Questions and Topics We Can Help You To Answer:
Paper Instructions:
Analyzing the internal environment
Analyzing the external environmentand a few more considerations from the later chapters.
More comprehensive examination of the financial situation of the company
Consideration of other strategy choices, or competing internationally or adding a diversification strategy
For the financial analysis:
Present one or more ratios to represent each of the four areas of financial analysis:
Profitability (more than Gross Profit Margin)
Liquidity
Leverage (what I call Risk)
Activity (what I call Efficiency)
Then, present a minimum ½ page discussion of the company’s financial situation, using ratios to evaluate the company’s profitability, liquidity, leverage and activity.
Of course, most of these ratios are meaningless by themselves; they only have meaning as a comparison. You must therefore compare the Nucor ratios to one of three choices:
Where the company is now versus where it has been over time (last two years), or
The industry averages for the ratios, or
A significant rival’s ratios
The ratios and financial information should be in the Appendix so you have all the five pages of the report for your analysis and recommendation. The financial analysis should be a significant part of your internal analysis – What could be more important about a company’s strengths and weaknesses?
You are a consultant hired by the executive leadership of Nucor. Based on your analysis, you recommend to the company’s leadership what they should do strategically. Then, support your strategic recommendation. Why is it the best solution to the significant problem you have identified? Your recommendation should have as foundation at least 1-2 internal factors and at least 1 -2 external factors. You can mix and match - what strengths should Nucor use to take advantage of an opportunity; or what opportunity should they take to solve one of its weaknesses. What strengths could the company use to mitigate a threat; or what weaknesses must the company address so they do not fall victim to the threats facing the industry?
Yes - this is a SWOT analysis. And the true payoff of SWOT analysis is learning enough to develop a strong strategic approach to gaining competitive advantage..
Problem Statement: State the main problem facing the firm (or industry) in one, succinct sentence.
Analysis: Summarize the main findings of your analysis. You may use bullet points, bold, italics – any means to convey and highlight the key factors you have determined based on your analysis. Don’t repeat items from the body of your report like the SWOT. Summarize the major issues.
Alternatives: State briefly (one sentence or a bullet point each) 2 or 3 alternative courses of action that could be implemented
Recommendation: Choose one course of action and support your choice.
Implementation: Briefly (1 or 2 sentences are sufficient) present how the plan would be implemented. This tests the viability of the choice. For example, your plan would demonstrate that the company has the people, financial resources and time to implement your recommendation.