Nucor Corporation is considering expanding into new business segments through strategic opportunities and joint ventures. It is well-positioned for growth due to strengths like efficient production processes and low costs. However, expansion plans require large investments that could jeopardize the company if returns are not adequate. Key parameters for evaluating opportunities are return on investment, efficiency, and maintaining sufficient working capital. The document recommends Nucor pursue producing flat steel sheets using a new technology, as the potential returns from gaining a foothold in this market outweigh the high risks if the investment is managed prudently.

1. NUCOR CORPORATION Presented by- AnurajAntil Ishan Malik Kanishka Singh Sunny Malik Surya Deswal

2. SWOT Analysis Strengths- Less layers of management. Annual tonnage per employee is highest. Manufacturing bars needed to make steel joists are made by itself hence reducing cost incurred. Plants located in rural areas which has benefit of low electricity and labor costs. Abundant supply of manpower.

3. WEAKNESSES Lack of adequate finance. Less focus on marketing. Variable R&D budget for Nucor Steel.

4. OPPURTUNITIES To form a joint venture with Yamata Kogyo to produce wide flange beams using beam blank technology which permitted steel to be cast much closer to the final shape. This would lead to establishing strong foothold at high end of construction market. Entering flat sheet segment by producing steel sheets based on CSP(compact strip production) which would lead to labor and energy savings, reduced operating cost and higher yields.

5. THREATS High risk and uncertainty involved in producing flat sheets based on CSP. Existing integrated steelmakers may pose serious competition. High quality steel imports from Japan and Canada and cheap imports from newly industrializing countries may affect its high and low end segment respectively. Minimill market segment reaching saturation.

6. Parameters affecting decision making- Efficiency Return on investment(ROI). Return on equity(ROE). Return on assets(ROA) Working capital..

7. Efficiency- It is the ratio of output by input. It should produce flat sheets by consuming less resources as much possible. They currently use scrap to produce final product but with increased no. of minimills using scrap to produce final product will raise prices of scrap hence reducing efficiency. Then it will tend to shift to use iron to produce final product. It has to decide which material to use to increase efficiency.

8. Return on investment As the company is trying to enter integrated segment with huge investment it should consider ROI as this proposition if failed can jeopardise the whole company.

9. Return on equity During the period 1972-86 stockholders equity has increased considerably company should consider ROE to maintain confidence among its shareholders.

10. Return on assets As the company heads have specified that ROA should be atleast 25 percent for a plant hence this should be taken into account during decision making.

11. Working capital Working capital is necessary for proper functioning of a plant. While making expenditures to meet the obligations it should be kept in mind.

12. decision For producing CSP based plates ROI is the main factor which should be considered as if not met the survival of the company will be in danger and the whole company will be jeopardised as the investment in new project is so large that it is more than the net worth of the company. They should enter the flat sheet segment as if successful in getting first mover advantage the returns will be very high and as they emphasize on risk taking they should do this investment.