Case Study Of Nucor

Case Study Of Nucor
Nucor Corporation is one of the major manufacturers of steel and steel products in the country. It is
considered 11th largest company when it comes to the global ranking of the company. Nucor
Corporation has faced several different challenges, which forced the Nucor to change its strategies
and come up with new strategies. Some of the challenges that Nucor Corporation faced are over
capacity. America's steel industry has more capacity as compared to demands of the market. Unites
States' steel industry is having large capacity to produce the steel and Nucor has to face the same
issue.
With the passage of time consumer demand is reducing, because now in the production process
people need less steel. Similarly auto sales have been reduced with ... Show more content on
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Nucor has its entire stakes in this industry because it has invested huge amount in the business;
sustaining this business was very essential for the company. In order to hit back the market Nucor
done major changes in its administration method and its strategic planning. For instance, Nucor
Corporation left the conservative method of management and enters into market with new force and
planning.
Concepts:
Major concepts used in the case study of Nucor are following:
Horizontal merger:
Nucor has accepted the fact of the pressure they face it is not from domestic player only; it comes
from foreign competitors too. Nucor starts focusing on horizontal mergers to reduce its competitors
in the industry. Nucor focused on joint ventures and combined with Yamato Kogyo LTD to produce
its products in the structural steel industry. It turned out to be Nucor largest division (nucor.com,
2012)
Positioning:
Positioning means where a brand stands in the eyes of its target audience. Positioning helps the
marketers in giving them a proper strategy and makes the target audience view a brand in the same
manners. It focuses on priority or aim of the company. In the case of Nucor Corporation, it changes
its positioning and came up with new, innovative strategies and products for its potential buyers
(Brandeo.com, p. 2).
Public
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Nucor Driving Forces
What driving forces do you see at work in this industry? Are the likely to impact the industry's
competitive intensity and profitability favorably or unfavorably?
The driving forces in the steel industry would be technology evolution. The change in the steel
making technology has transformed the steel industry. Market growth has a huge impact in the
development of the steel industry, strategies, profitability, and efficiency. Market and competition is
a factor to consider when looking at the long run of this industry. New innovative technologies such
as advance computer systems, physical models, and artificial intelligence can be used and
incorporated in the steel manufacturing process. The economy also greatly affects the steel industry
as ... Show more content on Helpwriting.net ...
A competitive approach tends to be the best strategy for this commodity product industry. Nucor has
been successful in reaching relatively low production costs. Nucor has the ability to build plants
inexpensively but also operate them very efficiently. Nucor has a record of profitability even when
times are tough in the domestic steel industry, showing that Nucor has lower costs relative to other
steel producers. It could also be assumed that Nucor is cost competitive with foreign steel producers
trying to sell their products in the United States.
Is there any reason to believe that Nucor has achieved a sustainable competitive advantage over its
rivals?
Nucor's cost competitiveness is something they have developed over years. It seems as if a small
portion of domestic competitors if any at all even appear to have costs as low as Nucor. Nucor's
management teams have tried not to miss any opportunities to drive costs down in its business. This
would then provide Nucor with a sustainable low–cost advantage over its domestic competitors as
well as its foreign ones attempting to sell steel to customers in the United States.
Have Nucor's recent acquisitions over the past several decades contributed to their

Strengths And Strengths Of Nucor
Strengths of Nucor:
– Strong management team and strong leadership
– Efficient lean organization structure
– Has highly productive, motivated, innovative and non–union workforce
– Has risk taking culture
– Has highly productive technology for the mills
– The large size of the company provides Nucor with more bargaining power
Weaknesses of Nucor:
– Lack of diversification in international presence
– Rely too much on U.S. market, and all of Nucor's facilities and equipment are in U.S., so Nucor
faces more restrictions and expenses than in other countries
– Nucor lacks of internal R&D, which makes it too dependent on searching other's new technologies
Core competencies:
One of the core competencies is the management and culture. As mentioned in questions 2, Nucor
has decentralized and lean structure. Each division managers have their own autonomy, and thus
being able to operate in their own management styles in order to increase profit margins. The
excellent leadership and the decentralized culture are valuable for Nucor, and it is also rare and
difficult for competitors to imitate. In addition, they can bring long term benefits. Therefore, it is a
sustainable competency which passed VRIO test.
Another core competency is the commitment to employee intensive system. Nucor's employees are
highest paid in the steelmaking industry. The efficiency is rewarded by bonuses and the workforce in
Nucor are highly productive and innovative. Because the employees are treated very well,

Competitive Advantage Of Nucor
Nucor is one of the most the most gainful steel producers in North America. It possesses 18 plants,
produce 25 million tons of steel, and it successful was during both the 2005 and 2006.
–
Nucor creates value by giving the managers of each plant the independency in decision making that
mean, They should make the Decisions quickly without back or wait any orders or permission from
head office .Aldo they can use the resources from other plants or from the market Moreover, they
use modern equipment to produce high quality products in a competitive prices. And they try to
make good promotions for attracting their customers.
Regarding their competitive advantage, Nucor's managers apply an advanced technology and
processes such as Minimill, HIsmelt ... Show more content on Helpwriting.net ...
Moreover, they apply advanced new equipment and Technologies which raise the corporation.
The best strength factor for this corporation is the low cost strategy and the great relations between
employees and low attrition rates. In addition to that, they have a strong CSR Program
 Weakness
The weakness point for Nucor are uncaring to the challengers industry and multiplicity of
production.Moreover,the narrow location is also added to weakness points because the plants are
only in USA area that can increase the risk and increase the dependency on local
markets.Furthermore,it has a high shipping cost
 Opportunities
Nucor has big chances to improve and wide its name all over the world such as tries to apply
HISMELT Technology in Australia for example. Also, it should spread its name all over the world
by not only depending on local markets and establish plant outside USA .In addition to
opportunities, it will be a great chance to diverse the business and production
 Threats
The market of real state is declining which effect on the steel productions. And the main threat for
Nucor is the rising of China's steel

The Competitive Strategy Of Nucor
Nucor has created a company that is both internally and externally fit to the environment. The firm
responds well to the driving forces of the industry and has opted to take a low–cost strategy with the
relentless pursuit of innovation and strong employee productivity in order to combat the issues of
the steel industry. In 2000, Nucor decided to expand its operations by acquiring new firms and new
factories while continuing with its low–cost operations. The competitive strategy of Nucor has
helped it become one of the leading manufacturers of steel and steel products in the United States.
With the low–cost strategy in place Nucor has been able to have the most modern and efficient
factories in the country and is able to capitalize on plant capacity and expand to new markets. The
technology of the Castrip, the ability to directly strip cast carbon sheets of steel, allowed for reduced
amounts of capital expenses, higher amounts of savings, and cut Nucor's greenhouse emissions by
80%. The company also used its technological research to build state–of–the–art facilities that
helped it become the highest quality, low–cost provider. When looking at the PESTEL analysis,
Nucor has used technology in almost every facet of its business to pursue being the best low cost
provider. The firm has also used its expertise to become more ecofriendly, a major sociocultural
factor that is present in today's society and can lead to fines if companies are not compliant. The
innovation the

Nucor Case Analysis
Individual 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 bars, beams,
sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; and
metal building systems, the corporation was known as the most modern and efficient, having
streamlined organizational structure, ... Show more content on Helpwriting.net ...
More attention to own business than to competitors is their strategy. South magazine observed that
Nucor is "stripped down, no nonsense" organization. It keeps maintaining low cost and efficiency,
which is the key to making profit in steel industry, by keeping the employee force at the level it
should be, empowering them, being totally honest, involving them in decision making process, and
using effective incentive compensation system.
Nucor's ten year goals are:
Achieving average annual earnings growth of 10%–15%.
Exceeding return on capital
Maintaining minimum 14% return on equity.
Delivering 8%–10% return on sales.
Becoming market leaders of every product group and business where they compete.
Key Issues and Problems
 Growth in troubled steel industry. How to sustain Nucor's earnings growth in the industry, which

has many marginal competitors and production overcapacity.
 Market position. How to protect and establish Nucor's market position.
 Organizational structure. Need for expanding size of executive management team and adding new
corporate layers in the corporation.
 Human Resource Management. Need for reanalyzing employee wages and bonus system.
Finances
A typical Gross profit margin depending on the industry may be 25 to 30%. Nucor's Gross profit
margin ratio indicates that industry is intense and cost of goods is one of the main of factor in
profitability. After examining the five year

