Case Organization NISSAN Motors Japan
NISSAN Corporation is an organization which takes initiative to develop the society as well as the earth, pleasant and reliable, through all business activities. They conduct their business with honesty and reliability. They act in accordance with all the mandatory national as well as international laws and policies. The basic corporate vision of this organization is to respect humans irrespective of different languages and location. Their main vision of this Corporation is to be the high-quality corporate citizen of this earth. They give respect to the different culture as well as customs.
The main business of this company is the automobile manufacturing (Certo, 2003). The main goal of this company is to put emphasis on quality assurance. NISSAN not only values its customers, but the people who belong to local community, its employees as well as stakeholders. This is the reason that today, NISSAN has its base across countries amongst the world and it is achieving consistent globalization and liberalization. This company also takes an active part in reducing global warming, improving environment, eco-friendly automobiles plantation etc to save earth.
2. What is its purpose? The mission of this company is to provide high quality products as well as services to catch
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The key area which NISSAN believes that need to be improved are production engineering, next-generation technology, along with globalization of every aspects of operation starting from development, production and procurement to sales as well as services. 3. Who are the stakeholders and how does the organization balance their interests? Stakeholders are those people, group or an organization that have a direct or deviating stake in the organization. They can effect the organization by their power of decision and on the same side they can also be affected by the organizations objectives, policies as well as actions.
Primary stakeholders in an organization like NISSAN include creditors, top management like CEO and directors, customers, employees, government, owners, unions, suppliers and the community from where the organization is drawing its resources. One of the important stakeholders is the employee. They are the person in the service of NISSAN Motors. They came under the contract of employment which can be express or obscure. The employees of NISSAN Motors have the authority or right to control the task which is to be performed, that is the automotive manufacturing.
Second important stakeholders are the shareholders of the NISSAN Company. They are an individual or company which legally possesses some share of stocks in a company, preferably a joint stock corporation. They can perform various types of job depending on the type and amount of stock they own. They can vote as well as give their decision on different affairs like board of directors’ elections. Furthermore they can also recommend shareholder resolutions and also plays a vital role in lifting the capital for organizations. A creditor also plays a vital role.
They can be the person, business or government who has claim over the services provided by NISSAN Motors (LLC, 2010). They are basically an individual or an institution who gives money to the organization in agreement to the condition that after a fixed point of time they will receive their money back with an interest. They purchase debt securities or equity for financial profit in substitute for providing financial support to that expanding company. 4. Describe its domestic and global strategies. A multinational corporation, NISSAN Motor Corporation has it’s headquarter in Japan.
In the current market scenario, NISSAN is has high rank, in the field of automobile manufacturing. Its main attraction is providing reliable cars to its customers. This organization has celebrated multiple years of success in the field of making and selling cars. If we go by the records, in the year 2007, this giant automobile company has sold around 8. 52m vehicles and now it has rose to $14 billion. If we go by the geographical location, it is the most popular automobile company in Bangladesh and around 70% market share in India. The target markets for this company are all category of people.
NISSAN Motors spends a lot of money on various departments like R&D, production, design, sales as well as marketing operations. This company follows a policy of waste elimination. 5. What are the main changes in the business environment that could affect this organization? 1. Identification of key macroeconomics factors are needed Macro Environment forces are the societal forces that effects different environment like demographic, economic, natural, technological, political and cultural forces. These forces represent the limitations within which every organization has to function.
The different components of this macroeconomic environment are following: political, economic, demographics, cultural and technological factors (Deepashree, 2006). a. Political Factors- Government is the important guardian of the general environment. No one can work against the laws and regulations made by the Government. Its inconsistent policies and frequently changing duty tariff can be the main cause of unstable market conduction and like many other motor companies, NISSAN has also been affected by Governments current changing regulations. b. Economic Forces- this force is also dominated by the government.
At the federal level, governments economic norms have again influence the companies to continue and develop. Inflation is the best example of the economic factor which has affected the whole nation. c. Demographics Forces-building trust and faith is the most important task for any organization. NISSAN is a status symbol because of its reliability. d. Cultural Factors-NISSAN give respect to different culture as well as customs and contributes to the development of the communities. It respects different law as well. e. Technological Forces. NISSAN always supports technology.
It believes in innovation and provides high class cars. 2. Testing should be done to analyze the impact of changes and which change is going in favour and which not so that the negative changes should be removed urgently. 3. Third step is to assess differential consequences among competitors 4. Forth step is generates key issues after analyzing the competitors to improve the organization. 5. Last but not the least step is to apply those issues to formulate strategy. 6. How competitive is the organization’s market environment? According to Porter, NISSAN’s profits making strategy depends on the following five factors:
1. The likelihood of new entry- these factors explain the role of competitors. It’s very difficult for newcomers to jump into the market and it’s very expected that the existing ones can have chance to make moderately high profits. 2. The power of buyers- second factor is relation between the buyer’s power and the profits. More the power of buyer will be, more will be the chance of price reduction and hence the profit will also get reduced. If we study the market for NISSAN, buyers are not very powerful as not many people are financial sound to buy cars and hence the market is in favor.
3. The power of suppliers- again shows the relation between suppliers and profits. If the supplier will be stronger, it will reduce the amount of profit as suppliers are aware of the terms and conditions upon which the organization is running and hence the change the flow of market. 4. The degree of rivalry- there should be healthy co petition between the organizations. If the competition increases, it can reduce the flow of profit making. NISSAN follows healthy competition with its competitors like Ford. 5. The substitute threat- this is also one of the important threat.
