Corporate strategy Essay Example | Topics and Well Written Essays - 2500 words

Corporate strategy - Essay Example In its early days Nucor corp. served as a manufacturer for Oldsmobile (GE motor). The company has come a long way since its inception in 1964. It has gone through major structural changes, acquired new operations and even closed or disposed some operations. Over 41 years Nucor grew from a small steel company at the edge of bankruptcy, to be the 7th biggest steel maker in the United States a few years back. It is presently the 2nd largest steel maker in the US. Profitability analysis shows that there’s been improvement over the years; especially a better performance than previous year 2003. Nucor is one of the most profitable companies in the US domestic market. Its budget expectation has proved accurate for the year 2004. Gross profit margin and net profit margin were both strong, which tells that the company is strong in areas of manufacturing as well as management / sales. Within the steel industry Nucor has displayed prudence in its finances as suggested by a business comparison with Arcelor Mittal which is a bigger organization but yet the former had managed to keep a surplus in all four profitability areas. Average liquidity ratio recorded at 1.49 is a good determining factor of the financial viability of Nucor business, which is well-funded than its other two rivals. Current ratio gives an indication of the ability of Nucor business to pay its bills. The ratio of 2.69 in year 2004 shows that it has a better ability to meet ongoing and unexpected expenses. Nucor’s financial performances have been quite successful so far, in terms of its steady growth rate as well as its equity value. In order for the company to sustain and maximize this pattern of growth in the coming years, a deployment of strategic analytical tools such as PESTEL will be highly relevant. Domestic market is still in a state of regression among upwards of Kuznets infrastructure investment cycle1. Countries with better economic conditions have more