Nucor Corporation Case Essay

SummaryFor more than 20 years the Nucor Corporation has been one of the prima(p) manufacturing businesss of steel and steel related products in the world. With their technology advancement, low debt ratio, decentralized type of organization and many more, this society even-tempered thrives to achieve better goals in their company. apart from the positive views of the company, it also faced problems equal bankruptcy. (te pakidagdagan n lng)HistoryNucor traced its origins to auto manufacturer Ransom E. Olds, who founded Oldsmobile, and later, Reo Motor Cars. Through a series of transactions, the company eventu wholey became the nuclear Corporation of America, a company bring on-to doe with in the nuclear instrument and electronics business. In 1972, the firm changed its name to Nucor Corporation. By 1998, it had stupefy Americas second-largest steel maker. trading operationsNucor related its diverse facilities in farming(prenominal) areas across the United States, establishi ng strong ties to its local anaesthetic communities and its clip force. As a steer employer with the ability to pay conk wages, it attracted hard-working, utilize employees. These factors also allowed Nucor to select from among competing locales, siting its operations in states with tax structures that encouraged business outgrowth and regulatory policies that favored the companys commitment to remaining union-free. By mid-2008, Nucor operated 53 facilities throughout the United States and one in Point Lisas, Trinidad. The company also hold operations through wholly own subsidiaries, Harris Steel and the David J. Joseph Company (DJJ).StrategyNucors strategy focused on 2 major competencies building steel manufacturing facilities economically and operating them productively.Organization StructureCompared to the regular(prenominal) Fortune 500 company with 10 or more charge layers, Nucors Structure was decentralized, with entirely the four management layers illustrated o n a lower floor chair / Vice Chairman / PresidentVice President / whole caboodle General coach-and-four subdivision private instructorSupervisorHuman Resource PoliciesEmployee dealings at Nucor were establish on four principles 1. Management is obligated to manage Nucor in such a way that employee depart have the opportunity to earn concord to their productivity. 2. Employees should feel confident that if they do their jobs properly, they provide have a job tomorrow. 3. Employees have the right to be treated fairly.4. Employees essential have an avenue of appeal when they adjoin they are being treated unfairly. requitalNucor provided employees with a per diversenessance-related recompense system. All employees were c over under one of four compensation pattern, each featuring incentives for meeting specific goals and targets.1. labor Incentive blueprint* employees directly refer in manufacturing were paid weekly bonuses found on actual output in relation to anticipa ted production tonnages produced. The bonuses were paid only for work that met the quality standards and were pegged to work group, rather than individual output. 2. Department Manager Incentive Plan* Department managers gain an annual incentive bonus prowd on the performance of the entire plan to which they belonged. The targeted performance criterion here was gift on assets.3. Non- doing and Non-Department Manager Incentive Plan * All employees not in the Production Incentive Plan or Department ManagerIncentive Plan including accountants, engineers, secretaries, clerks, and receptionists receive a bonus based mainly on each plants return on assets. It could total over 25% of an employees base salary.4. ripened Officers Incentive Plan* Included all integrated executives and plant general managers. A portion of pre-tax earnings was placed into a pool that was divided among the officers. If Nucor did well, the officers bonuses, in the form of wrinkle (about 60%) and cash (ab out 40%), could amount to several times their base salaries. If Nucor did poorly, an officers compensation was only base salary and, therefore, significantly below the average pay for this level of responsibility. randomness SystemsBenefitsNucor took an egalitarian approach toward employee make headways. Nucors benefit program also attested to the companys commitment to education.TechnologyNucor did not have a formal R&D department, a corporate engineering group, or a promontory technology officer. Instead, it relied on equipment suppliers and other companies to do the R&D, and they adopted the proficient advancements they developed whether in steel or iron making, or in fabrication. Teams unruffled of mangers, engineers, and machine operators decided what technology to adopt. risingThe companys biggest challenge (in the future) is to preserve to grow the company at 15 20% per year, and to keep earnings line of latitude with its growth.AnalysisNucor Corporation became one of the top corporations in the steel industry because of their handwork and technology innovation. This company also sees and takes sustentation of its employees needs, which in return gives them a quality service in their work. closeNucor, even though we can see it as a successful, almost perfective tense company, still faces problems like other businesses in the industry.ProblemThe company has lost threesome to one-half of its market value when the stock reached its peak value (mid-2008), and has not vulcanised as of 2012.RecommendationWe can press change in the companys technology, like getting more advance equipments in making steel and steel-related products. Or the company could make a coalition to other company to utilize its resources to its utmost while keeping cost low.