Nucor in Cross Tracks - Swot Hbr Case
Week a few: Nucor in Crossroads
* Good leadership & progressive organization culture => decentralized administration philosophy, egalitarian benefits, functionality based payment, strong focus on customer service and quality, and technological leadership through regular investment in R& D and modernization of grow & equipment * Solid financials => consistent expansion in profits during the last 3 years (1983 to 1985) while using most recent 12 months (1986) causing a sales determine of $755Mn (down $3Mn from previous year) and net earnings of $46Mn. * Smooth structure => leading to better communication (formal & informal) between corporate and business and manufacturer and between factories (interplant) => ultimately causing improved efficiencies / production * Substantial employee comfort, low personnel turnover in comparison to industry common => a culture that promotes group work, high levels of commitment and hard work => compensation schemes made to reinforce the relationship between spend and performance and to reward creation groups rather than individual functionality. Also appealing incentive and reward strategies for employees (eg. bonuses, commodity, health coverage, college or university education for youngsters of employees). * Nucor's geographic pass on (by 1986 Nucor had 16 crops in 10 locations surrounding the United States) => these facilitate quick access to buyers (markets) or sources of uncooked material (iron ore).
Weaknesses / Issues:
If Nucor decides against investing in CSP, then they run the risk of allowing their competition to acquire this kind of technology and commercializing this first towards the market. Concurrently, there are also risks to Nucor of choosing to look at the CSP technology: 5. The design of CSP is delicate to discard prices => price needs to be below $140 per load * The structure is only in its infant level, continuous operation should be accomplished before making a...