Management and Leadership Essay

The board and administration are viewed as equal, however they are two unique words. The board is characterized as, â€Å"The craftsmanship, way or practice of overseeing, taking care of oversight or control while authority is characterized as, â€Å"The capacity to: â€Å"express a dream, impact others to accomplish results, energize group participation, and be an example.† Leadership is â€Å"getting others to need to do things.† Leadership is personally tied up with rousing and affecting others. Directors are overseers who compose field-tested strategies, set financial plans, screen progress, take care of issues and encourage gatherings. A supervisor accomplishes authority and position through understanding, getting, time and devotion. Supervisors have subordinates however a pioneer has adherents. A pioneer can be a supervisor, yet an administrator isn't really a pioneer. The pioneer of the work gathering may rise casually as the decision of the gathering. In the event that a supervisor can impact individuals to accomplish the objectives of the association, without utilizing their proper position to do as such, at that point the director is exhibiting initiative. As put by Faye Wattle ton, â€Å"The just safe boat in a tempest is leadership.†Organizational CultureAccording to Webster’s New Collegiate Dictionary †â€Å"culture is the incorporated example of human conduct that incorporates thought, discourse, activity, and antiques and relies upon man’s limit with respect to learning and transmitting information to succeeding generations.†Organization culture is an arrangement of shared convictions and qualities that creates inside an association and aides the conduct of its memebers .It incorporates schedule, practices, standards, predominant qualities and an inclination or atmosphere conveyed..The pupose and capacity of this culture is to help encourage inward coordination, bring staff individuals from all degrees of the association a lot nearer together and improve their exhibition. A company’s culture decides a great deal of the organization’s conduct. A culture might be solid (having an emotional impact over an individual’s conduct) or feeble (having a generally low effect on behavior).A solid culture is a sound allowance of faith based expectations, qualities, suppositions, and practices grasped by most individuals from the association. It encourages inspiration, duty, personality, solidarity, and similarity, which, thus, encourages inside joining and coordination. A comprehension of hierarchical culture and how to change it is significantly significant for administrators and pioneers to accomplish key results. The situation of vital pioneers in an association helps them to see the elements of their authoritative culture and achieve the embodiment of key accomplishment through positive change. â€Å"Effective directors perceive that supplanting a drawn out culture of conventional qualities with one that exemplifies the serious qualities required later on can take years. Be that as it may, the compensations of that exertion will be an association significantly more viable and receptive to its ecological difficulties and opportunities.†(Bateman and Snell, 2007)Organizational Culture at Southwest AirlinesSouthwest Airlines was established in 1971 as a minimal effort territorial air bearer. The company’s mission expressed on its site really mirrors its positive and sound authoritative culture. â€Å"We are resolved to give our Employees a steady workplace with equivalent open door for learning and self-improvement. Inventiveness and development are empowered for improving the adequacy of Southwest Airlines. Most importantly, Employees will be given a similar concern, regard, and caring mentality inside the association that they are relied upon to share remotely with each Southwest Customer.†Southwest Airlines has reliably been effective as far as gainfulness, great representative and association relations, and consumer loyalty †when most aircraft transporters are battling in every one of these zones. Key to the company’s achievement is a culture of adaptability, family-direction, and fun. They put stock in, â€Å"The way you treat and prize workers is one piece of your company’s culture†. Culture is the company’s lifestyle. It is the means by which the business capacities, works, handles pressure and fortifies its staff. It is the company’s general mentality toward the world. Southwest has assembled a notoriety for being a fun, cheerful and flippant aircraft with an upbeat staff. It is said that Southwest’s greatest recruiting measure is whether a candidate grins during their meeting. Southwest feels it can prepare anybody to carry out the responsibility, yet it can't show an individual to have an inspirational mentality. Southwest Airlines has perceived that grinning staff individuals canâ handle negative issues dexterously and still fulfill their clients. Southwest is additionally distinguished as the early pioneer of laborer duty. As far as possible accentuation on the formal hierarchical structure. At Southwest, dynamic is the procedure which is finished by the executives/specialist boards. Initiative gatherings are taped and imparted to representatives. The scientists discovered that efficiency could be amplified when representatives felt as if their requirements were being considered by accepting consideration for their work. This wonder got known as the Hawthorne Effect. It is as obvious today as it was during the only remaining century that focusing on our human resources produces gigantic outcomes. Southwest Airlines has figured out how to gain by the standards of the Hawthorne Effect. Southwest Airlines has reliably stayed at the highest point of its industry, while setting a thorough spotlight on employees’ input and needs. Southwest tries to share the company’s accomplishment with its representatives. The carrier accomplished significant levels of worker fulfillment and was remembered for the Fortune magazine’s rundown of the â€Å"100 Best Companies to Work for in America† for a long time in succession. â€Å"Southwest’s no-cutback reaction to September 11 was a suggestion to its representatives of the organization’s custom of thinking about its kin. When requested to remark on this, an authority clarified, â€Å"Its part of our way of life. We’ve consistently said we’ll do whatever we can to deal with our kin. So that’s what we’ve attempted to do.