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Apakah anda mau bekerja untuk Nucor?

Ya,akan sangat menyenangkan bekerja utuk Nucor dengan kondisi lingkungan perusahaan seperti yang tercantum pada case 1.1 baik dari segi financial,kesamaan hak dalam organisasi,dll. 6. Kenapa para pesaing Nucor tidak pernah bisa meniru kinerja Nucor Corporation? Hal ini disebabkan karena Nucor menggunakan pabrik pembuatan baja Tanur Mini,bukan pabrik baja terintegrasi seperti pabrik baja lainya,dimana pabrik baja terintegrasi hanya bisa menggunakan bijih besi yang mahal sebagai bahan baku-nya,sedangkan pabrik baja Nucor yang menggunakan Tanur Mini bisa menggunakan bahan baku dari baja sisa yang didapat dari pasar bebas.Kelemahan pabrik Tanur Mini adalah tidak bisa memproduksi baja untuk industri otomotif dan industri rumahn,tetapi sejak tahun 1980,Nucor bisa memproduksi baja utuk industri otomotif dan industri rumahan dengan menggunakan teknologi Tanur Mini.

Nucor B 1. Apakah anda setuju bahwa Nucor harus melaksanakan perubahan yang mendasar agar selamat dan berhasil pada abad ke-21? Bagaimana Anda mengevaluasi pergantian dalam strateginya secara spesifik? Ya,saya setuju bahwa Nucor harus melaksanakan perubahan yang mendasar untuk berhasil pada abad 21,karena setiap organisasi dapat berubah,dan kinerja untuk peningkatan efisiensi serta efektivitas perusahaan juga bisa berubah sesuai permasalahan yang terjadi pada perusahaan tsb. Evaluasi pergantian dalam strategi-nya bisa dengan cara sbb : a. Akuisisi perusahaan lain Sewaktu Nucor masih dipimpin oleh Ken Iverson,perusahaan berkembang dengan membangun pabrik baru,seiring dengan perkembangan yang terjadi untuk efektivitas dan efisiensi,akan lebih baik jika Nucor mengakuisisi pabrik lama yang bisa dibeli dengan harga lebih murah.Efisiensi untuk menekan biaya produksi ini diperlukan karena jatuhnya harga baja pada thn 1999. b. Pengembangan pasar ke seluruh dunia Seiring dengan perkembangan jaman,produk baja tidak hanya menjadi komoditas local di Negara Amerika Serikat saja,tetapi Nucor harus bisa ekspansi ke Negaranegara lain selain Amerika Serikat seperti ke Negara Negara Amerika Latin dan Asia. Nucor bisa melakukan kerjasama dengan perusahaan lokal di Negara tempat melakukan ekspansi tsb. c. Membangun Pabrik baja terintegrasi /tanur tinggi

Untuk mengantisipasi ketergantungan pada pasar bahan baku baja bekas (baja bekas terkadang mrngandung logam-logam sisa yang tidak stabil),Nucor harus membangun pabirk baja terintegrasi dengan tanur tinggi. d. Diversifikasi produk diluar produk baja e. Perubahan strategi pada posisi manajemen Dengan semakin berkembangnya perusahaan Nucor,diperlukan pengembangan pada level manajemen,setiap eksekutif tingkat tinggi hanya diperbolehkan membawahi tidak lebih dari 7 orang manajer pabrik,supaya pengawasan lebih terkontrol,Jadi strategi pengembanganya adalah strategi kombinasi desentralisasi dan sentralisasi. f. Memperkerjakan orang-orang diluar organisasi Nucor. Pada bulan November 1999 Aycok merekrut direktur diluar organisasi Nucor hingga direktur yang berasal dari luar organisasi Nucor tsb berjumlah dua pertiga dari jumlah anggota dewan Nucor.

2. Dapatkah Nucor mempertahankan sistem pengendalian dan budayanya yang unik di bawah arahan strategi yang baru? Saya rasa perusahaan Nucor masih bisa mempertahankan system budaya kekuasaan desentralisasi ,tetapi dengan sedikit kombinasi sentralisasi kontrol dari pusat untuk merencanakan strategi jangka panjang untuk Nucor (pengembangan diversifikasi produk,dsb).Hal ini diperlukan untuk meningkatkan efisiensi perusahaan.Dengan adanya akuisisi mungkin akan mengakibatkan perasaan sedikit tidak nyaman bagi pegawai-pegawai lama,karena mereka sudah terbiasa bekerja nyaman budaya Iverson yang selalu memperlakukan pegawai dengan adil.Hal ini dapat diminimalisir dengan mendirikan forum untuk pegawai supaya bisa para pegawai bisa menerima perubahan dalam organisasi dengan tetap mempertahankan inti budaya pada perusahaan Nucor tsb. 3. Maukah Anda bekerja di Nucor di bawah kepemimpinan David Aycock? Ya,Aycok memiliki strategi dan ide-ide yang bagus untuk kelangsungan masa depan Nucor jangka panjang.Jadi saya rasa Nucor akan terus berkembang dengan baik pada masa kepemimpinan Aycok tsb.

a. Yes, it is. The steel industry is in the Maturing Phase of its lifecycle. As steel is still

a very necessary component of construction, automobiles and manufacturing, there seems to be a long lifespan for the industry. There is foreseen demand for steel in the future, with the only threats being new technology development of a cheaper and more environmentally-friendly product or a shortage of raw materials to produce steel. b. Yes, it is. Mini-mills had a cost advantage over integrated steel producers, eventually driving the latter out of the flow end of the steel industry. Nucor made history by building the first mini-mill that could make flat steel, thus gaining entry into the premium segment of the steel industry.

