To be used along with the word doc directions Please refer to these powerpoint directions and the word document directions to complete the case #3 (Nucor) assignment All conclusions in the analysis must be based on facts and evidence that come from legitimate sources. All facts and evidence must be properly cited using APA standards (this includes both embedded citations following each fact, as well as a complete reference list at the end of the slides). This is a fact-based, APA standard cited, semi-quantitative strategic analysis.

Appdxs 1-6 may be completed by case team Appendix 1 (Rubric: Analyzes the situation) Identify Nucor’s competitive APPROACH and SCOPE Which of the 5 Competitive Business Strategies does Nucor use? Please include a brief statement explaining why you believe this is Nucor’s Business Strategy. Refer to Chapter 5 Identify the important complementary strategic options, corporate & functional strategies, timing choices, etc. Nucor has used Refer to chapters 6-8

Appdxs 1-6 may be completed by case team Perform a FINANCIAL ANALYSIS of Nucor (NUE) vs. US Steel (X) (Rubric: Analyzes Quantitative Factors) Appendix 2 Compare the CAGRs for NUE vs. X for the period 2006-2015 in SALES, NET PROFITS, STOCK PRICE (use Yahoo finance) Also calculate the CAGR’s for NUE for the period 1970-2015 in “total tons sold”, “net sales”, and “net earnings” using Exhibit 1 data Note: you do NOT need to create any line charts Appendix 3 Create tables showing side-by-side comparisons of figures for NUE vs. X for fiscal years 2006-2015 in: Profitability, including ROE, ROA, NET Margins, and GROSS Margins Activity, including TOTAL ASSET TURNOVER, INVENTORY TURNOVER, & PPE TURNOVER Liquidity, CURRENT RATIO Leverage, DEBT-TO-EQUITY Note: I have provided all of the required ratios except NET Margins and GROSS Margins (the data to calculate these missing two ratios is provided) Required: Please interpret the figures in Appendices 2 & 3 (and any optional calculations you perform) (e.g., state why the findings are consistent/inconsistent with NUE’s strategy) Required: Provide an overall assessment of How well NUE’s existing strategy appears to be working Optional: you may include additional, optional calculations and related comments of your choosing (for extra credit), but only Appendices 2 & 3 and their interpretation and the overall assessment of NUE’s performance are required for full credit. If you choose to include an optional (extra credit) comparison of the equity spreads for Nucor versus US Steel, at the end of year 2015, you may us Betas for NUE = 1.29 and X = 0.44.

Appdxs 1-6 may be completed by case team Based on the information in the Case (as the primary source), supplemented with outside sources (as needed), Identify the most important SWOT items in Nucor’s Internal & External Environments (Rubric: Analyzes the situation) Appendix 4 create an IFAS Table that includes what you feel are the 10-15 most important STRENGTHS & WEAKNESSES in Nucor’s Internal Environment Column 1: A brief description of each of between 5-10 Strengths & between 5-10 Weaknesses (also, the total number of Strengths & Weaknesses must be between 10-15) Citations for the sources for each column 1 item are required Column 2: assign fractional weights to each column 1 item (between 1.0=most important & 0.01=not important) based on the item’s expected impact on the firm’s strategic position. The weights assigned to all column one items must sum to 1.0 Column 3: assign ratings (between 5.0=outstanding & 1.0= poor) to each column 1 item based on how well the firm is currently dealing with each column 1 item Column 4: compute a weighted score (col 2 X col 3) for each column 1 item Sum all of the column 4 weighted scores for an overall assessment of how well the firm is dealing with the most important S/Ws in its envt Column 5: Provide brief justifications for your column 2 and 3 weights and ratings for EACH column 1 strength and weakness (use the VRIO framework for your justifications). The justifications should clearly indicate that you understand the application of the VRIO framework.

