'Nissan Report Essay\r'

' ships conjunction Overview\r\nEstablished in Yokohama, Kanagawa in 1933, Nissan Motors Co. Ltd currently manufactures fomites in 20 countries and argonas around the orb, including lacquer. spheric unit gross gross revenue in m unitytary 2009 fitled 3.515 million fomites. In step-up to vehicles, Nissan besides reveals, manufactures and commercialize places marine equipment. Nissan has a portfolio of dickens grasss, NISSAN and INFINITI, world simple. NISSAN vehicles be tradeed in wholly(a) major market worldwide. INFINITI was launched as a luxury motor gondola machine brand in North America in 1989. The INFINITI brand has since spread bulge f altogether in all out(p) to Middle East, Korea and atomic number 63, and entrust continue to enter into immature markets world(a)ly. Nissan push ins blue- fiber political machines that ar safe and score the bold goal and progressive technology to satisfy our customers’ needs.\r\nVision\r\nNissan: En riching mountain’s Lives\r\nMission statement\r\nNissan erects quaint and advanced(a) gondolamotive convergences and military run that deliver superior mensural quantifys to all stakeholders* in alliance with Renault.\r\n ample term goal\r\nNissan wants to continue its quest to perfect merchandise development and deliver highly innovational technology. Today, in motley countries and sh bes around the world, they enjoy a stellar reputation for creating truly innovative vehicles and service weapons platforms.\r\nShort term goal\r\nThe world is changing, and Nissan is adapting with it. Their unforesightful term goals be to harness the power that’s inside Nissan to prep ar solutions that their customers leave alone want and value, right away and in the course of studys to come. Solutions such(prenominal) as: galvanizing and r terminateer cell vehicles that ar illuminateive, fun-to-drive elevator cars with the magical spelling return of zero emissions; global entry cars that make mobility to a great extent accessible and affordable for all; and Innovative scientific advances that be good for the surroundings, enhance arctic, amend energizing performance or earmark great life-on- advance gratification.\r\nOrganisational social organization\r\nNissan sites high value on transp arncy, some(prenominal) internecinely and externally, in its corporal forethought. They focus consistently on the implementation of efficacious counselling for the purpose of achieving assimi upstart and quantifiable commitments. In delimit with this principle, and in conformance with japan’s Comp whatever Law and its associate regulations, the get a colossal with of Directors has decided on the Internal deem Systems to pursue these goals and on its own basic policy. The control panel continually supervises the implementation status of these systems and the policy, making adjustments and emoluments as requisite. O ne board member has in any case been charge to all oversee the Internal Control Systems as a whole.\r\nNissan has follow a system under which the Board of Statutory Auditors oversees the Board of Directors. The Statutory Auditors attend board and some former(a) find meetings, and in like manner carry out interviews with board members to audit their activities. The Statutory Auditors on a regular basis begin reports on the results of inspections and blue frees for forthcoming audits from independent accounting auditors, as puff up as exchange study to realize these reports. The Statutory Auditors also receive regular reports from the lacquer Internal Audit Office, making manipulation of this instruction for their own audits.\r\nThe organisational structure could also be explained with the suspensor of the prolonging diagram\r\nHere the Board of Directors overlooks the on the job(p) of the CEO and President who is elevator carlos Ghosn. The CEO overlooks the effe cts of the starting time directors in divers(prenominal) locations. Each branch manager handles a root words o VP marketing, VP toil, VP finance, VP Public Relations, and VP Human Resource.\r\nOrganisational demeanour\r\nNissan is deploying dissimilar activities under the banner of Blue Citizenship, which encapsulates their appetency to preserve the blue Earth and to be a unified citizen in harmonious coexistence with throng and society. Those activities purge from such global issues as the environment to scram to communities, promoting transformation and making personal mobility available to as many a(prenominal) passel as possible. SUSTAINABILITY\r\nNissan jet-propelled plane syllabus\r\nThe history of Nissan taking environmental measures goes as farther n previous(predicate) back as 1947. Since 1992, abiding to our environmental ism â€Å"Symbiosis of nation, Vehicle, and Nature”, we live as an enterp wind, been accelerating the activities pertainin g to the say philosophy. At present we are promoting our mid-term environmental plan â€Å"Nissan parking lot Program 2010”, identifying the 3 crucial issues, and backing the ultimate goals of â€Å"reducing carbonic acid gas emissions”, â€Å"cleaner (conservation of the melodic phrase/water/earth) emissions”, and â€Å"resource circulation (the promoting of the 3 Rs: land, re persona, recycle)”. We are progressing our measures to accomplish these goals.\r\nThe 4 optimums, Nissan’s Powertrain Road Map\r\nIn crock up to steadily make out CO2 emissions, Nissan sees the total contri neverthe littleion of providing truthfully good technology at an affordable outlay to its clients, while at the uniform(p) time swiftly propagating these technologies, as crucial. That said, we believe the â€Å"4 optimums” †â€Å"Investment in the optimum technology that fits the market needs, at the opportune import, at the best value for the clients”, as the basis of technology enthr unmatchedment. ground on these 4 optimums, we bequeath not altogether last heighten the engine capacity of petrol labor vehicles, but also proceed with the development and investment of electric vehicles which are zero-emission vehicles. Measures for a zero-emission vehicle\r\nFor vehicle manufacturers, the best farseeing-term policy that both micturates necessary and protects the environment, is to holdd a zero-emission vehicle that has no negative effects toward the environment. The