This website uses cookies to ensure you have the best experience. Learn more

Business In Nucor Essay

1492 words - 6 pages

Nucor Corporation - Structuring for Efficiency and Effectiveness
Introduction
Nucor achieved its position as one of the largest steel producers in the United States by carefully monitoring costs and paying attention to the needs of its markets. This strategy of providing its customers with a competitive product at competitive prices has brought success and growth to Nucor, in sales, income, and stock price. Recently, however, the control of the organization has been brought into question. The recent announcement of a joint venture between Nucor and U.S. Steel to develop, test, and bring on line a new method for turning iron ore into steel added to the concern over the ability of company management to maintain the entrepreneurial spirit for which the company is famous.
Background
Nucor is the second largest steel producer (2nd in assets, 1st in profits) in the United States. Its profits of $123 million have made it one of the most efficient firms in the steel industry. Nucor achieved that position by focusing on the manufacturing segment known as mini-mills - the relatively small, electrically-powered mills that melt down scrap steel to manufacture products. This process saves on costly labor, raw materials, and the capital-intensive machinery necessary to produce steel from iron ore. A major concern of mini-mill steel manufacturers is maintaining quality, since their raw material consists of scrap steel of varying quality, containing a variety of alloys and impurities. Another concern it the recent rising price of scrap steel.
Nucor started out by manufacturing steel for the beams and posts produced in company-owned structural steel manufacturing plants and then expanded by selling its low-cost steel to other firms. Outside customers gradually became the primary outlet for sales by the mini-mills. Nucor was able to expand sales from the mini-mills by keeping costs below its competitors, both in the United States and abroad. Nucor has consistently sought ways to lower costs while broadening markets. During the latter part of the 1980s, much of the company's efforts were placed on developing technology for manufacturing sheet - flat-rolled steel of the type used by automotive and appliance manufacturers - which had traditionally been the sole domain of the big steel companies and foreign competitors. Ken Iverson, former CEO of Nucor, risked several hundred million dollars in adapting an untested German process for manufacturing this flat steel. Fortunately, the gamble paid off, increasing the company's growth in both sales and profits.

Iverson determined that one means of maintaining both quality control and costs was a highly decentralized organizational structure. Corporate staff was kept to a minimum. All decisions dealing with operations were delegated to the individual plants. Iverson believed that the managers closest to the action should be given the responsibility to develop plans to allow the plants, and the firm, to adapt to any...

Find Another Essay On Business in Nucor

nucor Essay

2671 words - 11 pages perubahan kepemilikan ini, terjadi beberapa perubahan yang harus disesuaikan oleh Galvor Company, diantaranya Business Plan, yang merupakan deskripsi umum tentang rencana tindakan manajemen untuk dua tahun mendatang, dengan setimasi penjualan, laba bersih, dan total aset, dijadikan sebagai standar utama untuk mengevaluasi kinerja dari manajer unit sampai dengan manajer puncak Universal. Terdapat lima hal yang dijadikan sebagai patokan penilaian kinerja

Nucor Case Study - Employee Motivation

958 words - 4 pages In any business organization, employee motivation is one of the biggest factors that can influence job productivity and worker's attitude. This in turn can affect the performance of the company which in turn influences the bottom line that ultimately determines the success and profitability of the business. Nucor, an American steel-making company, realizes the importance of employee motivation and as such, it builds a working model which

Nucor at a Crossroads (Canada, US; railroad equipment)

1025 words - 4 pages IntroductionAt the end of 1986, Nucor, as one of the most important player in the U.S. steel market, had to make a critical decision on whether to invest in the new thin-slab casting technology, with the risk of loosing everything. We concluded that the investment is worthwhile, and the following are the strategies for Nucor upon the commitment to commercialization of the new technology. Finally is the projected financials for the Nucor after

caso nucor

2484 words - 10 pages Evaluación Estratégica de Proyectos"Caso Nucor"Evaluación Tradicional y Estratégica de Proyectos.indice21. OBJETIVOS DEL INFORME2. ANTECEDENTES DE NUCOR 23. EVALUACIÓN TRADICIONAL 23.1. ANÁLISIS DE SENSIBILIDAD EVALUACIÓN TRADICIONAL. 44. EVALUACIÓN ESTRATÉGICA. 54.1. ÁRBOL DE DECISIONES 64.2. ANÁLISIS DE SENSIBILIDAD EVALUACIÓN ESTRATÉGICA. 65. AN&Aacute

