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Nature of Strategic Decisions:

Thoughts from Nucor

Prof. M. R. Dixit

IIM Ahmedabad

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Key Phases in Nucor

Nucor ! I "igh as#irations and

negati$e resu%ts

Nucor ! II Random &a%'s in Nuc%ear

(usiness ) *ea' resu%ts

Nucor ! III Inefficient +ong%omerate

Nucor ! I, -ocused industry eader

Nucor ) , oo'ing for a brea'through

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/mergence of Industry

eadershi# ate /ntrant

Industry in its maturity stage

"arnessing o##ortunities for organi0ationa%

inno$ations

+ost based %eadershi#

)infrastructure

)outsourcing

)%earning and efficiency orientation

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Key &ords

/x#ectations

/xterna% /n$ironment

Trade offs Assum#tions

Mu%ti#%e conse1uences: +ause 2 /ffect

in'ages among mu%ti#%e conse1uences ogica%

Integrated

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Key &ords

Induced reactions

/motions

Time hori0on

+om#etence

earning Ris'!Return

*hat if

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Nature of Strategic Decisions

arge +ommitment of Resources

+ommitment for %onger time hori0ons

+om#any &ide inf%uence Inter!functiona% in$o%$ement

Irre$ocab%e or re$ocab%e at high cost

In$o%$e ris's

Decisions under #artia% information and

uncertainty

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A##roach to Prob%ems of Nucor

Define your decision 1uestions c%ear%y

3enerate o#tions

Define criteria and constraints

/$a%uation

+hoice Assum#tions and contingencies

Dra& from the %iterature

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+riteria for e$a%uating strategic

o#tions +onsistency &ith com#etencies you ha$e or%i'e%y to ac1uire

+onsistency &ith resources you ha$e or%i'e%y to ha$e

+onsistency &ith o##ortunities and

constraints

Nature of reta%iation and Acce#tabi%ity of ris'

+onsistency &ith $a%ues

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+om#etencies

*hat are the com#etencies needed to

identify4 formu%ate and im#%ement strategic

decisions4 and guide the future directions ofNucor5

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eadershi# +om#etencies

,isioning

Decision ma'ing &ith #artia% information

Assum#tion trac'ing

Inno$ating and creating

Sensing &ea' signa%s and %in'ing Im#%ementation

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Im#%ementation

+ommunicating

Moti$ating

Mobi%i0ing

6rgani0ing and

+ontro%

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A%% the best