Yes, it is. With globalization being the current trend and the merging of many competitors, the barriers to entry into steel industry have increased. Economies of scale and capital requirements are the greatest barriers in the steel industry. Larger quantity orders of raw material are usually discounted. The initial investment is low and economies of scale can bederived which makes the barriers to entry lesser. Nucor has economies of scale and differentiated technology which can be a barrier to existing companies and new ones entering the industry.


Yes, it is. Nucor's benefit from having some of its customer locating in proximity to their plants. The Arkansas nucor plant sends approximately 60% of its sales near by business. This allow for consistent sales and advantages in distribution channels

e. Yes, it is. Nucor has begun developing process to create their own raw materials, through new technologies and by using scrap materials. It also helps them when they have extra capacity to sell raw materials to outside customer, thus adding extra revenue to the company. f. Yes, it is. Nucor do not have their own research and development department. Instead, they create task forces to investigate new technology advances, such as when they research and then created their mini-mills for steel production. Nucor monitors technology advances on a worldwide scale and then attracts investors to bring technology to them, thus saving them money from researching and creating it themselves. Nucors constant ability to stay innovative will only keep them slightly above the competitors in this fiercely competitive industry where technology is always changing. g. No, isnt. Nucor geographical concentration in the US, which limits them to a specific market. As transportation and logistic costs increase with the increase of energy and fuel, it is becoming more costly to ship around steel products, especially when Nucors plant are so concentrated in one part of the world. Nucor needs to establish themselves more on a global level and spread out there presence in a stronger way than just clustering in the US.
h. Yes, it is. In 1972 the company (recognizing that there was nothing "nuclear" about

making steel or steel products) adopted its current name. Since that time, Nucor has expanded into other steel products, gained some control of its raw material supply and greatly expanded its market presence. In the 1990s, Nucor bought Birmingham Steel, including the Mississippi Steel plant and Birmingham, Alabama operations. In September 2000, Dan DiMicco was appointed as the Chief Executive Officer by Nucor's Board of Directors. Under his leadership, Nucor has acquired compatible existing steel manufacturing facilities with similar operating philosophies.

Yes, it is. Nucorss unique trategy is that of cost leadership through the use of technology. Nucor achieves the cost advantage through innovations and using better technology to process their steel. Nucor also invests a lot into research and development, and has a lean management structure, giving them even more efficiency.

j. Yes, it is. Nucor can trace its low cost position to a combination of three factors : technological innovation, continuous process refinement, and a strong corporate culture. The three elements work together for Nucor to be productive and succesfull.


The most important aspects of Nucors overall approach to organization and control that help explain why this company is so successful is innovation. Nucor prides itself on the companys constant ability to stay innovative. The beginning of Nucor in the 1960s was helped by then CEO Kenneth Iversons developmental technology that used electric arc furnaces to melt scrap metal into finished steel, which saved money instead of using iron ore as raw material. Since then, Nucor has continued their innovate culture and developed many new techniques to decrease costs for both themselves and customers. Their low cost strategy where the labor cost is only 8% of revenue helps them to maintain their long term growth. Also their employment pay schemes arewidely accepted by their workforce which automatically improves their efficiency and no pressure is required by top management.


a. Through effective management of knowledge, Nucor developed and constantly upgraded its main strategic and proprietary competencies: plant construction and start-up know-how, manufacturing-process expertise and the ability to adopt breakthrough technologies earlier than competitors. With financial incentives to improve efficiency, operating personnel developed exceptional mastery of manufacturing processes. And Nucor's employee-oriented practices led to high retention. b. Pay incentives for work groups instead of individuals were instituted to reward sharing. Nucor also passed along unstructured knowledge through face-to-face communication in plants that were deliberately kept small and through the transfer of people among plants. We can know how others can maximize knowledge sharing by setting stretch goals, providing high-powered incentives, cultivating

empowerment, equipping every unit with a well-defined "sandbox" for experimentation -- and cultivating an internal market for ideas. c. Construction of the Nucor CASTRIP plant is now complete, and construction costs are being totaled. It will be some months before a complete cost analysis including commissioning and start-up costs is possible. However, enough data now exists to project that a typical Greenfield CASTRIP plant, built outside the USA, and including everything required to convert molten steel into finished UCS (including civil works, buildings, etc.), will cost approximately US$ 75 million.


Nucor Corporation was planning to purchase an untried technology, Compact Strip Production (CSP), from SMS, an international steel equipment supplier. Based on this technological advance, new scrap-based slab producers wouldnow be able to operate at a substantially smaller scale. Traditional integrated mills normally cast steel slabs to athickness of 8-12 inches, while CSP allowed slabs to be cast as small as 2 inches thick. By adopting this new technology, Nucor could gain the first mover advantage against its competitors. First-mover would be better-off in the competition by initially occupying the market. This advantage may stem from the factthat the market pioneer can establish its reputation, earlier than the competitors, among suppliers, distributors andcustomers who become familiar with and even loyal to its products. Also the profit earned during this "monopoly" stage can be reinvested in improving the resource base.