† Many investigators feel that the wonderful exhibition of Southwest is a result of its capacity to manufacture and continue connections portrayed by shared objectives, shared information and common regard between workers. Southwest’s authoritative culture was molded by Kelleher’s administration. Kelleher’s character affected the way of life of Southwest, which represents his immediacy, vitality and intensity. Southwest’s culture had three subjects: love, fun and proficiency. Kelleher regarded all the workers as a â€Å"lovely and adoring family†. Southwest endeavors to advance an affectionate, steady and suffering family-like culture. The Company started different measures to encourage closeness and casualness among workers. Southwest empowered its kin toâ conduct business in a caring way. Representatives are relied upon to think about individuals and act in manners that assert their nobility and worth. Rather than embellishing the mass of its central command with works of art, the organization draped photos of its representatives participating at organization occasions, news clippings, letters, articles and commercials. Southwest’s hierarchical culture urges workers to be imaginative, to impart, comprehend and care, be committed to client assistance and in particular to be an Individual. It keeps up its prosperity because of worker training, a lot of which happens in Southwest Airlines’ bubbly learning community: the University for People. Southwest considers figuring out how to be a ceaseless procedure. College for People mentors, known as facilitators, construct an establishment for a progressing learning condition through an administrative initiative class called â€Å"Leadership Southwest Style,† which uses the Myers-Briggs Type Indicatorâ ® (MBTI ®) appraisal for self revelation. At Southwest Airlines, the board needs representatives to feel good, mirroring its way of thinking that a worker who is agreeable can think all the more uninhibitedly and innovatively. Customary festivals unite representatives. These incorporate â€Å"Spirit Parties,† Culture gatherings, and week by week Deck Parties at base camp. Exercises at these occasions incorporate ability appears, move challenges, limbo challenges, karaoke, and acclaimed individual clone subjects. The Culture Committee invites new representatives with a New Hire Welcome Kit, which incorporates a sack, tee-shirt, identification holder, pen, and welcome letter. Southwest Airlines is an incredible case of social innovation that assists individuals with finding their actual capacities. The social condition consolidates humor with duty. Representatives work in groups without outside management. At prospective employee meetings, alongside other self-improvement demeanor, the forthcoming worker must show a comical inclination. The organization perceives the way in to its way of life is â€Å"The Spirit of LUV.† Their responsibility to employ individuals with the ability to love and serve others has yielded a plentiful reap of dependability and cash. Consequently it shows a very well blend of the board and administration. Key ideas of hierarchical culture at Southwest Airlines †¢Encourage to expect possession †¢Hire forever †¢Trust their decisions†¢Give employeesâ immediate access to basic data. †¢They have the ability to make modifications and to fix noteworthy issues rapidly. Results accomplished through these concepts†¢On-time appearances, legitimate things taking care of, and client objections are imparted on a week by week premise. †¢Everyone is centered around client care and making Southwest a triumph which permits them

How to boost your academic potential in 4 steps

How to boost your academic potential in 4 steps How to boost your academic potential in 4 steps? Home›Tips for Students›How to boost your academic potential in 4 steps? Tips for StudentsThe pursuit of academic excellence is not a bad of roses and that is the reason why many students give up studying with the idea that intellectual development is not what they are able to successfully deal with. However, this is not always true. Very often it is enough simply to change some of your habits and find learning techniques that best suit you. Qualitycustomessays.com is going to give you some hints on how to do your best as a student:Get organized. Regardless of the kind of a planner you use (either a printed calendar or an online task management service), it is important to schedule all your things-to-do in a way to make the best use of your precious time. It is important to remember that the main purpose of every schedule is to prioritize tasks based on their importance. Note also that some of them are able to change their value, s o learn to adapt your schedule accordingly.Create your ideal learning environment. Whether it is some quiet and well lit room or some other place to distance yourself from all possible distractions, it is important to find a perfect place to stimulate your intellectual growth, for example, in order to work on your academic writing assignment. If to speak about time, be 100% committed to the subject you are studying, but remember the importance of making breaks once in a while. Make sure you devote all your intellectual resources to one issue at a time.Balance studying and other commitments. Contrary to stereotypes about bookworms, the most successful students excel both in classroom as well as in other spheres of life. For example, getting acquainted with your classmates may be as important as getting prepared for your next exam. This will allow you not only to change the scenery a bit, but also to borrow some new learning techniques from your peers. By the way, why not to organize a study group? Those meetings are based on the need as well as driven by the purpose to ace the subject.Last, but not the least important factor to influence your academic potential is to avoid undertaking too much work or too many tasks. Dont take on too much, or you wont be able to do any of it well. If to speak about academic writing, our highly qualified writers always will be of great help for you with your assignments! Benefit from cooperation with us and boost your academic potential!

Cigarette Taxes Free Essay Example, 2500 words

This caused tremendous pressure to the government leading to the enactment of the Tobacco Inspection Act that directs the Secretary of Agriculture to impose controls on the tobacco Industry ( McGrew ). In addition to this, McGrew asserts that the government imposed regulation since the tobacco industry provided more than $4.8 billion in taxes in 1971 (USDA, Tobacco Situation, 1971b: 44). Strictly speaking, the first federal excise tax on tobacco was included in the Alexander Hamilton s tax package of 1794 which was restricted by Congress after a few debates. Later on, the interest to gain revenue from tobacco grew during the Civil war. In July 1, 1862, the first ad valorem tax for cigars was enforced, followed by tax increase in 1865, 1866 and 1875. Amazingly, in 1880, revenues from tobacco contributed to 31% of total federal tax receipts in which 50% of these collections came from smoking and using tobacco ( Heimann, 1960: 156). The revenue generated by tobacco products have risen drastically annually that by 1970, the Tobacco Tax Council reported a staggering revenue of no less than $2 billion dollars ( Tobacco tax Council 1970:5 ). Columbia along with 40 states imposed taxes. We will write a custom essay sample on Cigarette Taxes or any topic specifically for you Only $17.96 $11.86/page The main motivator for tobacco taxation before was simply to generate revenue for the government.

