Case Study on Nucor Corp
Case 2: Nucor Corporation: Competing Against Low-cost Steel Imports
The Company, Nucor Corporation, started its operation in nuclear instrument and electronics business in early 1950s to early 1960s. Facing bankruptcy, the board of directors opted for a new leadership and appointed Kenneth Iverson as president and CEO. He concluded that to be able to avert bankruptcy is to exit the nuclear instrument and electronics business and rebuild the company around its subsidiary, Vulcraft, which is engaged in steel joist business. After its integration, it has expanded its operation in steelmaking seeing opportunities on newly emerging technology to produce steel more cheaply.
At the turn of the century, Nucor was the second largest steel producer in the U.S and charging to overtake long time leader US steel. Nucor’s sales exceeded 11 million tons, and revenues were nearly 4.8 billion.
Under the leadership of Iverson, Nucor was known for its aggressive pursuit of innovation and technical excellence, rigorous quality systems, strong emphasis on employee relations and workforce productivity, cost-conscious corporate culture and ability to achieve low cost per ton produced. In 2000, Daniel DiMiccio has risen up to the ranks and was named President and CEO of Nucor. During his time, Nucor continued to pursue a rapid-growth strategy, expanding capacity via both acquisition and new plant construction and boosting tons sold.
Nucor ventured into steel in the late 1960. Its products include fabricating steel joist and joist girders and were sold only to construction contractors. In the late 1970s, it expanded to steel decking and cold finished steel products. It was sold directly to large customers in the automotive, farm machinery, hydraulic, appliance and electric motor industries and to independent steel distributors. Aside from fabricating, it is also into basic steelmaking by manufacturing steel bars. Using electric arc furnace technology, it has produced steel that
The Company, Nucor Corporation, started its operation in nuclear instrument and electronics business in early 1950s to early 1960s. Facing bankruptcy, the board of directors opted for a new leadership and appointed Kenneth Iverson as president and CEO. He concluded that to be able to avert bankruptcy is to exit the nuclear instrument and electronics business and rebuild the company around its subsidiary, Vulcraft, which is engaged in steel joist business. After its integration, it has expanded its operation in steelmaking seeing opportunities on newly emerging technology to produce steel more cheaply.
At the turn of the century, Nucor was the second largest steel producer in the U.S and charging to overtake long time leader US steel. Nucor’s sales exceeded 11 million tons, and revenues were nearly 4.8 billion.
Under the leadership of Iverson, Nucor was known for its aggressive pursuit of innovation and technical excellence, rigorous quality systems, strong emphasis on employee relations and workforce productivity, cost-conscious corporate culture and ability to achieve low cost per ton produced. In 2000, Daniel DiMiccio has risen up to the ranks and was named President and CEO of Nucor. During his time, Nucor continued to pursue a rapid-growth strategy, expanding capacity via both acquisition and new plant construction and boosting tons sold.
Nucor ventured into steel in the late 1960. Its products include fabricating steel joist and joist girders and were sold only to construction contractors. In the late 1970s, it expanded to steel decking and cold finished steel products. It was sold directly to large customers in the automotive, farm machinery, hydraulic, appliance and electric motor industries and to independent steel distributors. Aside from fabricating, it is also into basic steelmaking by manufacturing steel bars. Using electric arc furnace technology, it has produced steel that