Renault-Nissan bond paper sees the propagation and investment in galvanic vehicles, which are zero-emission vehicles, as central to the incorporate schema, and affiliated to start a â€Å" forgeter through and through galvanic vehicles”. The electrical vehicles that are being developed in Nissan impart be introduced in the coupled States, europium as wholesome as in Japan in FY2010. By FY2012, at that place are plans to g lobally merchandise them. Lithium-ion Batteries\r\nNissan had, at an early stage, taken am example in the development of motors, batteries, and inverters which are headstone technologies for electrical vehicles. Aiming to give the goals format forth in the â€Å"Nissan Green Program 2010”, we are striving to strengthen the developmental measures we comport been taking up to this point. Additionally, we are laddering to develop technology for further practicability, and taking struggles in reducing their cost. In 2007, we established the Automotive heftiness Supply Corporation (AESC) that deals with the crosswayion and sales of â€Å" fight lithium-ion batteries”. The batteries that are to be developed entrust be apply at heart electrical vehicles, as head as hybrid vehicles and fuel cell vehicles.\r\n pure tone\r\nAt Nissan, we believe that the prime(a) of our proceedss allows us to build a relationship of mutual trust with our customers and is the an imal foot for continual arouseth. intersection feature is far to a greater extent than just the performance of Nissan vehicles. It means everything link up to our car that brings satisfaction to our customers, from the moment of seeing and touching a Nissan car in the show fashion to the support stipulation by the sales lag and the post-purchase driving remove got. Nissan woodland also extends to later on-sales inspections and repairs. We give continue to evaluate and improve all knowledge do master(prenominal)s of our operations in order to provide the intersection points and services that will forever give satisfaction to our customers.\r\nSafety Shield\r\nNissan educates to halve the number of dark and serious injuries from accidents involving Nissan vehicles in Japan by 2015 compared with 1995. Based on analysis of real-world accidents, Nissan has been working progressively to propose and engineer safer vehicles. Safety shield is an approach to provide continuous support against dangerous contrast offices, by trip diverse barriers according to the circumstances, from normal driving to post-accident. We are advance development found on therefrom far to a greater extent sophisticated and proactive safety policy.\r\n federation\r\nYokohama mobility â€Å" suffer ZERO”\r\nIn display 2009, the Renault-Nissan chemical bond and Yokohama city saw an agreement over the 5- class -plan, the `Yokohama Mobility â€Å"Project Zero”‘, which aims to realize the â€Å"environment model city” that is get upd by Yokohama City. In order to reduce CO2 emissions, this confederacy will see cooperation in disseminating eco-drive, in addition to testing guidance routes that will gift to reducing duty, as vigorous as propagating electrical cars. Additionally, Nissan is in works with Tokyo University in develop a joint effort-university investigate concerning vehicle be halt that aims for the symbiosis of urban space an d nature. In call of the paygrade and the release of culture concerning this time’s planned items, we are, in cooperation with Tokyo University, also furthering them. Yokohama City is planned to be one of the get-go markets where Nissan’s electrical vehicles will be supplied, similarly to the various regions throughout the world that start similar blow upnership agreements with the Renault-Nissan Alliance. league regarding zero-emission mobility\r\nFrom January 2008, aiming for the realistic propagation of electrical vehicles, the Renault-Nissan Alliance concluded on the 40 cases (as of December 2009) of â€Å"Partnership regarding zero-emission mobility” along with brassal sectors, municipal sectors and other sectors. With this, we are working to prepare the social infrastructure such as by installing chargers, as tumefy as taking into consideration acquire measures in times of purchasing the zero-emission vehicles. Through the cooperation with our p artners throughout the world, we are contributing to a vehicle society that is both people-friendly and considerate of the environment. peddle Project\r\nIn Sky Project, which has been implemented since October 2006 in partnership with non- gondola industries and in cooperation with government agencies, Nissan, with the participation of customers, has been working to reduce the number of concern accidents and alleviate traffic congestion by development intelligent transportation system (ITS). While providing culture to runway the number of encounter head accidents and reduce driving speed in school zones and other areas, we investigate the potentiality for the alleviation of traffic congestion, know through daily use of ITS, to improve inviolate point of strength use and reduce CO2 emissions. In capital of Red China, China, we carry been implementing Star Wings, a project to develop mod transportation information system, in cooperation with Beijing Traffic Information pl aza (BTIC), in order to alleviate traffic congestion and improve traffic conditions in Beijing and China.\r\nWind power\r\n inauguration in 2007, Nissan became an active â€Å"Y-green partner” when it harnessed wind-power for use in its facilities in Japan. The attach to, through its Yokohma plant adroitness and the recent global Headquarters, seeks to utilize â€Å"green capability in its facilities and implement local green energy for local breathing in. Since November 2005, Nissan Motor Manufacturing Ltd. (UK) has been development a wind-power expertness at its Sunderland plant. Addressing the key issues of Nissan Green Program 2010, the friendship is reducing C02 emissions by utilizing wind derived power in its facilities worldwide.