Iran s Domestic Affairs And Foreign Policy - 2429 Words

The historical lift of decades-long sanctions on Iran earlier this year has sparked numerous discussions about what the future holds for the country. Without a doubt, possibilities that have been blocked by the past economic sanctions are now accessible to Iran. However, it’s crucial to understand that change cannot happen overnight. In fact, it may take years or even decades for Iran to catch up with the majority of countries around the world. There are some notable events in Iran’s domestic affairs that can assist us in navigating where the semi-theocratic regime appears to be headed. One of them would be the recent Iranian election and its conceivable outcomes. This paper will examine the possible progresses post-sanctions Iran can†¦show more content†¦Nevertheless, we may deduce that recent elections suggested Iran’s leaders — and not merely reformists — have learned that the most effective way to mitigate this dilemma is to forge a pea ce deal with some of their rivals. The prospects for such a deal emerged when Rouhani publicly assailed the Guardian Council, asserting that the parliament â€Å"is the house of the people and not a particular faction.†2 While the Council of Guardians ignored this signal and chose instead to disqualify Hassan Khomeini — along with thousands of other would be candidates — persistent criticism of the council’s actions from Rouhani, Rafsanjani, and others compelled it to readmit some 1,500 aspiring candidates — political novices, to be sure, rather than veteran reformists, but whose ranks included many supporters of Rouhani and his allies. These dynamics suggest a grudging readiness by Iran’s top leadership to negotiate a political accommodation that could very slowly, yet eventually favor greater pluralism and openness in the Islamic Republic. This seems to be the objective of Iran’s reformists, who — with Rouhani’s suppor t — have signaled a growing measure of political sophistication, strategic vision, and unity.3 In the end, noShow MoreRelatedRonald Reagans Domestic and Foreign Affairs Essay1728 Words   |  7 PagesReagans Domestic and Foreign Affairs. The reason that I choose this topic was because I have always been personally interested in Ronald Reagans time in office and the national crisis he had to deal with. Reagan was awesome when it came to foreign policy because he knew how to negotiate with foreign leaders and their countries to get what he wanted. There were several instances during his time in office that he had the chance to use his ability to get the country out of danger. 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Essay on Technical Education in India Free Essays

The All India Council for Technical Education (AICTE) is the statutory body and a national-level council for technical education, under Department of Higher Education, Ministry of Human Resource Development. [2] Established in November 1945 first as an advisory body and later on in 1987 given statutory status by an Act of Parliament, AICTE is responsible for proper planning and coordinated development of the technical education and management education system in India. The AICTE accredits postgraduate and graduate programs under specific categories at Indian institutions as per its charter. We will write a custom essay sample on Essay on Technical Education in India or any similar topic only for you Order Now [3] The AICTE Act of 1987 AICTE is vested with statutory authority for planning, formulation and maintenance of norms and standards, quality assurance through school accreditation, funding in priority areas, monitoring and evaluation, maintaining parity of certification and awards and ensuring coordinated and integrated development and management of technical education in the country as part of the AICTE Act No. 2 of 1987. The AICTE Act, stated verbatim reads: To provide for establishment of an All India council for Technical Education with a view to the proper planning and co-ordinated development of the technical education system throughout the country essay writer salary, the promotion of qualitative improvement of such education in relation to planned quantitative growth and the regulation and proper maintenance of norms and standards in the technical education system and for matters connected therewith where to buy essays online. [edit] Current objective In order to improve upon the present technical education system, the current objectives is to modify the engineering curriculum as follows: 1. Greater emphasis on design oriented teaching, teaching of design methodologies, problem solving approach. 2. Greater exposure to industrial and manufacturing processes. 3. Exclusion of outmoded technologies and inclusion of the new appropriate and emerging technologies. 4. Greater input of management education and professional communication skills. edit] AICTE bureaus The AICTE comprises nine bureaus, namely: * Faculty Development (FD) Bureau * Undergraduate Education (UG) Bureau * Postgraduate Education and Research (PGER) Bureau * Quality Assurance (QA) Bureau * Planning and Co-ordination (PC) Bureau * Research and Institutional Development (RID) Bureau * Administration (Admin) Bureau * Finance (Fin) Bureau * Academic (Acad) Bureau For each bureau, adviser is the bureau head who is assisted by technical officers and other supporting staff. The multidiscipline technical officer and staff of the Council are on deputation or on contract from government departments, University Grants Commission, academic institutions, etc. References 1. ^ Regional Offices AICTE website. 