Nucor at a Crossroads
Nucor at a Crossroads Case Analysis
In 1986, three distinct segments defined the U.S. steel industry; integrated steel mills, mini–mills,
and specialty steel makers. The integrated mills have the capacity to produce a maximum of 107
million tons of steel per year, mini–mills produced a maximum of 21 million tons of capacity a year,
and the nation's specialty steel makers could produce a maximum capacity of 5 million tons of
stainless and specialty grades of steel. This leads to a total capacity of 133 million tons of
production per year. In 1986, the market consumed only 70 million tons of steel, leaving 33 million
tons unused. Nucor is at a crossroads. It faces a saturated market suffering from significant
overcapacity. Nucor's ... Show more content on Helpwriting.net ...
Fourth, base wages were lower but incentives were higher than average, and direct communication
on expectation vs. performance provided feedback on compensation. Also, during down times,
officers and CEO pay dropped dramatically while average workers did not. This led to lower
employee turnover 1–5% vs. 5–10% for competitors. Fifth, Nucor's hiring practices focused on
making sure that they focused on hiring people based on potential, not experience. Finally, Nucor's
business hierarchy was different– mostly flat, resulting in less bureaucracy and more productivity
per worker. In short, many of these advantages led to Nucor becoming the second most productive
steel maker per employee in the world due by 1985.
Thin–slab casting was a proposed technique for mini–mills to fill orders for flat sheet steel, a
segment that accounted for approximately half of the U.S. steel industry. To expand its steel market
share, Nucor needed to enter the flat sheet segment. In the thin–slab casting business, Nucor would
initially compete with international firms from Canada and Japan that provided high quality flat
sheet steel, and cheap flat sheet steel providers in newly industrialized nations. Barriers to entry
would include large capital expenditures making new entrants cost prohibitive, but not impossible as
the barrier is small comparative to the overall costs for steel manufacturing.

Nucor Weaknesses
Nucor Corporation is the second largest steel manufacturer in the United States. Nucor's approach to
steel production and steel products is predicated upon drastically undercutting both foreign and
domestic competition, risk–taking, and visionary thinking. Nucor launched the steel mini–mill
industry in the late 1960s (Reference for Business, 2017). Since then, mini–mills have increasingly
edged the large mix steel companies out of most steel markets and led by Nucor in the late 1980s.
Nucor's is headquartered in Charlotte, North Carolina. Nucor have made a bold entry into the flat
rolled steel market, which a lot of manufactures use, and the last domain of big steel. Nucor has
remained profitable and a great growth rate in the difficult field and in a virtually non–growth
industry. It is also striving to supplant U.S. steel as the nation's number one steelmaker by ... Show
more content on Helpwriting.net ...
Some of their strengths are Nucor's unique management philosophy and Nucor's innovation. Nucor's
management philosophy really helps bring the best out of their workers. They allow their workers to
make decisions in the work place. Workers also have their wages connected to their productivity and
receive far higher wages than the average in their state. Nucor avoided laying off their employees
during 2008 and seek alternative means to control labor cost and this has helped loyalty with their
workforce. Nucor does a great job of staying ahead of the industry. Its innovation is years ahead of
their competitors. "They stood at the front of the mini mill technology" (UKessays, 2015) which
changed the industry for good and the new technology is always studied to help ensure that Nucor
stays ahead of the competition.
Weakness
Nucor may have some great strengths, but they also have their own weaknesses. Their two
weaknesses are exposure to fluctuation in price of scrap steel, and lack of market

Case Study on Nucor Corp
Case 2: Nucor Corporation: Competing Against Low–cost Steel Imports
The Company, Nucor Corporation, started its operation in nuclear instrument and electronics
business in early 1950s to early 1960s. Facing bankruptcy, the board of directors opted for a new
leadership and appointed Kenneth Iverson as president and CEO. He concluded that to be able to
avert bankruptcy is to exit the nuclear instrument and electronics business and rebuild the company
around its subsidiary, Vulcraft, which is engaged in steel joist business. After its integration, it has
expanded its operation in steelmaking seeing opportunities on newly emerging technology to
produce steel more cheaply.
At the turn of the century, Nucor was the second largest steel ... Show more content on
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These strategies have been very effective in terms of expanding its resources as well as
conceptualization of new technology (using electric arc furnace as alternative to conventional
furnace) and improvement of plant efficiency thru equipment upgrades. The usage of the technology
has allowed low investment cost for facilities and equipment that eliminated expensive steps in steel
making. Also the use of scrap materials has lessened the purchase of ore for steel making.
Furthermore, joint ventures have given them option to join global market of steel producers.
However, Nucor should be also wary on possible entrants that could offer low cost steel which
might be a reason for a loss of customers which in–turn loose potential income and worst cut jobs.
Steel, being a commodity that is dictated by market demand, has been changing continually. But
being a low cost provider, it has resulted to numerous customers entering into non–cancellable
contracts.
Organization and Management in Nucor had a simple and streamlined structure to allow employees
to innovate and make quick decisions. The company was highly decentralized with most day–to–day
operating decisions made by division or plant level managers and their staff. When someone is
performing below expectations in

Nucor Steel
Nucor Corporation
Introduction
Nucor Corporation, the largest U.S. mini–mill, continues to gain market share in flat roll and strip
steel. Recent successful acquisitions, application of new technologies, prospects for global growth, a
strong balance sheet, as well as improved economic outlook for the steel industry, make Nucor an
attractive buy with a near term stock price target of $65 to $70.
Background
Nucor Corporation (NUE) was founded by auto manufacturer Ranson E. Olds. Through a series of
permutations the company evolved into a nuclear instrument and electronics business, known as the
Nuclear Corporation of America before regaining its focus in the steel business and changing its
name to Nucor Corporation in 1972. In ... Show more content on Helpwriting.net ...
Recently NUE has also completed projects that allow it to produce a combined additional 1,000,000
tons of steel product annually. This represents a fraction of the $200,000,000 spent in 2004 to
upgrade its production facilities. New U.S. production facilities have also been completed. These
include a steel plate mill in North Carolina and a deck plant in upstate New York as well a Castrip
technology production facility in Indiana. Current efforts are underway to build another Castrip
plant in the U.S. as well as another overseas.
NUE has pursued successful acquisitions. In March 2001 Nucor Steel purchased Auburn Steel
Company and acquired a 470,000 tons–per–year merchant bar, rebar and special bar quality steel
mill. This mill was a good strategic fit with Nucor 's joist and deck plant nearby. With Nucor
management in place, the Auburn Steel Mill set a 26–year production record with continued growth
from 2001 through 2004. In July 2002, Nucor purchased the former Trico Steel Company. This
acquisition increased its flat rolled steel production and is building market share in this segment.
The initial production of this plant at purchase was 1.2 million tons per year and the expected
production for 2005 is 2.1 million tons. This acquisition increased Nucor 's sheet metal capacity by
over a third. In December 2002 NUE purchased Birmingham Steel for $615 million in cash. The
four Birmingham Steel bar mills increased NUE 's

