Nucor Corporation Case Essay Example for Free

Nucor Corporation Case EssaySummaryFor more than 20 years the Nucor Corporation has been bingle of the leading manufacturers of steel and steel related products in the world. With their engineering science advancement, low debt ratio, decentralized type of organization and many more, this guild still thrives to achieve check goals in their company. Aside from the positive views of the company, it also faced problems like bankruptcy. (te pakidagdagan n lng)HistoryNucor traced its origins to auto manufacturer Ransom E. Olds, who founded Oldsmobile, and later, Reo Motor Cars. Through a serial publication of transactions, the company eventually became the Nuclear Corporation of America, a company involved in the nuclear instrument and electronics business. In 1972, the firm changed its name to Nucor Corporation. By 1998, it had fashion Americas second-largest steel maker.OperationsNucor related its diverse facilities in rural areas across the United States, establishing strong ties to its local communities and its work force. As a leading employer with the ability to pay top wages, it attracted hard-working, dedicated employees. These factors also allowed Nucor to select from among competing locales, siting its trading operations in states with tax structures that encouraged business growth and regulatory policies that elevate the companys commitment to remaining union-free. By mid-2008, Nucor operated 53 facilities throughout the United States and one in Point Lisas, Trinidad. The company also maintained operations through wholly owned subsidiaries, Harris Steel and the David J. Joseph Company (DJJ).StrategyNucors strategy focused on two major competencies building steel manufacturing facilities economically and operating them productively.Organization StructureCompared to the typical Fortune 500 company with 10 or more management layers, Nucors Structure was decentralized, with unless the quartette managementlayers illustrated below Chairman / Vice C hairman / PresidentVice President / patternt General ManagerDepartment ManagerSupervisor kind Resource PoliciesEmployee relations at Nucor were based on quaternity principles 1. Management is obligated to manage Nucor in such a way that employee will hold up the opportunity to earn according to their productivity. 2. Employees should feel confident that if they do their jobs properly, they will have a job tomorrow. 3. Employees have the right to be treated fairly.4. Employees essential have an avenue of appeal when they believe they are being treated unfairly.CompensationNucor provided employees with a performance-related compensation system. All employees were covered under one of four compensation plan, each featuring incentives for meeting specific goals and targets.1. Production inducement Plan* employees directly involved in manufacturing were paid weekly bonuses based on veritable output in relation to anticipated production tonnages produced. The bonuses were paid only for work that met the quality standards and were pegged to work group, rather than individual output. 2. Department Manager Incentive Plan* Department managers earned an annual incentive bonus based on the performance of the entire plan to which they belonged. The targeted performance criterion here was way out 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 general 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 stock (about 60%) and cash (about 40%), could amount to several times their base salari es. If Nucor did poorly, an officers compensation was only base salary and, therefore, significantly below the average pay for this level of responsibility.Information SystemsBenefitsNucor took an egalitarian approach toward employee benefits. Nucors benefit program also demonstrate to the companys commitment to education.TechnologyNucor did not have a formal RD department, a corporate engineering group, or a chief technology officer. Instead, it relied on equipment suppliers and different companies to do the RD, and they adopted the technological advancements they developed whether in steel or iron making, or in fabrication. Teams composed of mangers, engineers, and machine operators firm what technology to adopt.FutureThe companys biggest challenge (in the future) is to continue to grow the company at 15 20% per year, and to keep earnings parallel with its growth. abbreviationNucor Corporation became one of the top corporations in the steel industry because of their handwork and technology innovation. This company also sees and takes care of its employees needs, which in return gives thema quality service in their work.ConclusionNucor, even though we can see it as a successful, almost perfect company, still faces problems like other businesses in the industry.ProblemThe company has lost one-third to one-half of its market value when the stock reached its peak value (mid-2008), and has not recovered as of 2012. tributeWe 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 utilize its resources to its maximum while keeping cost low.