Nissan Swot Analysis

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  • Topic: Nissan Motors, Carlos Ghosn, Renault
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MODULE TITLE: UNDERSTANDING MANAGMENT

Semester: Fall 2008/9

Nissan Motor Company
Learning Objective Number 2
SWOT Analysis

1. Introduction………………………………………………..3,4 2. SWOT………………………………………………………4,5 3. Nissan SWOT analysis………………………………...5,6,7,8 4. Conclusion……………………………………………………8 5. Reference……………………………………………………..9 Introduction

Nissan Motor Company Ltd is a Japanese car company constructed in 1930s with its new company’s president Yoshisuke Aikawa. The company flourished in its primary years and even after the World War II was highly successful. Its former car brand name was "Datsun" and was and still is one of the largest car manufacturers having major markets in Europe, North America, Africa, New Zealand and China. The company's main offices are located in the Ginza area of Chūō, Tokyo. The major production sites are situated in Japan with additional manufacturing sites in United States, Mexico, Spain and the United Kingdom. With its associated brands, designs, produces and sells more than 3.7 million passenger cars and commercial vehicles in more than 190 countries. The company is also engaged in the manufacturing and sale of passenger automobiles, as well as supplying automobile parts. Above all, it made the company to be a part of the top three car manufacturers in Japan and the top five in the world. Keeping in mind of the company’s products, it also implements interests in much heavier vehicles and equipment like vans, trucks, buses, aerospace, industrial and marine machinery or equipment. During the year of 1999, Nissan Motor Company was deeply in debt and lost marketing shares in both Japan and the US which were the main markets for selling Nissan brands. This also led to a little product development. Due to their severe financial difficulties they had to conglomerate with Renault SA and making it subsidiary towards the larger famous French motor company. This alliance was primary implemented to achieve profit and to balance growth for the two partners through the association of a bi-national group by also applying two different business worlds (Europe and Asia) together.

The new CEO of Nissan was then appointed Carlos Ghosn who is born in Brazil of Lebanese parents and raised in France. He also speaks five languages fluently and has a rich business management background of transforming ailing companies throughout the world. Having a man with a rich international background has helped Nissan to improve and become better. In 2004, the company reported that sales have risen by 8% over the previous year, and by that profits have also risen. It had the highest operating profit of any other world’s car companies and by that it was no longer in debt. The magic of it all was very hard especially for the CEO. Since the leader was a westerner trying to implement ideas into the Japanese closed, tradition -bound business environment. He also implemented a cost-cutting which was highly controversial in Japan since it involved closing surplus plants and leading to 23000 employees redundant. He also reorganized the company and applied a promotion system replacing it from seniority based to performance. The approach he used to make this company successful was that he intensified the importance of transparency in all business dealings, extensive usage of cross-functional teams, breaking the cultural barriers between employees and sparking innovation through empowerment.

S.W.O.T
Every organization no matter if its business company or a none profit organization has and uses its environmental opportunities to spread its word of representation. These environmental opportunities are therefore only potential unless it can smartly exploit the resources given by the referred opportunities and hence take advantage of them until it’s agreeable to follow the certain opportunity. For this reason it is understandable that every environmental opportunity has to be carefully evaluated in relation to the...
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