Nucor

11 Pages 2783 Words

NUCOR
Case Study


Background

Nucor is a steel company that had many trials and tribulations, before it became the major steel company the United States knows today. According to Frank C. Barnes and Beverly B. Tyler’s case study, Nucor Corporation in 2001: Pursuing Growth in a Troubled Steel Industry, Nucor started off as an auto manufacturer that had financial difficulties. The company went through many changes and business formulas to become what it is today. This steel company started off as Ransom & Olds, the Oldsmobile manufacture, went on to become Reo Motor Cars, which went into bankruptcy, then became Nuclear Corporation of America (NCA). The company continued to test many avenues in order to diversity and compete. As NCA the company obtained many other technologically advanced companies that made items like radiation sensors, semiconductors, and air-conditioning products. NCA, found it had a potential future in the steel industry during 1968 after making its’ first steel bar mill in Darlington, South Carolina. After this the company finally adopted the name Nucor Corporation and joined the ranks of the world’s leading steel companies, with one twist, Nucor came in with up to date technology instead of the old steel industry set up Nucor joined the industry with an electric arc furnace minimill that used scrap steel as the basic raw material. Hence, Nucor came into the industry with a low cost alternative to producing steel.

Industry Factors
Nucor came from near bankruptcy to one of the fastest growing steel companies in America. Revenue for Nucor went from 1.3 million dollars in 1966 to almost 1.5 billion dollars in 1990. Nucor had become one of the leading steel companies in the United States by 1990. The economy slid into a recession in 1991 and the United States was hit hard be the recession in the years 2000-2001. Inside of the steel industry, companies were struggling and as Frank C. Barnes and...