Nucor Essay examples
INTRODUCTION Decisions form the basis of strategy. Each firm must make choices regarding
what resources and capabilities to invest in, as well as what to do with such resources and
capabilities in order to achieve sustainable competitive advantage. The star of this week's case,
Nucor Steel, finds itself at a critical inflexion point: Should it invest in a new steel mill to
commercialize thin–slab casting? This paper examines why Nucor is considering making such an
investment and what risks are involved if they choose to adopt the technology. Based on this
analysis, the paper will conclude with a recommended path for Nucor Steel. YOU CAN NEVER BE
TOO RICH OR TOO THIN The flat sheet segment accounts for 52% of the U.S. market for steel.
The ... Show more content on Helpwriting.net ...
The technology permits efficient entry into the flat sheet segment on a much smaller scale, allowing
minimills to compete for a slice of the hitherto forbidden flat sheet market. Without entry into the
flat sheet segment, minimills are forced to compete for niches in the non–flat categories or to stake
out geographic strongholds. In 1983, Nucor experienced its first sales decline under CEO Ken
Iverson – perhaps a telling sign that the company must expand outside of its traditional focus.
FLIES IN THE OINTMENT The promise of thin–slab casting is indubitably enticing, but is it
practicable? What are the risks that could throw a spanner in the steel works? Technological Chief
among the risks is the uncertainty surrounding the very technological viability of thin–slab casting.
The two most promising approaches in the 1980's were the Hazelett Caster

Nucor: Company Overview
Question 1
Gross profit margin
Gross profit margin is simply gross income (revenue less cost of goods sold) divided by net revenue.
The ratio reflects pricing decisions and product costs. The gross margin for the company shows that
% of revenues generated by the firm are used to pay for the cost of goods sold.
For most firms, gross profit margin will suffer as competition increases. If a company has a higher
gross profit margin than is typical of its industry, it likely holds a competitive advantage in quality,
perception or branding, enabling the firm to charge more for its products. This means that Nucor
holds a better competitive advantage than US Steel in the market.
Alternatively, the firm may also hold a competitive advantage in product costs due to efficient
production techniques or economies of scale. If a company is a first mover and has high enough
margins, competitors will look for ways to enter the marketplace, which typically forces margins
downward. ... Show more content on Helpwriting.net ...
For example, if the operating margin is 8.8%, which suggests that for every $1 of revenues
generated, about $0.09 is left after deducting cost of goods sold and operational expenses. Operating
expenses include costs such as administrative overhead and other costs that cannot be attributed to
single product units.
Operating margin examines the relationship between sales and management–controlled costs.
Increasing operating margin is generally seen as a good sign, but investors should simply be looking
for strong, consistent operating margins. After comparing Nucor and US Steel, Nucor is doing better
than US Steel. However, both companies should look for stronger, consistent operating

Nucor Case Analysis
Individual 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 bars, beams, sheet, and plate; steel joists and joist girders; steel
deck; cold finished steel; steel fasteners; and metal building systems, the corporation was known as
the most modern and efficient, having streamlined organizational structure, incentive–based ... Show
more content on Helpwriting.net ...
The COGS was only 85.53% of Nucor's Net Sales in 1997, whereas in 1999 and 1998 it was one
percent bigger. Also, we can see quite good financial ratios in 2000. Although there were no specific
technologies implemented in Nucor operations, the increase in profit margins probably was due to
bankruptcy of Benthlem Steel Corp. and LTV Corporation, which were for 25% of U.S. steel
making capacity. Nucor's financial statements indicate the fall of Gross profit margin in 2001. Even
the sales are increasing (change is 11.7%), revenues are declining significantly (change is 7.6%)
comparing to prior year. Worldwide excess of steel capacity have dropped composite sales price per
ton for Nucor to $340. It was a big price–cutting because price per ton has been standing around
$430 for the last five years. Therefore, Nucor's projected EBIT for the year 2001 would be about
60% less than in 2000. Profit margin ratios indicate that Nucor's finances are strong and healthy. The
fact that company manages to operate profitably under the conditions of worldwide overcapacity of
steel and huge price–cuttings talks for itself. However, if the prices keep decreasing Nucor will not
be able to operate so profitable or even it can get bankrupt. Possible solutions for the problems in
Finances.  The way that makes sense for Nucor to improve their finances is by decreasing COGS.
It can be achieved by rearranging employee wages

Essay on Nucor Corporation Analysis
Nucor Corporation: Competing Against Low–Cost Steel Imports
Group E
Charisse Cohen
Valarie Lindsey
Teshaunte Lyons
Billy Ray Richardson
MGT 590: CAPSTONE–COMPETING GLOBALLY
Dr. Raman Patel – Professor
August 17, 2009
Nucor Corporation: Competing Against Low–Cost Steel Imports
Written Analysis
Executive Summary
This report discusses the challenges that The Nucor Corporation faces during this era of social and
economic climate change. Using Porter's Five Forces Analysis and Four Generic Strategies, we will
assess the steel industry standards as it relates to the strategies implemented by the Nucor
Corporation. We will also assess what Nucor's strengths and weaknesses are, and if they will be able
to continue ... Show more content on Helpwriting.net ...
In light of the surplus steel products in the U.S., Nucor along with other steel producers had to lower
their prices in order to compete with the extremely low priced foreign steel that flooded the U.S.
market. Nucor was not adversely affected by the price change; in fact they were able to maintain
their financial health (Thompson, 2007).
FIGURE 1.2 [pic]
What driving forces do you see at work in this industry? Are they likely to impact the industry's
competitive structure favorably or unfavorably? (Did we answer this question?)
The driving forces that are at work in the steel industry are foreign steel producers, new

opportunities for the uses of steel, and growth in worldwide demand for steel. Although, the U.S.
steel industry experienced some relief from the dumping of foreign steel producers, the dumping
was still remained a force that was problematic in the steel industry. As seen above, the steel market
is primarily controlled by the foreign steel producers. The anti–dumping and countervailing duty
orders and suspension agreement, covering imports of hot–rolled steel in, was extended for 5 years
to alleviate some of the harm resulting from the influx of steel in the U.S. market. This extension
was initiated to help keep the surplus of steel products in the U.S. at bay. This particular driving
force can and has adversely affected the steel industry.
FIGURE 1.3
[pic] There were

Nucor Swot Case Study
Mission Statement
The following is Nucor's Mission Statement from their company website:
Nucor Corporation is made up of 17,300 teammates whose goal is to "Take Care of Our Customers."
We are accomplishing this by being the safest, highest quality, lowest cost, most productive and
most profitable steel and steel products company in the world. We are committed to doing this while
being cultural and environmental stewards in our communities where we live and work. We are
succeeding by working together.
Strategic Profile and Case Analysis Purpose Nucor is a leading steel manufacturer and recycler in
the United States. Their headquarters are located in Charlotte, North Carolina, and the company is
made up of about 17,300 ... Show more content on Helpwriting.net ...
The steel industry is also a predominately male–led industry. This is evident by Nucor's leadership
circle, and executives, where only one woman is present. This lack of diversity has an impact on the
industry, and limits the potential of the industry with a mainly male run workforce.
Technological There have been many advances in the steel industry, especially many from Nucor.
Although the steel industry hasn't typically been seen as a technological industry, a lot of technology
is needed to run the equipment and milling processes. A new development is the twin shell electric
arc furnace, which would help mini–mills increase production, lower costs, and take market share,
according to the case study. The article goes on further to describe the most important advances in
technology, saying, "Today's most productive steelmaking facilities incorporate advanced
metallurgical practices, sophisticated process–control sensors, state–of–the–art computer controls,
and the latest refinements in continuous casting and rolling mill technology." Technology is needed
to make the best products in the most efficient manner, and the steel industry will see more efficient
and positive changes as technology gets better.
Environmental
Clean air laws are the main issues involving the steel industry. The Environmental Protection
Agency has enacted many federal and state clean air rules as steel

