Nucor Steel Case Study

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Nucor
From Wikipedia, the free encyclopedia
Nucor Corporation

TypePublic (NYSE: NUE)
S&P 500 Component
IndustrySteel & Iron
Founded1940
HeadquartersCharlotte, North Carolina, USA
Key peopleDaniel R. DiMicco, Chairman, CEO, & President
Revenue US$ 11.2 Billion (FY 2009)[1]
Net income US$ 293 million (FY 2009)[1]
Employees20,400 (2010)
Websitewww.nucor.com
Nucor Corporation (NYSE: NUE), a Fortune 300 company headquartered in Charlotte, North Carolina, is one of the largest steel producers in the United States, and the largest of the "mini-mill" operators (those using electric arc furnaces to melt scrap steel, as opposed to companies operating integrated steel works with blast furnaces). Nucor claims to be North America's largest recycler of any material, recycling one ton of steel every two seconds. The total annual steelmaking capacity of the company is 25 million ton.[2] Contents [hide]

1 History
1.1 The REO Era
1.2 The Nuclear Corporation Era
1.3 The Nucor Era
2 Nucor Today
3 The Nucor Culture
3.1 Decentralized Management Philosophy
3.2 Performance Based Compensation
3.3 Egalitarian Benefits
3.4 Customer Service and Quality
3.5 Technological Leadership
4 Environmental record
5 References
6 External links
[edit]History

Nucor's history consists of three distinct eras: the Reo Motor Car era, the Nuclear Corporation of America era, and the current Nucor era.[3][4] [edit]The REO Era
Nucor's origins are with auto manufacturer Ransom E. Olds, who founded Olds Motor Vehicle Company in 1897 (later, as Oldsmobile, to become a part of General Motors). Having left his company years before it was acquired by GM, in 1905 Olds established a new company, REO Motor Car Company, the predecessor to Nucor, in Lansing, Michigan. Though Olds' cars, including the luxurious REO Flying Cloud, were popular, they were not profitable, and the company's more successful truck business (featuring the famous REO Speed Wagon) was still not sufficiently profitable to avoid a bankruptcy filing in 1938. As part of the bankruptcy reorganization, REO exited the car business to concentrate on trucks, and after World War II, attempted to diversify into lawn mowers. The reorganized company continued to underperform, and finally in December 1954, REO sold off its entire manufacturing operations to Bohn Aluminum and Brass Company (suffering a $3 million loss on the sale). [edit]The Nuclear Corporation Era

After the sale, REO was left with $16 million in cash on hand and no trading businesses. The company initiated liquidation proceedings, with the goal of selling its few remaining assets and distributing the cash to creditors and shareholders. However, a group of dissident shareholders noticed the tax loss and successfully challenged the liquidation in a proxy fight in September 1955. In what amounted to a "reverse hostile takeover", activist shareholders forced REO to take over a tiny nuclear services company called Nuclear Consultants, Inc. Following the purchase, REO Motor Company emerged as "Nuclear Corporation of America Inc.", and relocated to offices in the Empire State Building in New York City. Nuclear's attempt to recast itself as a nuclear industry services company was ultimately no more successful than REO had been. Nuclear then followed the example of other companies in the 1950s and 60s and attempted to become a conglomerate, once again moving its headquarters, this time to Phoenix, Arizona. During this time it would purchase, among others, Vulcraft Corporation, a steel joist manufacturer located in Florence, South Carolina. Vulcraft had been founded by Sanborn Chase (no relation to the coffee company), who died at an early age, leaving the company to his widow. Nuclear purchased Vulcraft from Chase's widow in 1962 and, in a sign of things yet to come, hired F. Kenneth Iverson as general manager. But Nuclear the conglomerate fared no better than Nuclear the nuclear services company or REO the...
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