On Tuesday, we discussed the case of Nucor, one of the world’s largest steelmakers. The case especially focused on the tenure of Ken Iverson, who eventually because the company’s chairman and CEO. The company’s cultural value was epitomized by the saying, “Failure to take risk is failure.” Nucor was very innovative and owed much of its success to its benchmark organizational style and the empowered division managers.The company’s two basic lines of business were (1) the six steel joist plants that made the steel frames seen in many buildings, and (2) the four steel mills that utilized the mini-mill technology.
Even in the midst of the U.S. steel industry’s struggle to maintain profitability in the 21st century, Nucor remained indisputably healthy and was able to take advantage of the weakened conditions. The company had been profitable every single quarter since beginning operations in 1966. Nucor was also able to make a couple of large acquisitions and continued its expansion to increase market share and capacity in steel. Nucor expanded globally through acquisitions and joint ventures, and benefitted greatly from this aggressive geographic expansion.
Nucor is a prime example of a company that was able to adjust and adapt successfully to changing trends and market conditions. The company was able to continue to use innovative processes and processes to maintain profitability. In addition, the company enjoyed the benefits of successful leadership under Ken Iverson and other managers such as Dave Aycock, who promoted the philosophy of low cost differentiation. Nucor is definitely a company to look up to when analyzing business and management strategy.