What Nucor http://www.youtube.com/watch?v=RuP0d7WOX Does

  1897 Reo Truck Company 1955 Nuclear Corporation of America 1966 Nucor  .

    High-tech conglomerate Ken Iverson restructured the company Engaged in divestment of high-tech business Focus on profitable business: steel .

Steel joist plants  Steel frames for building 2.1. Mini-mill technology  Smaller scale production .

   Consolidated business in first 20 years Successful in the 1980’s Mid 2000’s – 2nd largest American steel manufacturer 2009 – posted first ever loss in 42 years  .

Structure – the industry structure Conduct – the strategies a firm chooses to implement Performance – how a firm performs based on the structure and conduct .

Less competitors = more opportunities . Commerical Metals Company United States Steel Corp. Inc.Steel and Iron Industry Three main competitors: ArcelorMittal USA.

1.Incentive System .Decentralized Management 3.Mini-Mills 2.

 Societal Level Productive and allocative efficiency   Employee Level Work Environment  .

Primary Activities Purchase of raw material Raw material Policy Production and distribution Market and Marketing .

. Its strategy of using the scrap substitutes lowered the cost of steel product. As the Vulcraft division of Nucor grew. Nucor’s division itself became its own raw material supplier.• In the beginning of the operation of still mills Nucor was purchasing the raw materials from the foreign market.

000.  . Nucor had its own 150 trucks (more now) to ensure the on time delivery to the different states of United States. Nucor brought forth lot of changes in their manufacturing system. Recycled steel scrap and other metallics are melted in electric arc furnaces and poured into continuous casting systems Due to new manufacturing system Nucor’s current capacity reached to 25.000 tons.

In 2000 the new CEO Ayecock added some of the positions as he thought would be necessary. James Coblin was the vice president for HR department. This incentive system applied to production workers. Nucor did not have any strong infrastructure of different layers of management. department heads. staff people  . Nucor basically had the incentive system through which all the employees and workers were getting paid.  There was not clear structure of Human Resource department in Nucor. Up to 2005 the corporate staff of Nucor consisted of less than 45 employees.

the leftover was used by different inter divisions In 2009 Nucor’s one division Vulcraft supplied more than 40% and 30% of total domestic sales of steel joists steel griders respectively   For maintaining relationship with the most of the customers Nucor engaged in contact with them for 6-12 months while during the contact time the change in price of steel was totally restricted. In 2009 Nucor sold almost 86% of its steel inventory to the outside customers. .

Self-owned steel mills 1967: 60% expenditure = raw materials 60% steel from foreign sources 1968: Nucor builds first steel mill .

Management .Autonomous Divisions (Joist plants.Personnel Management . steel mills and miscellaneous) .Accounting .Engineering .Manufacturing .Selling .

Key alliances .Research and Development Outsourcing .Advertising .Public Relations .Legal Issues .

Equal freight prices for all customers No volume discounts Just-in-time Austerity A ‘no nonsense’ company Own fleet of trucks .

Flexible jobs Avoiding bottlenecks Incentives Base wage + weekly bonus .

January 2007 . for $1. and other infrastructure • There’s always money in government projects February 2008 .Nucor acquired David J. highways.Nucor acquired Harris Steel for $1.07 billion • Diversification • Steel used to build bridges.41 billion • Vertical Integration • Scrap metal recycler (used for mini mills) . Joseph Inc.

the company’s first since 1966 • Steel industry hit hard by global financial crisis • A year later. Nucor is back to profitability .2009 Fiscal Year • Loss of $293 million.

  Nature of the Steel Industry Economic Climate Strategic Acquisitions Infrastructure Looking Towards the Future Analysis     .