2. ^ Technical Education Overview Department of Higher Education 3. ^ AICTE Act[dead link] 4. ^ National Level Councils Tech Ed. , Department of Higher Education. 5. ^ Growth of institutions affiliated to AICTE 6. ^ â€Å"UGC, AICTE to be scrapped: Sibal†. iGovernment. in. Retrieved 29 November 2011. 7. â€Å"AICTE to revamp its approval system next week†. Business Standard. Retrieved 29 November 2011. * | | All India Council for Technical Education| | Abbreviation| AICTE| Formation| November, 1945| Headquarters| New Delhi| Location| Kolkata, Chennai, Kanpur, Mumbai, Chandigarh, Guwahati, Bhopal, Bangalore, Hyderabad, Gurgaon[1]| Main organ| Council| Affiliations| Department of Higher Education, Ministry of Human Resource Development| Website| Official web site Remarks| Dr. S S Mantha, Chairperson (acting| |    How to cite Essay on Technical Education in India, Essays

blitzkrieg Essay Example

blitzkrieg Essay The First Phase: Dominance of the Axis Man for man, the German and Polish forces were an even match. Hitler committed about 1.5 million troops, and the Polish commander, Marshal Edward Smigy-Rydz, expected to muster 1.8 million. That was not the whole picture, however. The Germans had six panzer (armored) and four motorized divisions; the Poles had one armored and one motorized brigade and a few tank battalions. The Germans 1600 aircraft were mostly of the latest types. Half of the Poles 935 planes were obsolete. Result of German Blitzkrieg on Poland On September 1, 1939, Germany invaded Poland. The Polish army expected the attack to come along the Polish frontiers. But Hitler introduced a new kind of war called a blitzkrieg, which means lightning war. Waves of German bombers targeted railroads in Tczew, shown here, which crippled Polish military mobilization. Hundreds of tanks smashed through Polish defenses and rolled deep into the country. The Poles fought hard, but on September 17, the Soviet Union invaded their country from the east. By the end of the month, Poland had fallen. Polish strategic doctrine called for a rigid defense of the whole frontier and anticipated several weeks of preliminary skirmishing. It was wrong on both counts. On the morning of September 1, waves of German bombers hit the railroads and hopelessly snarled the Polish mobilization. In four more days, two army groups-one on the north out of East Prussia, the other on the south out of Silesia-had broken through on relatively narrow fronts and were sending armored spearheads on fast drives toward Warsaw and Brst. This was blitzkrieg (lightning war): the use of armor, air power, and mobile infantry in a pincers movement to encircle the enemy. Between September 8 and 10, the Germans closed in on Warsaw from the north and south, trapping the Polish forces west of the capital. On September 17, a second, deeper encirclement

Nucor Competitive Strategy Essays

Nucor Competitive Strategy Essays Nucor Competitive Strategy Paper Nucor Competitive Strategy Paper NUCOR COMPETITIVE STRATEGY ANALYSIS CONTENTS 1. Case Profile 2. Situational Analysis 2. 1General External Environment (PESTLE model) 2. 1. 1 Political/Legal 2. 1. 2 Economic 2. 1. 3 Sociocultural 2. 1. 4 Technological 2. 1. 5 Environmental 2. 1. 6 Demographic 2. 1. 7 Global 2. 1 Industry Analysis (Porter 5 Forces) 2. 2. 1 Threat of new entrants 2. 2. 2 Bargaining power of suppliers 2. 2. 3 Bargaining power of buyers 2. 2. 4 Threat of substitute products 2. 2. 5 Intensity of rivalry 2. 3 Competitive Environment Analysis 2. 3. Future objectives 2. 3. 2 Current strategy 2. 3. 3 Assumptions 2. 3. 4 Capabilities 3. Strategic Analysis 3. 1 Strategies 3. 1. 1Operational level 3. 1. 2Business level 3. 1. 3Competitive level 3. 1. 4 Corporate level 4. Core Competencies 4. 1Tangible resources 4. 2Intangible resources 4. 3Capabilities 5. Value Chain 6. Sustainable Competitive Advantage 7. Performance Appraisal 8. SWOT Analysis 8. 1 Strengths 8. 2 Weaknesses 8. 3 Opportuni ties 8. 4 Threats 9. Strategy Formulation and Implementation 9. 1 New Initiatives to Sustain Growth APPENDIX 1: Top-30 producers by International Iron Steel Institute APPENDIX 2: Top Competitors Key Measures: NUCOR APPENDIX 3: FIVE-YEAR FINANCIAL REVIEW FOR NUCOR (2002-2006) Case Study Analysis: NUCOR 1. Case Profile Nucor Corp. , the U. S largest mini-mill operator1 and largest steel manufacturer by tons produced2, continues to lead the industry in efficiency, technological innovation, profitability and delivery of high quality products at low cost structure, after a record of more than 16 years of rapid growth in a declining industry3. And with a strong relationship with its workers without unionization, Nucor’s employees claimed to be the industry’s most satisfied, most motivated and most productive, making them a formidable workforce. This case considers how Nucor has achieved its success and how to sustain it. 2. Situational Analysis 2. 1. General External Environment (PESTLE model4) 2. 1. 1. Political/legal. The steel industry has seen rocky labour relations since the late 19th century with fatalities to striking workers4. Majority of workers are represented by the United Steel Workers of America. Another issue is the integrated steel producers have filed charges against importers of dumping steel prices, blaming them especially Japan, for declining market shares. Nucor’s plant in Hertford County was located on the banks of a fishery that required restoration in a law passed in 1997. 