“Nucor Corporation is made up of 11,600 teammates whose goal is to \"Take Care of Our Customers.\" We are accomplishing this by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world. We are committed to doing this while being cultural and environmental stewards in our communities where we live and work. We are succeeding by working together.” (Nucor, 2006)
History of Nucor
The early 1960s was the only time that Nuclear Corporation would face the possibility of bankruptcy. The unstable company knew changes had to be made. Ken Iverson was hired as the CEO in 1964 with hopes of revolutionizing ...view middle of the document...
It is generally a factor in an increase in income, of a nation. It is conventionally measured as the percent rate of increase in real gross domestic product, or GDP.
Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced. When there is economic growth in the economy consumers tend to have more to spend, therefore competitive pressure within an industry tend to decrease, causing most of the companies to share in profits, and not rely on fierce competition. “The industry was hovering around 75 percent capacity, a level too low to be profitable for many companies.” (Hill & Jones, 2004, pg C243) In the years leading up to the end of the first quarter in 2000, the steel industry had internal competition. The slowed growth in overall economy accounted for excess capacity and heightened competition.
Interest rates have two main positions in an industry. The level of interest rates can determine the demand for a company’s product and control the expansion of an industry. Customers that borrow large sums of money to finance products that they purchase will stop purchasing, due to high rates. The high rates decrease purchasing power, and also reduce profit yield. Low interest rates give companies in an industry the ability to finance expansion, and in turn gain a competitive advantage and market share. During the years prior to 2000 interest rates were lower than normal and this intrigued
(Figures retrieved at moneycafe.com at http://www.ngsn.com/library/prime.htm)
business owners to invest. By the end of 2000, interest rates were at a new high and accounted for the troubles of many companies. These higher interest rates accounted for a threat in this industry due to the amount of monies production required.
The value of the currency has a direct influence of a company’s product on the global market. The exchange rate affects the competitiveness of the company’s product. When the value of foreign currency is greater than the expected value of the U.S. dollar, goods and services in the United States are relatively inexpensive. When the value of the dollar gets to high, buyers begin to look globally for input/raw materials. In 1999, the Euro was established for international trade which decreased the value of the U.S. dollar. Continuing in 2000 the value of a dollar was much less than the Euro. This gave foreign competitors an advantage and represented a threat for U.S. companies.
Inflation has the effect of not only changing the economy, but also changing the last three factors. An increase in inflation causes interest rates to increase which slows down purchasing causing slow economic growth, and currency exchange rates to fluctuate. The key to inflation is that it makes the future less predictable,...