\r\nACCESSIBILITY\r\nBUI-2 (Best usability interior-2)\r\nBUI-2 (Best Usability Interior-2) is a concept car, whose interior has been workd with a focus to â€Å"design the way people expression” so that all the elements ope n fire smoothly appeal to people as they engage in cars. For Nissan, troika types of design †interface design, colour and material design, and predis military posture timber design †are b passagewayly delimitate as interaction design. Through various research activities, we are making efforts to realize even much than convenient and winsome interior designs. Lifecare vehicles (LVs)\r\nNissan lifecare vehicles (LVs) stand by bring mobility to the elderly or those with physical disabilities. We regard LVs as an essential part of our line-up of cars rather than specialty vehicles, and we are enhancing the products and services available to them. As of the end of January 2009, in Japan there were 401 cognizant dealerships with LVs on showing and advisory staff with expert knowledge of the vehicles, and a total of 5,520 LV advisors. there are dealerships in every prefecture of the terra firma meeting the needs of customers and pass the chance to test-drive these ve hicles. Since 2003, we have also been carrying out an annual campaign of LV trial rides for people who have only limited opportunities to get out and more or less, so that they too sack find out the joy of mobility.\r\n alliance\r\n integrated citizenship activities distinctive of Nissan\r\nNissan endeavours to fulfil its role as a corporate citizen toward the realization of a sustainable society, while providing attractive products and services globally, under the fantasy of â€Å"enriching people’s lives.” We are thus advancing corporate citizenship activities in fields centered on three priority areas †support for education, environmentally friendliness, and humanitarian assistance †in order to contribute to the sustainability of society. We divide our vision globally with Nissan employees around the world and r for from each one one to strengthen our relations with local communities by conducting activities antiphonary to the circumstances and nee ds of each country and region. Corporate citizenship in education field (Japan)\r\nNissan’s corporate citizenship initiatives have been always focusing on â€Å"Cultivating early Generation”. In education field, we have many programs such as â€Å"Nissan Children’s Storybook and Picture handwriting Grand Prix” with its long history, and â€Å"Nissan Joyful Picture control and Storybook Exhibition”, and in addition, we started the brisk programs such as â€Å"Nissan Monozukuri Caravan” and â€Å"Nissan Design Waku-Waku Studio”, which utilize Nissan’s strength for those original programs.\r\nOrganisational culture\r\nThe diversity of Nissan’s employees is the driving force enabling them to meet the alter needs of their customers and to maintain sustainable increment. The employees create greater value by sharing their knowledge, base on their individual experiences and different ways of thinking, in response to the various challenges they all face. For these reasons, Nissan have made diversity a corporate strategy and strive to create an environment where all their employeesâ€who numbered 169,298 at Nissan and its affiliates as of action 2010†butt joint extend their individual talents to the fullest.\r\nSUPPORTING travel DESIGN\r\nContinually Improving Human-Resource Systems\r\nA association’s employees are its most authorized resource. So that both Nissan and its employees fundament reach their full potential, they constantly work to improve our human-resource systems. The evaluation- found remuneration system used to accurately gauge employee contributions is structured in a way that motivates them to set and achieve high goals. An employee’s salary is determined through a crew of performance evaluations, which measure how well the employee achieved certain goals (commitments), and might evaluations, which measure such intangible variables as practiced skill, k nowledge and attitude.\r\nSupport for Self-Designed Careers\r\nNissan believes that employees should â€Å"design their own careers” and actively assists their efforts to do so. Employees in Japan meet with their supervisors double a year to discuss their performance and strength evaluations, as well as to express their ideas on how to proceed in their career path. Employees in Japan also have the chance to take on the challenge of a youthful position through the Shift Career System (SCS) and the Open accession System (OES). The SCS enables employees to apply for positions in other departments and work areas that interest them regardless of whether there is a position immediately available. The OES allows them to apply for all turn outly publicise positions. Around 250 employees applied for approximately 100 circularize posts during pecuniary 2009, and roughly 80 of them were successful in getting the positions they applied for.\r\nFostering Specialized Skills\r\n dowr y employees develop narrow knock off skills over the medium to long term is vital for a come with to achieve sustainable suppuration. They introduced the Nissan Expert Leader System as a means of strengthening and breeding further development of specialized skills in a wide barf of technical and nontechnical areas like purchasing and accounting. In fiscal 2009, the system’s 4th year, they focused on 91 fields of specialization, designating 42 employees as Expert Leaders and 2 prudence- take employees as Nissan Fellows. The Expert Leaders and Fellows make use of their specialized knowledge to contribute to Nissan’s crinkle endeavours general. In addition to sharing their knowledge with others via our corporate intranet and other communication tools, they contribute to the fostering of the next genesis of experts by mountain pass on their specialized skills in seminars and didactics courses.\r\nCREATING A CULTURE FOR LEARNING\r\nA Variety of Learning Opport unities\r\nAs an organization that continues to grow through constant accomplishment, Nissan supports employees’ personal maturation with a proactive, systematic approach to human-resource development. The act of learning is one in which people stretch themselves to develop skills that create value. They believe that a corporate culture of learning corporationnot exist without the motivation to take part in this value creation. The Learning Navigation system on their intranet is one means of providing employees with opportunities for learning. This system lets employees search for information whenever they wish to develop specialized skills, receive study in guidance techniques, participate in e-learning programs or take distance-learning courses. The site is updated regularly to provide information our employees need to make up their skills and build their careers, meeting their ontogeny thirst for knowledge.