Nucro 2009 Case Analysis
COMM 1010: Individual Assignment
Nucor in 2009 Case Analysis
Hussein Savji
B00575439
November 1, 2013
1. Key Issues and Decisions Being the head of a corporation is a task that requires increasing amounts of responsibility and intuition. The CEO of a corporation takes on the role of primary decision maker, though is influenced by many factors including employees, the situation of the market and the situation of the corporation. Any decisions he makes must benefit not only him, but all those associated with the corporation currently, and in the future. In the case of Nucor, a company involved in the steel industry for the past half century, CEO Dan DiMicco was faced with making the decisions which would either keep the company afloat or lead to the failure of the company in an already weakened market. At the time of Daniel DiMicco’ s introduction as CEO of Nucor in the early 2000’s, Nucor was one of the few surviving and succeeding steel making corporations in the weakened steel industry. This raised the primary issue for Mr. DiMicco; how to remain at the top of a crumbling industry. With the price of steel lower than it’s been in 20 years, and sales being reported lower with each quarter, DiMicco knew something had to be done to remain profitable in the highly fluctuating industry. Many strategies and tactics were introduced to help Nucor strive, including the expansion of the country, to other countries, and industries through joint ventures. DiMicco not only had to decide whether or not to begin this expansion, but with whom would these expansions lead to benefits for Nucor. Having decided which joint ventures would be profitable, he faced the challenge of whether or not these partnerships were in fact helping or hurting Nucor. He also had to determine whether or not to continue these ventures or to cut back on expanding.
With many decisions having been made to help keep the company from seeing
Nucor in 2009 Case Analysis
Hussein Savji
B00575439
November 1, 2013
1. Key Issues and Decisions Being the head of a corporation is a task that requires increasing amounts of responsibility and intuition. The CEO of a corporation takes on the role of primary decision maker, though is influenced by many factors including employees, the situation of the market and the situation of the corporation. Any decisions he makes must benefit not only him, but all those associated with the corporation currently, and in the future. In the case of Nucor, a company involved in the steel industry for the past half century, CEO Dan DiMicco was faced with making the decisions which would either keep the company afloat or lead to the failure of the company in an already weakened market. At the time of Daniel DiMicco’ s introduction as CEO of Nucor in the early 2000’s, Nucor was one of the few surviving and succeeding steel making corporations in the weakened steel industry. This raised the primary issue for Mr. DiMicco; how to remain at the top of a crumbling industry. With the price of steel lower than it’s been in 20 years, and sales being reported lower with each quarter, DiMicco knew something had to be done to remain profitable in the highly fluctuating industry. Many strategies and tactics were introduced to help Nucor strive, including the expansion of the country, to other countries, and industries through joint ventures. DiMicco not only had to decide whether or not to begin this expansion, but with whom would these expansions lead to benefits for Nucor. Having decided which joint ventures would be profitable, he faced the challenge of whether or not these partnerships were in fact helping or hurting Nucor. He also had to determine whether or not to continue these ventures or to cut back on expanding.
With many decisions having been made to help keep the company from seeing
Cited: Baltazar, Ramon. "Management and Organization." Business in a Global Context. Dalhousie University. Kenneth C Rowe Building, Halifax, NS. 8 Oct. 2013. Class lecture. Griffin, Ricky W. "2-3, 5-10." Business. 8th Canadian ed. Toronto: Pearson Canada, 2013. 36-104, 140-337. Print. Hill, C. A., and G.R. Jones. "Nucor in 2009." Strategic Management: An Integrated Approach. USA: SouthWestern-Cengage Learning, 2010. C159-C182. Print.