Nucor Corporation: HRM Issues and Diversification Strategies

Since 1970, the world’s most famous steel industry has experienced changes, not only in its production but also in its consumption process. Steel, a raw material in the construction and industrial sectors provides alloys as well. The steel industry has experienced tremendous changes following the many steel ores in the world coupled with the technological developments in the industry, which have greatly eased the conversion of iron ore to steel. The flexibility of steel makes it the most used metal since it can be recycled. China is considered the main manufacturer and consumer of steel. New grades of steel continue to emerge as many steel manufacturers improve on the quality and strength of steel produced. As the improvements continue, many new developments are expected in the near future. However, these trends seem to affect Nucor’s strategy.

Impact of trends in steel industry on Nucor’s strategy

Nucor Corporation, a chief producer of steel has its head offices in Charlotte town of North Carolina State. The company, though a fast-growing steel manufacturer in the US faces many challenges in its line of operation mainly the stiff competition, resulting in variations of the steel prices. However, the current trends in the steel industry have a significant impact on this strategy. For instance, they have caused rivalry in the steel sector reducing the demand and prices of steel. They have also barred the entry of new manufacturers because of the decrease in the starting capital resulting in increased competition. The company has lost some of its main customers because of the stiff competition in steel products. The company has also lost some of its supplies owing to the many companies in search of supplies making the suppliers free to move to any steel they want, hence the threat.

Organizational structure and management philosophy at Nucor

To address these challenges, Nucor has come up with a strategy for growth, aimed at improving the company’s management through better and efficient technology during the manufacturing of steel as well as having good customer care and management team. Nucor Company has a very efficient organizational structure, referred to as lean management’s organization that improves its strengths especially due to the use of technology thus increasing its market share compared to its competitors. The organization structure is very simple and streamlined accommodating at least 11,000 employees who are innovative and fast decision-makers. In a company’s typical division, its organization structure has several classes: the general manager, the departmental manager, supervisors, and the ordinary employee. It nurtures human relations by providing a forum for employees to air their views. It also treats them fairly without discrimination. Through this efficient and conducive organizational structure, the company has acquired and retained the best employees in this sector. The management philosophy at Nucor is based on many simple concepts, which have helped the company to retain its market share despite the stiff competition. One concept of ‘minimill is mighty’ has seen the company grow in a tremendous way by enabling it produces many tons a year. Among its achievements since 2006 is the purchasing of a steel company called David J. Joseph Company thus increasing its steel supply and production. Raymond (2006) states, “A company should have an efficient human resource management system which ensures good development and the implementation of the organization’s systems which aids in attracting, developing and maintaining a very efficient and skilled workforce” (p.68). However, there are issues the company needs to address.

HRM issues related to strategy implementation

HRM issues related to strategy implementation at the Nucor company are having a “…well designed and elaborate means of recruiting the company’s workforce, using the workers efficiently and in an effective way, as well as providing a forum for the employees to contribute in the achievement of the firms objectives and goals” (Raymond, 2006, p.25). Therefore, Nucor Company requires good strategies of utilizing human labor efficiently to enable it to employ high qualified and experienced employees who will help it counter the high competition for other companies by producing steel of very high quality. Nucor Company should diversify its market to other parts of the world to avoid over reliance on the domestic market. It should continue carrying out vigorous marketing and innovations and take more emphasis on integrating with its suppliers to be able to expand its manufacturing powers and market share. It should make its production process more efficient in order to counter the cheap steel from China.

Organizational Structure Issues

The issues the company needs to address to achieve this diversification should be focused on ensuring that the company is able to expand its global market share by using advanced technology and cheaper workforce. It should also come up with measures to establish other branches in many places all over the world with experienced management team to run them. With these structural adjustments, Nucor Company will progress since it will be able to attract supplies as well as suppliers and therefore pass for the company of choice, not only in US, but also throughout the world.


Raymond, N. (2006). Human Resource Management. New York: McGraw-Hill Publishers. Print.

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