Nucor Corporation Case Essays

2878 Words May 9th, 2011 12 Pages
Assignment #4: HRM Issues/Diversification Strategies: Nucor Corporation

Strategic Management, Business 599

Introduction In this paper, we will present an analysis of Nucor Corporation in Case # 10 (Arthur, Strickland, & John, 2010). The paper will discuss the trends in steel industry and how it may impact Nucor’s strategy. In addition, the paper will describe the organizational and management philosophy at Nucor. Furthermore, the paper will identify 3 HRM issues related to strategy implementation and recommend actions to address these issues. Recommendation whether a related or unrelated diversification should be used will also be discussed. Finally, we will be looking at Organizational structure issues the company
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manufacturing GDP. The industry has undergone a major transformation since its recession during the late 1980s, investing in new process and product technologies and closing older mills. Today's steel industry is technologically sophisticated, employing over 189,000 American production workers in jobs paying about 55% above the average for all U.S. manufacturing. The United States is the largest steel producer in the world, producing 112 million tons of raw steel in 2000, 12% of total world production. The industry has recently experienced large levels of imports because of world steel overcapacity resulting from economic downturns in Asia. The industry's return on sales for the year 2000 was -2.8%.] Nucor’s strategy focused on two major competencies: building steel manufacturing facilities economically and operating them productively. The company’s hallmarks were continuous innovation, modern equipment, individualized customer service, and a commitment to producing high-quality steel and steel products at competitive prices. Nucor was the first in the 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. Nucor’s analysis will primarily focus on management’s ability to allocate resources while cutting costs and competing in international markets. The industry itself does not allow for product differentiation or immense

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