A

Case
Stud
y
Presented By:
Samarjeet Parmar
Dharmendra
Khairajani
Siddharth Purohit
Parth Joshi

Flow of Presentation
Nucor
-

History
Operations
Strategy
Organization Structure
Human Resource Policies
Compensation
Information Systems
Benefits
Technology
Future

TI & HP
- Difference in Strategy

History

Nuclear corporation of America- A co. involved in

nuclear instruments & electronics business.
In 1972 it changed its name to Nucor corporation.
Focus on making steel from recycled scrap metal and
fabricating steel joists for nonresidential construction.

Operations

Located its facilities in rural areas across U.S.A.

By 1998 Nucor consisted of 9 businesses, with 25
plants.

Strategy
Building steel manufacturing facilities
economically and operating them productively.
Continuous innovation, modern equipment,
individualized customer service and producing at
competitive prices.
Debt Equity ratio was not allowed to exceed 30%.

What is their competitive advantage?

Mini-Mills
Large applicant pool to hire from because they are
seen as an attractive place to work, allows them to
be very selective for who they hire
Have a willingness to take risks.

Organization Structure
Chairman/Vice Chairman/President
Vice President/Plant General Manager
Department Manager
Supervisor

Human Resource Policies

Employee Relations Principles

Manage to provide opportunity
according to productivity
Employee should have confidence
Right to be treated fairly
Avenue of appeal

Compensation
Production Incentive Plan
Paid weekly bonuses based on production
Based on group not individual performance
If tardiness or attendance kept team from meeting

goals, then no one received a bonus in the group

If you are 5 minutes late, you lose your bonus for the day
If you are 30 minutes late or absent, you lose your bonus for

the week

4 forgiveness days
Maintenance personnel were assigned to each team
No bonus paid if equipment is not operating
Supervisors were apart of bonus teams
Received same bonus as employees
Output and bonus info for each team was posted at the

entrance

Compensation
Department Manager Incentive Plan
Annual bonus received based on performance of the entire
plant
Based on return on assets
A return of 25% or better was expected by the plant

Non-production and Non-department Manager

Incentive Plan
Bonus based on each plants return on assets
Includes everyone not in previous 2 plans
Every month each plant received a chart showing its return on

assets on year-to-date basis

Posted in employee cafeteria

Senior Officers Incentive Plan

Based on return on stockholders equity above certain
minimum earnings
If Nucor did poorly, then Senior Officers would only receive

their base pay

Senior Officers earned less than other industry executives

Information system
Weekly report
Bids, orders, production, backlog, inventory, shipments
Monthly report
sales revenues, costs, contribution, return on assets
employed
Meetings in February, May and November
Benefits
Profit sharing below officer level
Monthly stock purchase plan
Nucor scholarship fund
Technology
No external help for technology development
Mini mill concept
Scrap steel as raw material
SMS Schloemann-Siemag
Iron carbide plant
Nucor Yamato Blytheville Arkansas
National medal of Technology

Texas Instruments & HewlettPackard

Large, Standard markets

based on long-run cost
position.
Enter early in a products
life cycle, and stayed
through maturity.
Aggressive cost
improvements, with
equally aggressive price
cuts.

Selected small markets

based on unique, highvalue/high featured
products.
Create a new product
and then replaced it
when it matured.
Cost improvements, but
sought higher margins
and held prices longer.

Texas Instruments & HewlettPackard

More capital-intensive,
cost-effective production
processes to match highvolume standard product
needs.
A balanced portfolio of
businesses where mature,
large business provide
resources for young, highgrowth business.
More Sales, more
incentive compensation.

Flexible production
processes to match lowvolume, more custom
product needs.
All high-growth, high
margin businesses that
met their own resource
needs, largely on an
individual basis.
More Creativity, more
incentive compensation.

Reference

Management Control Systems

by Robert N Anthony & Vijay Govindarajan

Web Sites:
www.ti.com
www.hp.com
www.nucor.com