Nucor Essay

387 Words2 Pages
. Why might industry analyst be concerned that the decentralized structure is no longer effective or efficient for Nucor? Nucor is known as one of the largest steel producers in the United states. Nucor believes in providing the customers with a competitive product at competitive prices. It is the fifth largest steel producer in the United states with a profit of $123 million annually. Nucor’s organizational structure has always been divisional and highly decentralized. An organizational structure is the outline of a company’s framework and guidelines for managing business operations. The organizational structure of a business is what that depicts the owner’s style, personality and characteristics. There are two types of structures found in the business environment. 1. Centralized structure - Centralized organizational structure relies on one individual to make decisions and provide directions for the company. Many small businesses often use this types of structure as the owner is responsible for the company’s business operations. 2. Decentralized structure - Decentralized structure relies on a team environment at different levels of business. This type of structure have several individuals responsible for making business decisions and running the business. Nucor’s top managers always believed that their highly decentralized and lean structure was necessary to meet foreign needs in the market. Though that involved the risk that lower levels of management would follow short term goals at the expense of long-term corporate objectives and co-ordination. Nucor has a different team working on every different division of the company. While taking any decision, it must pass through all the divisions and then the decision is made. This process involves time that may result in delay in decision-making but Nucor’s divisional structure is lean. There are
Open Document