It says that a buyer can not always stick to same product. Whenever he will get better one, he will switch to that one. Hence, maintaining the quality and reliability is very essential and NISSAN is leading the world, following the same principle. 7. What are the key success factors in its market? In today’s world of automobile manufacturing, NISSAN is a respected brand name. The principles which were used at each and every step of this company had undoubtedly led to that standard of quality where no one has reached still now. These are the basic principles which have been implemented by the Corporation to achieve the success.
These principles are also helping other automobile manufacturing in the States of America as well. They are total in 14 are compared with few of the policies which other automakers have applied. These ideologies given below are followed by NISSAN: 1. Management decisions should always be based on long term philosophies. Short term goals can help you making decision but they can not be the foundation. 2. Process flow must be in continuity in order to bring the problems down. 3. To avoid over production, pull systems should be used. 4. Arrange the workload properly, to avoid frustration among employees 5.
To ensure quality at the beginning only, a process of identifying, discontinuing and fixing problems is required. 6. Uniform tasks are necessary to build the base for continuous enhancement as well as employee satisfaction. 7. Visual check is required everywhere to locate the root cause of any problem. 8. Reliable, carefully tested technology should be used to offer better quality. 9. Search for the leaders who know the job very well so that they can maintain the philosophy and educate it to other employees as well. 10. Develop outstanding people and their group so that they can preserve the organization’s philosophy.
11. Love and respect for each other should be there which can help the organization for betterment. 12. Inspection should be done by you just to avoid any miscommunication and which will definitely lead to improvement. 13. Decision making is the most important task so its better take time to consider each and every options, however implementation should be fast. 14. Learning at any time is not bad. Hence, make your organization a learning one through persistent self assessment and continuous enhancement. 8. How can the organization reduce the external threats to its position?
Which weaknesses does it need to improve? What opportunities match its strengths? Strengths of NISSAN Motors 1. First strength of this company is the globalization which brings this organization capturing a strong position in countries among the whole world. 2. Secondly, its improved financial strength and sales growth. 3. NISSAN is a brand name and this strong image is based on the following feature like quality, customized range of product and eco friendly nature. 4. It has good position with respect to Industry leader in manufacturing and production (Lewis, 2006).
Weakness 1. One of the most important weaknesses is its foreign location because of which it is mainly known as Japanese car manufacturer. 2. Its production capacity is the second weaknesses. It mainly manufactures its cars in US as well as Japan however most of its competitors are strategically worldwide located to acquire benefit of universal efficiency. Opportunities 1. First opportunity for this organization is its innovative approach. Based on its advanced technologies and R&D activity, it is able to beat competition. 2.
Second opportunity to earn profit is a need to expand its root into new segments of the market. 3. It needs to manufacture more cars which should be fuel efficient, have greater performance and less harmful to the nature. 4. Also, manufacturing of new vehicles is required which should react to social and institutional desires and needs. Threats 1. First common threat is the increased competition. 2. Inconsistency in the exchange rates affects profits in a broader way. 3. Downturn in economy like recession, affects a lot. 4. Demographical change also affects a lot. 5.
Changing usages as well as priority as per needs and requirement also possess a greater threat to the company like family cars etc. 6. Inflation of oil prices and the maintenance cost can make people deciding not to use cars. 9. Define and develop a new organizational strategy that enables the company to achieve a distinctive competitive edge in the global market. NISSAN Motors Corporation is an international business organization. Examining different fields like, distribution channels, supply chain, marketing and production aspect, clearly illustrates that it’s executing its global agenda very well.
NISSAN has implemented two different principles which later became world’s famous global strategy. They are Kaizen which means continuous improvement and the second one is NISSAN Production System. Kaizen says that continuous improvement is needed in every area, so that sudden failure should not hamper the production process. on the other hand, NISSAN production system provide links between different critical aspects of manufacturing like supply chain, inventory management, distribution channels, production capabilities and planning methods.
These two have been the most unbeaten strategies which have led NISSAN to dominate the automotive market. 10. Identify and implement relevant measurements for the proposed strategy. One of the major suggestions for NISSAN motors will be such that they must utilize their different core competencies to lead market. First core competency is the management of brand. They have a brand name so they should continue provide good quality, low emission inbuilt cars to attract customers. Next is the supply chain management. Third one is its product development technology.
If a sustainable development is needed to be achieved, integration between planning and measurement systems is needed (Spitzer, 2007). NISSAN should follow the updated measurement norms and them while manufacturing products. Its vehicles should not pollute the environment in a large scale and it should continue developing hybrid-oil-gas vehicles. Reference: Certo Samuel C. , Modern management: adding digital focus, 9, illustrated 2003, Prentice Hall, ISBN: 0130670898, 9780130670892 Deepashree, Microeconomics And Macroeconomic Environment For Ca Pe I, 2006, Tata McGraw-Hill, ISBN: 007063565X, 9780070635654
LLC, Books, Nissan: Nissan Motors, Datsun, Nissan Motor Manufacturing Ltd, Yokohama F. Marinos, Nismo, Attesa, Nissan Electric Vehicle, 2010, General Books, ISBN: 1156548594, 9781156548592 Lewis Pamela S. , Goodman Stephen H. , Fandt Patricia M. , Michlitsch Joseph F. , Management: challenges for tomorrow’s leaders, 5th, illustrated, 2006, Cengage Learning, ISBN: 0324302592, 9780324302592 Spitzer Dean R. , Transforming performance measurement: rethinking the way we measure and drive organizational success, illustrated, 2007, AMACOM Div American Mgmt Assn, ISBN: 0814408915, 9780814408919