On December 7, 1986, F. Kenneth Iverson, chairman and chief executive officer (CEO) of Nucor
Corporation, awaited a delegation from SMS . Iverson had to decide whether to commit Nucor to a
new steel mill that would commercialize thin–slab casting technology developed by SMS.
Preliminary estimates indicated that the mill would cost $280, and that start–up expenses and
working capital of $30 million each would push the total cost to $340 million.
Successful commercialization of thin–slab casting would let Nucor enter the flat sheet segment that
accounted for half the U.S. market for steel.
The U.S. Market for Steel
In 1986, U.S. producers shipped 70 million tons of steel mill products. Subtracting exports of one ...
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By the second half of the 1970s, the market for low–end structural products was beginning to reach
saturation. Minimills responded by looking for new market outlets. The more aggressive ones
expanded beyond their traditional 200–300 mile, typically by acquiring existing mills or by adding
large new ones with up to several hundred thousand tons of steelmaking capacity. They also began
to move into new product segments.
They accounted for 16% of domestic steelmaking capacity. up from 7% in 1975. and a slightly
higher percentage of domestic shipments. While 36 companies operated a total of 51 mini steel
plants, 43% of all minimill steelmaking capacity was controlled by the five largest competitors:
Nucor Corporation
Nucor 's roots went back to 1904 when Ransom Eli Olds, resigned from Olds Motor Works, It
emerged from reorganization as Reo Motors, a manufacturer of trucks and, eventually, luxury
lawnmowers. Reo Motors neither made nor lost much money. In 1954, it sold off all its assets, at a
15% book loss, and began to distribute the proceeds–approximately $16 million–to its shareholders.
Takeover prevented Reo from

MGMT XXXX–XXX
Nucor's Historic Performance, Competitive Advantage, and Five Forces Analysis
With roots dating back to 1904 in the automobile manufacturing industry, Nucor's business strategy
has morphed many times over the course of the past century in response to struggling sales and
unrealized business strategies. Since F. Kenneth Iverson's appointment as Nucor's President in 1965,
however, Nucor has performed very well. With a focus on efficiency, Nucor is committed to
minimizing bureaucracy and maximizing performance and productivity via the utilization of an
open–door/continuous improvement/ entrepreneurial culture, a compensation scheme premised on
performance–based ... Show more content on Helpwriting.net ...
Threat of Substitutes – The threat of substitutes facing Nucor was moderate. On one hand, although
demand for steel had declined in recent years as noted above, it was not predicted to decline further
as of 1986. On the other hand, with the advent of materials such as aluminum, plastic, and
composite materials, especially in automobile industry, the threat of substitutes in the market was on
the rise.
New Entrants – Notwithstanding that 36 companies were competing in the mini–mill industry, much
of the market was controlled by the top five, the second of which was Nucor. With competition
levels high in this industry and with costly barriers to entry (i.e., building a steel plant), the prospect
of new entrants facing Nucor was relatively low.
Degree of Rivalry – The degree of rivalry facing Nucor was high, not only in light of domestic
competition, but particularly due to vigorous price–competition from abroad, and –as a general
proposition – the relative lack of differentiation in the product itself.
The key to Nucor's relative prosperity in this industry was its competitive advantages over
integrated steelmakers and other mini–mills:
Technology – Nucor had a practice of constantly upgrading its facilities. Since the early 1970s,
Nucor built or rebuilt at least one steelmaking or fabrication facility each year. This ensured that it
was using the most current technological improvements, which thereby helped reduce its

Nucor Strategic Analysis
TABLE OF CONTENTS
Industry Analysis 3
Competitive pressures in the industry 3
Industry Segmentation 4
Supply Chain 4
Potential growth 4
PROFIT POTENTIAL and Market Power 5
INDUSTRY overview 5
Competitor Analysis vs Nucors CompetItiveness 5
Company Position Analysis 9
Understanding Nucor VISION AND VALUES 9
Understanding Nucor Core Competencies 10
UNDERSTANDING NUCOR 'S COMPETITIVE ADVANTAGE based on resources 11 cURRENT
ISSUES FACING THE COMPANY 13 pROPOSSED SOLUTIONS TO STAY ON TOP 14
RECOMMENDATIONS BASED ON CORE COMPETENCIES 16
Relation to practice 16
References 17
Appendices 18
INDUSTRY ANALYSIS
COMPETITIVE PRESSURES IN THE INDUSTRY
Michael Porter provides a framework that models an industry as being ... Show more content on
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Decline is expected, as car manufacturers are requiring less steel for the automotive industry.
However with the innovation and an appropriate market–product combination, demand can be
stimulated.
PROFIT POTENTIAL AND MARKET POWER
Economists consider financial performance as an indicator of market power. In a competitive
market, like the steel industry firms are unable to charge prices extensively higher than cost. Thus
the industry as a whole does not make an above–normal return.
INDUSTRY OVERVIEW
Industry conditions indicate that companies should not expect short–term profits. COMPETITOR
ANALYSIS VS NUCORS COMPETITIVENESS
There are a very large number of mini–mill companies in the industry with a few large integrated
mills. In 1996 Nucor had the eight highest sales in the industry and the seven highest position on $

return per fixed asset. Nucor has two 2 competitors that has comparable sales figures but with a
higher $ return per asset.
Rouge Steel and Allegheny are the most powerful competitor competitors based on the financial
information available.
COMPETITORS RATED ON $ SALES GENERATED PER PLANT, PROPERTY AND
EQUIPMENT Extraction from Annexure 1
COMPETITORS RATED ON % OF INDUSTRY SALES Extraction from Annexure 1
GRAPHICAL PRESENTATION OF COMPETITORS RATED ON % OF INDUSTRY SALES
Nucor captured 4% of the market based on the sales figures–1996
GRAPHICAL

Nucor Executive Summary
Strengthen our position as a low cost producer. The objective of a company using a low–cost
provider strategy is to sell its products at the lowest possible price to attract customers. This is
known as a price advantage. Companies using this strategy will typically earn low margins but
achieve high sales volumes. Low–cost providers aim their products at the broad market, making
them appeal to as many consumers as possible to achieve high sales volume. To achieve a low–cost
edge over rivals, a firm's cumulative costs across its overall value chain must be lower than
competitors' cumulative costs. There are two major avenues for accomplishing this: 1. Performing
essential value chain activities more cost–effectively than rivals 2. Revamping the firm's overall
value chain to eliminate or bypass some cost–producing activities. ... Show more content on
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Nucor's sheet steel mills experienced higher margins and capacity utilization rates compared to the
previous year. The company's raw materials team did excellent work to optimize iron unit costs for
their steel mills, maintaining Nucor's position as the low cost producer. In 2016, Nucor also took an
important step in advancing their raw materials strategy. A key to the long–term success of this
strategy is access to low cost natural gas. To that end, in the third quarter of 2016 they concluded
several transactions related to their natural gas supply agreements with Encana Oil & Gas (USA)
Inc., which will result in a lower cost and more flexible natural hedge against higher natural gas
costs for their Louisiana Direct Reduced Iron (DRI) facility and their core steel making

Nucor Essay
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 understand their competitive edge in the industry is lowering prices through innovation and
productivity. The company operates primarily in two business areas, steel mills and steel products.
Steel Industry Outlook
Driving Forces:
„« Globalization – Low cost foreign manufacturers "dumping" steel in ... Show more content on
Helpwriting.net ...
Porter's Five Forces:
„« Competition – as stated earlier, competition is fierce and foreign competitors are dumping steel.
„« Barriers to entry are typically high, it requires a very large amount of money and expertise to
enter the industry. The industry is consolidating not growing.
„« Substitute products – plastics and other components have taken market share from steel and will
continue to do so.
„« Seller–Buyer – since there is such heavy competition in the industry and there is excess capacity
it is a buyers market.
„« Supplier Seller – Nucor is heavily reliant on the producers of iron ore and scrap.
Company Resources
Strengths – Most profitable steel company in the U.S., highly productive, non–union workforce,
technological/innovation leader in the industry, decentralized management structure, financial
strength
Weaknesses – heavy reliance on the U.S. market, highly cyclical industry, decentralized support
structure.
Opportunities – global market, global economy & steel market is growing, financial strength to
acquire companies after an industry downturn after bankruptcy
Threats – heavy competition in the industry, foreign manufacturers dumping products in the U.S.,
environmental compliance costs
Future Strategy and Goals

