b) Identify and explain the specific policies and operating practices that Nucor has employed to implement and execute its chosen strategy. Include Tawhidic paradigm in your explaination.
Pursue and implement cost-saving technologies: Nucor purchasing existing plant capital rather than building new capacity, provided the acquired plants could be bought at the bargain prices, economically retrofitted with new equipment and then operated at cost comparable. Nucor successes in pioneering new technology and become the world’s first installation of direct strip casting of carbon sheet steel – a process called Castrip. The process drastically reduce capital outlays for equipment and produced saving on operating expenses. Castrip process also was cutting greenhouse gas emission by up to 80%.
Employ incentive compensation: ‘pay for performance’ company with an incentive compensation system that rewarded goal-oriented individuals and did not put a maximum on what they could earn. Four basic compensation plans: Production Incentive Plan, Department Manager Incentive Plan, Professional and Clerical Bonus Plan, Senior Officers Incentive Plan.
Empower plant employees: Nucor allow employees to innovate and make quick decisions. Day-to-day operating decisions made by group or plant-level general manager and their staff. Each group or plant operating independently as a profit center and was headed by a general manager.
Create low-cost culture: One trait of Nucor’s corporate culture was the expectation that plant-level managers would be persistent in implementing methods to improve product quality and keep cost per ton low relative to rival plants
Offshore joint venture: Entering joint ventures with foreign partners to invest in steel-making projects outside North America. Nucor invested 221.3 million to become 50/50 joint venture partner with Mitsui USA - the largest wholly owned subsidiary, a diversified global trading, investment and service enterprise