Nurcor in 2005

1027 words - 4 pages development support innovation shown by its practicability in the steel industry and encourages the participation of its employees in the innovation process. Conclusion As shown in the value chain analysis, Nucor’s structure has been strategically developed in order to ensure that their goals and objectives are accomplished. Strategic Analysis In the recent past, Nucor moved to a single line of business after departing in unrelated

Final Project

1298 words - 6 pages Nucor Corporation is the largest producer of steel in the United States with the capacity to produce 27 tons of steel if needed and the largest steel producer in North America's largest recycler as well. Nucor has 200 operating facilities and 90 businesses that operate separately, but compete collectively and are the sole owners of Harris Steel, The David J. Joseph Company, and Skyline Steel, yet they only have 100 people working in their

Business Proposal for Health, Wellness, Exercise, and Nutrition Outreach Education

612 words - 2 pages Business Proposal for Health, Wellness, Exercise, and Nutrition Outreach Education Objective: Outreach Foundation, with the support of major sponsors including small business, corporate, and educational institutions, is on a mission to educate students about the importance of diet and exercise in their personal lives. To challenge our youth to visualize their future as fit, strong and healthy citizens that will allow them an expanded vista of

badm 449 syllabus

6723 words - 27 pages management addresses the organizational structure, resources & capabilities, and the strategic positioning of the organization to create, capture, and sustain competitive advantage. In addition to economic value creation, management also must make decisions concerning the distribution of this economic value across stakeholders.In BADM 449, Strategic Management/Business Policy, you will develop your skills at:Understanding how firms create, capture

Good to Great by Jim Collins

1277 words - 6 pages Good to Great by Jim Collins is a book which illustrates an answer for the question whether a good company can turn into a great company. In this book, Jim Collins suggests the ways by which companies can outperform the market leaders. The author has certain list of companies like Abbot lab, Circuit city, Fannie Mae,Gillette,Kimberly Clarak,Kroger,Nucor steel, Philip Morris,Pitney Bowes,Walgreens and Wells Fargo. According to author good is

Strategic challenges of the 21st Century

6184 words - 25 pages on strategy"The determinant of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. (Chandler-1962)."The pattern of objectives, purposes, or goal and the major policies and plans for achieving these goals, stated In such a way to define what business the company is in or to be and the kind of company it is or is to be." (Kenneth Andrews-1969)The

testt

7757 words - 31 pages fl ected growing confi dence in the value of strategic planning. Strat- egy consulting boutiques expanded rapidly and achieved widespread recognition. How different the landscape looks today. The armies of planners have all but disappeared, swept away by the turbulence of the past de- cade. On multiple fronts, strategy has come under fi re. At the business unit level, the pace of global competition and technological change has

Similar Essays

Nucor Essay

732 words - 3 pages Business Summary and Strategy Nucor is the largest steel manufacturer in the United States. It remains a profitable company despite being in one of the most cyclical industries in the economy. Nucor enjoys this success for several reasons, employee relations, quality, productivity, and aggressive pursuit of innovation and technical excellence. Nucor's strategy is that of a low cost provider, they know they are selling a commodity and

Nucor: A Moral Company Essay

994 words - 4 pages Iverson as president. Iverson, along with Vice President Samuel Siegel decided to divest NCA's money losing business and rebuild the company around its only profitable organization--the steel joist business. In 1972 NCA formally adopted Nucor as the company name.Today Nucor is one of the worlds leading steel manufacturing companies. With 25 divisions in 13 states, Nucor and its subsidiaries distribute steel and steel related products to over a

Nucor Case Study

1683 words - 7 pages How is the reinforcement theory used at Nucor? Nucor has used the reinforcement theory in order to motivate its employees .First let me explain a little what the reinforcement theory is this theory is dependent upon the rewards offered for tasks. It is based on the fact that the degree of achievement is directly related to the reward which is given. The reinforcement theory relies on positive reinforcement and recognizing the impact of different

Nucor In 2005 (Case Summary) Essay

764 words - 4 pages Symptoms:Steel industry is having one of biggest slowdowns with weak prices and rivalry bankruptcies due to both domestic and international economy slowdown.Technological aging in US steel industry almost forced US steel makers out of business. Steel makers in other countries were developing and using technologies that allowed significantly reducing unit prices. Almost all innovations in technologies were made outside US.Competition on Us market