„« Nucor has close to $1 Billion in cash on its balance sheet. While earnings outlooks are still good,
they should continue to raise dividends and

Nucor
INTERNATIONAL BUSINESS SCHOOL
UNIVERSITI TEKNOLOGI MALAYSIA
CITY CAMPUS, KUALA LUMPUR
HUMAN RESOURCE MANAGEMENT
GROUP ASSIGNMENT
Case 3: The Art of Motivation
NUCOR
LECTURER:
ASSOC. PROFESSOR DR ROSMINI OMAR
|CHAN LI WUEN |MR 091104 |
|rashidah yusof khan |MR 091070 |
|SURAYA IZANI BINTI KAMARZAMAN |MR 081152 |
|PrAveen nagaraja ... Show more content on Helpwriting.net ...
In order to sustain its competitiveness and profitability, Nucor shall consider going global.
Generally, the criteria needed for Nucor to go global are intellectual capital, psychological capital
and social capital.
Next, Nucor have to implement 5 new strategies to make it more global which are playing big in
major markets, standardizing the core product, concentrating value–adding activities in a few
countries, adopting a uniform market positioning and marketing mix and integrating competitive
strategy across countries. Then Nucor shall plan the company human resource by implementing
strategies like centralization of global authority, domestic/international split and mixture between
the local and current manager.
In short, looking at the good culture that Nucor have now (i.e. performance based culture,
teamwork, ownership mindset, good pay system, knowledge based etc.), there is no doubt that
Nucor can be successful abroad.
2. CASE OVERVIEW The case NUCOR : The Art of Motivation holistically describes how

NUCOR is able to manage people, strategize its business and adapt to changing economy situation.
In the case study, NUCOR is described as a company that runs business on 3 separate segments
which are Raw Materials, Mill Operations and products developed out of steel. The management
style at NUCOR is particularly remarkable. Its flattened management landscape poses and
empowerment to both front liners of its mills and the ability of

Study on Nucor Corp.
An Organization's productivity and efficiency depends to a large extent on what employees think or
perceive about their organization. It is a well–known concept that "If you keep your employees
happy, they will make your customers happy". So to make them happy or motivated, challenging
jobs, tasks, assignments are to be provided along with better or superior environment to excel in. As
a result, we can have two benefits; on one hand it will enhance the employees' job experience and on
the other hand organization's productivity will increase. Turnover and absenteeism will be low,
employee commitment will be high. In short, job satisfaction and dissatisfaction play a major role
behind overall employee motivation. Herzberg's Motivator–Hygiene ... Show more content on
Helpwriting.net ...
| Responsibility | * Each employee of the company hold a certain level of the responsibility. They
are self–directed and committed to the company. They take risk on their own tries their level best to
ensure profitability for the company. It is because they will suffer if the company does bad. "In
average–to–bad years,we earn less than our peers in other companies. That's supposed to teach us
that we don't want to be average or bad. We want to be good. | Advancement & Growth | *
There's always room for improvement at Nucor. Each employee has an opportunity of advancing
his/her career through better performance. At Nucor there is no production ceiling or output barrier
or restriction. Very high co–operation exists among the managers and workers. Such a congenial
environment fosters advancement and growth. And the company excels towards progress and
developmen
Analyzing Nucor's Hygiene and Motivational factors; we see that hygiene factors at Nucor are
organized in such a way that negative feelings towards work environment are absent or very less.
This implies that no job dissatisfaction exists there and even if exists it is very low. At the same time
motivational factors are present so job satisfaction comes in the mind of employees, which
ultimately reduces turnover, absenteeism, develops commitment and improves job performance.
This implies that there is job satisfaction among the workers and it is more likely that they think of

Study on Nucor Corp.
An Organization's productivity and efficiency depends to a large extent on what employees think or
perceive about their organization. It is a well–known concept that "If you keep your employees
happy, they will make your customers happy". So to make them happy or motivated, challenging
jobs, tasks, assignments are to be provided along with better or superior environment to excel in. As
a result, we can have two benefits; on one hand it will enhance the employees' job experience and on
the other hand organization's productivity will increase. Turnover and absenteeism will be low,
employee commitment will be high. In short, job satisfaction and dissatisfaction play a major role
behind overall employee motivation. Herzberg's Motivator–Hygiene ... Show more content on
Helpwriting.net ...
But for the company their contribution was huge. * It has become a standard procedure for the
Nucor's worker to visit their counterparts time to time and through co–operation and idea–sharing,
developing a healthy competition aim towards greater common goal–'more production more bonus' |
Work Environment | * At Nucor, work is always team based. It's not the CEO and other top
managers' organization; it's also the common workers' organization. Following comment of one
worker testifies the ultimate truth "At Nucor we are not 'you guys' and 'us guys'. It's all of us guys.
Wherever the bottleneck is, we go there, and everyone works on it" | Well–organized Management |
* Through continuous process of trial and errors, improvement action Nucor's management has
found a way to safety efficiency increased output, cost reduction and profitability. "They've got
everything down to a science; it gives something to shoot for". Although they have taken the essence
of scientific management, negative outcomes of such type of management (job dissatisfaction, poor
mental health, higher level of stress, and low sense of accomplishment and personal growth ) have
been avoided through profit sharing and bonuses and by promoting commitment and dedication
among the workers. | Top to bottom open system | * At Nucor, open system prevails from top to
bottom. even the CEO is accountable to the common workers; he talks to them takes, takes

Nucor Corporation Issues
Nucor Corporation is made up of 11,500 teammates whose goal is to "Take Care of Our Customers."
We are accomplishing this by being the safest, highest quality, lowest cost, most productive and
most profitable steel and steel products company in the world. We are committed to doing this while
being cultural and environmental stewards in our communities where we live and work. We are
succeeding by working together.
Nucor 's History
Nucor Corporation is the largest steel producer in the United States and had net sales of $12.7
billion in 2005. Nucor is the nation 's largest recycler. In 2004, Nucor recycled approximately 17
million tons of scrap steel, with 5 million of those tons being automobiles. Nucor 's origins are with
auto ... Show more content on Helpwriting.net ...
and its wholly owned subsidiary, Steel Truss and Frame Corp. The name change of Nucon Steel
Commercial Corporation happened in 2002. Also in 2002, Nucor completed the purchase of
substantially all of the assets of Birmingham Steel Corporation, which includes four operating bar
mills in Alabama, Illinois, Washington, and Mississippi. Also in 2002, Nucor 's wholly owned
subsidiary Nucor Steel Decatur, LLC purchased substantially all the assets of Trico Steel Company.
This sheet mill is located in Decatur, Alabama. In 2004, Nucor 's wholly owned subsidiary, Nucor
Steel Tuscaloosa, Inc., purchased substantially all the assets of Corus Tuscaloosa, which is a plate
mill located in Tuscaloosa, Alabama. In February 2005, Nucor purchased the assets of Fort Howard
Steel, Inc. 's operations in Oak Creek, Wisconsin. This facility is a producer of cold finished bars. In
the second quarter of 2005, Nucor purchased substantially all of the assets of Marion Steel Company
located in Marion, Ohio. Nucor 's most recent acquisition happened on May 1, 2006, when we
completed the purchase of substantially all of the assets of Connecticut Steel Corporation.
The third of the four part strategy is to continue Greenfield growth via the commercialization of new
technologies. We have now successfully commercialized the Castrip process at our Crawfordsville
facility. Castrip is the world 's first production installation with a direct strip

