This company used to buy 95 percent of its scrap steel from an independent broker. Nucor can use advanced metallurgical practices, sophisticated process control sensors, state of the art computer controls, and the latest refinements in continuous casting and rolling mill technology.
Each Vulcraft plant maintained its own engineering department to help customers with design problems or specifications.
The firms can reduce their casts by vertical integration or by out sourcing. Topics diverse broadly from year to year, and occasionally the meetings continued well after midnight.
So the Case study on nucor corporation companies easily sell their steel in U. In commerce department concluded that steel companies in six countries had illegally dumped stainless steel in the United States at prices below production costs or home market prices.
Scrap steel and scrap substitute were the most significant element in the total cost of steel products. Iverson was becoming increasingly concerned about the adequacy of scrap steel supplies and the potential for higher scrap steel prices.
Many of their constructions were done by different construction companies. Shortage of required capital: Lack of technological sophistication: Nucor has introduced a new pricing strategy. They build their continuous casting unit; reheat furnaces, cooling beds, mill stands.
However, the accelerating move toward twin shell furnace was expected to greatly tighten the supply of scrap steel, possibly creating shortage and causing scrap steel price to rise. So now Nucor can again start up their own car manufacturing company instead of supplying the automakers raw materials.
There are too many marginal competitors and too much production capacity in U. Nucor constantly trying to reduce its costs in each and every sector. If US steel industry use high technology then they would do better. There are some industries, where the manufacturers need to achieve economies of scale to earn profit.
Acquisition of foreign plants: Because of all this sophisticated technology they could beat the competitors by reducing their cost of production. Foreign steel producers with few market opportunities abroad were dumping steel in the U.
The steel industry has established a pattern of captivating shipping costs, so all users paid the same delivered price regardless of their distance from the mill. Which means if the manufacturers produce more, the fixed cost will be shared among the units produced and thus reduce the fixed cost.
For example, the general manager of Darlington plant developed a system that involved preheating the ladles, allowing for the faster flow of steel in to the caster and resulting in better control of the steel characteristics.
Kenneth Iverson, had going the business for more than 30 years. But manufacturing steel requires a long time experience because it is a very high tech product. Economic recession and terrorist attack: Without outsourcing they can place such departments.
For this reason they are able to defeat the competitors and become the fastest growing steel company. They prefer to outsource what ever required to be done in these areas.
In each and every operation the company is trying to reduce its costs. Some of the challenges are described below: Such as, Unsophisticated technology: S firm were not able to do so. S Minimill producers The U. A slowing economy, particularly in auto sales led the decline of customer demand.
Nucor was not that much concerned about environmental consequences which they are causing. Management relations at Nucor was very informal, trusting and not bureaucratic. S steel companies faced several challenges which forced them to change their strategies or adapt new strategies.
In Vulcraft bought about 60 percent of its steel from foreign source to get it economically. Buying row material s for their company from other steel suppliers and the importers cost Nucor a lot. But later, that expensive plant was deemed unsuccessful and closed.Duringwith its new formally adopted name, the Nucor Corporation started its journey to join the ranks of the world’s leading steel companies.
This is one of the fastest growing steal companies in America and one of the lowest cost producers of steel products in Nucor Case Presentation 1. Nucor CorporationNucor Corporation Pursuing Growth in the Steel IndustryPursuing Growth in the Steel Industry byby Drummond International ConsultingDrummond International Consulting & Enterprises& Enterprises 1.
provided by F. Kenneth Iverson, Chairman, Nucor Corporation in preparing this case study is greatly appreciated. It was written for class discussion and not to illustrate effective or ineffective management practices.
This case examines Nucor's development from an unprofitable conglomerate to a highly efficient enterprise. Specific focus on the evolution of the activity system underlying the organization lays the groundwork for systematic analysis of why some companies succeed while others fail.
5 NUCOR CASE STUDY Company Background Nucor was founded in the year as a manufacturer of the motor car by Ransom Eli Olds by the name “REO”. The company then changed to a being a consulting firm for nuclear. In the yearthe nuclear corporation company bought an electric arc furnace and decided to venture into steel making and thus changed to Nucor Corporation 96%(56).
Rashmi Shrestha () April 06, Nucor Corporation What are the basic success indicators of Nucor to convince that the company was doing exceptionally well?Download