Assessment on "Nucor Corporation"

Assessment 4 pages (1286 words) Sources: 4

[EXCERPT] . . . .

Nucor

There are several trends in the steel industry. The industry has become a global commodity business. Firms have long competed on the basis of price, and now there is significant global overcapacity. Among private companies, there is a trend towards successive waves of consolidation (China Daily, 2009), as is common in mature industries. However, many steel firms around the world are government run or benefit from strong government subsidies, since steel is considered to be a fundamental industry, important for national security reasons. The overcapacity and fact that a large portion of the global industry is under government control means that there is significant price competition in the marketplace. The claims of price dumping are hypocritical for a nation that bails out its banks and automakers, but suffice to say price competition is intense and using legal proceedings through trade agreements is an accepted tactic in the business (Gray, 2010). Production has remained relatively flat in North America and grown slowly in other parts of the world, but has more than doubled in Asia in the past ten years (World Steel Association, 2009).

The second major trend in the steel industry is the advent of technological change. Nucor itself has been the beneficiary of such change, gaining first-mover advantages in the Castrip technology and has initiated many other production techniques to lower the cost of production and gain competitive advantage. Because the end product is commoditized, almost all of the innovations in the industry are geared towards lowering per ton production costs.

These trends have had a significant impact on Nucor's strategy. The c

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ompany has taken the position as a technological innovator, developing new techniques to shave dollars off of the per ton price of production, giving them a cost advantage over their rivals in the developed world. They still must contend, however, with Asian firms with significantly lower production cost factors. Nucor has adopted elements of globalization in its strategy, primarily through its joint venture program, but ultimately is limited in the amount of global growth in which it can engage by the heavy government involvement in the steel business is most countries.

The management philosophy at Nucor is progressive. The company understands that innovation is the key to success in the industry and has pursued this as a core strategy for many years. Innovation has been made a part of the corporate culture in order to support this strategy. The company has also embarked on an acquisition and joint venture strategy to build global capacity but also to gain access to new technologies -- and license its proprietary technologies around the world. In order to facilitate these strategies, Nucor has organized itself around product lines. This gives each product line an opportunity to build capacity and develop techniques on its own, but then to diffuse them around the world to other facilities marketing the same goods. This is in recognition of not only the need for capacity but also in recognition of the fact that the products are commodities and production can be shifted globally. Other than joint ventures, however, Nucor has kept wholly-only subsidiaries more or less limited to North America, where closer control can be maintained.

There are a number of human resources strategies that can impact on strategy implementation. The first is the issue of corporate culture. Nucor has a unique culture that has enabled it to take a role as an innovator and cost leader in the industry. In order that acquisitions and joint ventures work to their fullest potential, this culture must be diffused throughout the new organizations. Developing and maintaining culture is a constant challenge for Nucor in part because many of its companies operate as subsidiaries. They are not completely autonomous, but they come with their own culture and it is a challenge for management to instill the Nucor culture. This is particularly… READ MORE

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Quoted Instructions for "Nucor Corporation" Assignment:

“

conduct an analysis of Case #10 Nucor Corporation and prepare a 4-5 page report. Min 4 references.

Discuss the trends in the steel industry and how it may impact Nucor*****s strategy.

Discuss the organizational structure and management philosophy at Nucor.

Identify three HRM issues related to strategy implementation and recommend actions to address these issues.

Based on the situation, recommend whether a related or unrelated diversification should be used by the company. Provide supporting rationale.

Based on your recommendation for related or unrelated diversification, identify the organizational structure issues that the company would need to address to implement that diversification.

Grading: The assignment will be graded using the following rubric.

Outcomes Assessed

Grading Rubric for Assignment # 4 ***** HRM Issues/Diversification Strategies

Criteria

0

Unacceptable

20

Developing

30

Competent

40

Exemplary

1. Discuss the trends in steel industry and how it may impact Nucor*****s strategy.

Does not attempt assignment, nor the steel industry trends and its impact on strategy.

The steel industry trends were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The steel industry trends were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The steel industry trends were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

2. Discuss the organizational and management philosophy at Nucor.

Does not attempt assignment, nor discusses the organizational and management philosophy and its impact on strategy.

The organizational and management philosophy elements were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The organizational and management philosophy elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The organizational and management philosophy elements were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

3. Identify 3 HRM issues related to strategy implementation and recommend actions to address these issues.

No issues were discussed.

One issue was discussed.

Two issues were discussed.

Three issues were discussed.

4. Recommend whether a related or unrelated diversification should be used.

Does not attempt assignment, nor a related or unrelated diversification elements and its impact on strategy.

The related or unrelated diversification elements were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The related or unrelated diversification elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The related or unrelated diversification elements were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

5. Based on the recommended diversification strategy, identify the organizational structure issues the company would need to address to implement the strategy.

Does not attempt assignment, nor discusses the organizational issues and its impact on strategy.

The organizational structure elements were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.

The organizational structure elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.

The organizational structure elements were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.

6. Clarity

Did not complete the assignment or explanations are unclear and not organized.

(Major issues)

Explanations generally unclear and not well organized.

(Many issues)

Explanations generally clear and/or organized. (Minor issues)

Explanations very clear and well organized.

(Added helpful details.)

7. Writing ***** Grammar, sentence structure, paragraph structure, spelling, punctuation, APA usage.

Did not complete the assignment or 8 or more different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Major issues)

6 - 7 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Many issues)

4 - 5 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Minor issues)

0 - 3 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage.

*****

How to Reference "Nucor Corporation" Assessment in a Bibliography

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1. Nucor Corporation. A1-TermPaper.com. https://www.a1-termpaper.com/topics/essay/nucor-several-trends/45. Published 2010. Accessed October 5, 2024.

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