When analyzing specific strengths and weaknesses of firm using the resource-based view and not the SCP industry view, resource categories fall under four areas. Here are my interpretations of NUE's resources within the four areas.
Financial Capital
NUE has a excellent financial capital. According to its financial ratios, it is within the top two quartiles in comparison to other firms in its industry for Current and Quick ratios, its debt is rated A-, and it has a market cap of $16B. At the end of 2013, NUE was sitting on $1.5B in cash and short term investments.
Physical Capital
NUE has more than $10.5 B in Property/Plant/Equipment on its books. It has 23 scrap-based mills and is the largest recycler in North America.
Human Capital
This is where NUE believes it holds a significant advantage over its peers. NUE is an employee friendly company and is deeply concerned with employee enrichment, opportunity and safety. As an example of its focus on employees, the entire front and back cover of its annual report is covered by the names of all 22,000+ employees of the firm. NUE produces a Sustainability report every two years, and in it they promote "The Nucor Way," which is a list of 10 attributes by which they work and live. Some of those attributes include integrity, team work, innovation and risk taking.
Organizational Capital
The organizational capital of NUE seems to be strong. They appear to have a can-do attitude and view themselves as an underdog in a competitive industry where hard work and team work make a real difference. The executive managers all have significant experience within the industry, and the ROE, ROA and ROI illustrate they manage the firm well.
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