SYNOPSISFor much of its century-long history, Nucor Corporation and its predecessors have exhibited turbulent performance. Several attempts at strategic and leadership realignment proved unsuccessful, and by 1965 the company faced insolvency. Since that time, however, the company has focused on its steel operations to become the largest steel producer in the United States, with $4.3 billion in annual net sales. This case examines Nucor's development from an unprofitable conglomerate to a highly efficient enterprise. A specific focus on the evolution of the organization's underlying activity system lays the foundation for a systematic analysis of why some companies succeed while others fail. in bankruptcy. Domestic and foreign competitors, management issues, environmental issues, political agendas, and technology had much to do with the demise and even more with the success of the steel industry. The issues this Nucor Corporation case focused on were: • How to turn a failing company into a winning company? • How to stay competitive and pursue growth in a struggling steel industry? • How to become a successful leader? ANALYSIS Nucor is the largest steel producer in the United States. It remains a profitable company despite operating in one of the most cyclical sectors of the economy. Nucor enjoys this success for several reasons: employee relations, quality, productivity and the aggressive pursuit of innovation and technical excellence. Nucor's strategy is that of a low-cost supplier, it knows it is selling a product and understands that its competitive advantage in the industry is in lowering prices through innovation and productivity. The company mainly operates in two business areas, steel mills and steel products. Nucor managed to turn around profits in 1966 by concentrating its business where it produced profits. Careful investments in new technologies have allowed it to gain market share in other sectors while remaining one step ahead of the competition. Nucor recognized the importance of keeping costs down. They identified supply costs as an area to target to increase profits. They established their interest in steel mills in order to reduce the portion of the costs of supplying their products through backward integration. According to management, practices emphasize autonomy and focus on results. This is visible throughout the company. Incentive programs are disbursed accordingly and even top management is not afforded normal corporate luxuries.