This is a delicate balance for any organization to attain, and Nucor has been able to keep the variation in production process balanced with the need to keep employees motivated while changes in their business model are implemented.
Based on your recommendation for related or unrelated diversification, identify the organizational structure issues that the company would need to address to implement that diversification.
With related diversification the recommendation, organizational and structural issues are minimized, as this strategy will integrate companies whose structures and management philosophies are comparable to Nucor. This will also minimize resistance to change and make the integration of companies much more effective over time. Finally, this approach will make it systems and processes much more efficient...
All of these factors will ensure Nucor continues to succeed against larger and slower-to-respond competitors globally.
References
Brian Denton, Diwakar Gupta. (2004). Strategic inventory deployment in the steel industry. IIE Transactions, 36(11), 1083-1097.
Shirley a Lazo. (2008, December). Steely Resolve at Nucor. Barron's, 88(50), 50.
Business Review: Special HBS Centennial Issue, 86(1), 78-93.
Rajesh Kumar Singh, HR Murty, SK Gupta, AK Dikshit. (2008). Integrated environment management in steel industries. International Journal of Management & Decision Making, 9(2), 103.
Earnings Digest -- Steel: Nucor Corp. (2008, July 18). Wall Street Journal (Eastern Edition), p. B.4.
Figure 1:
Porters' Five Forces Model
