Running Head: NUCOR CORPORATION: COMPETING AGAINST LOW-COST STEEL IMPORTS
Dr. James Glenn
November 28, 2010
This paper will explore articles that I researched regarding Nucor Corporation as well as research that I conducted from online articles and material that I read from the book. This paper will discuss the trends in the steel industry and how it may impact Nucor’s strategy; discuss the organizational structure and management philosophy at Nucor. Identify three HRM issues related to strategy implementation and recommend actions to address these issues. I will be given my own recommendations for related ...view middle of the document...
An on staff legal team at Nucor allows a more adept knowledge about the steel industry and therefore assists in helping safeguard Nucor from many lawsuits. Seeing that autonomy is one of the most important factors for this company, it is best if Nucor brings back the organic hierarchy that made the company what it is today. In doing so, it helps Nucor to keep their communication channels short so they are able to make quick and decisive decisions. http://www.oppapers.com/essays/Nucor-Steel-Competitive-Analysis/159170
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 and emphasis on reducing costs has been key to this success. This case analysis will take into account the many successful aspects of Nucor’s historic business strategy against current economic and internal conditions and provide recommendations with respect to Nucor’s future. http://www.oppapers.com/essays/Nucor-Case-Analysis/286595
2. Discuss the organizational structure and management philosophy at Nucor? Nucor's management strongly believed that the company's success was mainly due to its culture and not technology. When asked about the secret behind Nucor's success, Iverson commented, "70% culture and 30% technology. The truth is, I'm not sure if it's 80 to 20 or 60 to 40 percent, but I'm certain our culture accounts for more than half of our success as a business."
Unlike many companies which emphasized on technical skill set, while recruiting, Nucor recruited people with right mindset even though they lacked technical skills. Commenting on the company’s recruitment philosophy, James Coblin, General Manager- a personnel services (1995), said “We can teach them to make steel.” Nucor looked for people who could communicate frankly with others and work with minimum supervision.
While the simple organization structure at Nucor highlights the fact that factory workers have easy access to management through a simple, three-tiered structure, it also illustrated the limitations of simple organization. As the company the structure, simply had factory reporting CEOs became too difficult for one man to manage. This is an issue of numbers and effectiveness. As Dan DiMicco gained and employees manage, had time to devote to growing his business, paying attention to the "trade battles," and other responsibilities of CEO. Nucor to grow, this most likely be the case once again, the five executive vice presidents cannot handle the...