Appdxs 1-6 may be completed by case team Appendix 5 create an EFAS Table that includes what you feel are the 10-15 most important STRENGTHS & WEAKNESSES in Nucor’s External Environment Column 1: A brief description of each of between 5-10 Opportunities & between 5-10 Threats (the total number of Opportunities & Threats must be between 10-15) Citations for the sources for each column 1 item are required Column 2: assign fractional weights to each column 1 item (between 1.0=most important & 0.01=not important) based on the item’s expected impact on the firm’s strategic position. The weights assigned to all column one items must sum to 1.0 Column 3: assign ratings (between 5.0=outstanding & 1.0= poor) to each column 1 item based on how well the firm is currently dealing with each column 1 item Column 4: compute a weighted score (col 2 X col 3) for each column 1 item Sum all of the column 4 weighted scores for an overall assessment of how well the firm is dealing with the most important O/Ts in its envt Column 5: Provide brief justifications for your column 2 and 3 weights and ratings for EACH column 1 Opportunity and Threat (use the Porter’s five forces, STEEP & IPM frameworks for your justifications). The justifications should clearly indicate that you understand the application of the Porter’s five forces, STEEP & IPM frameworks.

Appdxs 1-6 may be completed by case team Note: You are NOT required to provide separate Porter’s, STEEP, IPM, Value Chain, Inventory of Resource Strengths & Weaknesses with VRIO analyses. However, you may include analyses showing the application of any or all of these tools for extra credit. You ARE required to discuss how these techniques would justify the weights and ratings assigned to the column 1 items in the IFAS (appendix 4) and EFAS (appendix 5), in your column 5 entries in these tables.

Appdxs 1-6 may be completed by case team Appendix 6 create an SFAS Table (Rubric: Analyzes the situation) Column 1: list a total of 10-12 items, consisting of: 2-4 of the strengths with the highest weighted scores (column 4) and 2-4 of the weaknesses with the highest weighted scores (column 4) from the IFAS, and 2-4 of the opportunities with the highest weighted scores (column 4) and 2-4 of the threats with the highest weighted scores (column 4) from the EFAS Column 2: assign fractional weights to each column 1 item (between 1.0=most important & 0.01=not important) based on the item’s expected impact on the firm’s strategic position. The weights assigned to all column one items must sum to 1.0 Column 3: assign ratings (between 5.0=outstanding & 1.0= poor) to each column 1 item based on how well the firm is currently dealing with each column 1 item Column 4: compute a weighted score (col 2 X col 3) for each column 1 item

Appdxs 7-11 & exec summary must be INDIVIDUAL work Place your EFAS & IFAS items in the row and column headings of a TOWS matrix & generate a SET OF >=12 STRATEGIC ALTERNATIVES for Nucor (Rubric: Generates realistic Strategic alternative Solutions) Generate >=12 strategic alternatives based on the TOWS matrix Appendix 7: >= 3 potential SO strategic alternatives from the TOWS matrix Appendix 8: >= 3 potential ST strategic alternatives from the TOWS matrix Appendix 9: >= 3 potential WO strategic alternatives from the TOWS matrix Appendix 10: >= 3 potential WT strategic alternatives from the TOWS matrix Each of the >=12 total strategic alternatives should include: A brief description of The specific suggested action Identification of the specific intersecting row & column items that the suggested action addresses (i.e. number the SWOT items and refer to the intersecting items by the assigned numbers) Identification of the type(s) of strategies (e.g., differentiation, backward integration, 1st mover, etc.), with which the suggested action would be most consistent Example of an ST alternative: If STRENGTH #1 on the TOWS is “S#1: strong global brand recognition” and THREAT #1 on the TOWS is “T#1: highly different customer tastes in China vs. the US” and THREAT #3 on the TOWS is “T#3: Increasing governmental restrictions on US firms selling products in China” ST #1 might be: “ST#1: Create licensing agreements with Chinese firms to produce and sell products in China with features that appeal to local Chinese tastes, using the firm’s strong brand (S#1 & T#1 & T#3) (This suggested action is most consistent with a multi-country, licensing, focus differentiation strategy)”

Appdxs 7-11 & exec summary must be INDIVIDUAL work Appendix 11: List a mutually reinforcing subset of 4-6 of the strategic alternatives (from the>=12 total strategic alternatives in Appendices 7-10) as the RECOMMENDED STRATEGIC ALTERNATIVES (Rubric: Evaluates Solutions/Selects Optimal) The set of recommended strategic alternatives should include: Some subset of the SO, ST, WO, and/or WT strategic alternatives from the TOWS matrix (Appendices 7-10), each of which addresses one or more SWOT items that appear on the SFAS (Appendix 6) Explain why each strategic alternative was selected Explain how the set of 4-6 recommended strategic alternatives, together with the elements of NUE’s existing strategy that are working and being retained, address each of the elements of the H&F 5 and are mutually reinforcing