Case Analysis Of Nucor
Introduction
Ever since 1966 when Nucor was on the brink of facing insolvency, the company adopted a cost
leadership strategy under Ken Iverson's management stretching over to the 21st century. With
reference to Porter's Three Generic Business Strategies, Nucor exploited a cost advantage to serve a
broad market including local and foreign OEMs, fabricators and consumers in the construction,
automotive, appliance, oil and gas industries. When determining its business strategy, Nucor has
successfully aligned its external and internal environment by assessing the opportunities and threats
while considering the feasibility and sustainability of the strategy in its internal environment. Its
strategy has allowed Nucor to remain profitable without ... Show more content on Helpwriting.net ...
Within its value–chain primary activities, Nucor focused on the operations' efficiency by having
continuous casters which reduce additional processes and capital investment while increasing
productivity for its operations. This allowed Nucor to produce steel at competitive margins relative
to its competitors and imports. In terms of its supply–chain management, Nucor also managed its
own fleet of approximately 150 trucks for on–time deliveries of materials. To reduce freight costs,
plants were intentionally located near markets in rural areas to have products closer to its customers.
With a cost leadership strategy, Nucor also placed emphasis on tight cost control by terminating
unprofitable divisions and saw no use in internal advertising, R&D, legal and environmental
departments within its value–chain. These services were provided by external contractors and
investors with greater expertise. To further minimise costs as an alignment to the strategy, Ken
Iverson's receives the lowest yearly pay among all CEOS in Fortune 500 with no corporate luxuries
such as corporate planes and country–club memberships for the

Case Study Art of Motivation
HUMAN RESOURCE MANAGEMENT
THE ART OF MOTIVATION
Human Resource Management MRB 2032
Case Analysis 3
THE ART OF MOTIVATION
EXECUTIVE SUMMARY
This article is about the art of motivation in Nucor, about strategy and action plan to motivate the
people such as talking to them, listening to them, taking a risk on their ideas, and accepting the
occasional failure. It 's a culture built in Nucor with symbolic gestures with unblinking focus on the
people on the front line of the business in order to maximize profitability. Nucor has foster one of
the most dynamic and engaged workforces around. The nonunion employees at Nucor don 't see
themselves as worker bees waiting for instructions from above. Nucor 's organizational structure ...
Show more content on Helpwriting.net ...
Nucor was the first in the industry to adopt a number of new products and innovative processes.
Nucor's strategy can be elaborated as follows;
Performance Based Compensation Strategy
Compared to the other competitors Nucor provided employees with a performance–related
compensation system. All employees were covered under one of four basic compensation plans,
each featuring incentives related to meeting specific goals and targets. 1. Production Incentive Plan.
Employees those directly involved in manufacturing were paid weekly bonuses based on actual
output in relation to anticipated production tonnages produced. The bonuses were paid only for work
that met quality standards and were pegged to work groups, rather than individual output. Bonuses
were tied to attendance and tardiness standards. If one worker's tardiness or attendance problems
caused the group to miss its weekly output target, every member of the group was denied a bonus
for that week. If they are late, even only five minutes, they lose their bonus for the day. If they are
thirty minutes late or they are absent for sickness or anything else, they lose their bonus for the
week. 2. Department Manager Incentive Plan.
Nucor's department managers oversaw the production supervisors and, in turn, reported directly to
the general manager of their plant. They earned an annual incentive bonus based on

Harvard Business School
9–793–039
Rev. January 20, 1998
DO
On December 7, 1986, F. Kenneth Iverson, chairman and chief executive officer (CEO) of Nucor
Corporation, awaited a delegation from SMS Schloemann–Siemag, a leading West German supplier
of steelmaking equipment, at his company's headquarters in Charlotte, North Carolina. Iverson had
to decide whether to commit Nucor to a new steel mill that would commercialize thinslab casting
technology developed by SMS. Preliminary estimates indicated that the mill would cost $280
million, and that start–up expenses and working capital of $30 million each would push the total
cost to $340 million, or nearly as much as Nucor's net worth. Successful ... Show more content on
Helpwriting.net ...
A significant percentage of the steel sold to service centers found its way to end–users in the
automotive sector and the appliance and equipment industries. Taken together, these three customer
groups accounted for half of total domestic shipments and three–quarters of the shipments of flat
sheet. Service centers emphasized the most basic form of flat sheet, hot–rolled sheet, whereas the
others' direct purchases were weighted toward cold–rolled and coated sheet that had been subjected
to further primary processing. Construction accounted for another one–tenth of shipments of all steel
mill products and of flat sheet. Price, quality and dependability were the three most important buyer
purchasing criteria. Uncompetitive pricing was probably the major reason U.S. steelmakers had lost
ground to imports. Integrated steelmakers had been criticized, in particular, for charging excessive
premia in periods of tight supply, pressing buyers to purchase higher–grade steel than they needed,
requiring minimum orders that were too large for many buyers and arbitrarily favoring some buyers
over others. Quality had several dimensions: internal quality, as determined by metallurgical
structure and physical strength, which mattered most when durability was important; surface quality,
which was a major concern in uses

Essay on Nucor Case Analysis
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 on Helpwriting.net ...
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 company

Nucor
Table of Contents
A. EXECUTIVE SUMMARY
B. Nucor (NUE) was ranked the first of steel producer in the U.S., and the first "mini–mill" operator,
with operating facilities in 14 states. Nucor's products include sheet steel, bar, structural, plate and
others. The company was known for its aggressive pursuit of innovation and technical excellence,
rigorous quality system, environmentally friendly products. Nucor's core strategy is that of cost
leadership through the use of technology; it is known as being the low–cost provider. Most business
is conducted in the U.S., but the company does have foreign operations and looks at international
expansion as a strategic opportunity.
C. In the early of 2000, Nucor followed growth strategies ... Show more content on Helpwriting.net
...
Iverson was a leader who walked the talk. He proved himself as a "Master in crafting and executing
a low–cost leadership strategy and he made a point of making sure he practiced what he preached".
In 1968, Nucor integrated backward into steelmaking due to the benefits of supplying its own steel
requirements for producing steel joists and the opportunities to capitalize on newly emerging
technologies to produce steel more cheaply. Until now, Nucor Corporation is one of the largest steel
producers and the largest steel scrap recycler in North America. Nucor Corporation remains
Operation as series of low–cost, highly productive steel mini mills utilizing scrap and Metallic Raw
Materials, together with Technology as Electric Arc Furnaces.
II. Main problems identification
I. In the recent decade, Nucor Corporation has faced to several challenges which lead them to
change their strategies or adapt new ones. In the scope of this report, main problems of Nucor
Corporation will be analyzed comprehensively with the aim of reaching the most reasonable
recommended solutions.
1. The increase of rival's production capacity
J. Nucor competed in the markets for a wide variety of finished steel products and unfinished steel
products, plus the markets for scrap steel and scrap substitutes. In detail, competition for

