Submitted by: Submitted by tugandgus
Views: 216
Words: 3755
Pages: 16
Category: Business and Industry
Date Submitted: 05/03/2013 06:37 AM
Choosing Nucor
For my semester project, I decided to choose Nucor Corporation. I chose this company for a couple of reasons: they are my employer’s largest competitor; we supply to them on occasion; we tend to follow their pricing; and I am interested to see how they have become so successful in the highly competitive steel and iron industry.
For this project, my interest lies within Nucor’s Steel Mills and Steel Products segments. In these segments, Nucor produces hot and cold-rolled sheet steel, plate steel, structural steel, and bar steel. Bar steel production includes blooms and billets, concrete re-bar, and “special bar quality products”.
My employer competes with Nucor, but in different segments of the market. My employer produces cold-rolled steel shapes and bar products, whereas another division produces hot-rolled steel, (of which our division uses as a raw material supply for approximately 95% of our products).
As mentioned previously, not only do we compete with Nucor, but we also follow them and supply to them. We use Nucor as a guide for pricing – when Nucor raises or lowers their steel prices, we tend to follow. We also supply to their cold-finish segment. We are currently in negotiations to supply a handful of sizes and grades of steel that they are unable to produce.
In many ways, my employer is very similar to Nucor – just on a much smaller scale.
Company Information & Background
In 1905 Ransom E. Olds, (creator of the Oldsmobile), had a disagreement with stockholders and left his own company. After that, he formed Reo Motor Car Company, which developed into the Nuclear Corporation of America, and eventually Nucor Corporation.
Reo Motor Car Company was successful at first, but it relied on defense contracts to stay in business. When the Korean War ended in 1955 – so did the company. Its assets were combined with Nuclear Consultants, Inc. to create the Nuclear Corporation...