UNIVERSITY OF BOHOL

COLLEGE OF BUSINESS AND ACCOUNTANCY

Dr. Cecilio C. Putong Street, Tagbilaran City
Bohol, Philippines

A Case Study Analysis

on
From REO to Nuclear to Nucor

In Partial Fulfillment of the Requirements in

APE 2 – Human Behavior in Organizations

Submitted by:

Bitoy, Mary Kim Coleen J.

Chatto, Jullie Carmelle H.
Cosmod, Hannah Faith C.
Divinagracia, Vince Kobe C.
Domasin, Jercilie L.
Dusal, Chucky Rose D.
Elorde, Hannah S.
Entea, Champagne A.
Escobido, Zeus Ann V.

Submitted to:

Mrs. Michaela Rosalejos

APE – 2 Instructor

October 2022
Title of the Case From REO to Nuclear to Nucor

Time Context October 2022

Perspective Chief Executive Officer

Although REO Motor Car Company was a profitable

company throughout the 1920s, they made some bad
investments that resulted in the suspension of car
production in 1936 and the filing for bankruptcy protection
in 1938 under Ransom Olds' leadership as chairman of
the company. In 1955, REO Motor Company changed its
name to Nuclear Corporation of America Inc., becoming
the first publicly traded nuclear company. The company
entered into several business ventures but, unfortunately,
most of these ventures were unprofitable, resulting in
bankruptcy in 1965.

The company changed its name for the third time in 1972,
from Nuclear Corporation of America to Nucor
Central Issue
Corporation. Although Nucor has successfully emerged
from bankruptcy and has continued to grow under
Iverson's leadership by taking advantage of emerging
technological innovations to produce steel products at a
lower cost, and as a result, the company is known for
having great leadership and great strategy execution,
Nucor still faces a number of challenges, including large
competitors, a global recession, high-risk investments,
and an uneven playing field at both the domestic and
international levels. Nucor also faced environmental
concerns for allegedly failing to control the emission of
toxic chemicals in several U.S. states and was also
identified as the 14th highest contributor to air pollution in
the United States.

This case analysis aims to:

Statement of -To address bad investment decisions that lead to

Objectives bankruptcy
-To address the existence of large competitors
-To address environmental risks

Areas of
Consideration Specifically, this case analysis focuses on:

- Bad investment decisions: REO/Nucor launched

several projects and business ventures that turned into
failures.
 - Competition in the market: The company’s awareness
of competition in the market of both domestic and
international.
- Environmental concerns: Nucor was identified as one
of the highest contributors to air pollution in the United
States.

This case analysis discovered the following alternative

courses of action:
Alternative - Effective investment plans
Courses of Action
- Organizing a competitive analysis
- Reduction of greenhouse gas emissions

Decision Matrix

Alternative
Variables Organizing Reduction of
Effective Investment
Competitive Greenhouse
Plans
Analysis Emission
Risks 3 3 1

Costs 1 3 1

Benefits 5 4 5
Ease of
3 3 1
implementation
Total 12 13 (highest) 8 (lowest)
The title of this case study is “From REO to Nuclear to
Nucor”, which relates to its central issue where it
highlights on how the company has changed its name
overtime due to the crises and challenges encountered.
Nucor Corporation has been in the industry for years
and has emerged as one of the successful corporations
in the world. This case analysis identified that the latest
area for consideration in the company is regarding its
competitors in the market. An organized competitive
Conclusion
analysis will bring a change in the company’s strategy
and standing. In accordance to the decision matrix, the
alternative about organizing a competitive analysis
shows to be the highest with a total of 13, followed by
implementing effective business investment plans, and
lastly, the reduction of the greenhouse emission. In
conclusion, this concern will require critical and practical
analysis to realize the business to continue its growth
efforts on the international market.
 At the moment, Nucor Corporation should prioritize
organizing a competitive analysis. As competition in the
market heats up, the company should have a level
playing field in both domestic and international market in
order to keep expanding and sustain its competitive
advantage. Aside from the competition in the market, the
company should also keep an eye on plans regarding
Recommendation the effective investment plans that would allow the
company to prosper over time, even without the
leadership of Iverson. Lastly, Nucor should also address
the environmental concern by finding alternatives in the
production that offers less greenhouse emissions. As a
highly recognized company, Nucor should not only focus
on one issue, but should also deal with other concerns
the company is facing.
Action Plan Organizing a Competitive Analysis

Activities Objectives Division Person Responsible Cost Time

To be able to identify companies that have

the capabilities of establishing partnerships
either as steel producers or any related
Conduct market companies domestically and globally. Research and R & D Department Estimated Every
Development
research Head $5,000 quarter
Department
To continue carrying out research on steel
to improve the quality of steel manufactured
by the company

1st week
Formation of To form teams that will be assigned to Planning Estimated
Planning Head of every
committees specific project implementation tasks. Department $1,000
quarter

To establish quality circles to brainstorm

Inventory Dept.
concepts on improving quality of products, Estimated $ once a
Concept Brainstorming Production Dept. Managers
services and differentiation of intelligent 1,500 month
R & D Department
distribution, processes and automation.

Take advantage To be able to promote activities that increase

Marketing Business-Marketing Estimated
Nucor’s Competitive societal marketing causes and exemplify 6 months
Department Staffs $3,000
Edge Nucor’s goodwill and eco-friendly ways

To be able to spend expenditure on

Uncover Steelmaking Research and Development to uncover R & D Department Every
Estimated
Technology breakthrough steelmaking technology with Committee Head two
$2,000
Breakthrough the potential to considerably reducing steel’s Production Dept. months
carbon dioxide emissions significantly
 Every
Evaluation of the To receive feedback on how well the HRD Dept. Department Heads Estimated end of
competitive strategy strategy solved the problem. R & D Dept. Head $1,500 the
quarter

Gantt Chart Organizing a Competitive Analysis

Activities Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec.

Conduct market research x x x

Formation of committees x x x

Concept Brainstorming x x x x x x x x x x x x

Take advantage Nucor’s

x x x
Competitive Edge

Uncover Steelmaking
x x x x x x
Technology Breakthrough

Evaluation of the
x x x
competitive strategy