V Nucor started as a auto manufacturing

company than later converted itself into the

Nuclear and Electronics business in 1950·s and
early 1960·s
V After the firm suffered several money losing
years Ken Iverson took charge as the president
V After Iverson took charge he consolidated
company on two businesses viz making steel
from recycled scrap metal and fabricating steel
joists for use in non residential construction
V In 1972 the firm changed its name to Nucor
corporation
V By 1998 it became America·s second largest
steel maker and also was in Fortune 500
company
V Nucor·s sales during Iverson·s tenure grew at
an annual compound rate of about17% per
annum
V In the corresponding years both Nucor CEO
John Correnti and Iverson were named steel
maker of the year
V Nucor located its diverse facilities in rural areas
across the United States

V It established strong ties to its local

communities and its workforce

V Nucor selected operations in states with tax

structures that encouraged business growth
V Nucor·s top management favoured the
company·s commitment to remaining union
free

V Nucor and its subsidiaries consisted of nine

businesses, with 25 plants
V Continuous Innovation
V Usage of modern equipment
V Individualized customer service
V Usage of scrap metal
V No acquisitions and mergers
V Usage of low debt in total capital
V No diversification
V ïecentralized system
V Four management layers:

Chairman/Vice chairman/President
Vice President/Plant General Manager
ïepartment Manager
Supervisor
V Autonomy to the General Manager in decision
making
V Nucor·s board of director·s had only six
members
V The decision making was done by the
individual plant·s General Manager and they
were not liable for the Headquarters to respond
to the problems
V There were a total of 6800 employees working
in the company
V Employee relations at Nucor were based on 4
principles:
u Employees would earn according to their
productivity
u Employees should feel confident that if they do
their jobs properly, they would have a job
tomorrow
u Employees have the right to be treated fairly
u Employees have an avenue of appeal when
they believe they are being treated unfairly
V General manager were required to hold annual
dinners with every employee
V Commitment for no lay off during recession
period
V No unionism
V Policy of team work
V Suggestions from lower level employees are
taken into consideration
V Four compensation plans

u Product incentive plan

u ïepartment manager incentive plan
u Non-production and non-department manager
incentive plan
u Senior officer incentive plan
V Each plant has to submit a snapshot of the
plants basic operations on a weekly and
monthly basis
V Managers do not have to submit voluminous
reports instead they need to submit the actual
and budgeted figures
V The plant General managers met as a group
with head quarters management three times a
year to review each plant·s performance
V Profit sharing
V Scholarship programmes
V Stock purchase plan
V Commitment of providing equal status
V On the job training
V Job referrals through existing employees
V Use of mini-mill technology

V Backward integration

V Modernizing the existing plants

V Technology management
V vesponsibility centre
V Expense centre
V Goal congruence
V Management performance
V Economic performance
V Nucor·s overall approach towards organization
and control has paid rich dividend in the
growth of the company
V Their ability to be a successful first mover in
the adaption of new technology is remarkable
V Although the company has done well for the
last 25 years but still with the prevailing
market conditions they need to think about
diversification and mergers & acquisitions