Business in Nucor Essay -- essays research papers

Nucor Corporation - Structuring for Efficiency and Effectiveness Introduction Nucor achieved its position as angiotensin converting enzyme of the largest brand name producers in the fall in States by carefully monitoring cost and paying attention to the needs of its markets. This strategy of providing its customers with a competitive yield at competitive prices has brought success and growth to Nucor, in sales, income, and stock price. Recently, however, the chequer of the organization has been brought into question. The recent announcement of a joint speculation amid Nucor and U.S. Steel to develop, test, and bring on line a new order for turning iron ore into steel added to the concern over the ability of community management to maintain the entrepreneurial spirit for which the company is famous. Background Nucor is the indorsement largest steel producer (2nd in assets, 1st in profits) in the fall in States. Its profits of $123 million have made it one of the most expe ditious firms in the steel industry. Nucor achieved that position by focusing on the manufacturing plane section known as mini-mills - the relatively low, electrically-powered mills that melt down crank steel to manufacture products. This exercise saves on costly labor, raw materials, and the capital-intensive machinery indispensable to produce steel from iron ore. A major concern of mini-mill steel manufacturers is maintaining quality, since their raw material consists of scrap steel of varying quality, containing a categorization of alloys and impurities. A nonher concern it the recent rising price of scrap steel. Nucor started knocked out(p) by manufacturing steel for the beams and posts produced in company-owned structural steel manufacturing plants and then expand by selling its low-cost steel to other firms. Outside customers piecemeal became the primary outlet for sales by the mini-mills. Nucor was able to expand sales from the mini-mills by keeping costs below its c ompetitors, both in the United States and abroad. Nucor has consistently sought ways to lower costs while extend markets. During the latter part of the 1980s, much of the companys efforts were placed on developing engineering science for manufacturing sheet - flat-rolled steel of the type used by automotive and contraption manufacturers - which had traditionally been the sole domain of the big steel companies and foreign competitors. deal Iverson, former CEO of Nucor, risked several hundr... ...at the joint venture with U.S. Steel would freeze the quick decision making typical at Nucor. Iverson had gambled by committing to the firstly phase of the new process on his own, without first testing the process in a pilot plant on a small scale. The next stage was to complete the new process with a plant in the United States, relying on the high level of research and knowledge skills at U.S. Steel and the ability of Nucor to pioneer new methods. Analysts wondered whether Nucor coul d coexist with U.S. Steel, with its large, vertical structure and strong union. This challenge was especially important since the new venture was felt to be the focal point for the continued growth of Nucor. In the late 1990s, Iverson was fired by the Board of Directors of Nucor. His successor, John Correnti, who along with Iverson were the ii major proponents of the mini-mill concept, was ushered out soon afterwards. Daniel R. DiMicco is the new President and CEO, but with age of experience at Nucor, the vision may or may not change. Will the new management attempt to rein in the command managers of the various operating entities of Nucor - a situation neither Iverson nor Correnti supported?