Analytical Report on Case Study Nissan

The Nissan company made its first exports the same year to Australia. As from 1938 up to the period of World War II, the company specialized in the production of military trucks and other vehicles for the same purpose. However, some allied forces took over the control of the company until 1945 when Nissan became in control again. In 1960 the company became the first Japanese company to win Deming Prize for demonstrating its engineering excellence. Some of the models produced between 1959 and 1966 which include Bluebird, Cedric and Sunny helped the company to soar it sells to highest levels even up to abroad countries (Oskin, n. 84% rising to 5. 88 percent in mid-2005, however, the share started to drop until it reached 4. 66 percent in 2009. The following years saw the market share rise up to 6.

07 percent in 2012. The company had put in place measures to protect human life, recovery business strategy, supporting neighboring businesses and community and the government in case it required their assistance. Nissan designated a Global Disaster Headquarters to do all the rescue operations after the disaster had taken place. The essence of Nissan doing all these preparation was to ensure there was continuity in operation of business and lives after the incident (William, 3). After the earthquake, all the plans the company had put in place took action. The team responsible gathered to assess the impact of the disaster. Exhibit 1 The Japanese original equipment manufacturers (OEMs) which consist of the three major Japanese companies faced a rough time during the disaster which happened.

Most of the equipment from the Japanese companies are exported to foreign markets forming a bigger percentage of the sales made annually. The decline due to reduced production as a result of the earthquake had a negative impact on the already a well-established market abroad. The dependence on locally made components was so high with a percentage of 80. The only outsourced components covered 20 percent. It is also an indication of embracing diversity as seen in the Nissan company (William, 3). The supply chain for Nissan consisted of the managerial team from various nationalities with extensive experience in very many matters concerning business growth. This factor was a unique one among the companies in Japan as it made Nissan to stand out. Having many representatives from various countries is a strategy that Nissan employed to have strength in managing large global operations.

Under the same strategy, Nissan maintained a simplified product line in comparison with its competitor. Benefits from proper supply chain strategy The strategies set aside to manage the supply chain, have a greater impact on ensuring efficiency in a company is maintained. The direct benefits include being able to predict demand hence giving the company more time to produce products that will be in demand by customers. Nissan employed this technique and it bore fruits as they had projected it also helped the company to adjust to the changing economies that resulted from the earthquake (Scott, 115). Because the management had proper strategies in place, the cost of production went down because they could now concentrate on products that had high demand or that could be supplied easily to the market.

When there is a good strategy in production and supply chain, the products which take longer to be sold are given less focus with the ones which sell faster being the ones produced more, hence there will be fewer losses due to storage of such products for a longer period of time (William, 4). Benefits of Supply Allocation Supply allocation has many benefits one of them being enabling the company manage resources well. Nissan discovered that by having some features absent in low-end vehicles while having these features in high-end vehicles could make management of resources efficient. Is succeeded in increasing the profit margins due to this move. When more resources are set aside for products that sell fast, the customers will not be disappointed due to lack of these products ().

The concentration of resources under one product is essential in cutting down losses. The operation of a company lies on the speed of recovery. The company needs to be steady so as to cover the losses or possible losses that might happen due to a disaster. In 2012 the changes announced saw the company avoid over-relying on their parts even in countries outside Japan. The move also saw the increase of production from70 percent to 90 percent up to 2015. Breaking the overdependence on their parts especially the ones manufactured in Japan was a good moved aimed at increasing production while reducing the time taken to import these parts yet they can be manufactured in the same country. Oskin, Becky.  Japan Earthquake & Tsunami of 2011: Facts and Information.