Nucor Corporation

Only available on StudyMode
  • Download(s) : 245
  • Published : April 13, 2013
Open Document
Text Preview
NUCOR COrp.|
Final Report|
Submitted to Dr. Vitton|
|
Nick Pickard, Kyle Nelson, Nathan Elness – Team 6|
11/27/2012|

Completed as a partial requirement for Mgmt 475: Strategic Management in the 11:00 AM Section.|

Table of Contents:
Introduction.2
Industry Analysis……………………………………………………………………………………………………………..........................3 Marketing………………………………………………………………………………………………………………………………………………..6 Production/Operations……………………………………………………………………………………………………………………………9 Financial Analysis…………………………………………………………………………………………………………………………………..14 Appendixes:

A. Works Cited17
B. SWOT Analysis.………………………………………………………………………………………………………………………………….18 C. Nucor Ratio Analysis.…………………………………………………………………………………………………………………………19 D. Nucor Financial Statements……….……………………………………………………………………………………………………..22 E. Industry Comparison Ratios…..…………………………………………………………………………………………………………..37

INTRODUCTION
Nucor is a company with a very fascinating history. “Its approach to steel production has been predicated upon drastically undercutting both foreign and domestic competition, a feat it accomplished through no small amount of hard work, risk-taking, and visionary thinking,” (Pederson, 2006). The founder of the company was Ransom Eli Olds. He originally started his work in the automobile industry in 1904. Over time his business transformed from automobile manufacturing, to real estate, and then the production of lawn mowers and REO Speedwagon delivery trucks (Pederson, 2006).

None of Olds’ business ventures were very successful. He had already survived one bankruptcy by the time he died in 1950. His namesake company was on the decline again, and was all but dead by December of 1954 (Pederson, 2006). In 1955, REO was mainly dependent upon defense contracts, with one of its business properties, to survive. When the Korean war ended in this same year, that was the effective end of REO (Nucor Corporation, 2012). However, a small group of stockholders found some hope. They involved REO in a hostile takeover of Nuclear Consultants, Inc. Once it was all said and done, REO was reborn as Nuclear Corporation of America, which was the first publically traded nuclear company. (Pederson, 2006).

The next major stepping stone in Nucor’s history, and the ultimate creation of the company as it is known today, is the acquisition of Vulcraft, a producer of steel joists and girders, in 1962. That same year they hired Ken Iverson to run that division (Nucor Corporation, 2012). By 1965, Iverson, who was a mechanical engineer by trade, had moved up the ranks to the vice president level, was appointed to take over as Chairman and CEO of Nuclear Corporation because the company was on the verge of bankruptcy again. Iverson took a bold strategy and dumped half of the divisions owned and reduced the management positions from 12 to 2 (Pederson, 2006). In 1966, with the company working its way back, they relocated the corporate headquarters from Phoenix, Arizona to Charlotte, North Carolina. The board of directors, in 1971, elected to change the name of the company to what it is today, Nucor Corporation (Nucor Corporation, 2012).

Since 1972, Nucor has been rapidly expanding their business through their own production efforts, but also through acquisitions. They started to produce steel decking, cold-finished bars, and sheet steel. They went international in 1988, when they entered into a joint venture with a Japanese steelmaker. Since 1999, under the direction of the board, Nucor has entered in 2 joint ventures, acquired 13 new companies, one of which is internationally located, built 3 new plants, one of which is slated to open in 2013, and invested in 1 other company (Gale, 2012). INDUSTRY ANALYSIS

Industry Trends
The steel industry has stayed relatively stable up until the early 90s. Starting in 1989 Nucor utilized mini-mill technology that allowed flat rolled steel to be produced and by 1997 competition followed with the same abilities at a...
tracking img