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What is the total estimated cost of the new steel mill, including start-up expenses and working capital?
What is the total estimated cost of the new steel mill, including start-up expenses and working capital?
What technology was Nucor considering for the new steel mill?
What technology was Nucor considering for the new steel mill?
By how much had domestic shipments of steel decreased since the peak year of 1979?
By how much had domestic shipments of steel decreased since the peak year of 1979?
Which segment of the U.S. market for steel accounted for half of the total consumption in 1986?
Which segment of the U.S. market for steel accounted for half of the total consumption in 1986?
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What factor contributed to the decline in domestic steel demand?
What factor contributed to the decline in domestic steel demand?
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What year did U.S. producers ship 70 million tons of steel mill products?
What year did U.S. producers ship 70 million tons of steel mill products?
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What was the amount of steel imported by the U.S. in 1986?
What was the amount of steel imported by the U.S. in 1986?
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Who was the CEO of Nucor Corporation in December 1986?
Who was the CEO of Nucor Corporation in December 1986?
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What is the decision-making success rate for a good manager at Nucor?
What is the decision-making success rate for a good manager at Nucor?
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How many tons of steel did Nucor produce in 1986?
How many tons of steel did Nucor produce in 1986?
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Which company was Nucor benchmarked against as a leading competitor?
Which company was Nucor benchmarked against as a leading competitor?
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What percentage of Nucor's steel output was sold to external customers?
What percentage of Nucor's steel output was sold to external customers?
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Which steelmaker ranked higher than Nucor in productivity in 1985?
Which steelmaker ranked higher than Nucor in productivity in 1985?
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What responsible action is expected from employees regarding management decisions?
What responsible action is expected from employees regarding management decisions?
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What was the primary source of internal sales for Nucor?
What was the primary source of internal sales for Nucor?
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How many steelmaking and fabrication plants did Nucor operate at the end of 1986?
How many steelmaking and fabrication plants did Nucor operate at the end of 1986?
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What decisions are typically made at the plant level in Nucor's flat hierarchy?
What decisions are typically made at the plant level in Nucor's flat hierarchy?
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What percentage of annual contribution must each plant manager achieve before corporate overhead at Nucor?
What percentage of annual contribution must each plant manager achieve before corporate overhead at Nucor?
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What type of performance report is prioritized first in the comparison of Nucor's plants?
What type of performance report is prioritized first in the comparison of Nucor's plants?
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How does Nucor's management approach performance incentives for its officers and managers?
How does Nucor's management approach performance incentives for its officers and managers?
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Why were exceptions to the 25% annual contribution target made?
Why were exceptions to the 25% annual contribution target made?
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What was a significant reason for dismissing managers at Nucor?
What was a significant reason for dismissing managers at Nucor?
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What do Nucor's top managers believe to be the best motivation?
What do Nucor's top managers believe to be the best motivation?
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What type of decision does Nucor not decentralize to lower levels?
What type of decision does Nucor not decentralize to lower levels?
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What factor primarily influences promotions on the shop floor at Nucor?
What factor primarily influences promotions on the shop floor at Nucor?
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How often do production shifts typically occur at Nucor?
How often do production shifts typically occur at Nucor?
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What percentage of productivity standards at Nucor were typically changed in a given year?
What percentage of productivity standards at Nucor were typically changed in a given year?
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What is the potential average range of cash compensation for Nucor's nonunionized production workers compared to unionized steelworkers?
What is the potential average range of cash compensation for Nucor's nonunionized production workers compared to unionized steelworkers?
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What happens to workers who are late for their shift at Nucor?
What happens to workers who are late for their shift at Nucor?
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What is one of the consequences for a production group falling short of its productivity goal at Nucor?
What is one of the consequences for a production group falling short of its productivity goal at Nucor?
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How frequently does Nucor pay bonuses to its employees?
How frequently does Nucor pay bonuses to its employees?
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What was the average employee turnover rate at Nucor compared to the U.S. steel industry average?
What was the average employee turnover rate at Nucor compared to the U.S. steel industry average?
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What type of costs did Nucor feel most uncertain about?
What type of costs did Nucor feel most uncertain about?
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Why might Nucor's benefits from adopting CSP first be limited?
Why might Nucor's benefits from adopting CSP first be limited?