2. 1. 2 Economic. Steel industry is a cyclical business, subject to economic fluctuations since it depended on durable and capital goods (car, building). The industry does well during economic expansion and suffers losses and even bankruptcies during economic downturn. . 1. 3. Sociocultural. The industry became a source of employment, symbolizes American economic power and pride during good times and symbolizes economic decline and source of shame when foreign companies took over market shares5. 2. 1. 4. Technological. Technology drives major changes in the production process to increase flexibility, efficiencies and allowed automation which include the continuous casting technology, blast oxygen furnace and electric arc furnace. 2. 1. 5. Environmental. Nucor’s mill in Crawfordsville, Indianna was alleged to have violated federal and state clean air rules and discharge of 6,720 tons of pollutants into the air each year by U. S. Environmental Protection Agency. 2. 1. 6. Demographic. Mini-mills which are located close to customer base has moved as population of U. S. moved to south and west. Demographic shifts affect the industry since construction utilizes a significant amount of steel. 2. 1. 7. Global. U. S. steel exports were negligible although it had grown to 3% to 5% by the 1990s6. The U. S. teel industry has benefited greatly from the Japanese mill from their large investments in U. S. joint venture projects, new technologies, high productivity and quality product7. Globalization will subject U. S. steel makers to vulnerable changes. 2. 2. Industry Analysis Porter’s Five Forces Analysis 2. 2. 1) Threat of new entrants. For mature integrated steel industry, threat is low due to economies of scale, high capital inje ction, cyclical nature of business and difficult access to supply and distribution; but slightly higher for mini-mill because of lower capital commitment and scale. . 2. 2) Bargaining power of suppliers. For integrated steel makers, they have effectively neutralized the suppliers’ bargaining power by backward integration (steel makers acquiring coal/coke mines and transportation facilities). For mini-mill, their reliability on scrap metal has given supplier moderate to high bargaining power. Higher cost of scrap metal due to limited supply has forced mini-mill to more costly materials like iron carbide. Nucor reduced the bargaining power of steel scrap supplier by backward integration. 8 2. 2. ) Bargaining power of buyers. It is weak to moderate since producers can threaten major distributors and wholesalers with forward integration (taking over direct distribution). But the large buyers (e. g. car makers) have more bargaining power. For example, the U. S. steel producers had to fulfill Japanese automakers’ quality and standards before they were allowed to supply the Japanese auto plants in the U. S. 9 2. 2. 4) Threat of substitute products. The threat is high in applications where strength is a not crucial concern but cost is (e. g. lastic, wood, synthetic materials, fiberglass); low for applications that require strength since substitute materials are just not strong enough10. Also, the many composition steel can be produced reduce the threat. 2. 2. 5) Intensity of rivalry. It is a highly competitive market with high exit barriers since assets are specialized, increase of mini-mill competitors taking on production of steel sheets and other steel products, stagnant demand, many global competitors, commodity-like products that minimizes switching costs and customer loyalty and excess capacity11. 2. 3. Competitive Environment Analysis Nucor has grown to become the largest steelmaker in the US by tonnage2. To have a sustainable market leader position, it must continue to compete for more market share from the large, integrated steelmakers. Although Nucor is the first mover in the mini-mill sector, it must also compete against second movers. 2. 3. 1) Future objectives. Nucor’s primary objective is â€Å"the production of high volumes of quality, low-cost steel. †12 It has an ambitious annual earnings growth of 10-15%. Nucor’s competitors would have the same objective, but unlikely the same high annual growth. Nucor’s competitors will be less risk-taking, giving Nucor a distinct advantage since a risk-aversive approach produces lower returns. 2. 3. 2) Current strategy. Nucor’s strategy is cost leadership. Even if there are changes in the competitive environment, this strategy is preferred since steel is a commodity-like product. While some mini-mill competitors follow a differentiation strategy, most follow a cost leadership strategy, though not very successfully. 2. 3. 3) Assumptions. It is a general assumption for all competitors that cyclical fluctuations are continuous. Nucor’s competitors often looked like operating under a status quo while Nucor has grown to produce sheet-fed steel and stainless steel in its mini-mills, a seemingly impossible task. 2. 3. 4) Capabilities. Nucor’s strengths include highest productivity, lowest cost structure and a high profitability (30 years of continuous profits)13 in the industry and excellent labour-management relations. Nucor’s weakness, comparing to its competitors, is more exposure to short-term losses and temporary setbacks resulting from risk-taking. The large integrated steel producers are comparatively strong in terms of size, established customer base and economies of scale. In terms of tonnage produced, Nucor ranked 8th globally with 20. 