2. INTRODUCTION
Nuclear corporation( NuCor corp) basically into steel and steel
related products
In 1998, Nucor was a Fortune 500 company with 6900 employees
Founder of Nuclear corporation of America was “Ransom E Olds”
In early 1960’s, the firm suffered several money-losing years
In 1965,facing bankruptcy, the company appointed “Ken
Iverson” as President
It became America’s Second largest steel maker
3. Kenneth Iverson
Chairman Kenneth Iverson headed the company for more
than 30 years
During his tenure, The steel industry faced a number of
problems like
1) Foreign Competition
2) Strained labour relations
3) Slowed demand for steel
Inspite of this several problems the company was successful
in growing at an annual compound rate of about 17%
4. Iverson focus was on two businesses
1) Making steel from recycled scrap
2) Fabricating steel joists for use in non-residential
construction
5. OPERATIONS
Nucor located its diverse facilities in rural areas across US
Been the leading employer, favoured Nucor in selecting
the best and competing locales
Sitting its operations in areas with tax structures that
encouraged business growth & regulatory policies that
favoured the company been Union free
Nucor had 9 businesses with 25 plants
6. STRATEGY
Focussed on 2 major competencies
1) Building steel manufacturing facilities economically
2) Operating the facility productively(Effective
utilization)
Continuous Innovation
Modern equipment
Individualized customer service
High quality steel at competitive prices
Produced variety of steel products
7. Customer Segments Of Steel Products
60%15%
15%
10%
Customer Segment
Construction Industry Appliance industry
Oil & Gas industry Miscellenous users
8. HR Policies
Very selective in recruiting employees, choose from large pool of applicants
Working together
Four principles followed
a) Earn accordingly to productivity
B) job security to employees if performed well
C) Treated fairly
D) Voice out when treated unfairly
9. Compensation
Production incentive plan
Department Manager incentive plan
Non production & Non department manager incentive plan(based on return on
assets)
Senior officers incentive plan( based on stockholders equity above certain
minimum earnings
10. Information system
Weekly and monthly wise reporting regarding its six operation activities to
head quarters
Plant GM plans a role in planning for months & years ahead
Benefits
Followed egoliterian approach towards employment benefits(equal treatment
to all)
Profit sharing plan for employees
Education benefits, children education
11. Technology
No formal R&D department
Depend on third party and other companies to do R&D and adopted
technological advancements they developed
Committed to continuously modernizing existing plants
Developing new plants
Future :
Company to grow at 15 to 20% per year
