NUCOR CORPORATION

PRESENTED BY:
SAMUJJAL BHATTACHARJEE
BHAVNA AGRAWAL
KARAN VEER SINGH
ABHINAV SINGH
SAQUIB MUNEER
INTRODUCTION
 Nucor started as a auto manufacturing company
than later converted itself into the Nuclear and
Electronics business in 1950’s and early 1960’s
 After the firm suffered several money losing years
Ken Iverson took charge as the president
 After Iverson took charge he consolidated company
on two businesses viz making steel from recycled
scrap metal and fabricating steel joists for use in
non residential construction
Contd…
 In 1972 the firm changed its name to Nucor
corporation
 By 1998 it became America’s second largest steel
maker and also was in Fortune 500 company
 Nucor’s sales during Iverson’s tenure grew at an
annual compound rate of about17% per annum
 In the corresponding years both Nucor CEO John
Correnti and Iverson were named steel maker of
the year
Operations of Nucor
 Nucor located its diverse facilities in rural areas
across the United States

 It established strong ties to its local communities

and its workforce

 Nucor selected operations in states with tax

structures that encouraged business growth
Contd…
 Nucor’s top management favoured the company’s
commitment to remaining union free

 Nucor and its subsidiaries consisted of nine

businesses, with 25 plants
Strategies
 Continuous Innovation
 Usage of modern equipment
 Individualized customer service
 Usage of scrap metal
 No acquisitions and mergers
 Usage of low debt in total capital
 No diversification
Organization Structure
 Decentralized system
 Four management layers:

Chairman/Vice chairman/President
Vice President/Plant General Manager
Department Manager
Supervisor
Contd…
 Autonomy to the General Manager in decision
making
 Nucor’s board of director’s had only six members
 The decision making was done by the individual
plant’s General Manager and they were not liable
for the Headquarters to respond to the problems
 There were a total of 6800 employees working in
the company
Human Resource Policies
 Employee relations at Nucor were based on 4
principles:
 Employees would earn according to their
productivity
 Employees should feel confident that if they do
their jobs properly, they would have a job
tomorrow
 Employees have the right to be treated fairly
 Employees have an avenue of appeal when they
believe they are being treated unfairly
Cotnd…
 General manager were required to hold annual
dinners with every employee
 Commitment for no lay off during recession period
 No unionism
 Policy of team work
 Suggestions from lower level employees are taken
into consideration
Compensation
 Four compensation plans

 Product incentive plan

 Department manager incentive plan
 Non-production and non-department manager
incentive plan
 Senior officer incentive plan
Information systems

 Each plant has to submit a snapshot of the plants

basic operations on a weekly and monthly basis
 Managers do not have to submit voluminous
reports instead they need to submit the actual and
budgeted figures
 The plant General managers met as a group with
head quarters management three times a year to
review each plant’s performance
Benefits

 Profit sharing
 Scholarship programmes
 Stock purchase plan
 Commitment of providing equal status
 On the job training
 Job referrals through existing employees
Technology
 Use of mini-mill technology

 Backward integration

 Modernizing the existing plants

 Technology management
Application of MCS
 Responsibility centre
 Expense centre
 Goal congruence
 Management performance
 Economic performance
Conclusion
 Nucor’s overall approach towards organization and
control has paid rich dividend in the growth of the
company
 Their ability to be a successful first mover in the
adaption of new technology is remarkable
 Although the company has done well for the last 25
years but still with the prevailing market conditions
they need to think about diversification and
mergers & acquisitions