External and Internal Environment
Assignment 2
Kristen Singleton
Professor Beverly Williams
Business Capstone
7/28/16
Introduction The purpose of this assignment is to analyze Nucor corporation, a public listed company within the Steel industry and evaluate the external and internal factors impacting the industry in general and the company in particular. The assignment will endeavor to look at the company's strengths and weaknesses and its core competencies to see the areas where the company can generate value within the value chain. Nucor Corporation and its affiliates (“Nucor” or the “Company”) manufacture steel and steel products. The Company also produces direct
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has become a benchmark for both the U.S. steel industry and U.S. industry in general. Nucor is one of the fastest growing and most efficient steel producers in the world. Despite declining demand for steel, Nucor’s growth has been phenomenal, from pouring its first batch of steel in the 1960s to support in-house operations, the company has become one of the top five producers of steel in the U.S.. Without an R&D department, Nucor has repeatedly achieved technological feats other steel producers thought impossible. Their hourly pay is among the lowest in the industry, yet they have the highest productivity per worker of any steel producer in the U.S. and near zero employee turnover" (Boyd & Gove, …show more content…
They need to build onto the relationships and look towards backward integration in ensuring the supply of scrap steel and other raw material like Pig iron at reasonable prices. The company should focus on developing supply chain capabilities to develop more control on the supply of raw material in order to ensure that it is able to keep its competitive edge of low cost production. The production facilities of the company and its human resources are one of its major core competencies leading to low cost high quality products and helping the company have highest margins within the industry. The company should look at technology to diversify its production in order to decrease reliance on scrap steel. Outbound logistics are another strong point for Nucor corporation in the domestic sales with a large fleet of around 200 freight trucks, and strategic location of plants next to major distribution channels. The location close to major customers allows the company to keep the logistic costs low. However, the company still needs to increase its capacity in terms of international sales by developing production and distributional channels within popular regional
In 1901, an Boston based invertor group opened up a steel mill on the southeast side of Sydney harbor in Sydney, Nova Scotia. This mill was named DISCO, or Dominion Iron and Steel Company Limited, which was ultimately a subsidiary of DOMCO, or the Dominion Coal Company Limited. DOMCO coal was mined in Dominion, near Glace Bay and was used to make coke. Coke is a hard, grey, porous material, man-made from the coal and is used to fuel the blast furnaces for smelting the iron ore. (Coke (fuel), 2012) DOMCO along with DISCO merged with the Nova Scotia Steel and Coal Company or SCOTIA to from the British Empire Steel Corporation or BESCO in 1920. The company soon reorganized and in 1930 under the name Dominion Steel and Coal Corporation or DOSCO. In 1957 it was purchased by Toronto based aircraft manufacturing company, A.V. Roe Canada and in 1962 was once again sold, this time to Hawker Siddeley Canada, where it become a subsidiary. (Sydney Steel Corporation, 29)
Also, the competition between existing players in this industry is high. There are about 619,000 metal enterprises in the USA in 2005 (IBISWorld, 2007).There are many companies that produce different kinds of metal products in the market. Besides, the bargaining power of buyers is high because product difference for the buyers of the metal products is small. It is not easy to differentiate the quality of one metal product from another. In addition, the cost of switching for the buyers is low. The number of substitutes of metal products is also high thus the buyers have great bargaining power.
Nucor is the largest steel manufacturer in the United States. It remains a profitable company despite being in one of the most cyclical industries in the economy. Nucor enjoys this success for several reasons, employee relations, quality, productivity, and aggressive pursuit of innovation and technical excellence. Nucor’s strategy is that of a low cost provider, they know they are selling a commodity and understand their competitive edge in the industry is lowering prices through innovation and productivity. The company operates primarily in two business areas, steel mills and steel products.
Overview of the organizations financial performance and its ability to invest in establishing a new unit will enable the ...
