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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