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Nucor Corporation

Conduct an analysis of Case #10 Nucor Corporation.

1. Discuss the trends in the steel industry and how it may impact Nucor's strategy.

2. Discuss the organizational structure and management philosophy at Nucor.

3. Identify three HRM issues related to strategy implementation and recommend actions to address these issues.

4. Based on the situation, recommend whether a related or unrelated diversification should be used by the company. Provide supporting rationale.

5. Based on your recommendation for related or unrelated diversification, identify the organizational structure issues that the company would need to address to implement that diversification.

1,032 words, two refereces

Solution Preview

1. Discuss the trends in the steel industry and how it may impact Nucor's strategy.
The trends in the steel industry are that there is further shortage of demand because of the weakness in the global economy. The steel industry situation is such that only if there is a recovery in the construction industry and in the automotive industry will there be an upswing in the steel industry. From the perspective of Nucor, this means that unless there is recovery in the construction and automotive industry it will be difficult to sustain a revenue growth of 15-20% and maintain corresponding profit levels. From the perspective of the case, there are three problems that the industry faces. The first is foreign competition, the second is strained labor relations, and third a slowed demand for steel. Each of the three problems remains. Any attempt to place trade barriers on import of steel leads to global repercussions. So, that cannot be implemented. There are union problems related to the steel industry and these continue to hold down the industry. The slowed domestic demand for steel will pick up only if the construction industry and the automotive industry picks up. Nucor may be compelled to reduce costs, increase controls over its manufacturing strategy, and compete on the basis of price. The increasing competitive pressures on Nucor may compel it to become less innovative, reduce duplication of efforts and reduce costs. Greater control over the units will be required to realize economies of scale and gain cost leadership. This is necessary so that Nucor can fight the cost battle and continue to increase its revenues (Bouchard. C, & Koch. J2009).
2. Discuss the organizational structure and management philosophy at Nucor.
Nucor's current organizational structure is a flat organization. ...

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