Advantages disadvantages may increase the companys

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Advantages Disadvantages May increase the company’s productivity and consequently drive down the price. Aids in the production of steel with better qualities Nucor would create a competitive advantage over other steel producers May lead to production with lesser human resources and capital thus reducing expenses The company will be able to sell the patent to its partners and thus generate profit at a faster rate Investments in new Technology require very high costs Desired results may not be achieved The process could be slow New Technology ca be tricky to apply in older mills
13 NUCOR CASE STUDY Alternative #2 : International Expansion (Such as Forming Joint Ventures with International Steel Companies) Advantages Disadvantages Aids in utilizing raw materials and resources from other countries. Deals with risks that may arise within the US market as the risk gets spread into a larger market base. Join ventures pose lesser risks than setting up new plants in other countries. There is an advantage of outsourcing external technologies from partners. Ventures might cause disagreements with other companies Outsourcing technological advances from other different country involves massive investments since it can not take lace within short time. External ventures can be expensive at the start making it risky Alternative #3 : Domestic Expansion within more states in the U.S. Advantages Disadvantages Aids in the utilization of own raw materials with less government restrictions Improves competitiveness Faster results can be obtained as changes can be easily made with regards to domestic economical changes Competitors in mini mills were dramatically increasing in the U.S. posing a lot of competition Hiring extra employees is costly Advancements in technology can not be carried out faster and will involve massive investments Recommendations It is highly recommended for Nucor to implement a combination of all the three alternatives and aim at manufacturing high quality steel. The company should aggressively do more research other alternatives regarding scrap steel as well as other steel making processes. A lot of research should also be extended to the different iron alloys so as to improve the quality of
14 NUCOR CASE STUDY steel products that they produce. The company should also be able to assess any new technologies for the processing of ore so as to reduce its reliance on scrap and its substitutes as raw materials. The company should also continue to pursue its strategy of low-cost leadership as it is best-suited for it as it competes in the steel industry within the U.S. Nucor should also continue to find out other opportunities that are out profitable for it to expand its capacity of production.

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