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    Nucor at Crossroads: Presented By: Jayesh Baldania Rinki Kumari Satish Kumar Keshri

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    Nicolas Alfred
    Nucor is at a crossroads regarding whether to invest in new casting technology from SMS or stick with its current caster. The potential benefits of the continuous slab caster (CSP) from SMS include cost reduction, increased efficiency, and discounts for immediate purchase. However, concerns include that the technology is still new and untested at a large scale. Nucor's strengths include its strong market position and decentralized, performance-based culture. Weaknesses include a lack of dedicated R&D and long-term strategic vision. Opportunities in the US steel market include the exit of integrated steelmakers and low import levels in flat steel. Threats are heavy competition and potential substitutes like plastics replacing steel

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    Nucor at Crossroads: Presented By: Jayesh Baldania Rinki Kumari Satish Kumar Keshri

    Uploaded by

    Nicolas Alfred
    2K views10 pages
    Nucor is at a crossroads regarding whether to invest in new casting technology from SMS or stick with its current caster. The potential benefits of the continuous slab caster (CSP) from SMS include cost reduction, increased efficiency, and discounts for immediate purchase. However, concerns include that the technology is still new and untested at a large scale. Nucor's strengths include its strong market position and decentralized, performance-based culture. Weaknesses include a lack of dedicated R&D and long-term strategic vision. Opportunities in the US steel market include the exit of integrated steelmakers and low import levels in flat steel. Threats are heavy competition and potential substitutes like plastics replacing steel

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    Nucor at Crossroads

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    Nucor is at a crossroads regarding whether to invest in new casting technology from SMS or stick with its current caster. The potential benefits of the continuous slab caster (CSP) from SMS include cost reduction, increased efficiency, and discounts for immediate purchase. However, concerns include that the technology is still new and untested at a large scale. Nucor's strengths include its strong market position and decentralized, performance-based culture. Weaknesses include a lack of dedicated R&D and long-term strategic vision. Opportunities in the US steel market include the exit of integrated steelmakers and low import levels in flat steel. Threats are heavy competition and potential substitutes like plastics replacing steel

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views10 pages

    Nucor at Crossroads: Presented By: Jayesh Baldania Rinki Kumari Satish Kumar Keshri

    Uploaded by

    Nicolas Alfred
    Nucor is at a crossroads regarding whether to invest in new casting technology from SMS or stick with its current caster. The potential benefits of the continuous slab caster (CSP) from SMS include cost reduction, increased efficiency, and discounts for immediate purchase. However, concerns include that the technology is still new and untested at a large scale. Nucor's strengths include its strong market position and decentralized, performance-based culture. Weaknesses include a lack of dedicated R&D and long-term strategic vision. Opportunities in the US steel market include the exit of integrated steelmakers and low import levels in flat steel. Threats are heavy competition and potential substitutes like plastics replacing steel

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Nucor at Crossroads

    Presented by:

    Jayesh Baldania

    Rinki Kumari

    Satish Kumar Keshri


    Q1. What is bothering Mr. Iverson?
    Whether to go for CSP plant developed by SMS or
    sustain with Hazelett thin-slab caster??
    Potential benefits of CSP
    Cost reduction
    Increase in efficiency
    Consent of the project team
    Nucor will gain maximum share of low end flat sheet
    business
    SMS is highly confident on CSP that it will improve on
    company’s own developmental effort.
    Discount of $10-$20 million on immediate purchase.
    Q1. What is bothering Mr. Iverson?
    Constraints of using CSP plant
    Expensive
    Difficulty in operating
    It is still in embryonic stage
    Technological leapfrogging
    First mover advantage wouldn’t sustain for long.
    Q2. What are the strengths & weaknesses of
    Nucor?
    Strengths
     Strong market position with 2.1 million tonnes of
    production capacity.
    “Nucor Culture”.
    Decentralized management philosophy
    Performance based compensation
    Egalitarian benefits
    Customer service and quality
    Highly efficient labour force.
    Employee’s loyalty to the firm.
    Q2. What are the strengths & weaknesses of
    Nucor?
     Nucor’s customer service-A key differentiator
    Buyer power was mildly unattractive.
    Nucor started small plants closer to suppliers &
    customer
    Reduction in transportation cost
    Cheap support facilities-Electricity
    Employee centric policies
    Q2. What are the strengths & weaknesses of
    Nucor?
    Weaknesses
    Decentralized profit center
     Decisions being taken at the division level will
    lead to divisions competing against each other.
    No dedicated R&D team.
    No long-term strategic vision of plan.
    Presence only in the US market.
    Q3. What are the opportunities & threats in
    US steel market?
    Opportunities
    Most steel companies in the US are in major cities and
    much higher operating costs.
    Import’s share is low in flat sheet segment.
    52% of total steel consumption is in flat sheet segment.
    Opportunities for joint ventures.
    Supplier’s power is low.
     Exit of Integrated steel makers from buying scraps.
    Q3. What are the opportunities & threats in
    US steel market?
    Threats
    Heavy competition in the industry with excess capacity
     Only experienced players can enter and sustain in the market.
    Threat of substitutes
     Demand for steel stagnated
     Plastic, aluminium, advanced composites industry taking over
    market share of steel in future.
    Raw material availability
    Technology
    Q4.If you were Mr. Iverson, what will you
    decide? Please justify.
    Sign the deal with SMS
    It’ll help in grabbing flat sheet segment.
     Less import & more opportunities.
    Sustainable first mover advantage.
    Motivated team willing to work on this technology.
    It’ll increase overall efficiency.
    Flat steel market of 36 million tons.(Exhibit-2)
    Integrated US steel makers produce 16.21 million tons.
    (Exhibit-5)
    Nucor can enjoy same economy of scale by producing .8
    million tons.(Exhibit-11)
    Thank You..!!

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