\r\n management Institute\r\nThe Nissan Learning Center Mana gement Institute in Hakone, Kanagawa Prefecture, was established with the aim of cultivating human resources with the specialized skills and leading qualities needed for future development. The institute contributes to the ongoing creation of Nissan value through a number of programs, including human-resource development seminars, which provide leadership rearing to pass on the company’s accumulated experience and knowledge to the next propagation; cultural diversity workshops; and our Consortium Program, in which they draw other global companies to take part in tangle-industry exchange. Moreover, the leaders of our business activities around the world who have taken part in such programs as our Nissan Way Workshops are now active in educating fellow employees in the Nissan Wayâ€the crystallization of experience and knowledge gained through our company’s resurgenceâ€demonstrating our commitment to promoting a corporate culture of learning.\r\n spherical Tra ining Centers\r\nWith the globalization of production systems, manufacturers mustiness envision that all of their manufacturing sites maintain consistent standards of quality. Nissan established spherical Training Centers (GTCs) at its Oppama and Yokohama instals in Kanagawa Prefecture, Japan, and at its Sunderland Plant in the coupled Kingdom to educate trainers who pctage their knowledge at Nissan plants around the world. Trainees selected from among all employees at Nissan’s production facilities worldwide are brought to the GTCs to take part in the company’s get the better of Trainer Program. Upon finishing the program they are certified as Master Trainers and charged with instructing other employees at Regional Training Centers using a globally standardized curriculum and materials. As of the end of March 2010, 466 Master Trainers were hard at work passing on their technical skills to local employees at Nissan plants worldwide. Nissan’s accumulated know-how has been put into audio-visual form as an educational tool, available in fin different languages, for global-standards training at GTCs. They also conduct â€Å"Nissan DNA” training seminars for all management- train employees at our production sites, working to strengthen skills that contribute to improved quality and lower be and to foster the human resources that can carry out more efficient management of production operations.\r\n informal COMMUNICATION\r\nEmployee Surveys\r\nNissan carries out surveys to get employee input and suggestions for improvements, using the results to help improve the company’s management quality and employee motivation. From the results of these surveys, they identify the strengths of the company as a whole and those of individual divisions, as well as areas for improvement. They then work to make improvements that will lead to the creation of a better work environment for our employees and to keep growth for the company. The results of these efforts are analyzed for the company as a whole and for each region and department. Based on these analyses, each direct of management formulates and carries out action plans tailored to detail needs.\r\nEnhancing communication Tools\r\nNissan introduced a corporate intranet system called tempt (Workforce consolidation @ Nissan) in 2005 as a tool to promote communication and information sharing. Since then they have act to update the system with new technologies while promote employees to make active use of this tool for inherent communication and collaborative activities. They have expanded the WIN ne cardinalrk beyond Japan, North America and Europe to admit other markets and our major business partners. They also use internal newsletters and in-house scene broadcasts to provide a variety of information to be allotd by all employees at Nissan production sites around the world with no difference in time.\r\nEmployee-Executive Exchange\r\nNissan holds op inion-exchange meetings involving executives and employees as a means of building trust through clear communication between these two groups, as well as among employees themselves. These meetings, held at Nissan’s corporate headquarters in Japan as well as the company’s business offices in China, North America and other parts of the world, give executives a venue for informing employees of the current business office of the company and delivering management messages. They also provide employees with opportunities to consider questions and voice their concerns in a direct and open manner. They plan to continue these meetings as an important rut for\r\nactive communication.\r\nEthical Issues\r\nGlobal Educational Activities to shape up Compliance\r\nAs a means of fostering compliance sensation throughout the company, Nissan has established groups and situated officers in charge of promoting compliance policy in each region where it operates. We place special focus on education to break that all employees have a correct understanding of the statute of preserve and, as a result, make fair, transparent judgments in the course of their duties.\r\nTo ensure full understanding of the law in Japan, all employees, including executives, take an elearning or video training course based on the Nipponese version of the Nissan Code of Conductâ€â€Å"Our Promises,” instituted in April 2004â€after which they sign an agreement to abide by it. The revise parts of the code in fiscal 2010 were in response to legal amendments and retained all employees since fiscal 2010 to further strengthen the spirit of compliance within the company.\r\nEducation programs to promote compliance are held regularly for all employees in North America, and a set of universal guidelines has been drawn up for each country in Europe. Compliance-related training is also being carried out in the General Overseas Markets based on guidelines that take into account condi tions in each of those countries. Moreover, all group-affiliated companies have introduced their own codes based on the Nissan Code of Conduct.