Strategic Profile and Case Analysis PurposeNucor in 2005 covers a leading steel producer, the steel industry, and the trends each faces. Steel production is an old business, but is currently facing rapid changes associated with new technologies and the rise of globalization. The cyclical economic effect in the industry has proven challenging for many steel companies. Nucor has unequivocally maneuvered this business cycle to maintain a positive profit margin in every quarter since 1966. The corporate philosophy of a decentralized structure in the 1960s and 1970s was imperative, but has since required a change due to current international challenges . Section I Strategic Problem The analysis of this case will consider the many broad aspects of Nucor's historic business model, but will primarily focus on the need for a clear strategy to expand the industry internationally. Section IISituation AnalysisExternal Analysis: PEST AnalysisPolitical FactorsState, federal, and international agencies heavily regulate businesses. These laws provide the basis for successful profit margins; but they also question the ease with which these margins are obtained. Many local laws are intended to support local businesses; a company faces another company's local protectionist laws when trying to compete in foreign territory. In no greater circumstance than globally is this true. For Nucor Corporation, ever-increasing international competition requires dealing with different types of laws, mainly tax. In any country with a centralized government, taxation is inevitable. Variations between countries' laws provide favorable and unfavorable circumstances for a large company to operate in that country. Nucor is extensively involved in tax policy in the United States as it pays federal, state and local taxes. Each of them has a significant impact on your bottom line. Additionally, Nucor must understand the taxes of other countries where it plans to implement contracts. Taxes do not always have a negative impact on a business, especially when they are protectionist. These types of taxes are implemented to protect the domestic industry. This is especially important when competition is high and there is a push for cost leadership. Nucor, like any large company that has a global presence, is subject to international trade agreements of the WTO, NAFTA and the EU. A business must be able to understand the costs associated with all import and export regulations and tariffs; this is a financial imperative especially because competition and globalization are necessary to maintain profits in the future. Economic Factors In 2000, Daniel Di Micco of Nucor stated: “Our strategy will focus on becoming a 'market leader' in every product group and business in which we compete.