3 tons in 2006 (Appendix 1). Nucor could further strengthen its position as it is not far from the world’s 2nd largest steelmaker (Nippon Steel, Japan) of 34. 7 tons. ROE wise (Appendix 2), Nucor is much stronger than its competitors with 29. 38 as compared to Commercial Metals Co’s 22. 63 and U. S Steel’s 17. 79. ROA wise, Nucor is also much stronger than its competitors with 15. 6 as compared to 8. 33 and 7. 13. Nucor is more financially sound than its competitors with a current ratio of 2. 06 as compared to 1. 69 and 1. 59. 3. Strategic Analysis 3. 1 Strategies 3. 1. 1) Operational level. Nucor’s operational level strategy is core process re-engineering. This includes pre-heating the ladles allowing for faster flow of steel into the caster, continuous casters and a processes design that limit work-in-progress inventory, limit space and increase flexibility. . 1. 2) Business level. Nucor’s business level strategy is low cost leadership, keeping with its primary objective of the production of high volumes of quality, low-cost steel. 3. 1. 3) Competitive strategy. Nucor is the industry’s catalyst for technology innovation. It pioneered and took lead of the mini-mill concept, which later produce sheet steel and thin slab stainless steel. Also taking risk with a focus on lon g-term gains (versus short term risks). 3. 1. 4) Corporate level. To achieve its goal, Nucor diversify throughout the steel business. Nucor ventured into traditional bastions of integrated steelmakers (sheet steel, stainless steel), not constrained by the mini-mill format. Nucor has engaged in numerous upstream and downstream diversification. 4. Core Competencies Core competencies are special capabilities that are critical to a business achieving competitive edge. It is harmonizing of diverse production skills integrated with technological development. 19 4. 1) Tangible resources. Nucor’s tangible resources include strong financial resources with a proven ability to generate internal funds and a track profitability record that gives it enormous borrowing power. Organizational resources appear slim without formal planning, coordinating or controlling systems. Physical resources include 8 high-performing mini-mills strategically located to customer base and good access to raw materials with the company’s new iron carbide plant. Nucor has considerable technological resources, mainly involving process. 4. 2) Intangible resources. Many innovative ideas come from its human resources. Human resources include knowledge of the business know-how, motivation to perform and strong worker-management trust and co-operation. . 3) Capabilities. This includes the capability to produce high volumes of quality low-cost steel, innovative technology, continuous process refinement, continuous productivity improvement, motivated workforce, strong corporate culture. Employees are encouraged to take risk and a high tolerance for failure is given. Employees have a sense of ownership, exceedingly loyal and share a common goal of ensuring Nucor’s meets i ts primary objective. These give Nucor a competitive edge that is costly and difficult to imitate17. And the costly duplication suggests that the resource or capability is inelastic in supply, earning the firm who possess it an economic rent. 18 5. Value chain analysis i. Support Activities Firm InfrastructureWith no formal planning or formal mission, possess a strong culture Human Resource ManagementNot unionized, rewards risk-taking, high tolerance for failure, performance based bonus plans, encourage employee suggestions Technology Developmentcontinuous process refinement, continuous improvement, licensing/buying technology ProcurementUpstream diversification, process innovation i. Primary Activities Inbound LogisticsOperationsOutbound LogisticsMarketing SalesService cost focused, coordinated with operational needsEfficient, low cost, high productivity, meeting or exceeding quality requirements, continuous improvementafter-sale support 6. Sustainable Competitive Advantage Sustainable competitive advantage is derived from the trust-based working relationships along with a high to lerance for failure, would allow Nucor to take the risk needed to produce sustainable growth. The source of this trust is in Nucor’s distinctive human resources strategy, which is characterized by informality, ad hoc planning, pay for performance, and employee empowerment. 14 7. Performance Appraisal For the last five years, Nucor’s sales have increased over 240% from $4. 33 billion (2001) to $14. 75 billion (2006). Average sales price per ton has increased 88% from $354 (2001) to $667 (2006). Total tons sold to external customers have increased 81% from 12,237,000 tons (2001) to 22,118,000 tons (2006) (Appendix 3) (Figure 1). This rapid growth has been derived from acquisitions, optimizing existing operations and developing traditional greenfield projects using innovative technologies. Nucor achieved record sales and net earnings in 2006 for the 3rd consecutive year due to historically high selling prices, margins and shipments. Nucor was strengthened as North America’s most diversified steel producer. With this diverse product line, Nucor’s short-term performance which is not dependant on any single market has been able to maintain profitability every year and every quarter since 1966. (Figure 2). Figure 1: Nucor’s Average Sales Price Per Ton Total Tons Sold Figure 2: Nucor’s Diversified Product Mix 8. SWOT Analysis 8. 