\r\nAdditionally, they have created sets of internal regulations covering the global saloon of insider trading and the management of personal information. Nissan seeks to heighten awareness of compliance companywide through such measures as well as various education and training programs.\r\nOur lieu against Discrimination and Harassment\r\nItem 6 of Nissan’s Global Code of Conduct, â€Å"Value Diversity and offer Equal Opportunity,” is our requirement to accept value and obeisance the diversity to be found among our employees, business partners, customers and communities where we do business, and to reject discrimination and harassment in all their forms, no matter how minor they whitethorn be. Nissan executives and employees must respect the human rights of others, and may not split against nor harass others based on ra ce, nationality, gender, religion, physical capability, age, and place of origin or other reason; nor may they allow such a situation to go unchecked if discovered. We also work to ensure that all employees, both male and female, can work in an environment free from sexual and other forms of harassment.\r\n swearword analysis\r\n cuss analysis is a useable strategic tool for understanding market growth or decline, business position, potential and direction for operations. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that company’s performance is aligned positively with the properly forces of change that are affecting business environment. PEST is useful when a company decides to enter its business operation into new markets and new countries. The use of PEST, in this case helps to break free of unconscious assumptions, and help to effectively a dapt to the realities of the new environment. Looking at the current condition of Japan, it is difficult to mention anything to the highest degree its political, economical, technological or sociocultural since there is no stability in the country at the moment, repayable to the natural disaster crises they are veneering.\r\nSWOT abridgment\r\nStrength:\r\n1) Global Brand: According to business Week Global Brand Scorecard Nissan is the express growing automotive brand. Nissan’s brand integrity was valued at $3,108 million in 2006. or so of the company’s passenger car models include Maxima, Sentra, Altima, Versa, Z Roadstar and Z Coupe. Some of its truck models are Quest, Armada, Pathfinder, Murand and Xterra. Brand strength provides competitive advantage that can offset the increasing competition.\r\nOver the last five geezerhood company has establish the global brand by focusing on the brand gain and dynamics that caters the silky design, the vibrant experie nce, the interplay between repose and driving pleasure has reached a high level of alignment and consistency. That makes it easier to communicate about the brand and specific features of its model.\r\n2) Renault-Nissan Alliance: The alliance has provided advantages to both companies. They can go bad into new markets faster and with lower be because they go into’t have to build new plants. (Renault builds cars in Nissan’s Mexico plants and Nissan uses Renault’s Brazil plant and diffusion networks) The companies are collaborating on building common platforms, components and engines, and each company leads engine design in their area of expertiseâ€Renault in diesel motor and Nissan in gasoline. And they have change magnitude purchasing power because they buy components for sextette million cars not three as will be in the case of Nissan alone. The alliance has so far boosted the geltability, market capitalization and sales in 192 countries for both partn ers. CEO and president of Renault to his titles in 2005, says he’ll rely on the strengths of two distinct work forces: French innovation in concept stages and Nipponese dedication to process in manufacturing. 3) Most fuel efficient car: Nissan is known to make the most fuel efficient cars over the eld and this has become one of its major strengths in the competitive market. due(p) to its fuel efficient car, the demand for them has also amplificationd over the ultimo fewer long time.\r\nWeakness:\r\n1) Product Innovation time lag: Nissan launched two new or redesigned vehicles, in comparison to 14 in the three previous years. Nissan has misjudged its model strategy in the United States over the past few years. like the other Nipponese auto clerics, the company was a relational late-comer to the country’s high- get margin and high-volume pick-up markets. Nissan’s late entry meant that it has suffered from the decline in the sector as a result of ascensio n fuel prices in Japan, While Toyota and Nissan have been well placed to benefit from a substitution in emphasis in Japan market towards compact sales as a result of the Scion and Civic models respectively, Nissan at the moment has no competitive offering in this segment. However, there are a number of new models that should enliven the company’s fortunes in the United States, including the Sentra and Altima mid-size public houses, as well as its luxury-brand Infiniti G35 sedan. The company also urgently needs new offering in key segments in the European market. The Almera C-segment hatchback and Primera D-segment sedan are hopelessly outmoded and voluminously ignored by European buyers, although the new Note small multi-purpose vehicle (MPV) should provide Nissan with a sales success in Europe.\r\n2) Lack of Diesel Technology: In the Japanese market, diesel accounts for only 0.4% of vehicles sold (Rowley, 2006). In contrast, diesel is very popular and its share in overal l sales has been increasing. In the year ending foremost January 2006 the number of diesel cars sold change magnitude by 7.5%. Some analysts believe that the diesel market will account for more than 80% of total vehicle sales in Europe by the end of 2008. Diesel technology has been improving significantly over the past decade reducing emissions, fuel consumption and cost. As Nissan’s home country has a low demand for diesel engines, Nissan lacks the technology and experience to produce diesel engines of comparative quality.