Iverson pioneered the mini-mill concept.

Aycock wanted to build blast furnaces, the hallmark of integrated steel producers, noting, Blast furnaces can deal with a weakness that could become critical as the firm grows. Unlike integrated firms, which use pig iron produced by blast furnaces, mini-mills rely on scrap mental. A blast furnace can diminish the firm s reliance on the notoriously fickle scrap market. It is a terrible misconception that integrated firms have to stay !integrated and mini-mills must stay !mini Inversion s policy was to be a single industry player, concentrating on steel and steel-rated products. Ayocock insisted that "ucor consider diversifying beyond steel. It s ridiculous to think we can keep growing this company #ust in steel and steel products,$ said. %he firm s base can be e&panded beyond steel to other manufacturing areas where the "ucor model will work. 'ohn %uma(os, a long time steel analyst with )anford *.Bernstein, remarked, "ucor would likely look at manufacturing setups similar to "ucor s #oist business-nonunion shop with a team production concept or a product adaptable to "ucor s team system. I e&pect they will be in manufactured products that are philosophically like a #oist line, where you are paying a bunch of guys based on the unit output of the team and they are pulling together like a crew$ Inversion took pride in overseeing the operations of about +, plants with lean corporate staff. Aycock emphasi(ed the need to add more, management layers. As he e&plained, -hen "ucor was a niche player, inversion s intuitive style served it well. But with revenues now e&ceeding ./ billion-and the company on track to become the largest steelmaker in output-it was time for more long-term planning. 0ur si(e means the boss simply can t know everything that goes on. 1ach top e&ecutive must have no more than seven plant managers reporting to him. %his will mean better oversight and monitoring of costs. It may also provide a broader base of talent to succeed me.$ In "ovember 2333, the company added two e&ecutive vice presidents between Aycock and the plant managers. %he composition of the board also changed. Iverson s board consisted of current and former "ucor employees. Aycock recruited outside the company4 by "ovember 2333, outside directors made up twothirds of "ucor s board. 5uestions 2. 6o you agree that "ucon must undergo a deep change to survive and proper in the +2 st century 7 8ow do you evaluate the specific shifts in strategy 7 +. *an "ucor preserve its uni9ue culture and control systems under its new strategic direction 7 :. -ould you like work for "ucor under 6avid Aycock 7