Analytical Report on Nissan Company

Document Type:Case Study

Subject Area:Management

Document 1

Most of Japans automotive industry needs were supplied from United States and the Europe, two companies named General Motors and Ford Manufacturers. Nissans History, Philosophy and Market Share Nissan Company was originally known as Kabushiki Kaisha before the 1930s. It was named after its holding company – Nippon Sangyo which was a property of Tabata Aikawa established in 1928. Nissan only controlled foundries and the business of auto parts until 1933 when it made its first production of Datsun. As a trend in Japans Automobile Industry, Nissan production was limited to the production of military sponsored automotives up to late after World War Two. Nissan went ahead to incorporate the services of executives from various nationalities with rich experience in overseas operations. Nissan maintained that the regional and later global outlook would only be achieved when all the unique variables and opportunities that existed in each market were addressed first hand by these executives (Schmidt & Simchi-Levi, 2013).

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• To simplify its product offerings and operations, Nissan settled for a lean product line that incorporated the concept of build-to-stock for section of its product line and build to order concept for the rest. This Nissan back up by saying it helps in cases of crises and breakdown in communication that greatly affects the JIT model adopted by its competitors. This newly adopted supply chain was a responsibility of Supply Team Management Team that embedded in it a philosophy of vigilance and excellent responsiveness. 4% market share (Schmitt, 2017) in the World, beaten by Toyota, Honda, Ford and Volkswagen (Minchin 2016). Major impacts of the event on Nissan Company, industry in which Nissan operates and On the economy The event of the 2011 was largely catastrophic for the automotive industry ranging from nuclear disruptions that affected the electricity generation system and destroyed reactors.

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The result was a forced evacuation of populations, close of major highways, destruction of manufacturing plants and moderated aftershocks further affected precision manufacturing (Canis, 2011). The HIS Global Insight, 2011, predicted that over 4 million vehicle units will be lost in sales, 90% being from Japanese car makers. This represented over 24. Nissan Company was readily prepared for this expectation and had already taken steps to mitigate on the effects of these losses. Exhibit 1 in the Case Study in regard to supply chain Ration of Production in Japan to Sales in Japan for Selected OEMs. Toyota Production to Sales Ratio is 80% Toyota is most highly dependent in Japanese market with a sales ratio of 80%. Japan sells 80% of its OEMs in its local market. This implies that Toyota supply chain for sale of OEMs is highly dependent on Japan market.

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It is evident that Japans recovery did not take long as Japan already was enjoying a 3. 4% growth rate by 2014 (Schmitt, 2016). Aspects of The Nissan Response That Was Particularly Beneficial In Regard To: a. Supply Chain Strategy Nissan supply chain philosophy is one of extreme vigilance and responsiveness (Schmidt & Simchi-Levi, 2013). This supply chain places responsibility on supply chain management to be able to predict catastrophic events and make decisive steps to tackle such. Adoption of a multi- national executive face of management improved Nissans customer appeal. Further, it boosted how it reacted to various cultural specifics and how it incorporated these various cultural views into its final product. The result is that Nissan today enjoys a global outlook. The strategy may have been costly, but it greatly was essential for Nissans expansion plan.

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Effects Of 2012 Operational Changes to Future Exposure of Nissan The move to reduce by 50% components that go into North America from Japan by end of 2013 would greatly reduce North Americas dependence on the operations environment in Japan that could be hit by political, regulatory occurrence or even natural calamities like the 2011 earthquake (Canis, 2011). S from 70% to 90% to increase its grip in foreign markets. References Canis, B. The motor vehicle supply chain: Effects of the Japanese earthquake and tsunami. Congressional Research Service.  May, 23, 7-13.  Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers. Minchin, T. J. When Kia Came to Georgia: Southern Transplants and the Growth of America's" Other" Automakers. ? Don’t be embarrassed, few get it right.

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