A crucial element of Nucors success is its ability to mobilize two types of knowledge: plant construction and start-up know-how; and manufacturing process know-how. What mechanisms does Nucor employ to manage knowledge effectively? Or Employees have the right to be treated fairly. This helps the enterprise to adapt a culture which employees will perform under this circumstances and manage the enterprise effectively. Also another way to manage knowledge is through a compensation system, human resource policies, information system and other internal or external factors as rules, manuals, culture, work ethics. What mechanisms help the company accumulate these two types of knowledge in individual plants?
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Please join StudyMode to read the full document. Name and I. The company has the visionary practices of high employee productivity, good employee relations, a technically superior work environment, good quality control, and a cost-conscious corporate culture as well as the low-cost production of steel. Furthermore, Nucor Corp. The most important, Nucor has developed diversified product mixed for customers. Additionally, there is a lack of market diversification as it derives most of its revenue from the US.
This exposes them to the fluctuation in the US economy as demand for steel will decrease when the economy slacken. Also, although Nucor is quite 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 Thompson, SWOT Analysis In making recommendations respecting the future direction for Nucor Corporation, it is important to understand both the internal and external operating environments of the company.
It managed to make profit for decades in America despite the period of slow demand for steel, and the stiff competition in the industry. To explore its sources of competitive advantage, value chain analysis is constructed.
To better control the raw materials inputs, Nucor took a backward integration approach and acquired David J. DJJ also provided Nucor railcars for transportation of raw materials.
Nucor is able to reduce its energy consumption through innovative mini-mill and Castrip technologies. Castrip process consumes just 0. As the first scrap-based electric arc furnace mini mill operator, Nucor benefits from better productivity, lower unit 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 producer in the U. S and charging to overtake long time leader US steel. Under the leadership of Iverson, Nucor was known for its aggressive pursuit of innovation and technical excellence, rigorous quality systems, strong emphasis on employee relations and workforce productivity, cost-conscious corporate culture and ability to achieve low cost per ton produced.
During his time, Nucor continued to pursue a rapid-growth strategy, expanding capacity via both acquisition and new plant After consecutive years of struggling financial performance, Nucor evaluated their management structure and decided it was time for a change in leadership.
As a result F. Kenneth Iverson was appointed as president and CEO of the company. Part of Iverson innovation for the company was drastically changing the direction of Nucor. The company soon exited the nuclear instrument and electronic business, and built their profits around their South Carolina based Vulcraft subsidiary, which was in the steel joist business. In the company adopted the name Nucor Corporation, which would soon become a well steel company within the U.
As a well managed company, an accomplished low-cost producer, and one of the most competitively successful manufacturing companies in the country Nucor had become the U. Nucor soon continued to climb the ranks and not too long thereafter managed to become the largest steel producer in thus.
In Case Study: Nucor Steel Corporation. Nucor is known for many things including its pay practices that base earnings on performance as well as the value and trust the corporation places in its employees.
At Nucor employees are rewarded based on their effort, treated with great respect and empowered to make decisions based on their expertise and knowledge. To understand its success it is necessary to understand the leadership mentality, empowerment strategy, motivation and rewards base as well as its approach to change and innovation. All of these elements have turned Nucor into a desirable place to work with the potential for future success as it acquires new entities and grows.
The initial leader to focus on is F. Since F. With this approach, in an industry with 36 different companies, Nucor enjoyed the second largest market share in , with 16 plants and an annual production capacity of 2.
In , Nucor was ranked the most productive steel-maker in the United States and the second most productive in the world, averaging tons per employee, per year. Nucor managed to achieve this success using a low-cost strategy, which proved to be particularly suitable in the highly competitive, commodity-like steel industry.
Despite its positive performance, competition in the 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. The Company The story of Nucor Corporation is such a success story. Nucor Corporation had its humble beginning in the s as Nuclear Corporation of America which was involved in the production of nuclear and other electronics instrument. Today, Nucor Corporation, a Fortune company is the second-largest steel maker in the country with nine steel-related businesses and 25 plants all over America.
The company is focused on its commitment to produce high-quality steel and steel-related products at competitive prices. It has been at the forefront of innovation as its President Ken Iverson was awarded with the National Sign Up. Sign In. Sign Up Sign In. Home Essays caso nucor. Continue Reading Please join StudyMode to read the full document. Read More. Essay on Nucor Case Analysis Essay about Core Competencies of Nucor Case Study on Nucor Corp Essay Nucor Case Essay Nucor at a Crossroads Essay Nucor Case Study Essay Popular Essays.
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