NUCOR CORPORATIONKelompok 1:Samuel Sembiring PelawiFranklin W

MM UGM Jakarta 24 A Part-Time B

Nucor started as a auto manufacturing company than later converted itself into the Nuclear and Electronics business in 1955 and 1962

Nucor is a Fortune 500 company with approximately 200 operating facilities, including our wholly owned subsidiaries of Harris Steel, The David J. Joseph Company, and Skyline Steel, yet Nucor have approximately 100 people working at our corporate headquarters and surprisingly few layers of management from the CEO to the frontline

INTRODUCTION

After the firm suffered several money losing years (1965), Ken Iverson took charge as the president. After Iverson took charge he consolidated company on two business viz making steel from recycled scrap metal and fabricating steel joists for use in non residential construction.

In June 1999 the board chose David Aycock as chairman, chief executive and president of Nucor.

INTRODUCTION

Nucor located its diverse facilities in rural areas across the Unites States. It established strong ties to its local communities and its workforce. Nucor selected operations in states with tax structures that encouraged business growth.

Nucor and its subsidiaries consisted of nine businesses, with 25 plants (1998).

OPERATIONS OF NUCOR

Continuous Innovation Usage of modern equipment Individualized customer service Usage of scrap metal No acquisitions and mergers Usage of low debt in total capital No diversification

STRATEGIES OF NUCOR

Decentralized system Four management layers:1) Chairman / Vice chairman / President2) Vice President / Plant General Manager3) Department Manager4) Supervisor

ORGANIZATION STRUCTURE

Use of mini-mill technology

Backward integration

Modernizing the existing plants

Technology management

TECHNOLOGY

Demand for steel in the United States as a whole only increased less than 1.5 percent per year.

The market share that can be taken over by Nucor of steel companies from integrated and other small firms are very limited.

Many companies imitate the ideas that had been owned by a small company

COUNCIL CONSIDERATION

Acquisition Enter global market Build a blast furnace Diversification of products to enter into areas outside

the branch steel production Adding new layers of organization, ex: add some VP Change the composition of corporate boards (Nov 1999

directors coming from outside the company about two-thirds of the members of the board of Nucor.)

STRATEGY AND ORGANIZATIONAL CHANGES PROPOSED BY THE COUNCIL

IVERSON VS AYCOCK

IVERSON AYCOCKBuilding the company from scratch Defend acquisitionDefend Nucor as a domestic company

Global expansion

Pioneered the concept of the small factory

Want to build high furnaces a lighthouse of integrated steel producers

Nucor as a player makes a single industry, concentrating on steel products and steel-related products

Consider to diversify steel

Very proud of supervise the operation of 25 plants together with the staff of the company

Emphasized the need to add new line at the management level

Responsibility centre

Expense centre

Goal congruence

Management performance

Economic performance

APPLICATION OF MCS

External Factor : Work Ethic

Internal Factor :Culture, Management Sytle, The Informal Organization, Perception and Communication

INFORMAL FACTOR INFLUENCING GOAL

TYPE OF ORGANIZATIONS Functional Structure

Each Manager is responsible for a specified functions

Business StructureManagers are responsible for most of the

activities

Matrix StructureDual Responsibilities

Nucor's overall approach towards organization and control has paid rich dividend in the growth of the company

Their ability to be a successful first mover in the adaption of new technology is remarkable

Although the company has done well for the last 25 years but still with the prevailing market conditions they need to think about diversification and mergers & acquisitions

CONCLUSION

Apakah Anda setuju bahwa Nucor harus melaksanakan perubahan yang mendasar agar selamat dan berhasil pada abad ke-21?

Yes, We agree Nucor Must undergo and deep change to survive and prosper in the 21st century

QUESTION 1

Bagaimana Anda mengevaluasi pergantian dalam strateginya secara spesifik?

Pursuing acquisition Expanding into global market Diversifying into nonsteel areas Adding new organizational layers & changing the composition of the board

Dapatkah Nucor mempertahankan sistem pengendalian dan budayanya yang unik di bawah arahan strategi yang baru?

Yes, Nucor could maintain their control systems and unique systems by implementing new business strategy.

QUESTION 2

Maukah Anda bekerja di Nucor di bawah kepemimpinan David Aycock?

Absolutely, we want to work under David Aycock. As he vision an mission could lead us to be good and hard worker.

QUESTION 3