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 Nucorâ€™s organizational structure and its reward systems to determine how they each support Nucorâ€™s strategy by answering the questions below:
1. Describe Nucorâ€™s organization structure and discuss how it supports their low cost strategy?
2. Describe Nucorâ€™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 Nucorâ€™s structure and reward system?