |  12 PagesNucor at a Crossroads On December 7, 1986, F. Kenneth Iverson, chairman and chief executive officer (CEO) of Nucor Corporation, awaited a delegation from SMS . Iverson had to decide whether to commit Nucor to a new steel mill that would commercialize thin-slab casting technology developed by SMS. Preliminary estimates indicated that the mill would cost $280, and that start-up expenses and working capital of $30 million each would push the total cost to $340 million. Successful commercializationRead MoreNucor at a Crossroads3122 Words   |  13 Pagesï » ¿ Nucor at a Crossroads MGMT XXXX-XXX Nucor’s Historic Performance, Competitive Advantage, and Five Forces Analysis With roots dating back to 1904 in the automobile manufacturing industry, Nucor’s business strategy has morphed many times over the course of the past century in response to struggling sales and unrealized business strategies. Since F. Kenneth Iverson’s appointment as Nucor’s President in 1965, however, Nucor has performed very well. With a focusRead MoreNucor Corporation : The Face Of Innovation Essay1953 Words   |  8 Pages Nucor Corporation Millennials The Face of Innovation Nasheemah L. Kennedy 12/6/2016 â€Æ' Abstract Nucor Corporation is an American producer of steel and related products founded in 1940 and presently headquartered in Charlotte, North Carolina. Currently Nucor Corporation is the largest mini mill steelmakers in the United States. 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Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesthree international examples helps illustrate how diverse diversity programs can be. In Singapore, diversity has become part of the national agenda. On â€Å"Racial Harmony Day,† street carnivals are held to celebrate the nation’s unique status as a crossroads of Chinese, Malay, Indian, and other cultures. Besides applauding these distinct national identities, the country’s leaders have also prioritized these celebrations as a moment to emphasize the shared identity of being Singaporean. Brazil is