Mitsubishi Motors Case Study

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CASE ANALYSIS: MITSUBISHI CORPORATION

I. Time Context

Present

II. Viewpoint

Viewpoint of the chief executive Mr. Minoru Makihara

III. Central Problem

Pint-size profit margin of only 12%.

IV. Statement of Objective

Must:

Increase profit

Want:

Persuade subordinates who have been too comfortable and aimed to be global.

V. Areas of Consideration

INTERNAL ENVIRONMENT

Strength
1. Diversified industry.
2. Machineries, technology and facilities.
3. Brand reputation.

Weaknesses
1. Small profit margin.
2. Employee’s lack of motivation on going global.

EXTERNAL ENVIRONMENT

Opportunities
1. Maximizing technology and facilities worldwide

Threats
1. Threat of competition.

VI. Alternative Courses of Action
1. Create sense of crisis by firing people.

Advantages:
a. It may motivate the subordinates to perform better.

Disadvantages:
a. Culturally un-acceptable.
b. It may cause labor unrest.

2. Invest in far-away businesses that have no ties in Japan.

Advantages:
a. It may push employees to perform better since they’ll be catering to different market/client. b. If successful, may inspire the subordinates and aim global.

Disadvantages:
a. Investment is not a guaranteed to be profitable.
b. Effects on employees may not be desirable.

3. Create new business - Multimedia.

Advantages:
a. New / Fresh industry for the company – a breath of fresh air. b. May excite subordinates resulting to motivation.
c. Upcoming industry trend globally.

Disadvantages:
a. No established expertise on the said industry.
b. Cost of investment.

VII. Recommendation

The best action to take is the ACA 3.

VIII. Action Plan

Person Responsible| Activities| Time Frame|
Mr. Makihara| Research on venturing to Multimedia Business (cost, expected profit, market shares)| *30 Days| Mr. Makihara & Board...
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