Case Study of Nucor

Summary Incur is an industrial steel company headquartered In Charlotte, North Carolina. They are unlovable and lean company operating with safety in mind and a goal of returning Investments stockholders. There management system Is extremely lean and consist of 5 levels. Incur is a highly segmented and independent company. They benefit from each manager operating there segment as its own business entity.

This prospective allows Incur to maintain sigh degree of entrepreneurship throughout its vast corporation. Incur maintains a high level of aspect between management and its employees.

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Autocorrelations has allowed management to achieve success through financial goals and has sleeplessness Job security and a great working environment. Incur has essentially eliminated the barrier between management and employee. The employees have the exact same benefits assignment. Management has also taken on not buy corporate Jets, cars, and country clumsiness’s like other big time companies do.

Incur has also pioneered the mint-mill steel factory allowing for them to cut operating costarred to traditionally steel factories.

This mill has also led to reduction In energy use and pollution. Environmentally speaking Incur has continued to be an industry best. Incur recycles ?1 ton of steel for every two seconds making it the largest recycle of any material in America more than the nation’s entire aluminum can industry’. Questions 1 .

Why has Incur performed so well? A. Is Nuncio’s industry the answer? H. Is it the “mint-mill” effect? C. Is it market power )scale economies)? D. Is it a distribution channel advantage? C. Is it a raw material advantage? Is it a technology advantage? G.

Is it a location advantage? H. Is It the result of an entrenched brand name? I. Is It Nuncio’s choice of a unique strategy? J. Is It Nuncio’s ability to execute Its strategy? Nuncio’s focus sees on 2 major competencies I. E.

Building steel manufacturing facilities economically and operating them productively. The company’s hallmarks were continuous innovation, modern equipment, individualized customer service, and a commitment to overproducing quality steel and steel products at competitive prices.

The general anger at each plant was granted considerable autonomy, essentially operating deflectable as an Independent business. Discussion Questions 1 . Why has Incur performed so well? A. Is Nuncio’s industry the answer? B.

Is It the “mini-mill” effect? C. Is It market power (scale economies)? A. Is It a Lustrously channel advantage e. Is it a raw material advantage? F. Is it a technology advantage? G.

Is it a location advantage? H. Is it the result of an entrenched brand name? I. Is it Nuncio’s choice off unique strategy? . Is it Nuncio’s ability to execute its strategy? . What are the most important aspects of Nuncio’s overall approach to organization and control that help explain why this company is so successful? How well do Nuncio’s organization and control mechanisms fit the company’s strategic requirements? 3. A crucial element of Nuncio’s success is its ability to mobile two types of knowledge: plant construction and start-up know-how; and manufacturing process know-how.

What mechanisms does Incur employ to manage knowledge effectively? 1.

What mechanisms help the company accumulate these two types of knowledge in individual plants? 2. What mechanisms exist within the company to facilitate sharing this knowledge among its 25 plants? 3. How does Incur transfer knowledge to a Greenfield, start-up operation? 4. Incur has repeatedly demonstrated the ability to be a successful first mover in the adoption of new technology.

How does the company’s approach to organization and control contribute to this first-mover advantage? 5. Would you like to work for Incur? 6. Why have competitors not been able to imitate Nuncio’s performance so far?