1. Jeffrey Fisher Spring 2008
MBA 690 Prof. Teich
SUMMARY: A maturing corporation in a depressed industry is creating a new strategy.
ISSUE: Is adding layers of management and acquisitions the best strategy for Nucor?
STRATEGY : Even though Nucor made its name by innovating the minimill for flat
rolled sheet there comes a time when a business matures. That doesn’t mean it goes
from dynamic to static it means that the game has strategically changed
opportunistically. Nucor is in the enviable position to make acquisitions while many of
its competitors are filing for bankruptcy. This makes strategic sense to bring in
acquisition experts to advise in this endeavor.
JUSTIFICATION: Adding layers of management to a corporation that has been growing
fine on its own does not make sense unless that corporation has matured and the
making of strategic acquisitions requires expert advice, such as the case is here. Thus,
the move away from a bare bones and no frills corporate culture makes sense. Nucor
is presented with an opportunity to take advantage of weak competitors to gain not only
assets but market share.
RIPPLE EFFECTS: The entrepreneurial strategy may be overlooked in the future now
that there are so many layers of bureaucracy. Additionally due to the fact that the
innovations made by Nucor were being copycatted by rivals, the innovation age of the
corporation has led to a more mature corporation and thus lower profit margins and
growth rates.
