Nucor Primary And Support Activities
Nucor Primary And Support Activities
Introduction
Nucor is a large manufacturing company in United States that deals with manufacturing of steel. It has remained to be a profitable company even though it is among the very cynical industries. It enjoys the success due to several reasons which include; quality, aggressive pursuit in technical excellence and innovation, productivity and employee relations. This paper will focus on the primary and secondary activities that help Nucor steel manufacturers to achieve low cost strategy.
Primary activities
The company makes use of the following primary activities (Ukessays, 2013).
Inbound Logistics- This process is changing because after acquiring DJJ, the company could get ways of improving the systems available currently. The implementation of the right on time systems may lead to elimination of the cost of storing scrap metal. This is able to make the inbound logistics for Nucor Company be superior in competition.
Outbound Logistics- After the processing process is done on the goods, they are taken to buyers with no freight equalizing. The buyers who are closer to the plant are able to obtain the goods via just in time system. The company and the buyers have an electronic link which creates a connection that benefits the system.
Operations- The sector of operations in chain of value is very important in the processing industry. The company tries to improve the existing techniques with the aim of increasing the efficiency of the company. The organization capacity is far from other leading companies. However, it has really advanced in technology hence is being sought after by many buyers (Ukessays, 2013).
Support Activities
Firm Infrastructure- Since the beginning of the company the activities have been taking place within the division. This is as a result of the improved growth of the company. Nowadays, the activities have been centralized.
Procurement- Initially, it was very difficult and costly to procure raw materials. Outside United States, the clients used to pay more for the scrap steel. This was reviewed after DJJ was purchased.
Technology Development- the Company has always found the need to improve the current processes. It has continued to improve the merger and acquisitions with the aim of expanding the business.
Nucor value to customers
The company has been able to invest heavily on their customers. This is because they need them to buy their products so as to make more profits (Nucor, 2013). The company has been able to promote good customer services. This is done by transporting their products to their customers as an after sale service.
They are also able to use modern equipment. They have a well developed mini mill technology which has increased the utilization capacity and produces goods of high quality (Nucor, 2013). The advanced technology keeps the competitors away as they have to develop the technologies first before competing. The company has constantly been innovating its products. It is believed to be the first company to use electric arc furnace for melting the scrap metals. This makes the customers go for its products without hesitations.
Decision making is local instead of the headquarter level. The company does not believe in hierarchy levels. They promote equality for all (Nucor, 2013). This makes the team mates to be close to managers hence improving customer service. The managers however have authority in every plant. The management believes in pain sharing so that if something goes wrong, the manager at that level is in a position to solve the situation before it worsens.
In conclusion, the company aims at taking good care of the customer and therefore takes care for everyone. This makes the Nucor Company be the most sought after in the world.
References
Nucor. (2013) Culture. Nucor.com. Retrieved on 25th Sept 2013 from http://www.nucor.com/story/chapter4/Uke essays.com. (2013). Financial study of the Nucor Company. Uk essays.com. Retrieved on 25th Sept 2013 from http://www.ukessays.com/essays/economics/financial-study-of-the-nucor-corporation-economics-essay.php
