Essay on Nucor Case Analysis - 1235 Words

Nucor Corporation – Case Study and Recommendations on Strategy Nucor Corporation – Case Study and Recommendations on Strategy Introduction Nucor Corporation: Competing against Low Cost Steel imports deals with leading steel manufacturer Nucor Corporation and trends in the steel industry affecting Nucor. Steel manufacturing is an old business, but is currently facing the fast changes associated with new technologies, the rise of globalization, and changes in cost and efficiency. To date, Nucor has maneuvered business cycles and market challenges to maintain a positive profit margin in every quarter since 1966 (Thompson, 2008). The company’s strategy of decentralized structure, focus on disruptive technology, unique employee engagement†¦show more content†¦The increased level of empowerment allows each division manger control over day-to-day decisions that will increase profitability. This key success factor contributes to mitigating threats related to price and cost including the cyclical nature of industry, raw material cost, and low cost competitors. Strong Employee Relations - Nucor’s employee relations practices were a key factor in their successful growth through the ability to produce steel at margins that could compete with imports. Perhaps Nucor’s most important key factor of success, the building of successful employee relations is more difficult to imitate by competitors than tangible business factors. Use of Disruptive Technology – Nucor has an extremely a strong technological focus. Their introduction of the mini-mill has proven to be industry changing with the manufacture of raw sheet for the auto industry. Additionally Nucor introduced the first electric arc furnace, continuous casting, the process to avoid reheating billits, and the twin shell furnace. The value added by Nucor technology in mitigating threats is proven by a high sales volume and steady profits. Strong leadership – While Nucor did have a decentralized management structure, it relied heavily on the aligned visions of managers under the charismatic leadership of Ken Iverson. The companyShow MoreRelatedNucor Case Analysis4059 Words   |  17 PagesIndividual Case Analysis BUS490 Comprehensive Examination Nucor Steel Corporation Written by: Lukas Kubilius Professors: Bonnie J. Straight Julian J. Prewitt Lithuania Christian College 2 March 2005 Overview of situation Nucor Corporation with 24 plants/divisions and 8,000 employees, operated in nine states recycling more than 10 million tons of scrap steel annually. Producing carboy and alloy steel in barsRead MoreNucor Case Analysis4046 Words   |  17 PagesIndividual Case Analysis BUS490 Comprehensive Examination Nucor Steel Corporation Written by: Lukas Kubilius Professors: Bonnie J. Straight Julian J. 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