Ans.

3) (a) Nucor’s strategy focused on two major competencies: building steel manufacturing facilities economically and operating them productively. The companies’ hallmarks were continuous innovation, modern equipment, individualized customer service, and a commitment to producing high quality steel products at competitive prices. Nucor was first in its 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. The company did not believe in acquisitions and mergers, choosing instead to commit to internally generated growth. It had no plan to diversify beyond steel and steel related products. (b) Every week each plant of Nucor sent data to headquarters on the following six operation related variables: bids, order, inventory, backlog, production and shipment. Taken together these numbers provided a snapshot of plant basic operations. The figure all 2 plants were pulled together into one 8.5” * 11” sheet of paper. Each plant also submitted a second weekly report comparing the numbers on the six variables for the current week with those for previous week, and the number for the most recent 13-week period with those for the corresponding period in the in the previous year. This second group of data from all 25 plants was compiled in a 4 paged report. Thus, all weekly data for the 25 plants were pulled together onto just 5 sheets of paper for corporate view. All the plants General Managers met as a group with headquarters management 3 times a year – in February, May, and November – to review each plant’s performance and to plan for the months and years ahead. In addition, detailed performance data on each plant were distributed to all plant managers on a regular basis. Plant General Managers and machine operators also commonly visited each others mills. The General Manager at each plant was granted considerably autonomy, essentially operating the facility as an independent business. Each plant could source its input either from another Nucor plant or from outside market.

tried and discarded. who were aware that they would subsequently be recruited to operate the mills as well. In building new plants the company did not rely on outside contractors. .(c) Nucor is always concerned about new start ups which would significantly increase the price of scrap steel or even cause scrap to become unavailable. Every Nucor plant has its little store house of equipments that was bought. The knowledge was gathered from the previous failures that leads to spectacular success. but instead handed the responsibility for design and construction management to a small group of engineers selected from existing Nucor facilities. Further the actual construction of the plant was done by workers from local areas. the employees here invest in the technology.

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