Nucor Corporation has a variety of competencies that allow them to control a significant share of the market. However, as shown above, the corporation is involved in many environmental activities, which lower its profitability margin. Nevertheless, the company has for a long time considered high profitability as an opportunity cost in the face of conserving the environment (Johnson, 2008). In the business perspective, the company has had marvelous performance and has been posting steady positive results for the last forty years.
Nevertheless, it has also faced challenging times just as any growing company is wont. Globalization has been a major threat to earning more profits (Johnson, 2008). From this point of view, the corporation’s results of SWOT analysis in 2007 are shown below. Although the company realized profits in 2007, there was a decrease of 8% compared to the previous year (2006). Overall, the corporation’s inventory turnover and total asset turnover were positive in 2007 and were closely related to those reported in the past years.
The corporation is thus in a vantage position to improve since its debt has remained relatively low as compared to its asset and equity levels, which are 23 per cent and 44 per cent respectively (Johnson, 2008). Nucor Corporation’s current strategies include sourcing for short-term loans to finance the implementation of current projects, as the company is currently in a position to shop for better interest rates. The corporation’s total cash reserves for 2007 totaled $1. 4 billion, some of which has effectively been put in environmental conservation projects, and the rest is for expansion (Johnson, 2008).
Conclusion Nucor Corporation has developed as a company that strikes a balance between business profitability activities and corporate responsibility. The company has maintained high standards of safety for its workers (internal environment) and the local community (external environment). The company lays emphasis in pretreatment of water products and other chemicals such as lubricants used in daily operations, and recycling in order to conform to the regulations of the United States Environmental Protection Agency (USEPA) and the Occupational Safety and Health Administration (OSHA).
The efforts have paid off as the company has received the ISO 14001 certification. Finally, although the company realized lower profits in 2007, it is in a position to improve in future.
Johnson, B. (2008). Case Analysis 1: Nucor Corporation. Retrieved 21 November 2008, from: http://www. plu. edu/~johnsoba/doc/corporation-analysis-1. pdf Nucor. About us & Environmental Stewardship. Retrieved 21 November 2008, from: http://www. nucor. com/indexinner. aspx? finpage=aboutus