Business Hrm Issues

HRM Issues/Diversification Strategies

Amini Cancel

BUS 599

Dr. Menon

Assignment 4

February 25, 2012

HRM Issues/Diversification Strategies

Nucor’s origins began with Ransom E. Olds, who founded Olds Motor Vehicle Company in 1987; however, during 1905, Olds established a new company called REO Motor Car Company. The new company became very popular, but it was making little profit. After eliminating some of its products, the company continued to underperform and was forced to sell off its entire manufacturing operations to Bohn Aluminum and Brass Company. Subsequent to the sell, REO was left with only $16 million; however, a group of shareholders noticed the company’s loss and challenged the company’s liquidation proceedings in a proxy fight, which is an event that may occur when a corporation's stockholders develop opposition to some aspect of the corporate governance. The situation became a reverse hostile takeover, and shareholders forced REO to take over a tiny nuclear services company called Nuclear Consultants, Inc. After the purchase was made, REO emerged as “Nuclear Corporation of America, Inc. and attempted to recast itself as a nuclear industry services company; however, the company was unsuccessful in doing so and Nuclear’s President was later fired and replaced by Kenneth Iverson, a newly hired General Manager, and Samuel Siegel, an accountant with Nuclear, who both decided to change the name of the company to Nucor and aim to build the company successfully. Today, Nucor is headquartered in Charlotte, North Carolina and is a Fortune 300 company. It is one of the largest steel producers in the United States and the largest of the “mini-mill” operators and not only does the company specialize in making steel, it also claims to be the largest recyclers of steel in the world (Nucor, 2012).

Question: Discuss the trends in the steel industry and how it may impact Nucor’s strategy.

Changes in steelmaking technology have...