Case Study: Nucor Steel Corporation. Nucor Corporation is characterized by its owner‐operators who take pride in their work and teams and as a result have created great profitability for a traditional steelmaker. Nucor is known for many things including its pay practices that base earnings on performance as well as the value and trust the corporation places in its employees. At Nucor employees are rewarded based on their effort‚ treated with great respect and empowered to make decisions based on
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NUCOR MEMORANDUM To: F. Kenneth Iverson and Management Team of Nucor Corporation CC: AGSM Faculty Teams Subject: Investment Decision Date: 04/22/2009 From: 1713898 The Situation In 1986‚ flat sheet segment contained 52% of US total steel market1. Nucor Corporation‚ which is a steel minimill well-known for its leadership‚ efficient operation and well-structured compensation‚ is showing the interest in the flat sheet segment. At the same time‚ there are many new thin-slab casting technologies to
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March 13‚ 2014 SUBJECT: Should Nucor Adopt the CSP Process? Cash Flow Analysis Cash flow analysis on Exhibit 1 represents net cash flow calculation using the base assumption. According to this calculation‚ Nucor would have net present value of $(11.99) million which is a negative value. This negative value on NPV indicates potential unprofitable consequences after implementing SMS’s compact strip production (CSP); therefore‚ Nucor should not invest in this new technology.
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NUCOR CASE In this analysis we use the Net present value to consider if Nucor should invest in the new technology called: thin slab minimill. NPV is really useful in order to make this kind of decision because it uses the concept of future cash value to evaluate whether the investment is worth‚ however the NPV is sometimes difficult to calculate because it is not always easy to estimate future cash flow. Considering the assumption I made in the first part of the spread sheet‚ the thin slab project
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13 Organizational Structure LEARNING OBJECTIVES After reading this chapter‚ you should be able to: 1. Describe three types of coordination in organizational structures. 2. Justify the optimal span of control in a given situation. 3. Discuss the advantages and disadvantages of centralization and formalization. 4. Distinguish organic from mechanistic organizational structures. 5. Identify and evaluate the six pure types of departmentalization. 6. Describe three variations of divisional structure
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category (tick one only): Oil palm growers Palm oil processors and traders Consumer goods manufacturers x Retailers Banks and investors Environmental/nature conservation organisations(NGOs) Social/development organisations (NGOs) Operational structure of the organisation: Responsible Contact(s) Primary contact for questions‚ feedback: Name: Address: Telephone: Email: Chris Brown ASDA House Leeds chris.brown@asda.co.uk Senior representative‚ authorising commitments: Person submitting
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Case Background The Industry Nucor Corporation has been moving in a very challenging industry which has faced various problems in recent years. The steel industry experienced slowed demand for steel which resulted from substitution of alternative materials. Furthermore‚ it also had to cope up with increased foreign competition and strained labor relations. But despite all these obstacles‚ Nucor Corp. still managed to have a five-year sales growth average of 23%‚ which is 11 percentage points
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U.S. Steel and Bethlehem Steel‚ which mainly competed in the flat sheet segment‚ which accounted for nearly half of U.S. shipments in 1986. The buying criteria for customers of these firms revolved around price‚ quality‚ and dependability (both structure and strength). Integrated firms’ mills were located primarily in the upper-Midwest and Pennsylvania‚ and prided themselves on staying ahead of the curve in technological prowess‚ at least through the 1950s. A subsequent decline in performance was
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Nucor Corporation (A) We are a cyclical business... Basically when you are at the peak of the cycle—times are good‚ interest rates are low‚ people are building—our margins increase. When we go to the trough‚ of course‚ the margins are squeezed. But over the last 25 years Nucor has never had a losing quarter. Not only a losing quarter‚ we have never had a losing month or a losing 1 week. —John D. Correnti‚ President and CEO‚ Nucor In 1998‚ Nucor was a Fortune 500 company with 6‚900 employees
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ORGANIZATION STRUCTURE CHAPTER OBJECTIVES After reading this chapter‚ students should be able to: 1. Identify the six key elements that define an organization’s structure. 2. Describe a simple structure. 3. Explain the characteristics of a bureaucracy. 4. Describe a matrix organization. 5. Explain the characteristics of a “virtual” organization. 6. Summarize why managers want to create boundaryless organizations. 7. List the factors that favor different organization structures. 8. Explain
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