Nucor is the world’s largest recycler, recycling over 10 million tons of scrap steel annually. Nucor descended from auto manufacturer Ransom E. Olds, who founded Oldsmobile. The company evolved into the Nuclear Corporation of America, which was involved in the nuclear instrument and electronics business in the 50’s and early 60’s. Over the next five years, Valley Sheet Metal, Vulcraft Corporation and U.S. Semi-conductor Products joined the Nuclear Corporation. After suffering several money-losing years, in 1964 F. Kenneth Iverson was installed as president. Management then decided to integrate backwards into steel making, and in 1972 they adopted the name Nucor. Since then Nucor has established itself as a leader in the steel industry through efficiency and innovation. It now employs more than 7,000 people worldwide and has experienced tremendous growth under its new CEO Daniel R. DiMicco. SWOT Analysis Strengths • Low Cost Producer • Employee/Managerial Relations Leading Innovator • Low Debt Load • Overall industry leader Weaknesses Dependency on scrap metal
Yargar, Alyssa.? ?Carnegie?s Business Success.?? Forging a Future:? Pittsburgh and the Question of Progress.? The Steel Industry.? (2000):? n. pag.? Online.? Internet.? 1 Dec. 2000.? Available http://webpub.alleg.edu/employee/m/mmaniate/pittprogress/yargar.html.
Our commitment to steady, long-term improvement in our products and processes is the cornerstone of our business strategy. To achieve this objective, we must work to continuously improve the overall quality of our design, manufacturing, administrative, and support organizations.
Adding to overseas sourcing so that lead time could be faster for design and production they could also divide the business up and have different locations for orders and new products to make business faster and
Founded in 1907 as a messenger company, United Parcel Service has grown into a world renowned provider of specialized transportation and logistics services. This multi-billion corporation enables and manages the flow of goods, information, and funds to over 200 countries and territories around the globe (UPS.com, 2013). Air, freight, oceanic is just a few of the modes that UPS uses to move the flow of goods around the globe. The company structure of UPS entails operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. It’s just about an everyday occurrence to see an brown UPS truck on the road as we go about our everyday lives, the U.S. Domestic Package operations are comprised of delivery of documents, packages, and letters around the United States. The International Package operation delivers specifically outside the United States. Providing deliveries to the world’s major business hubs up to three times a day, UPS can deliver packages to at the best time possible for their customers. UPS has teamed up with the U.S. Commercial Service, an agency of the U.S. Department of Commerce, to help customers get started exporting or increase their sales to new global markets (UPS.com, 2013). Partnering within a supply chain can prove to be very important in the success of the overall supply chain. Communication within a supply chain that flows freely between partners reduces in-efficiencies such as excess inventory (bullwhip effect), and lost profits. The Supply Chain & Freight operation within UPS entails forwarding and contract logistics operations and UPS Freight. As a freight forwarder they organize shipments from various sources to their final p...
This paper will first discuss the development of the steel industry. Next, it will examine steel, and in the impact it had on the transportation industry. Finally, it will discuss systematic management practices of this time and how they gave birth to the scientific approach that is still in use today.
...ales Force optimization. Outsourcing customized machinery based products. Importing raw material rather than using domestic steel. Promoting plastic strapping as a way to the future. Adopting price flex strategy so as to incorporate cost leadership and umbrella pricing. Strategically reducing number of customized products so as to reduce costs. Capitalize on the Services aspect strapping and packaging industry. Maintain and regain its lost customers by identifying their needs more effectively. Empowering sales force on account of increase in contribution margins. So to meet firm’s objective of increased profits, Signode should stimulate further volume growth by taking actions to convert nonusers into users, to increase use frequency among current users, or to expand into untapped or underdeveloped markets.
Ownership and control of production ; vertically integrated manufacturing operation to enable its constant introducing of new items and also ensure short lead time
The company believes in working together and collaborating with other industries on new technology to minimize the environmental footprint. The company wants to sustain a relationship with it partners and employees. Also the CNR has a human rights code of conduct which every employee has to accept before they become a member of the CNR family. Over the past 5 years the company has shown a significant increase in their stocks and they had a 74% increase from 2010-2014. They company had one of the most tremendous drops in 2013 due to their oil spill. The sales did very well too, in 2010 they had $14,000 million and in 2014 they ended with $21,000 million. CNR has established a great profile which has been a big contribution to their financial success of the
Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service.
Distribution- work on alternatives of outsourcing the distribution network or transportation routes. Should focus on outsource this non-core business activities if it is non-profitable. It is costly by not understanding the multi distribution network in standard line delivery (Multiple drop off points through retail channel sales)