After consecutive years of struggling financial performance, Nucor evaluated their management structure and decided it was time for a change in leadership. As a result F. Kenneth Iverson was appointed as president and CEO of the company.
Article Case Study Introduction: S steel companies faced several challenges which forced them to change their strategies or adapt new strategies.
Some of the challenges are described below: The steel industry of U. S had far more production capacity than was needed to meet market demand. There are many manufacturers compared to small customers, which incur over capacity of the steel industry inwhen industry capacity was at million tons, the outlook was for a continued decline in per capita consumption and movement towards capacity in the range of 90 to million tons, so excess capacity was there.
There are too many marginal competitors and too much production capacity in U. So it was a big issue for the firm to sustain in the market. A slowing economy, particularly in auto sales led the decline of customer demand.
Evidence says that decline in motor vehicle production and consumer durable goods hit the producers of flat rolled sheet steel hard. In late and indeclining demand for steel promoted Nucor and other U.
S companies to reduce prices to better compete against an unprecedented surge of imported steel. Economic recession and terrorist attack: The economic recession that hit Asia and Europe in the late s, reached the united states in and and then orders for steel eroded further after the september11,terrorist attacks.
The slowing economy affected major steel consuming industries such as construction, automobiles and firm equipment. And all those things hampered steel production in the United States.
Foreign steel producers with few market opportunities abroad were dumping steel in the U. S market at cut- rate prices.
In commerce department concluded that steel companies in six countries had illegally dumped stainless steel in the United States at prices below production costs or home market prices. Companies in Canada, South Korea and Taiwan were guilty only of dumping, while the government of Belgium, Italy and South Africa also gave their steel producers unfair subsidies effectively to lowered prices.
Due to dumping, the competition of local market increase which lead the price more competitive. Because the local producers at least need to maintain the similar price that foreign firm rated, to survive in the market.
So price competition arises. S firm started to innovate new production process. For example Nucor innovate new production process and other domestic companies had imitated that process and cut their cost and became more price competitive.
S companies failed to do the things necessary to be competitive on cost and price. S there was flexibility to import foreign steel. So the foreign companies easily sell their steel in U.CASE OVERVIEW The case NUCOR: The Art of Motivation holistically describes how NUCOR is able to manage people, strategize its business and adapt to changing economy situation.
In the case study, NUCOR is described as a company that runs business on 3 separate segments which are Raw Materials, Mill Operations and products developed out of steel. Employee Motivation Case Study (Nucor Corporation) Nucor Corporation: The Art of Motivation. 1. What does Nucor's approach to managing its people require of managers?
“NUCOR: The art of Motivation” This bonus has been as high as $ for each employee. Overall. Nucor periodically issues an extraordinary bonus to all employees.
The bonus is based on a written plan that is clear.
Documents Similar To Nucor Case Study. Skip carousel. carousel previous carousel next. nucor_1. uploaded by. cooldude As I understand it, the main problem in this case is employees of Nucor do not feel they have balanced equity.
This is due to a performance based compensation model which allows for employees who put in more effort on the job to receive the same compensation as employees who do not put in as much effort simply because they are a part of the same team. Employee Motivation at the Core of Corporate Success timberdesignmag.com_Baker BMEXFA2) Organizational Behavior Module 2 ± 12/12/09 OB in Action Case Study ± Nucor.
they make sure their efforts are such that produce the desired results. Nucor Case. NUCOR MEMORANDUM To: F - Nucor Case Nucor Case Study on Approach to Employee Motivation ; Nucor in ; Case Synopsis: A Steely Resolve The Case Study G20 Maketing Decision ; Rubbertech Case Study ; Nivea Case Study ; Robert Mondavi and the Wine Industry Case Analysis ; Nuclear Corporation of America Analysis.