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Case Study - Essay Example

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The separate management shared ideas, but a division manager decided how to run their division. The theory behind this type of management style was if one division failed, the other…
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Case Study
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Case Study

This incentive makes workers perform better.
By making their own steel, Nucor cut down costs. This made the company more profitable. When making a product, it is normally cheaper to make your own supply. The making of steel made Nucor more profitable. Waits on shipment were eliminated, a cheaper process was used, and more effective steel joists could be made. The supply of steel allowed Nucor to bid on contracts for steel joists all across the United States.
Finally the reason Nucor has performed better in the past is the cut of losses. If a division, acquisition, or venture did not perform as expected, Nucor would close the division or sell the losing acquisition or venture. This helped the remaining successful divisions make a profitable corporation.
The company’s strategic positioning has been a factor in the success. The company has always changed with the times. From the beginning as a car maker to merge with a Nuclear Company, and finally as a steel manufacturer, Nucor has changed with the times in order to make a profit. Since making steel and steel joists was profitable, Nucor focused on making cheap steel products.
The restructuring of the corporate level also was strategic positioning. When Iverson took over his method of vice presidents, division heads, and so forth worked in the beginning. However, after Iverson retired, a change needed to be made in order to keep up with other corporations.
The strategic options for the future need to include more change. With the bad economy, development using steel joists will slow down. Cut backs will be necessary. Production cuts will have to be faced. However, the recession will not last forever. Nucor needs to look into other options for their steel. Oil rigs need steel pipes, decks, and platforms. Focusing on this industry until the economy picks up could be the answer. Development might slow down, but it will not stop. Nucor can focus on other industries, but ... Read More
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