Nucor Corporation Case Essay

SummaryFor more than 20 years the Nucor mint has been i and barely(a) of the leading manufacturers of stain and steel cogitate products in the world. With their applied science advancement, low debt ratio, decentralized sign of organization and many more, this company still thrives to light upon better goals in their company. Aside from the positive views of the company, it alike faced problems like bankruptcy. (te pakidagdagan n lng)HistoryNucor traced its origins to railway car manufacturer Ransom E. Olds, who founded Oldsmobile, and later, Reo Motor Cars. Through a series of transactions, the company eventually became the Nuclear potty of America, a company mingled in the atomic instrument and electronics business. In 1972, the firm changed its name to Nucor breadbasket. By 1998, it had become Americas second-largest steel ramp upr. trading operationsNucor related its diverse facilities in rural areas crosswise the United States, establishing strong ties to its loca l communities and its work force. As a leading employer with the ability to pay croak wages, it attracted hard-working, dedicated employees. These factors as well as allowed Nucor to select from among competing locales, siting its operations in states with tax structures that encouraged business growth and regulatory policies that favored the companys commitment to stay union-free. By mid-2008, Nucor operated 53 facilities throughout the United States and one in Point Lisas, Trinidad. The company also keep operations through wholly owned subsidiaries, Harris steel and the David J. Joseph Company (DJJ).StrategyNucors strategy focussed on two major competencies building steel manufacturing facilities economically and operating them productively.Organization StructureCompared to the normal Fortune 500 company with 10 or more management layers, Nucors Structure was decentralized, with only the four managementlayers illustrated under Chairman / offense Chairman / PresidentVice Pr esident / ready General animal trainerDepartment Manager executive programHuman Resource PoliciesEmployee relations at Nucor were establish on four principles 1. Management is obligated to manage Nucor in such a way that employee give have the opportunity to earn according to their productivity. 2. Employees should retrieve confident that if they do their jobs properly, they will have a job tomorrow. 3. Employees have the right to be tough fairly.4. Employees must have an avenue of appeal when they imagine they are being treated unfairly.CompensationNucor provided employees with a exploit-related requital system. All employees were covered under one of four compensation plan, each featuring incentives for meeting ad hoc goals and targets.1. Production fillip propose* employees directly involved in manufacturing were paid weekly bonuses establish on actual output in relation to judge production tonnages produced. The bonuses were paid only for work that met the graphic s ymbol standards and were pegged to work group, rather than individual output. 2. Department Manager incentive pattern* Department managers earned an annual incentive bonus based on the performance of the entire plan to which they belonged. The targeted performance criterion here(predicate) was return on assets.3. Non-Production and Non-Department Manager Incentive Plan * All employees not in the Production Incentive Plan or Department ManagerIncentive Plan including accountants, engineers, secretaries, clerks, and receptionists received a bonus based primarily on each plants return on assets. It could total over 25% of an employees base salary.4. Senior Officers Incentive Plan* Included all corporate executives and plant universal managers. A portion of pre-tax earnings was placed into a pool that was divided among the officers. If Nucor did well, the officers bonuses, in the form of old-hat (about 60%) and cash (about 40%), could amount to some(prenominal) times their base salaries. If Nucor did poorly, an officers compensation was only base salary and, therefore, signifi idlertly below the average pay for this level of responsibility.Information SystemsBenefitsNucor took an egalitarian approach toward employee benefits. Nucors benefit program also attested to the companys commitment to education. applied scienceNucor did not have a formal R&D department, a corporate engineering group, or a chief technology officer. Instead, it relied on equipment suppliers and former(a) companies to do the R&D, and they adopted the technological advancements they real whether in steel or iron making, or in fabrication. Teams composed of mangers, engineers, and machine operators decided what technology to adopt.FutureThe companys biggest challenge (in the future) is to tolerate to grow the company at 15 20% per year, and to keep earnings parallel with its growth.AnalysisNucor Corporation became one of the top corporations in the steel industriousness because of t heir handwork and technology innovation. This company also sees and takes grapple of its employees needs, which in return gives thema case service in their work.ConclusionNucor, even though we can see it as a successful, or so perfect company, still faces problems like other businesses in the industry.ProblemThe company has lost one-third to half of its market measure out when the stock reached its peak value (mid-2008), and has not recovered as of 2012.RecommendationWe can recommend change in the companys technology, like getting more advance equipments in making steel and steel-related products. Or the company could make a merger to other company to expend its resources to its maximum while keeping cost low.