Research

1. NUCOR CORPORATION
Kelompok 1:
Samuel Sembiring Pelawi
Franklin W
MM UGM Jakarta 24 A Part-Time B

2.  Nucor started as a auto manufacturing company than later converted itself
into the Nuclear and Electronics business in 1955 and 1962
 Nucor is a Fortune 500 company with approximately 200 operating facilities,
including our wholly owned subsidiaries of Harris Steel, The David J. Joseph
Company, and Skyline Steel, yet Nucor have approximately 100 people
working at our corporate headquarters and surprisingly few layers of
management from the CEO to the frontline
INTRODUCTION

3.  After the firm suffered several money losing years (1965), Ken Iverson took
charge as the president. After Iverson took charge he consolidated company
on two business viz making steel from recycled scrap metal and fabricating
steel joists for use in non residential construction.
 In June 1999 the board chose David Aycock as chairman, chief executive
and president of Nucor.
INTRODUCTION

4.  Nucor located its diverse facilities in rural areas across the Unites States. It
established strong ties to its local communities and its workforce. Nucor
selected operations in states with tax structures that encouraged business
growth.
 Nucor and its subsidiaries consisted of nine businesses, with 25 plants
(1998).
OPERATIONS OF NUCOR

5.  Continuous Innovation
 Usage of modern equipment
 Individualized customer service
 Usage of scrap metal
 No acquisitions and mergers
 Usage of low debt in total capital
 No diversification
STRATEGIES OF NUCOR

6.  Decentralized system
 Four management layers:
1) Chairman / Vice chairman / President
2) Vice President / Plant General Manager
3) Department Manager
4) Supervisor
ORGANIZATION STRUCTURE

7.  Use of mini-mill technology
 Backward integration
 Modernizing the existing plants
 Technology management
TECHNOLOGY

8.  Demand for steel in the United States as a whole only increased less than
1.5 percent per year.
 The market share that can be taken over by Nucor of steel companies from
integrated and other small firms are very limited.
 Many companies imitate the ideas that had been owned by a small company
COUNCIL CONSIDERATION

9.  Acquisition
 Enter global market
 Build a blast furnace
 Diversification of products to enter into areas outside the branch steel
production
 Adding new layers of organization, ex: add some VP
 Change the composition of corporate boards (Nov 1999 directors coming
from outside the company about two-thirds of the members of the board of
Nucor.)
STRATEGY AND
ORGANIZATIONAL CHANGES
PROPOSED BY THE COUNCIL

10. IVERSON VS AYCOCK
IVERSON AYCOCK
Building the company from scratch Defend acquisition
Defend Nucor as a domestic company Global expansion
Pioneered the concept of the small factory Want to build high furnaces a lighthouse of
integrated steel producers
Nucor as a player makes a single industry,
concentrating on steel products and steel-
related products
Consider to diversify steel
Very proud of supervise the operation of
25 plants together with the staff of the
company
Emphasized the need to add new line at
the management level

11.  Responsibility centre
 Expense centre
 Goal congruence
 Management performance
 Economic performance
APPLICATION OF MCS

12.  External Factor :
Work Ethic
 Internal Factor :
Culture, Management Sytle, The Informal Organization, Perception and
Communication
INFORMAL FACTOR INFLUENCING GOAL

13. TYPE OF ORGANIZATIONS
 Functional Structure
Each Manager is responsible for a specified functions
 Business Structure
Managers are responsible for most of the activities
 Matrix Structure
Dual Responsibilities

14.  Nucor's overall approach towards organization and control has paid rich
dividend in the growth of the company
 Their ability to be a successful first mover in the adaption of new technology
is remarkable
 Although the company has done well for the last 25 years but still with the
prevailing market conditions they need to think about diversification and
mergers & acquisitions
CONCLUSION

15. Apakah Anda setuju bahwa Nucor harus melaksanakan perubahan
yang mendasar agar selamat dan berhasil pada abad ke-21?
Yes, We agree Nucor Must undergo and deep change to survive and
prosper in the 21st century
QUESTION 1

16. Bagaimana Anda mengevaluasi pergantian dalam strateginya
secara spesifik?
Pursuing acquisition
 Expanding into global market
 Diversifying into nonsteel areas
 Adding new organizational layers &
changing the composition of the board

17. Dapatkah Nucor mempertahankan sistem pengendalian dan budayanya yang
unik di bawah arahan strategi yang baru?
Yes, Nucor could maintain their control systems and unique systems by
implementing new business strategy.
QUESTION 2

18. Maukah Anda bekerja di Nucor di bawah kepemimpinan David Aycock?
Absolutely, we want to work under David Aycock. As he vision an mission could
lead us to be good and hard worker.
QUESTION 3