5
Agenda
Overview, Issues, Recommendation, Strategy
Analysis, Decision Criteria, Options,
Risk & Contingency Plan
Overview
Create new avenues of trade action to decrease the amount of foreign product entering the US market.
Trade Action
Status Quo
Expand the energy infrastructure to deliver energy where it is needed.
Continue to develop energy resources including oil, natural gas, nuclear, wind, solar, biomass
and other renewables.
Decision Criteria
Cost, Strategic Fit, Return on Equity and Investment
Illegal Dumping
Industry Volatility
Main Issues:
Illegal Dumping
Industry Volatility
Option 3: Status Quo
- Available production space is not demanded by customers as the foreign competition offers a cheaper price.
- Dumping is legal under World Trade Organization rules unless the foreign country can reliably show the negative effects of the exporting firm on the domestic producers.
- The steel industry is highly volatile, depending greatly on global supply and demand trends.
- Price swings are dramatic and frequent.
- Creating Avenues for Trade Action
- Status Quo
Questions?
Nucor Corporation in 2012
Using Economic Downturn as an Opportunity to Grow Stronger
Susan, Kim, Peter, Amro, & Adah
Recommendation
Strategy
Low cost manufacturer of Steel
PESTEL
SWOT
Porters 5 Forces
Org Chart
Competitive Matrix
Trade Action Option
Risk and Contingency Plan
Cost of the report will outweigh the ROI.
The report would cost less than $500,000 and with the projected income from a governmental action from the report the increase in revenue could be in excess of $2,000,000,000.
Energy Independence
Option
Status Quo
strong strategic acquisitions, pursuing the latest technology, quality assurance,
competitive cost-structure,
high labor productivity
Risk and Contingency Plan
Even though the strategy to increase its market share has been successful, Nucor will still have to come up with new solutions in order to stop the foreign imports before these over-saturate the market