Nucor Corporation Case Essays
Assignment #4: HRM Issues/Diversification Strategies: Nucor Corporation
Strategic Management, Business 599
Introduction In this paper, we will present an analysis of Nucor Corporation in Case # 10 (Arthur,
Strickland, & John, 2010). The paper will discuss the trends in steel industry and how it may impact
Nucor's strategy. In addition, the paper will describe the organizational and management philosophy
at Nucor. Furthermore, the paper will identify 3 HRM issues related to strategy implementation and
recommend actions to address these issues. Recommendation whether a related or unrelated
diversification should be used will also be discussed. Finally, we will be looking at Organizational
structure issues the company ... Show more content on Helpwriting.net ...
manufacturing GDP. The industry has undergone a major transformation since its recession during
the late 1980s, investing in new process and product technologies and closing older mills. Today's
steel industry is technologically sophisticated, employing over 189,000 American production
workers in jobs paying about 55% above the average for all U.S. manufacturing. The United States
is the largest steel producer in the world, producing 112 million tons of raw steel in 2000, 12% of
total world production. The industry has recently experienced large levels of imports because of
world steel overcapacity resulting from economic downturns in Asia. The industry's return on sales
for the year 2000 was –2.8%.] Nucor's strategy focused on two major competencies: building steel
manufacturing facilities economically and operating them productively. The company's hallmarks
were continuous innovation, modern equipment, individualized customer service, and a commitment
to producing high–quality steel and steel products at competitive prices. Nucor was the first in the
industry to adopt a number of new products and innovative processes, including thin–slab cast steel,
iron carbide, and the direct casting of stainless wire. Nucor's analysis will primarily focus on
management's ability to allocate resources while cutting costs and competing in international
markets. The industry itself does not allow for product differentiation or immense

Nucor Case Analysis Essay
Nucor Corporation Case Analysis
Section 1: Recommendations
Recommendation 1: To expand more internationally by building plants in lower property taxed areas
with low tariffs to ship products out.
Recommendation 2: To put in place job descriptions for employees. By doing this it will save Nucor
litigation fees and troubles if something arises in the workplace between the employee and Nucor
about job duties, injuries, etc.
Recommendation 3: Other than expanding internationally, Nucor should make joint ventures with
suppliers to keep the cost down of the product. A lot of scrap that is used is imported so it would be
a good idea for Nucor to utilize that to reduce costs of making their products.
Section 2: Problem(s)
Even ... Show more content on Helpwriting.net ...
Another recommendation that I have for Nucor is instead of buying existing plant capacity, make
new plants elsewhere or form a joint venture with a supplier to help save money. (Exhibit 3) This
would decrease cost of supplies so they would have the extra money to build elsewhere or build a ne
plant. By using the SWOT analysis (Exhibit 1) it let me break up Nucor into different parts to see
what their strengths and weaknesses are. Nucor is solid with technology and treating the employees
correct but the weaknesses that affect Nucor are more market based with some internal problems.
Nucor has products for many different industries including automotive and housing. This can cause
issues for Nucor if those industries take a fall, which they have over the last 5 years. It's a good idea
to be in these industries but Nucor has to realize what can happen to sales and revenues when one or
both of those industries take a fall. Nucor has been expanding more in the United States, recently
just building a plant in Louisiana (Exhibit 5). This plant will be a 750 million dollar purchase and
will be a mill for pig iron. Nucor is expanding all over the United States but needs more presence
internationally plan and simple. Nucor is a solid company with shareholder equity increasing each
year; they have a solid stock in the NASDAQ market and continue to be a healthy steel company.
They can and will

Nucor
Based on the case study "Nucor in 2009", Nucor's business strategy can be categorized as cost
leadership. There are clear evidence in the case that shows Nucor using an integrated set of actions
to produce at the lowest cost, while still maintaining an acceptable level of quality compared to their
competitors. In this critique, the Value–chain model will be used to illustrate how Nucor aligns their
activities to this business strategy.
I/ Primary structure
Regarding Inbound Logistics, Nucor has a highly efficient system to link supplier's products with
their production processes. They have long–tern contracts strong relationships with their suppliers
like constructions companies and scrap steel suppliers all over the country who ... Show more
content on Helpwriting.net ...
This substantially lower hiring cost, and related costs when there are bottlenecks or employees take
leave.
Nucor's compensation system is another extensively used tool to encourage productivity. A good
mix of reward and punishment system sends a clear and consistent message out to employees of the
desirable behaviours. Workers are motivated by the weekly bonuses that are promptly paid, which
apply fairly to everyone.
Technology Development: Nucor invests rather heavily on technology that can help drive costs
down. They were one of the first to use a computer inventory management systems to speed up
delivery and calculate costs more accurately. This helps Nucor to save time and effort in tracking
inventories.
Not only that, they are constantly looking for ways to innovate and improve more effective
production processes. The building of mini–mills and twin shell furnace was heavily invested on, in
terms of both capital and human resources, which improved Nucor's productivity substantially. This
means that Nucor could produce more steel given a shorter period of time and less resources. This
leads to lower cost of production that does not compromise quality.
Procurement: Nucor engages an independent broker to manage and give recommendations on the
most cost effective way in scrap purchasing. This ensures that Nucor always get the most suitable
materials from the cheapest suppliers, since the broker is more knowledgeable about the raw
materials market.
To

Nucor
–295275–371475Nucor Corporation Competing against Low–Cost Steel Imports
110000110000Nucor Corporation Competing against Low–Cost Steel Imports What are the primary
competitive forces impacting U.S. steel producers in general and the producers like Nucor that make
new steel products via recycling scrap steel in particular? Please do a five–forces analysis to support
your answer. As mentioned in the case the main problem is the excess of steel in the steel market.
Right now foreign steel is being dumped in the US. This results that supply exceeds demand which
results off course in decreases of profit for many steel companies. This gives a lot of pressure to the
companies and most of them are not able to survive the pressure and ... Show more content on
Helpwriting.net ...
The reasons are the following: Because of globalization all the markets are open and easier to enter
for companies all over the world. This increases the entrance of foreign competitors like Chine,
Italy, South Korea etc. Another factor are the energy and raw material costs that effect the profit of a
company. Not to forget that the economy itself is really unstable. Last but not least the government
regulation and laws that can increase the prices of the products as well. We believe that they should
expand. Nucor is self–reliant and has a good strategy which made the company the second largest
producer in the US. They should expand to global market to be able to increase their market share.
They can go to markets such as Russia, China or Brazil, since they are dumping into the US market.
However they should evaluate the Porter five forces before making any decisions since these
markets are really competitive. What type of strategy has Nucor followed? Which of the five generic
strategies discussed in Chapter 5 is Nucor employing? Is there any reason to believe that Nucor has
achieved a sustainable competitive advantage over many of its steel industry rivals? If so, what type
of competitive advantage does Nucor enjoy? The core strategy of Nucor is that of cost leadership via
the use of technology. Through innovation and the use of high quality technology to process their
steel, Nucor was able to achieve this cost advantage.

Nucor Steel Case Study
Nucor
From Wikipedia, the free encyclopedia
Nucor Corporation
Type Public (NYSE: NUE)
S&P 500 Component
Industry Steel & Iron
Founded 1940
Headquarters Charlotte, North Carolina, USA
Key people Daniel R. DiMicco, Chairman, CEO, & President
Revenue US$ 11.2 Billion (FY 2009)[1]
Net income US$ 293 million (FY 2009)[1]
Employees 20,400 (2010)
Website www.nucor.com
Nucor Corporation (NYSE: NUE), a Fortune 300 company headquartered in Charlotte, North
Carolina, is one of the largest steel producers in the United States, and the largest of the "mini–mill"
operators (those using electric arc furnaces to melt scrap steel, as opposed to companies operating
integrated steel works with blast furnaces). Nucor claims to be North ... Show more content on
Helpwriting.net ...
Finally, Samuel Siegel, an accountant with Nuclear (and friend of Iverson) who had actively been
looking to leave the company, informed the Board of Directors he would remain with the company
under two conditions: Iverson would become President and he (Siegel) would become Chief
Financial Officer, conditions the Board quickly accepted.
[edit]The Nucor Era
Iverson and Siegel quickly reorganized Nuclear around its only profitable business, steel–fabricator
Vulcraft. All other businesses were either sold or liquidated. The company moved its headquarters
yet again, this time to Charlotte, North Carolina in 1966, to be closer to its main Vulcraft plant.
Unable to get favorable prices from American steel manufacturers, and unhappy with the imported
steel available at the time, Iverson (a metallurgist by training) decided to integrate Nuclear
backwards into steel making by building its first steel bar mill in Darlington, South Carolina in
1968. The company chose to purchase an electric arc furnace, which was far cheaper than the
traditional steel blast furnace, courtesy of a US $6,000,000 bank loan from Wachovia. Although the
early days were tough (once the American steel manufacturers learned Nuclear was operating its
own mill, they

