Title: Case study for Nucor Steel Company
Case studies bring interesting, real-world circumstances in the study of business fields. Managers make different decisions in their companies, and each decision has a direct influence in revenue, costs, and profits. In analyzing the case study of Nucor steel company, different central firm issues, firm goals, the constraints to improving the firm and the relevant alternatives to counter the problems are addressed. To grow in steel market, metal producers are increasingly expanding territories, not only to manage input costs, but also to secure access to strategic raw materials (Michael et al 13). With improving economies’ growth is expected to boost desire for many to purchase the product in the medium term.
Steel producers and mini-mill companies are situated in the midst of a very competitive environment in both domestic and global scale, which adversely affects their profitability. This competition among steelmakers is to capture a significant portion of the steel market in light of the fact that, the global supply of steel far exceeds the demand for steel products (Thompson 207). The first competitive forces impacting steelmakers is the force to drive down the profitability of steel industry, steelmakers are primarily affected by the abundant steel supply versus demand, which depresses the market price of steel as a commodity.
Competition among steelmakers is to lower product prices in order to capture a significant portion of potential customers. Secondly steel producers are adversely impacted by