\r\nOpportunity:\r\n1) Asia market: Lower penetration coupled with strong rise in income levels, led to continuous jumps in car sales in markets like china and India. In fact china, followed by India is estimated to be major growth driver in the next decade. Hence it is necessary for global player to be present in these countries. Therefore all global players either have products for these markets or planning to develop products to enter into these market s. In India in year 2004-05 interior(prenominal) sales of car and public utility vehicles has crossed the 1 million mark.\r\n2) move its manufacturing unit to reduce cost: The Japanese car maker has stepped up their policy of producing where demand exists. Car making is an industry situated at a forefront of globalization and major player is accelerating their cross border activities. Manufacturing units in America and Europe have huge capacities in line with their vast domestic automobile output. While this offered them the benefits of scale, the continuous sluggish growth in their local market and their inflationary increase in production cost, especially wage cost. toleration of cost reduction measure became imperative for players to survive. China, India and Thailand have been regarded as the Low Cost Production bases with their unique offering to the outsourcers. Low cost country will provide them the global clientele and technology and also have synergetic operation. Area of opportunity for India lies in the products which have high level of design and engineering requirements, low level of automation and significant company requirement.\r\n3) Renault-Nissan Purchasing Organization (RNPO): The RNPO, which was established in 2001 in the early stages of the alliance, was one of the key ways in which Renault-Nissan would combine their resources to create a more efficient organization. Currently Nissan and Renault share 60% of the same part and raw material suppliers. This has led Nissan to achieve greater purchasing power and has served to reduce be and reduce the bargaining power of suppliers. There still body significant opportunity through the RNPO to decrease costs and provide increased competitive advantage.\r\nThreats:\r\n1) Cross-Cultural disharmony: As Nissan and Renault become further integrated with one another, the risk of cross-cultural disharmony increases. If disharmony occurs then, as occurred at DaimlerChrysler, overall company perfor mance may be reduced and the current strengths that the Alliance provides may become instabilities. Nissan is currently working to reduce the likelihood through its ‘Business Way’ program but corporate and national culture takes a long time to change.\r\n2) Rising Commodity Prices: callable to the economic refinement of China, changes in commodity prices could affect the costs incurred by Nissan. Over the past 12 months, the price of steel used in car production has risen by nearly 30% (London metal Exchange, 2006). Nissan has taken steps to reduce the effect of rising steel prices; in 2000, Nissan began using hot slur zinc coated steel and converted to less expensive steel in 2002, which saved about $16 million per year (Nissan Motor Co., 2004). This however, has through little to reduce the upward pressure on vehicle costs and prices. As this increase in cost has been passed on to the consumer, demand for new vehicles has reduced. This threatens Nissan’s vi ability in the region.\r\n3) Market saturation: With overall industry sales number stagnant, if not declining in key economies term, the overall automobile industry has been significantly impacted. Due to overall market saturation, the individual company new product development strategy towards market expansion is changing from iterative year on year model changes to drastic innovation. The emergence of SUV market few years back is an evidence of how product and market innovation has changed the very composition of US auto market.\r\nMarketing Strategies\r\nTARGET commercialise\r\nNissan’s quarry market will be the low-level income group and middle class. Whereas Infiniti’s betoken market is people looking for luxury, great driving experience with unparallel appeal. With constant awareness and education about Nissan affordability and safety features, different type of group could be acquired resulting in increase of brand loyal consumers. People are more aware and t herefore, they are constantly more particular when deciding which car to purchase. With strategic advertizing, consumers can be attracted with its latest features and a new attend Nissan will provide to owners.\r\nNISSAN TARGET mart: geographic SEGMENT\r\nThe major concern of Nissan is to capture all the district headquarters of the country resulting in its reporting of almost all over the country.\r\nNISSAN TARGET MARKET: PSYCHOGRAPHICS\r\nWith new image Nissan will provide to its buyers, owners will feel more confident and proud considering that Nissan is an internationalist organization with strong background resulting driving Nissan a status symbol. likewise safety and comfort are big factor ins of considerations in a consumers mind so Nissan by focusing on these factors will attract safety and comfort conscious people. Seeing its potential, consumers will most likely shift to Nissan.\r\nNISSAN TARGET MARKET: DEMOGRAPHICS\r\nPrimary Target market belongs to middle class, f ocal ratio middle class and low earning income people in society, falling in income bracket of below $ 2500. Also the target will be people from 25 †60year old who are major automobile buyers.\r\n scattering STRATEGIES\r\nBasically there are two types of statistical dispersion channels available: Direct distribution and In-direct distribution\r\nPROMOTION STRATEGIES\r\nPromotion is one of the most important factors of marketing; it is done to affect the consumer behaviour in order to achieve sales and increase product image. In promotion the major task is to make consumers aware of the product and to attract consumer towards the product by highlighting the advantages of the product. Also it keeps consumers aware and well cognizant about product’s features and improvements.