Nucor Case Study

Case Study Analysis: NUCOR Corporation in 2012
Strategic Issues Facing NUCOR
Nucor has been faced with strategic issues over the past few years. Some of these issues are attributed to the invasion of the steel industry by companies from Europe and Asia that that threaten the position of Nucor. These companies in Europe and Asia have begun making products that threaten the domestic market share of NUCOR. Furthermore, many companies have in the past paid close attention to the operations of the NUCOR Company. Also, over the past years, Nucor has had a strategy that pays employees based on quality and not seniority. This has affected the company’s relations with the workers’ union and, thus, creating a rift between the company and the workers’

The company has emphasized on the need for a decentralized management in recent times. Furthermore, the company rates its employees based on performance or quality and not on seniority. Also, the company has employed the use of lean management that puts the customers’ needs first. Finally, the employees in the company have assurances of their jobs and are motivated, thus the high productivity within the company. Companies in the steel industry can borrow from NUCOR Corporation. In pursuing rapid growth strategies and expanding the production capabilities, companies can ensure production at low cost by embracing a payment strategy based on employee quality and not seniority. In the long run, these strategies can enhance profitability and strengthen the market share of any company. For instance, at a time when the demand for steel was at an all-time low, NUCOR managed to stay afloat by recording high earnings stretching back to twelve years and being a market leader of steel in the United States. In future, as a learning to upcoming companies in the industry, diversification to other markets, for example in Europe and Asia, is important to further hold a grip on the market and avoid any external threats to the market