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What was Nucor's projected advantage by being the first adopter of CSP?
What was Nucor's projected advantage by being the first adopter of CSP?
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What prime concern did Iverson have regarding the adoption of CSP technology?
What prime concern did Iverson have regarding the adoption of CSP technology?
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What essential step did the Nucor project team feel eager to take regarding the CSP plant?
What essential step did the Nucor project team feel eager to take regarding the CSP plant?
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What role did SMS play in Nucor's CSP project?
What role did SMS play in Nucor's CSP project?
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What was the potential risk of adopting CSP technology as highlighted in the content?
What was the potential risk of adopting CSP technology as highlighted in the content?
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What factor might compel Nucor to decide against being the first adopter of CSP?
What factor might compel Nucor to decide against being the first adopter of CSP?
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What percentage of capacity incorporating the Basic Oxygen Furnace was present in the United States in 1970?
What percentage of capacity incorporating the Basic Oxygen Furnace was present in the United States in 1970?
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Which technology had the highest capacity incorporation in Japan in 1980?
Which technology had the highest capacity incorporation in Japan in 1980?
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What was the capacity percentage for Basic Oxygen Furnace in Canada in 1975?
What was the capacity percentage for Basic Oxygen Furnace in Canada in 1975?
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How much capacity incorporation did the Continuous Casting technology achieve in the United States by 1981?
How much capacity incorporation did the Continuous Casting technology achieve in the United States by 1981?
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Which year saw the highest capacity incorporation for Basic Oxygen Furnace Plus Electric Furnace in the United States?
Which year saw the highest capacity incorporation for Basic Oxygen Furnace Plus Electric Furnace in the United States?
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In which year did Japan reach a capacity of 95.9% for Basic Oxygen Furnace Plus Electric Furnace?
In which year did Japan reach a capacity of 95.9% for Basic Oxygen Furnace Plus Electric Furnace?
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What capacity percentage for Continuous Casting was recorded in Canada in 1976?
What capacity percentage for Continuous Casting was recorded in Canada in 1976?
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Which technology did not achieve a majority capacity incorporation in the United States by 1980?
Which technology did not achieve a majority capacity incorporation in the United States by 1980?
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What was the percentage of capacity for Basic Oxygen Furnace in Japan in 1975?
What was the percentage of capacity for Basic Oxygen Furnace in Japan in 1975?
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Which country had the lowest capacity for Basic Oxygen Furnace in 1960?
Which country had the lowest capacity for Basic Oxygen Furnace in 1960?
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Study Notes
Nucor at a Crossroads
- Nucor Corporation, a steel company, considered investing in a new steel mill.
- The new steel mill would utilize thin-slab casting technology from SMS.
- The estimated cost for the new mill and start-up expenses was $340 million.
- This was roughly equivalent to Nucor's net worth.
- The steel market in the US had declined by 22% (domestic demand) and 30% (shipments) from its peak in 1979.
- Steel in the US was made up of several distinct segments, including semi-finished products.
- Semi-finished products were thicker, required further processing, and yielded plates, sheets, and strips.
- Steel was primarily sold to service centers and distributors, automotive customers, construction companies, and appliance & equipment industries.
- Price, quality, and dependability were the primary customer criteria when buying steel.
- Minimills and integrated steelmakers were the two main categories of steel producers in the US.
- By 1986, integrated US steelmakers held 49% of flat-rolling capacity.
- Steel mills that relied on scrap as a raw material were called minimills.
- Minimills primarily produced low-end steel products.
- Nucor was founded in 1904, originally in the automotive industry.
- Nucor diversified into steelmaking in 1968 and built its own steel mill plant using steel scrap.
- Nucor focused on production, not procurement or marketing
- Nucor had a flat organisational structure with few managerial layers
- Employees at Nucor received incentives and bonuses based on performance
- Nucor's employees received competitive compensation
- Nucor had very low employee turnover rates
- 1986 was a time of significant investment decisions at Nucor
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Description
Explore the strategic decisions facing Nucor Corporation as it considers investing in a new steel mill using advanced technology. This quiz delves into the challenges posed by declining steel demand in the U.S. market and the implications of different production methods. Examine the key factors that influence the steel industry and customer expectations.
