Transcript
7/28/2019 Presentation1 Nucor Steel
1/25
7/28/2019 Presentation1 Nucor Steel
2/25
http://www.youtube.com/watch?v=RuP0d7WOXwQ
What Nucor
Does
http://www.youtube.com/watch?v=RuP0d7WOXwQhttp://www.youtube.com/watch?v=RuP0d7WOXwQhttp://www.youtube.com/watch?v=RuP0d7WOXwQhttp://www.youtube.com/watch?v=RuP0d7WOXwQhttp://www.youtube.com/watch?v=RuP0d7WOXwQhttp://www.youtube.com/watch?v=RuP0d7WOXwQhttp://www.youtube.com/watch?v=RuP0d7WOXwQ7/28/2019 Presentation1 Nucor Steel
3/25
1897 Reo Truck Company
1955 Nuclear Corporation ofAmerica
1966 Nucor
7/28/2019 Presentation1 Nucor Steel
4/25
High-tech conglomerate
Ken Iverson restructured thecompany
Engaged in divestment of
high-tech business
Focus on profitable
business: steel
7/28/2019 Presentation1 Nucor Steel
5/25
1. Steel joist plants
Steel frames forbuilding
2. Mini-mill technology
Smaller scale
production
7/28/2019 Presentation1 Nucor Steel
6/25
Consolidated business in
first 20 years
Successful in the 1980s Mid 2000s 2nd largest
American steelmanufacturer
2009 posted first ever loss
in 42 years
7/28/2019 Presentation1 Nucor Steel
7/25
Structure the industrystructureConduct the strategies a firmchooses to implement
Performance how a firmperforms based on the structureand conduct
7/28/2019 Presentation1 Nucor Steel
8/25
Steel and Iron Industry
Three main competitors:
ArcelorMittal USA, Inc.Commerical Metals Company
United States Steel Corp.
Less competitors = moreopportunities
7/28/2019 Presentation1 Nucor Steel
9/25
1.Mini-Mills
2.Decentralized
Management
3.Incentive System
7/28/2019 Presentation1 Nucor Steel
10/25
Societal Level
Productive and allocative
efficiency
Employee Level
Work Environment
7/28/2019 Presentation1 Nucor Steel
11/25
Primary Activities
Purchase of raw material
Raw material Policy
Production and distribution
Market and Marketing
7/28/2019 Presentation1 Nucor Steel
12/25
In the beginning of the operation ofstill mills Nucor was purchasing the
raw materials from the foreignmarket. As the Vulcraft division ofNucor grew, Nucors division itself
became its own raw materialsupplier. Its strategy of using thescrap substitutes lowered the cost
of steel product.
7/28/2019 Presentation1 Nucor Steel
13/25
Nucor brought forth lot of changes in theirmanufacturing system. Recycled steelscrap and other metallics are melted in
electric arc furnaces and poured intocontinuous casting systems
Due to new manufacturing systemNucors current capacity reached to25,000,000 tons. Nucor had its own 150trucks (more now) to ensure the on time
delivery to the different states of UnitedStates.
7/28/2019 Presentation1 Nucor Steel
14/25
Up to 2005 the corporate staff of Nucor consistedof less than 45 employees. Nucor did not haveany strong infrastructure of different layers ofmanagement.
There was not clear structure of Human Resourcedepartment in Nucor. In 2000 the new CEOAyecock added some of the positions as hethought would be necessary. James Coblin wasthe vice president for HR department.
Nucor basically had the incentive system throughwhich all the employees and workers were getting
paid. This incentive system applied to productionworkers, de artment heads, staff eo le
7/28/2019 Presentation1 Nucor Steel
15/25
In 2009 Nucor sold almost 86% of its steelinventory to the outside customers, the leftoverwas used by different inter divisions
In 2009 Nucors one division Vulcraft suppliedmore than 40% and 30% of total domesticsales of steel joists steel griders respectively
For maintaining relationship with the most ofthe customers Nucor engaged in contact withthem for 6-12 months while during the contacttime the change in price of steel was totally
restricted.
7/28/2019 Presentation1 Nucor Steel
16/25
Self-owned steel mills
1967: 60% expenditure = rawmaterials
60% steel from foreign sources
1968: Nucor builds first steel mill
7/28/2019 Presentation1 Nucor Steel
17/25
Autonomous Divisions(Joist plants, steel mills and
miscellaneous)
- Management
- Manufacturing
- Selling
- Accounting
- Engineering
- Personnel Management
7/28/2019 Presentation1 Nucor Steel
18/25
Key alliances
- Research and
DevelopmentOutsourcing
- Advertising
- Public Relations
- Le al Issues
7/28/2019 Presentation1 Nucor Steel
19/25
Equal freight prices for
all customers
No volume discounts
Just-in-time
AusterityA no nonsense
company
Own fleet of trucks
7/28/2019 Presentation1 Nucor Steel
20/25
Flexible jobs
Avoiding bottlenecks
Incentives
Base wage + weeklybonus
7/28/2019 Presentation1 Nucor Steel
21/25
January 2007 - Nucor acquired Harris Steel for$1.07 billion
Diversification
Steel used to build bridges, highways, andother infrastructure
Theres always money in government
projectsFebruary 2008 - Nucor acquired David J.
Joseph Inc. for $1.41 billion
Vertical Integration
Scrap metal recycler (used for mini mills)
7/28/2019 Presentation1 Nucor Steel
22/25
2009 Fiscal Year
Loss of $293 million, the
companys first since 1966
Steel industry hit hard by globalfinancial crisis
A year later, Nucor is back toprofitability
7/28/2019 Presentation1 Nucor Steel
23/25
Nature of the Steel Industry
Economic Climate
Strategic Acquisitions
Infrastructure
Looking Towards the Future Analysis
7/28/2019 Presentation1 Nucor Steel
24/25
7/28/2019 Presentation1 Nucor Steel
25/25
top related