Nucor_study_questions_and_HW_5_ProblemSet - b Were there...

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Homework #5: Answer questions 3a and 3b, using no more than two pages. Note: you do NOT need to do all of the calculations necessary to reach a decision. Instead, explain how you would make such a decision, showing what calculations you would need to make. Finally, indicate what will be the rule for deciding whether or not to invest (e.g. If the result of this calculation is greater than X, than Nucor should invest). Study Questions for Nucor: 1. Consider Nucor’s success. Does it seem to be more due to industry factors or firm factors? (i.e. does Nucor add a lot of value, or are they simply an average performer in a highly profitable industry?) What evidence from the case supports your answer? 2. Consider the sustainability of Nucor’s advantage. a. How did Nucor use incentives to reduce slack?
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Unformatted text preview: b. Were there any barriers to imitation of Nucor’s advantage? c. Assess the threat of hold up and what Nucor does to protect itself from hold up. 3. Consider Nucor’s decision to adopt the thin-slab technology. a. Use the data from the case to assess the attractiveness of thin-slab casting technology. Should Nucor invest in the new technology? b. Discuss any assumptions that you might make in assessing the net benefits of thin-slab casting. c. Is thin-slab casting likely to provide Nucor with a competitive advantage in flat-rolled products? d. Consider the different threats to sustainability of competitive advantage: Which ones pose the greatest threat to Nucor in regards to using thin-slab casting and why?...
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