Nucor Case Study
Case Background
The Industry
Nucor Corporation has been moving in a very challenging industry which has faced various
problems in recent years. The steel industry experienced slowed demand for steel which resulted
from substitution of alternative materials. Furthermore, it also had to cope up with increased foreign
competition and strained labor relations.
But despite all these obstacles, Nucor Corp. still managed to have a five–year sales growth average
of 23%, which is 11 percentage points higher than the nearest fast–growing competitor. The
company even had a 5–year ROE average growth of 18% which is more than double than the
industry average while maintaining a healthy financial condition having 7% debt to capital
percentage, ... Show more content on Helpwriting.net ...
Furthermore, other social issues may also concern each steel producer in the industry such as
community support and other local issues in the respective communities where it operates.
TECHNOLOGICAL
Technology can greatly improve the industry through new ways of producing its products. The use
of an innovative technology can improve the overall efficiency of the industry which can
dramatically improve the supply of its finished goods. New technology may also be a source of
competitive advantage as advanced technologies may minimize production costs which will
translate to competitive prices.
ENVIRONMENTAL
The industry can be very susceptible to environmental issues together with other manufacturers.
With the advent of campaigns toward saving the environment and "going green", the society is now
more concerned with how the industry's wastes and other by–products are being managed. Using
recycled materials and recycling one's wastes can affect the industry's over–all image as an
environmental advocate.
After carefully analyzing the industry situation, it is important to take a look at the internal structure
mechanism of the company as to how it affected the firm's current success.

The company's own strengths and weaknesses
Operations
Tapping the rural areas. Nucor Corporation located its diverse facilities in rural areas across the
United States, establishing strong ties to its local communities and its work

Nucor Case Study
Case Background
The Industry
Nucor Corporation has been moving in a very challenging industry which has faced various
problems in recent years. The steel industry experienced slowed demand for steel which resulted
from substitution of alternative materials. Furthermore, it also had to cope up with increased foreign
competition and strained labor relations.
But despite all these obstacles, Nucor Corp. still managed to have a five–year sales growth average
of 23%, which is 11 percentage points higher than the nearest fast–growing competitor. The
company even had a 5–year ROE average growth of 18% which is more than double than the
industry average while maintaining a healthy financial condition having 7% debt to capital
percentage, the ... Show more content on Helpwriting.net ...
To create more customer value, Nucor employs individualized customer service through a strong
distribution system resulting to greater satisfied and repeating customers. This is reinforced by
management's commitment to producing high quality steel and steel–related products at competitive
prices.
Organization structure
Nucor has a flat organizational structure. In contrast to many large companies, Nucor's management
is composed of only four layers. With the Board of Directors and top executives sitting on corporate
headquarters, production plants were directed by general managers and daily operations by
department managers and supervisors. Through this, relevant information flows quickly whenever
and wherever necessary.
Decentralized management style. The general manager of each plant experienced considerable
autonomy in running the activities performed in their respective areas. They essentially operate the
plants as an independent business unit, and spearhead the day–to–day decision–making. However,
the drawback of this autonomy results to non–communication between each plant, which results to
replicating efforts already done in one of the plants. This may result to resources used to actions that
do not add value to the company.
Tolerance for risk. Management believed that effective management requires taking considerable

amount of risks in handling the business. In line with this, managers were encouraged to suggest
improvements to current production

Nucor Corporation
Week Four
1. Read the following from the textbook and be prepared to discuss in class:
Chapter 9: Diversification: Strategies for Managing a Group of Businesses.
Chapter 10: Strategy, Ethics, and Social Responsibility.
Chapter 11: Building an Organization Capable of Good Strategy Execution.
2. Perform Decision Fifth Round for Year 15 of the Business Strategy Game.
4. Prepare a written case study in APA format on, and be prepared to discuss in class the case study:
"Nucor Corporation: Competing Against Low–Cost Imports" Case on page C–193. Use the
following questions to perform your case study.
"Nucor Corporation: Competing Against Low–Cost Steel Imports" case 10 page C–193 case study
... Show more content on Helpwriting.net ...
Essentially, scrap metal and raw iron ore are intangible products, in that there are no substitutes and
steel manufacturers are forced to pay the prices that suppliers offer. Again, company size helps here
where essentially it's the bigger the better. Suppliers will often be more inclined to sell to larger steel
manufactures as order quantities are higher. The third part of the model is the bargaining power of
buyers. Similarly to the bargaining power of suppliers, the power of buyers is high here as well. As
previously mentioned, due to the lack of product differentiation, cost is the key driver. Competition
from foreign steel manufacturers is fierce and steel imports in the United States are high due to steel
often being able to be produced and sold cheaper then domestically. Because of this, buyers put
increased pressure on Nucor who must strive to be as cost effective as possible. It is also very
important to try to get large accounts and then provide necessary attention in order to sustain them.
A great portion of steel profits are derived from these large buyers. A couple key examples are large
scale construction and the automobile industry. It's critical for steel manufactures such as Nucor to
try to establish strong relationships with these buyers to generate large, long–term profits. Finally,
switching costs for buyers is low. Buyers can import steel or purchase from another domestic
company with lower prices. In order to

Business in Nucor Essay
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 ... Show more content
on Helpwriting.net ...
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 changes in the environment. Iverson also gave plant–level mangers the authority to
make and implement the decisions necessary to make these adaptations. Each plant manager gave a
brief monthly report to headquarters and received a report comparing the divisions' performance.
Major expenditures and changes were made by consensus at the periodic meetings of all plant and
corporate managers.
Iverson took pride in the lean corporate structure. But the lack of corporate staff appeared to become
a problem as Nucor expanded. By 1994 the company was operating 16 plants, and the flat–rolled
steel plants increased the diversity of the operations reporting to the president. Nucor president, John
Correnti, noted "My biggest fear is even though we're now a $3.3 billion company, we've still
got to act, feel, and smell like a $300 million company (1)." Some steel industry analysis
remained concerned over how Iverson would continue to control the growth of a company that was
attempting to

Nucor Case Study Essay
NUCOR (25 Points)
1. List and elaborate some strategic issues facing NUCOR?
Nucor has been facing many industry challenges including the overall development of the industry.
They are competing with foreign firms on cost and efficiency. Nucor has a low cost strategy because
as they say their product is not necessarily very attractive. It does not have attractive or unique
selling features other than its cost. The commodity of steel is in a very competitive market. Nucor
understands that innovation and productivity are going to be key factors to keep their buyers
satisfied with their prices. Nucor is facing many challenges with a growing world market and many
of their competitors merging in order to create stronger more dominate ... Show more content on
Helpwriting.net ...
They also eliminated the bulk costs saying that it made much more sense to just charge the customer
what the steel is worth plus the amount that transportation costs and of course adding in their
margins. This way every size buyer could purchase steel for a low cost.
3. Please apply Porter's Five Forces model to the steel industry. While doing so, clearly identify who
is behind each force – for instance Suppliers, Buyers, Substitutes, Competitors, etc. And what is the
impact of each force on the profitability of the industry – in terms of the following levels –
High/Medium/Low. At the end, also provide a summary of all the five forces and propose whether
you think the steel industry is attractive industry or not an attractive industry.
I believe that the steel market is a very attractive market for the players that are already competing. I
would not recommend new companies to try to integrate themselves in this market without
substantial capital and very advanced technology. Globally steel demand is rising every year and
companies are still vigorously competing for the extra market share. All firms are continuing to
expand evolve and grow which means that profit are also very high in the steel market. The do have
some protection issues even in

Case Study Of Nucor

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