Professional Documents
Culture Documents
Joseph Talarico
Meggie Toppin
Nathan
Wainwright
Maintian Yu
5071 Strategic
Management
April 1, 2015
Agenda
History of Nucor
Issue Identification
SWOT
Porters 5 Forces
Corporate Level Strategy
Business Level Strategy
Nucor Structure & Control Systems
Alternatives & Recommendations
Implementation
Nuclear Consultants
Nuclear Corporation of America
Sanborn Chase
Original owner of
Vulcraft
Scientific Genius
Engineer by trade
Compassionate
Developed Mini-Mill
technology
Established incentive
programs that were later
adopted by Ken Iverson
and Nucor as a whole
Dave Aycock
Bn Market Cap
200610.52 Bn Market Cap
201313.72 Bn Market Cap
Issue Identification
Human Resources
practices
Management
Style/Leadership
Organizational Culture
Materials Management
Mini-Mills
Vertical Integration
WEAKNESSES
Safety
No foreign locations
Rising Manufacturing
Costs
No brand loyalty
competitive on price
only
Changing Leadership
LOW
Bargaini
ng
Power of
Supplier
s
Threat
of
Substitu
te
Products
HIG
Indust
ry H
ry
Rivalr
y
Threat
of New
Entrants
Bargaini
ng
Power of
Buyers
LOW
MEDIU
M
Industry RivalryHighest
Threat
Emerging market in
China and India rapid
market growth
New technology
electric arc furnaces
Mergers & Acquisitions
(horizontal integration)
THREATS
Vertical Integration
Increased competition
Fluctuating industry
demand
Increased consumption
overseas than in the US
(International
Competition)
High Cost
Mature industry
S
c
o
p
e
Cost
Differentiatio
n
Competitive
Advantage
Leadership
Informal communication
Focused on empire building
Horizontal and vertical
integration
Levels added to Nucors
structure: Executive Vice
President
Restructuring
2 Steps:
1.
2.
Organizational Structure
Organizational Structure:
1991
Organizational Structure:
2000
Organizational Structure:
2009
Organizational Structure:
2013
Control Systems
Personal Control
Output Control
Behaviour Control
Strategic Reward Systems
Personal Control
Face-to-face interaction
Direct Supervision
Vacation policy
Behaviour/Output Control
Alternatives
Implementing Strategy
Four strategies that companies use as they
begin to market their products and
establish production facilities abroad
1. Localization
2. International
3. Global Standardization
4. Transnational
1. Nucor Manufactures
Overseas
Localization strategy
Implemented through Internal New
venture to create own business overseas
Brings Nucor culture, structure,
leadership style overseas difficult but
necessary
In line with mini-mill philosophy
currently implemented by Nucor in the
US
Transnational strategy
3. Continue to Grow in US
Recommendation
Implementation
Implementation