Question

propose a solution to fix a current problem and a longer-term course of action to prevent a long term problem in Nucor, innovation, And change the case. If there are no recognized issues, focus on the positives that make the organization work well.

Answer 1

Nucor is one of the largest steel producers in North America that produces steel products that are of high quality and low costs. One of the current problems that Nucor is facing is that of a tough competition from the foreign importsas they are resulting in the oversupply. Steel companies in foreign, supply steel products that are lower in cost when compared to that of Nucor and that is the reason it loses a big part of its market share of those companies. It faces challenge in controlling costs and maintaining a good profit margin because of its competitors. Therefore, to control its costs and earn more from the business, it needs to improve its research and development by employing the best researchers for the work, to lower the costs and make more profits. It should conduct studies on how the foreign suppliers are making the products at a much lower cost and thereby, improve its cost effectiveness.

A long term problem that the company is facing is that of lack of new technologies. In a world where its competitors are making use of the best technolgies to produce steel products at low price, Nucor should invest in Research work and find out the about the new technologies that the other companies are using. It should concentrate on innovation and produce better products to attract more customers. It should enter into joint ventures with the foreign companies that are producing similar products at a lower cost. It will help it improve its business by getting exposed to more countries, learning about their ways of operations and also increase its overall market share. Innovation in products and technologies is what Nucor should be concentrating on.