1. Strengths 1. Strong financial resources (profits, returns) 2. Industry leading low cost structure 3. Motivated workforce 4. Strong corporate culture 5. Innovation resources 6. Trust-based relationships 7. Technological expertise 8. Strong physical resources 9. Strategic management leadership style 8. 2. Weaknesses 1. Vulnerable to losses and setbacks from risk-taking 2. Lack of formal organizational systems may reduce efficiency 3. High tolerance for failure risks potential loss 4. Vague marketing structure or strategy 8. 3. Opportunities 1. Expand into additional specialty products 2. Downstream diversification 3. Directly produce steel from iron carbide, eliminating the need for electric furnaces. 4. Growth and innovation through joint venture projects 5. Maintaining market leadership position 6. Exporting 7. Soaring global steel prices15 8. 4. Threats 1. Substitute products 2. Second mover mini-mill competitors 3. Integrated steelmaker competitors 4. Economic downturn 5. Sub-prime crisis in property industry 6. Globalization with consolidating competitors 7. Global oversupply (China slowed down by December 2004 and became net exporter) 8. A new technology called Finex (by Posco in South Korea) Weaknesses and Threats- Nucor does not have serious weakness but only unused production capacity and a non-differentiated product. Serious threats from foreign competitors (e. g. Acelor Mittal) consolidating could affect Nucor’s growth. Such intense rivalry may also lead to price wars. Weaknesses and Opportunities- With soaring steel prices, expansion and vertical integration would give a better return. Strengths and Threats- Expanding its product line could mitigate the threats from foreign and local competitors, given soaring steel prices will give better return. Consolidate with other steelmakers would make Nucor a bigger player globally. Using its market dominance, Nucor could negotiate with the government for better regulations against the foreign competitors. With its financial and leadership resources, Nucor should secure more backward integration into scrap steel market. Joint venture with Posco (South Korean steelmaker) to leverage new technology. Strengths and Opportunities- Nucor has the financial, human and technological resources to penetrate new market, to expand product range, to compete in the stainless steel market and to joint with Japan to open new market in the Asian region. . Strategy Formulation Implementation Nucor’s current strategy is working. Its unique corporate culture and distinctive human resources strategy which produced a non-substitutable trust-based relationship, give Nucor a sustainable competitive advantage, contrasting the antagonistic relations in the steel industry. This trust enables Nucor to take risk which facilitates its growth. As an engineer from a major integrated mill said upon visiting a Nucor plant, that Nucor’s culture were such that everyone work hard and help each other, collectively survive and meet with success. But theirs is one of aggression, confrontation and lack of trust. 16 9. 1. New Initiatives to Sustain Growth Nucor should further leverage its sustainable competitive advantage by expanding more aggressively, taking the following steps: 1. To build an additional iron carbide plant to increase the availability of low-cost raw materials. 2. To carry out market research to ascertain: a) Expand product line and downstream steel business (e. g. steel for building, bridges, highways, roof decking, flooring); b)Export market; c) Competitors’ current strategies, weaknesses and strengths; d) Joint venture partners and projects ) Expand domestic markets f) Backward integration (e. g. scrap brokerages) 3. To develop strategic marketing program 4. Add an employee stock ownership program to further reinforce employees’ sense of ownership and loyalty. REFERENCES 1. bizjournals. com/charlotte/stories/2008/04/21/daily34. html 2. anbhf. org/laureates/keniversen. htm 3. Johnson, G. Sc holes, K. (2005) Exploring Corporate Strategy: Text and Cases, Prentice Hall, London 4. http://en. wikipedia. org/wiki/U. S. _Steel_Recognition_Strike_of_1901 5. John H. Sheridan, 1996 â€Å"New Era – Or Breather? Industry Week, 5 February, pp 49 6. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), pp C479 7. Bryan Berry, (1996) â€Å"World Steel: Competing Strategies in Metallics, Melting, and Casting,† Iron Age New Steel, 12(4), April, pp 74. 8. Bryan Berry, (1996) â€Å"World Steel: Competing Strategies in Metallics, Melting, and Casting,† Iron Age New Steel, 12(4), April, pp 76. 9. Bryan Berry, (1996) â€Å"World Steel: Competing Strategies in Metallics, Melting, and Casting,† Iron Age New Steel, 12(4), April, pp 76. 10. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C483 11. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C480 12. