B. Analysis: This section is the heart of the case analysis and the part that requires the most work. Warning: do not repeat in summary form large pieces of factual information from the case. Rather, use the information in the case to make critical points. This section should include the following: 1. Industry definition and strategy identification (5 points). First, using the Mergent database, identify the primary NAICS industry (by name and six-digit code) for Nucor. Using the U.S. and global steel producers industry, explain which stage of the industry life cycle (see ch.2) this industry is in at the time of the case. Also, describe the extent to which the industry is fragmented or consolidated (see ch.6). Second, identify the corporate-level (if applicable, especially any vertical or horizontal integration, related or unrelated diversification) and global strategies that are currently (at the time of the case) in place for Nucor. Third, identify which generic business-level strategies are being used. Where possible, be specific in identifying key elements (cite evidence from the case) of the company’s corporate, global, and business-level strategies. 2. Five forces model plus two (15 points). Analyze each of the competitive forces (including the sixth and seventh forces), indicating the level of strength of each in terms of strong, moderate, or weak and explain why. In the last paragraph of this section, summarize the following: Based on your analysis of the competitive forces, what are the implications in terms of profit margins in this industry today and the near future (above-average, average, or below-average)? Explain why this is the case. Note: There is a narrated lecture that discusses the five forces analysis. 3. Strategic group map analysis (10 points). Construct a strategic group map for the U.S. and global steel industry. Explain what the group map reveals about Nucor’s market position and the positions of its key rivals. The group map can be constructed in Excel and then copied to Word. Alternatively, the drawing tools in Word can be used to draw and label the group map. The PowerPoint slides for chapter 2 include guidelines to follow in constructing group maps. Note: There is a narrated lecture that discusses strategic group maps. 4. Key success factor (KSF) matrix and competitor analysis (10 points). Construct a weighted key success factor matrix for Nucor, its two U.S. rivals, and one or two global rivals of your choosing. Explain what the assessment reveals about the Nucor’s competitive situation (see corresponding slides in chapter 2 for more details). Note: There is a narrated lecture that discusses key success factors and how to assemble a KSF matrix. 5. SWOT analysis (10 points). First, identify opportunities and threats (four or five of each) for Nucor. As you compile this list, be sure to consider which of the five forces (rivals or suppliers e.g.) or elements of the macro-environment (political and legal e.g.) could pose a threat/opportunity for the company. Second, identify any strengths and weaknesses (four or five of each) for the company. As you look for strengths and weaknesses, be sure to scan the company’s resources and capabilities and the primary/support activities of its value chain. Finally, discuss the following: a. Does the company possess any resources or capabilities that could lead to distinctive competencies? Are there any distinctive competencies for the company? b. Is there any evidence that the company has gained a competitive advantage over its rivals and if so, has it been a sustained one?
Construct a strategic group map for the U.S. and global steel industry and explain what the group map reveals about Nucor’s market position and the positions of its key rivals