Nurcor Case

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Nucor Corporation : Case Analysis |

Steel Manufacturer |

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3/16/2011 |

Nucor Corporation |

CASE INTRODUCTION

Nucor steel is an industrial steel company headquartered in Charlotte, North

Carolina. Nucor traced its origins to auto manufacturer Ransom E. Olds, who founded Oldsmobile and, later, Reo Motor Cars. Through a series of transactions, the company Olds founded eventually became the Nuclear Corporation of America, a company involved in the

nuclear instrument and electronics business in the 1950’s and early 1960’s. They are an innovative and lean company operating with safety in mind and a goal of returning investments to stockholders. There management system is extremely lean and consist of 5 levels containing only 75 members for a corporation of over 18,000 employees. Nucor is a highly segmented and independent company. They benefit from each manager operating there segment as its own business entity. The firm suffered several money-losing years, and in 1965, facing bankruptcy, installed 39-year-old Ken Iverson as president.

Iverson had a bachelor’s degree in aeronautical engineering from Cornell and a master’s degree in mechanical engineering from Purdue. He began his professional career as a research physicist and held several technical and management positions in the metals industry. He joined Nuclear Corporation of America as a vice president in 1962 and was appointed president three years later. Iverson focused the failing company on two businesses: making steel from recycled scrap metal and fabricating steel joists for use in nonresidential construction. In1972, the firm changed its name to Nucor Corporation. By 1998, it had become America’s second-largest steel maker.

Situation Analysis

Political Factors

From state to federal to international, businesses are heavily regulated. These laws provide the basis for successful profit margins, but also challenge the ease to which these margins are gained. Many local laws are...