Case Study of Nucor

Summary Nucor is an industrial steel company headquartered in Charlotte, North Carolina. They are aninnovative and lean company operating with safety in mind and a goal of returning investmentsto stockholders. There management system is extremely lean and consist of 5 levels. Nucor is a highly segmented and independent company. They benefit from each manager operating there segment as its own business entity. This prospective allows Nucor to maintain ahigh degree of entrepreneurship throughout its vast corporation. Nucor maintains a high level of respect between management and its employees. Thisrelationship has allowed management to achieve success through financial goals and has givenemployees job security and a great working environment. Nucor has essentially eliminated the barrier between management and employee. The employees have the exact same benefits asmanagement. Management has also taken on not buy corporate jets, cars, and country clubmemberships like other big time companies do. Nucor has also pioneered the mini-mill steel factory allowing for them to cut operating costscompared to traditionally steel factories. This mill has also led to reduction in energy use and pollution. Environmentally speaking Nucor has continued to be an industry best. Nucor recycles
―1 ton of steel for every two seconds making it the largest recycler of any material in America
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more than the nation's entire aluminum can industry‖.

Questions
1. Why has Nucor performed so well?a. Is Nucor's industry the answer?h. Is it the "mini-mill" effect?c. Is it market power )scale economies)?d. Is it a distribution channel advantage?c. Is it a raw material advantage?f Is it a technology advantage?g. Is it a location advantage?h. Is it the result of an entrenched brand name?i. Is it Nucor's choice of a unique strategy? j. Is it Nucor's ability to execute its strategy? Nucor’s focus es on 2 major competencies i.e. building steel manufacturing facilities economically and