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C498 13. Brian K. Boyd Steve Gove, â€Å"Nucor Corp. And the U. S. Steel Industry,† In: Strategic Management: Competitiveness and Globalization by Michael A. Hitt, R, Duane Ireland, Robert E. Hoskisson (Cincinnati, OH: South-Western College Publishing, 2001), p. C477-C507 14. Ted Kuster (1995) â€Å"How Nucor Crawfordsville Works,† Iron Age New Steel, 11(12), December, pp 36-47 15. usatoday. com/money/autos/2004-10-13-steel-prices_x. htm taipeitimes. com/News/worldbiz/archives/2004/03/26/2003107844 16. Bryan Berry (1996) â€Å"The Importance of Nucor,† Iron Age New Steel, 12(7), July, pp 2. 17. Barney, J. B. (1997) Gaining and Sustaining Competitive Advantage, Wesley Publishing, Addison 18. McTaggart, D and Findlay, C and Parkin, M (2006) Economic, Wesley Publishing, Addison 19. Prahalad, C. K. and Hamel G (1990) The Core Competence of the Corporation, Harvard Business Review, Mar, 1979 APPENDIX 1: Top-30 producers by International Iron Steel Institute MtonSteelmaker 1117. 2ArcelorMittal (Global) 234. 7Nippon Steel (Japan) 332. 0JFE (Japan) 430. 1POSCO (South Korea) 528. 2Tata Steel (India) Including Corus Group 622. 5Shanghai Baosteel Group Corporation (China) 721. 2United States Steel Corporation (United States) 820. 3Nucor Corporation (United States) 919. 1Tangshan (China) 1018. 2Gruppo Riva (Italy) 1117. 5Severstal (Russia) 1216. 8ThyssenKrupp (Germany) 1316. 1EvrazHolding (Russia) 1415. 6Gerdau (Brazil) 1515. 3Anshan (China) 1614. 6Shagang Group (China) 1714. 6Steel Authority of India Limited (India) 813. 8Wuhan Iron and Steel (China) 1913. 6Sumitomo Metal Industries (Japan) 2012. 8Techint (Argentina) 2112. 5Magnitogorsk Iron and Steel Works (Russia) 2211. 5Jinan (China) 2310. 9Magang Group (China) 2410. 8Laiwu Steel (China) 2510. 7China Steel (Taiwan) 2610. 5Shougang (China) 279. 9Valin Steel Group (China) 289. 8Imidro (Iran) 299. 5Industrial Union of Donbas (Ukraine) 309. 1Novolipetsk (Russia) Source: http://en. wikipedia. org/wiki/List_of_steel_producers This is a list of the largest steel-producing companies in the world according to the International Iron and Steel Institute. The list is compiled from its page Top Steel Producers 2006, but updated below from other sources. (Output in million metric tons crude steel; the country/region of producers basing specified in brackets) Total world steel output in 2005: 1,131. 8 million metric tons (mmt) Total world steel output in 2006: 1,239. 5 million metric tons (mmt) APPENDIX 2: NUCOR’S TOP COMPETITORS KEY MEASURES NUCORCOMERCIAL METALS CO U. S. STEEL- VALUATION PRICE/EARNINGS (TTM)11. 9910. 5616. 34- PRICE/CASH FLOW9. 9610. 7617. 40- PRICE/SALES (TTM)1. 060. 430. 85- PRICE/BOOK3. 672. 222. 59- PER SHARE DATA LAST DIVIDEND36. 4719. 512. 71- BOOK VALUE18. 7714. 2948. 33- EPS (TTM)5. 092. 277. 08- REVENUE16. 59 B8. 32 B16. 87 B- PROFITABILITY EBIDTA3. 02 B684. 52 M1. 72 B- OPERATING MARGIN15. 38%6. 93%6. 79%- PROFIT MARGIN8. 87%4. 27%5. 21%- GROSS PROFIT MARGIN18. 86%13. 94%10. 28%- DIVIDEND DIVIDEND YIELD2. 77%1. 26%0. 55%- PAYOUT RATIO36. 4719. 6512. 71- ANNUAL DIVIDEND (TTM)176. 5 M- - - DIVIDEND YIELD 5 YEAR AVERAGE3. 17%0. 90%0. 66%- GROWTH NET INCOME1. 47 B355. 43 M879 M- EPS (TTM)5. 09%2. 27%7. 08%- REVENUE16. 59 B8. 32 B16. 87 B- PEG1. 24%1. 58%0. 71%- FINANCIAL STRENGTH QUICK RATIO (MRQ)8. 874. 275. 21- CURRENT RATIO (MRQ)2. 61. 691. 59- LT DEBT TO EQUITY RATIO (MRQ)45. 9239. 0854. 38- TOTAL DEBT TO CAPITAL (MRQ)29. 6231. 4437. 07- ROE29. 3822. 6317. 79- ROA15. 608. 337. 13- ROIC (RETURN ON INVESTED CAPITAL)22. 0419. 0213. 41- ASSETS ASSET TURNOVER1. 692. 401. 08- ASSET PER EMPLOYEE545,895. 66667272,793. 63708557,714. 28571- INVENTORY TURNOVER9. 518. 637. 54 SOURCE: HTTP://FINANCE. AOL. COM/COMPANY/NUCOR-CORPORATION/NUE/NYS/TOP-COMPETITORS APPENDIX 3: FIVE-YEAR FINANCIAL REVIEW FOR NUCOR (2002-2006) FOR THE YEAR20062005200420032002 Net sales14,751,27012,700,99911,376,8286,265,8234,801,777 Costs, expenses and other: Cost of products sold11,284,60610,108,8059,174,6115,993,4924,335,409 Marketing, administrative and other expenses592,473459,460374,730165,369175,589 Interest (income) expense, net(37,365 4,20122,35224,62714,286 Minority interests219,121110,65080,84023,90479,408 Other income- (9,200 (1,596 (11,547 (29,900 12,058,83510,673,9169,650,9376,195,8454,574,792 Earnings before income taxes2,692,4352,027,0831,725,89169,978226,985 Provision for income taxes935,653709,834607,9065,18166,899 Net earnings1,756,7821,317,2491,117,98564,797160,086 Net earnings per share: Basic (1)5. 734. 193. 530. 210. 51 Diluted (1)5. 684. 153. 00. 210. 51 Dividends declared per share (1)2. 150. 930. 240. 200. 19 Percentage of net earnings to net sales11. 9 10. 4 9. 8 1. 0 3. 3 Return on average equity38. 3 33. 8 38. 2 2. 7 7. 0 Capital expenditures338,404331,466285,925215,408243,598 Depreciation363,936375,054383,305364,112307,101 Sales per employee1,2731,1591,107637528 AT YEAR END Current assets4,683,0654,081,6113,1 82,1321,639,7841,429,305 Current liabilities1,421,9171,228,6181,042,776615,067573,697 Working capital3,261,1482,852,9932,139,3561,024,717855,608 Cash provided by operating activities2,251,2332,136,6151,024,756493,801497,220 Current ratio3. 3. 33. 12. 72. 5 Property, plant and equipment, net2,856,4152,855,7172,818,3072,817,1352,932,058 Total assets7,893,0187,148,8456,140,3914,511,5774,394,944 Long-term debt922,300923,550923,550903,550894,550 Percentage of debt to capital15. 3 17. 0 20. 2 26. 1 25. 8 Stockholders’ equity4,857,3514,312,0493,481,2812,370,8732,349,770 Per share16. 1413. 9010. 917. 547. 51 Shares outstanding300,949310,220319,024314,361312,720 Employees11,90011,30010,6009,9009,800 Source: secinfo. com/d14D5a. u7c82. c. htm#1stPage