Nucor Corporation(Case 10)

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Nucor earlier started with the nuclear equipment and electronics business in the early 1950s and60s. The company was facing heavy losses and was on the verge of declaring bankruptcy, when the Board of Directors was seeking for new leadership. Iverson was appointed from within the Board in 1964 with a completely new vision. He concluded that the best way was for Nucor to take a different path altogether with their successful Vulcraft subsidiary in the steel business. It was then the company earned its current name and divulged in to the industry. Later on, in 1968, management of Nucor decided for backward integration which is into steel making to apply benefits of supplying their own steel to their requirements. Despite declining demand for steel, Nucor’s growth has been phenomenal, from pouring its first batch of steel in the 1960s to support in-house operations, the company has become one of the top five producers of steel in the U.S.. Without an R&D department, Nucor has repeatedly achieved technological feats other steel producers thought impossible. Their hourly pay is among the lowest in the industry, yet they have the highest productivity per worker of any steel producer in the U.S. and near zero employee turnover. STRENGTHS: Nucor distinguishes itself from the rest of the steel industry with its use of scrap steel, a fact that makes Nucor the largest recycler in the nation. Other than this, Nucor possess some below strengths. * Low cost producer in the US steel industry * Most efficient steel producer in the world * Most technologically innovative steel producer in the world. STRATEGIES: Iverson’s long term strategy was to become the major player in the U.S steel industry. By 1985, Nucor was the seventh largest in America with high held revenue figures and net profit margins. In 2000, Nucor embarked on a four part growth strategy: *

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