Their predominant interest is in the work of kings, including political, military, economic, and religious aspects. How should the Israelites be governed, by whom, and for what purposes? When organizations are governed well, people thrive.
For the steel industry, this rating on NUE would appear to follow the general trend that analysts have been following since late summer. In November, Zacks Investment Research issued a statement indicating that their analysts felt that earnings would increase 9.
At the moment, analysts are bullish on the steel industry. And while most analysts are simply increasing their ratings on all steel companies, UBS has decided to prefer Nucor to U. We prefer exposure to mini-mill producers [Nucor] and [Steel Dynamics] with their low cost structures and upside to non-residential construction recovery in While we remain hopeful of significant cost savings at [U.
Steel] from Project Carnegie, we think this transformation will take time. In other words, U.
Steel will probably do well, but Nucor which has been doing well this entire time see chart below for earnings per share growth will probably be a better choice due to the Mini-Mill advantage.
First, I will look at the competitive landscape for the industry as a whole.
Secondly, I will look at Nucor and determine how it effectively navigates the challenges of this landscape by relying on its core competencies, which I identify as the Mini-Mill, Product Sophistication, and Vertical Integration in its procurement of supplies for the production of steel.
Analysis of the Overall Competitive Landscape: The threat of substitute services or products - There are some analysts whom might think that this particular threat is not very high. However, as I indicated in my Alcoa article we have entered into a New Age where Aluminum is being used to create our next generation of trucks.
F has initiated this process and will be showing their new F which will mostly consist of aluminum and not the traditional steel.
Consequently, there is some threat of substitute products within the steel industry, even if it is rather low. The threat of increased competition from rivals in the market - This threat is very high within the Steel Industry.
It is roughly equivalent to the number of competitors within the market, and this can easily be seen from our pie chart of the top 25 steel companies in the world based on their production capacity. As one can see from this chart, the steel market is heavily saturated, with many equally sized competitors.
This is a problem because it results in a high level of threat from competitors, which is communicated in the form of severe price cuts. The evidence of this can be seen in the product dumping that China has engaged itself in, all around the world.
The threat of new entrants into the market - This threat is probably not very high for the Steel industry.
The classic example, given in business school, of a large threat from new entrants is the idea of a Subway sandwich shop. Anyone can walk into the local grocery store and purchase the supplies necessary to compete with a Subway shop.
Dodge PlanRoom provides a single, secure location for contractors and sub-contractors to share and manage plans, specifications, and other construction documentation and information from the bid phase through to project completion. provided by F. Kenneth Iverson, Chairman, Nucor Corporation in preparing this case study is greatly appreciated. It was (OEMs), fabricators, or end-use customers. Nucor’s ratio of debt to total capital was not allowed to exceed 30 percent. In that ratio was 7 percent. The company did not believe in acquisitions or mergers. Nucor Case Study (2) Uploaded by Mohamed Abdelaziz. Related Interests. Steel Mill; Steel; Industries; Business; Rating and Stats.
However, in the steel industry, there is such a large amount of resources and expertise required that generally competition does not enter the market easily. The only threat of new entrants within the steel market, are generally the government subsidized steel producers of other countries such as China.
I would not classify this therefore as a high level threat, but make no mistake, the threat does exist.
The bargaining power of suppliers - I indicated in my article on U. Steel that this is a significant difficulty faced by the steel industry. As evidence of this, here is an excerpt from an article in the Economist on the future prospects of the steel industry: Until ore prices were fixed in annual negotiations between big steelmakers and the four miners.
Now the steelmakers have to pay at, or close to, spot-market prices, and these have proved volatile. The futures market is still underdeveloped, with puny volumes and thin liquidity, so hedging is hard.
This has made the struggle for profits only more arduous.
This is a very bad predicament for the steel industry.This is when solid particles stick to one another, and while this is an undesirable feature in many powder and particle processing operations, it is essential for the successful sintering of iron ore fines, coke and fluxes into a suitable blast furnace feed.
this minimum wage is very convenient for the big guys to pick up cheap help from the really small business when the rents, taxes and city mandated cost increase cause micro stores to close up.
the trend now is for the amazons and alibabas to take over the bricks . The books of 1&2 Samuel, 1&2 Kings, and 1&2 Chronicles take a deep interest in work. Their predominant interest is in the work of kings, including political, military, economic, and religious aspects.
Nucor Uses an Integrated Approach to Employee Motivation Nucor has abandoned the conventional ways of running an organization. They embrace the McGregor theory Y assumptions about people. SWOT Analysis Definition. The SWOT Analysis is a strategic planning tool that stands for: strengths, weaknesses, opportunities, and threats.
The SWOT analysis is essential to understanding the many different risk and rewards of any investment. Dodge PlanRoom provides a single, secure location for contractors and sub-contractors to share and manage plans, specifications, and other construction documentation and information from the bid phase through to project completion.