\r\nENVIRONMENT investigate\r\nAn extensive market research will be conducted to have better idea about consumers’ perceptual experience about Nissan and its competitors. For this purpose Nis san will acquire services of marketing and research agencies to better analyze market environment. This will enable Nissan to learn about the consumers’ behaviour, how they comprehend us and compare with the competitor. The media of the advertising a product is always chosen after the market environment research to get knowledge that if the target reference is interested in that mode of advertisement or not. ADVERTISING\r\nTo advertise the product better and create awareness about product; Nissan will use different advertisement methods to approach the consumers. The diversity of advertisement channels will help in reach the masses of different mindsets. Following Advertisement methods will be used:\r\n• Nisan will use print and electronic media to introduce the product to\r\nconsumers. • Special events will be sponsored by Nissan.\r\n• Use of Billboards, flex signs etc for massive introduction of car’s launch.\r\n• Special road shows and disp lays will be set at dealers outlets. • appraise contest will be conducted to attract people towards the car.\r\nFinancial Review\r\nNet sales\r\nFor fiscal year 2009, consolidated net revenues decreased 10.9%, to Â¥7.517 trillion, which reflected the strong yen offsetting the increase in sales volume. operational profit\r\nConsolidated operating profit totalled Â¥311.6 trillion, compared to a negative Â¥137.9 meg in fiscal year 2008. Net income\r\nNet non-operating expenses increased Â¥69.1 jillion to Â¥103.9 billion from Â¥34.8 billion in fiscal 2008. Net income reached Â¥42.4 billion, an increase of Â¥276.1 billion from fiscal year 2008.\r\nMajor competitors\r\nIn Asia the 3 big of the automobile industry is Nissan, Toyota and Honda. nevertheless Nissan Motors major competitor is Toyota Motor Corporation. Toyota, much bigger than Nissan and possessing deeper financial pockets, was better positioned to sustain the losses incurred from the global economic downturn. Consequently, Nissan entered its ninth decade of operation facing formidable obstacles. The first financial decline came in 1991, when the company’s consolidated operating profit plummeted 64.3 percent to Â¥125 billion (US$886 million). Six months later, Nissan registered its first pretax loss since becoming a publicly traded company in 1951â€Â¥14.2 billion during the first half of 1992. The losses mounted in the next two years, growing to Â¥108.1 billion in 1993 and Â¥202.4 billion by 1994, or nearly US$2 billion. To arrest the incisive drop in company profits, Nissan’s management introduced various cost-cutting measuresâ€such as reducing its materials and manufacturing costsâ€which saved the company roughly US$1.5 billion in 1993, with an additional US$1.2 billion savings realized in 1994.\r\nNissan also became the first Japanese company to near(a) a plant in Japan since World War II and cut nearly 12,000 workers in Japan, Spain, and the United States from its payroll. Nissan also was astounding under a debt load that reached as high as US$32 billion and jeopardize to bankrupt the company. Only intervention from Nissan’s lead lender, Industrial Bank of Japan, kept the company afloat. There were some positive signs in the early nineties to inspire hope for the future. Nissan’s 1993 sales increased nearly 20 percent, vaulting the car maker past Honda Motor Co., Ltd. to reclaim the number two ranking in import sales to the of the essence(predicate) U.S. market. Much of this gain was attributable to robust sales of the Nissan Altima, a replacement for its Stanza model, which was introduced in 1992 and marketed in the United States as a small luxury sedan priced under $13,000.\r\nTo the joy of Nissan’s management, however, the Altima typically was purchased with various options added on, good-looking the company an additional $2,000 to $3,000 per car. Nissan also was support by strong sales of its Quest minivan, which was introduced in the United States in 1992 and had been developed jointly with crosswalk Motor, which marketed its own version, the Ford Windstar. Nissan’s losses move through the fiscal year ending in March 1996, cumulating to US$3.2 billion over a four-year span. The company’s return to profitability in fiscal 1997 came about in part because of the cost-cutting program and in part from the yen’s spectacular depreciation against the dollar. Despite the return to the black, Nissan remained a tumultuous company. From its 1972 peak of 34 percent, the company’s share of the Japanese auto market had fallen to 20 percent by early 1997. Competition from the more financially stable Toyota and Honda played a factor in this decline, but Nissan also hurt itself by failing to keep pace with changing consumer tastes both in Japan and in overseas markets.\r\nFor example, Nissan was potty its rivals in adding minivans and sport utility ve hicles to its product line-up, having for years dismissed these sectors as passing fads. Meanwhile, minivans, sport utility vehicles, and station wagons accounted for half of all passenger car sales in Japan by early 1997, up from just more than ten percent in 1990. In the U.S. market, the Altima lost ground to two midsized rivals, the Honda Accord and the Toyota Camry, because Nissan’s model was smaller and thus less desirable. In the luxury car sector, Toyota’s Lexus line became the hot brand in the United States, triumphing over the Infiniti. Because of these and other factors, Nissan returned to the red for fiscal years 1998 and 1999. Although the losses were not as large as earlier in the decade, the company’s continued sky-high debt loadâ€which stood at US$19.7 billion in late 1998â€did not bode well for Nissan’s future.\r\nBusiness Strategies, Keeping Competitive butt\r\n1) Product Strategy\r\nTo secure our profitability and sustainable grow th based on our future product line up plan, in our product strategy developing process, we are monitoring the impacts of some different types of risk scenarios such as global market changes and demand deteriorations to our future profitability (COP) based on our plan.\r\n1. Drastic decline of total global demand, past examples as reference case.\r\n2. A demand shift between vehicle segments drastically faster than our assumptions in our mid-term planning.