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Strategic Profile and Case Analysis Purpose
Nucor in 2005 deals with a leading steel manufacturer, the steel industry, and the trends that face each. Steel manufacturing is an old business, but is currently facing the fast changes associated with new technologies and the rise of globalization. The cyclical economic effect in the industry has proved challenging for many steel businesses. Nucor has unequivocally maneuvered this business cycle to maintain a positive profit margin in every quarter since 1966. The company’s philosophy of decentralized structure in the 1960’s and 1970’s was imperative, but has since required change due to current international challenges.
Section I
Strategic Issue
This case analysis will take into account the many great aspects of Nucor’s historic business model, but will primarily focus on the need for a clear strategy to expand the industry internationally.
Section II
Situation Analysis
External Analysis: P.E.S.T. Analysis
Political Factors
State, federal and international agencies all heavily regulate businesses. These laws provide the basis for successful profit margins; but also challenge the ease to which these margins are gained. Many local laws are meant to support local businesses; a business must face the local protectionist laws of another business when trying to compete in foreign territory. In no greater circumstance than at the global level does this hold true. For Nucor Corporation, ever growing international competition requires addressing many different types of laws, mainly taxation.
In every country with a centralized government, taxation is unavoidable. Variations amongst countries’ laws provide favora ...