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Get Full Essay Get access to this section to get all help you need with your essay and educational issues. During this period it was observed that almost half of the total steel production around the globe was produced by USA.
This is one of the major trends that Nucor was realizing when it came to the Steel industry around the world. Steel was becoming a vastly used product in every developed nation around the continent.
This would have a great impact on companies who did and did not produce steel from their beginnings. Nucor began to produce steel after the new CEO was installed.
Kenneth Iverson was appointed as the new CEO from a similar position he held with a company known as Vulcor, which happened to dabble in the steel industry before hand. The steel industry was starting to evolve and there was a great chance that Iverson could get it to work with Nucor.
Nucor thought it would make smart business sense if they were to purchase other operation plants that were already capable of production that only needed to be minimally upgraded.
The second part of their strategy was to capitalize on new plant construction that included the top of the line technological advancements in their new facilities. This gave them the right to make money off of other companies who used this methodology of producing the specialized carbon steel product in these areas.
Another area of their strategy that they were particularly focused on was implementing low cost production methods throughout their vast facility operations.
This part of their overall company strategy is to produce a high quality at a low price. When these two arts work together they are a very successful combination.
By increasing the quality of the products accompanied with the cost cutting methods they are able to produce these items at a lower cost, which in turn the consumer sees the cost difference on their invoice. Nucor was really able to take advantage of the joint ventures by teaming up with different companies to enter into new markets like Australia.
They were also able to put technologies together to help develop even more advanced technologies for the future. Discuss the organizational structure and management philosophy at Nucor. Nucor has a very lenient organization and management philosophy.
The company was not all about the corporate headquarters, but more in tune with the individual plants. Each plant had either a general manager or a group manager. These general managers report to the assigned VPs at headquarters. This gives each plant a sense of independency where they are able to make their own decisions on how their plant will be ran.
Many other companies would be hesitant to implement such a open door policy but this obviously has worked for them. The main concept is to decentralize their operations mas much as possible.
Each section does their own thing their own way.
As long at each section was making money, operating in the black and hitting their profit target, they could operate without much objection from corporate.
Identify three 3 HRM issues related to strategy implementation and recommend actions to address these issues. General managers must operate at a capacity and efficiency to make a 25 percent return for the company.INDUSTRY ANALYSIS COMPETITIVE PRESSURES IN THE INDUSTRY Michael Porter provides a framework that models an industry as being influenced by 5 forces.
Based on Porters work Annexure 2 details the competitive forces in the industry, but it was adapted to include the economic forces and governmental influences/5(1). Company Overview As of the year , Nucor is the largest steel manufacturer company in North America with a production capacity of 27 million tons.
Nucor's Strategy in the Steel Industry According to Economy Watch, it has been stated, “that from the period starting from till the year , the first position in terms of producing the largest amount of steel in the whole world was captured by United States Of America.
The steel industry was starting to evolve and there was a great chance that Iverson could get it to work with Nucor. “Nucor embarked on a four part growth strategy that involved new acquisitions, new plant construction, continued plant upgrades and cost reduction efforts, and joint efforts” (Thompson, Strickland, & Gamble, ).
Nucor SWOT Analysis: Recommended Strategic Options For Firms. Print Reference this. Disclaimer: This expertise will serve them well in the evolving steel industry. Strength(iii) – Innovation.
I will recommend that the firm pursue the strategy of Market Development in the Ansoff Matrix by expanding into the international markets. Nucor's Strategy in the Steel Industry Words | 7 Pages.
The Steel Industry BUS Strategic Management 1.