Q case 27 • Case Assignment Questions Nucor Corporation in 2018: Contending with the Challenges of Low-Cost Foreign Imports and Launching Initiatives to Grow Sales and Market Share Assignment Questions 1. What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new steel products via recycling scrap steel in particular? Please do a five-forces analysis to support your answer. 2. What driving forces do you see at work in this industry as of 2018? Are they likely to impact the industry’s competitive structure favorably or unfavorably? 3. How attractive are the prospects for future profitability of U.S. steelmakers, given the tariffs recently imposed on foreign steel imports by the Trump Administration? Should Nucor consider expanding in this type of industry environment? Why or why not? 4. What type of strategy has Nucor followed? Which of the five generic strategies discussed in Chapter 5 is Nucor employing? Is there any reason to believe that Nucor has achieved a sustainable competitive advantage over many of its steel industry rivals in North America? If so, what type of competitive advantage does Nucor enjoy? 5. What are the specific policies and operating practices that Nucor has employed to implement and execute its chosen strategy? 6. What specific factors account for why Nucor has been so successful over the past several decades? Do these factors have more to do with great strategy, great strategy execution, or great leadership? 7. What does a SWOT analysis reveal about Nucor’s situation in 2018? Does Nucor have any core or distinctive competencies? 8. What is your assessment of Nucor’s financial performance during the 2013-2017 period shown in case Exhibit 3? How strong is the company’s financial condition going into 2018? 9. What issues does Nucor management need to address? 10. What recommendations would you make to John Ferriola as of mid-2018?