WEEK 3 DISCUSSION BOARD: Nucor Steel Organization Structure and Reward System
Chapter 9 of our textbook, deals with implementing strategy to effectively accomplish the Mission of a company and achieve its Strategy Goals. One of the important factors for success is having the right organizational structure, and a company-wide reward system that supports it strategy and goals. Nucor Steel has been very successful in maintaining a very profitable and growing steel company in spite of the fact that the steel industry is very competitive, and offers little potential for profitability. Their strategy has been one of a broad low cost provider of a variety of steel products. They also have an organization structure that supports innovation and autonomy.
Analyze Nucor’s organizational structure and its reward systems to determine how they each support Nucor’s strategy by answering the questions below: 1. Describe Nucor’s organization structure and discuss how it supports their low cost strategy?
2. Describe Nucor’s reward systems and explain how it supports their low cost strategy?
3. What does Nucor do to maintain a high level of innovation? Discuss several of the steel-making innovations that Nucor has developed and/or implemented to support its low cost/high quality strategy?
4. Why have not the traditional U.S. steel companies adopted Nucor’s structure and reward system?