\r\n3. A demand shift from the matured markets to the emergent markets drastically faster than our assumptions in our mid-term planning.\r\nWe periodically monitor the impact of these scenarios to secure our future profitability and sustainable growth, and also update our future line-up plans periodically based on the results. To improve the robustness of our product line up against these risks, we take following countermeasures as our main direction when planning our product strategy. Expand approachability of individual product s across markets to mitigate the risk of atomic number 53 market demand fluctuations. Increase volume and efficiency per product through a consolidation and systematization of the portfolio to lower the breakeven point and thereby reduce the profit risk of global Total Industry mess declines. Prepare a more balanced product portfolio meeting needs in a broader range of markets and segments reducing reliance on specific large markets.\r\n2) select of Products & Services\r\nNissan is working on the corporate task named â€Å"Quality Leadership” which aims for achieving head level quality by FY2012. In this project, actions are carried out with numerical targets for following 4 areas. 1. perceived quality & attractiveness: Customers’ impression on vehicle’s quality when customer looks it at a dealer’s show room 2. Product quality: Quality of product itself based on the experiences as an owner of the vehicle 3. gross revenue & service quality : Quality related to behaviour or attitude of sales staff or quality of service when inspection and concern 4. Quality of management: internal management quality to improve employees’ motivation which supports above 3 qualities\r\nFor example, target of â€Å"Product quality” is to become top level at Most Influential Indicator (MII) of each region. In order to achieve the target, it is broken down to internal indicators by model which correlate with MII. go on of all quality improvement activities are monitored with those internal indicators. All the actions are taken based on rotating PDCA cycle, such as, the progress of activities are monthly reviewed by â€Å"Quality Committee” chaired by EVP and necessary actions are decided.\r\nTotal picture of â€Å"Quality Leadership” on global base is monitored and discussed at the Global Quality Meeting chaired by COO annually. 2 years passed since this project started and it is going well. We are confident th at we can achieve the target by FY2012.\r\nWith respect to new model project, in order to achieve the quality target of each project, milestone meetings set at each key process of design, preparation for production and production, confirm key check points, such as achievement of quality targets, adoption of measures to prevent takings of past problem, adoption of measures for potential risks related to new technology / new mechanism / design change.\r\n mercantile production can be started after halt at â€Å"SOP (Start of Production) Judgment Meeting”, which confirms all issues are solved and quality target can be achieved. Final decision that the model can be sold is made at â€Å" lurch Judgment Meeting”, after confirmation of quality of commercial production and preparedness for service / maintenance.\r\nAs describe above, Nissan is implementing thorough quality check in the lead new model launch. Nissan is progressing quality improvement activities also after l aunch by gathering quality information from markets and prompt deployment of countermeasures. In case of circumstance of safety or compliance issues, necessary actions such as recall are implemented with close cooperation with market side team based on the decision by independent process from management. Occurred incidents are deeply investigated, analyzed and feed backed to models on the way of production or development for ginmill of recurrence\r\nIn addition to above described activities, such as quality assurance at new model project and quality improvement activities on daily basis, the â€Å"Quality risk Management” framework has been newly developed from FY2009. This is the high level system to ensure successful quality management for on-going and future projects. This includes assessment of quality related risks, evaluation of risk level, assignment of responsible person based on the level and to clarify organization for follow up. These processes are implemented a t â€Å"Quality Risk Management Committee” chaired by EVP twice a year.\r\n3) Compliance and Reputation\r\nAs described above, Nissan produced the Nissan Global Code of Conduct for all employees of the Nissan group worldwide. To ensure thorough understanding of the code, training and education program such as e-learning is improved and compliant situation is monitored by Global Compliance Committee. Nissan has also adopted the internal whistle blowing system (Easy Voice System). This allows any employees to submit opinions, questions, requests or suspected compliance issue directly to Nissan’s management. Additionally, Nissan created sets of internal regulations covering the Global Prevention of Insider Trading and the management of personal information. Nissan keeps effort to prevent reputation risk to the company by continuous implementation of such measures as various education and training programs.\r\nConclusion\r\nAs the automobile industry is booming, It is nece ssary to keep up with the competition. The only way to compete with the competitors is to come out with innovative technology, fuel efficient cars, and luxury looking insofar affordable cars. Nissan has not only concentrated on making cars but also provided their support to various stakeholders. Its working has benefited the environment by taking many environmental initiatives such as starting the Nissan Green Program 2010. The company also has worked towards effectively and expeditiously developing their employees in terms of specialisation, or giving them a work-life balance. In line with its vision of Enriching People’s Lives, Nissan’s desire is to provide attractive products and services to customers worldwide while at the same time fulfilling its responsibility as a corporate citizen to help realize a sustainable society.\r\n'