Critical Success Factors:
1. Quality Products at a competitive price
2. Customer Satisfaction
3. Product innovation
4. Employee moral**/Employee Relations
5. Productive however not economically efficient
6. Modern Equipment
7. Individualized Customer Service
Industry: Steel/Steel related Products
Overview of Current Situation:
Flat organizational structure
Differentiation leadership (mini Mill technologies/electrical furnaces adopted stand out from the rest of steel Producers; cost advantage vs integrated steel producers)
Competitive with cost leadership ( close proximity to customers)
Short term doing well, however longterm threat
Problems and issues:
2 internal:
-internal control**executives do not seem to have purpose; managers have too much autonomy and no segregation of duties - lack of strategy (day to day activities); Reduced management system creates communication barriers and could affect overall performance;
-Costs: Motivation is weak of officers because of weak compensation system; too generous incentive system for employee; too much money is being spent on staff rather than further development;
-product complexity and too diverse product line
-build and rebuild factories and products
2 external:
Globalization-tariffs to enter steel industry, pollution, competitors expanding globally, threat of new entry
Issues:
-Employee incentives
-organizational culture rebuild – retrain managers and reinforce new attitude in organization
-tough competitors from other steel mnfg
-threat of new entry
-raising cost of raw material
Lack of R/D
Cyclical demand
Q: What can Nucor do to improve their organizational culture/new strategy?
Q: How can Nucor compete in the global market?
Q: What can Nucor change to become more efficient and effective?
Q: Why do managers of Nucor have so much autonomy and senior officers seem to be insignificant?
Q: What can Nucor change to build steel manufacturing facilities more economically...