BA245 Business Policy & Strategic Management

First Semester, SY 2018 -2019

Saturday 7:30 AM – 10:30 AM

Case Title: Nissan USA

Submitted to:
FDr. Jose Waldemar Veloso Valmores
Professor

Submitted by:

Jennifer G Velasquez
MBA Student
 .

Nissan Motor Co., Ltd was incorporated in Japan in 1933 and in 1980 acquired a 37% stake in
Motor Iberica S.A. Barcelona. Nissan is a Japanese automobile manufacturer headquartered in
Tokyo, Japan. Nissan manufactures and sells Datsun automobiles, rockets, textile machinery,
boats, other machines and appliances and their respective parts. NMC USA begins production
on August 1, 1983

In the United States, Nissan Motor Corporation become the second-largest seller of import cars
in the United States next to Toyota when reached its twenty second year. In 1979, sales
continued to be strong on purchases of small cars. Behind NMC-USA stood Nissan Motor Co.,
Ltd. now the world’s fourth largest manufacturer of motor vehicles, following General Motors,
Ford and Toyota in that order.
I. Title of the Case : Nissan USA

II. Case Brief:

III. Viewpoint:

IV. Time Context:

V. Problem Statement:

 How does multicultural affect the company’s growth.

VI. Statement of the Objectives:

VII. Areas of the Strategic Consideration

A. Internal Environment
1. Organizational Structure

2. Human Resource

As the year began, NMC-USA was an organization with capitalization of $6

million and 1582 employees. The President of NMC-USA is Marvin Runyon and
John Bryan is the Human Relations Manager.
 Hiring of employees including selection & training programs are being handled
by Government (Tennessee’s Department of Employment). The training program
depends on the length of previous training and experiences & type of job applied
for. Nissan selects applicants that completed the state’s training program.
Retirement programs was given to employees between 50 and 65 years old.
Key positions and first-line production supervisors are being filled by workers
from Tennessee through an agreement with the state. The state agreed to hires
Tennesseans & state would pay for the training programs.

In Smyma Plant, will be employing 2,200 employees.

3. Operations

Building of new truck plant in Smyma Tennessee with a 500 million complex.
Production is scheduled to begin in August 1983, and using the latest technology
in producing vehicles will deploy 219 robots will be in operating in the body
assembly, stamping and painting areas. Nissan is one of the most robotized
factories in the world. Nissan plans on keeping stocks as low as possible. The
production process of each supplier will be certified in detail by Nissan’s quality
control staff. Another feature of Nissan’s system is maintenance. Nissan will
have a team of maintenance engineers; the operators will be responsible for
minor jobs.
4. Finance

5. Marketing
B. External Environment

1. Legal

Smyma Plant is located under foreign trade zone which allow imported materials
to delay the payment of import taxes on the goods until they assembled to
finished product and ship out to other areas. This can result to tax savings.

2. Economic

3. Societal
 4. Technological

Task Environment

1. Competitor

2. Customer
SWOT ANALYSIS

Strength:

 Was the second largest Japanese Car manufacturer.

 Had become one of the top-selling import in the US Market.

 Technological advancement – Adapt the latest techniques and technology for

producing vehicles. The most robotized factories in the world. Well known in
advance engineering, technology, plant productivity and quality management.

 Maximize Human Resources – provide continuous training programs, job

enlargement & job enrichment programs that will help workers develop all their
skills.

 Geographical Proximity – Under Foreign Trade Zone allows to import raw

materials that delay the payment of import taxes resulting to tax savings.

 Management style – have participative management style includes employee

meeting every morning, multi-skilled tradesmen, continuous education programs
& probably no unions.

Weaknesses:

 Language Barrier – biggest problem between Japanese and US workforce.

 Regulatory requirements – Proposed Import Quota & Domestic Content Bill will
seriously threaten all manufacturers who export to the United States. Nissan
 force to purchase 90% of the parts of trucks on the domestic market which take
away the benefit of the foreign trade zone.

Opportunities:

 Forming of Union in the Plant – It may have positive move to the American work
force who demand to it.
 Location of new truck plant – as cost cutting effort.

Threats:

 Job hopping – treat the security of the employees in US.

 Changes on local regulations or legislation – may affect the production capacity

and automobile sales.

 Internal dissonance – with the proposed union alliance.

 Gas prices and economy

VIII. Assumption

IX. Alternative Courses of Action

1. Establish a workplace that fosters good relationships between Management and

Employees.
2.

X. Analysis of the Alternative Courses of Action

ACA No. 1 Establish a workplace that fosters good relationships between Management
and Employees.

Advantages:

Increase employee satisfaction to minimize the desire for union. The following strategies
can help discourage the union by having fair and consistent policies and practices, Open
door management policies, Competitive pay and benefits , & Employee trust and
recognition.

Disadvantages:
ACA No. 2

Advantages:

Disadvantages:

ACA No. 3
Advantages:

Disadvantages:

XI. Conclusion

 Rejection to a proposal to unionize or discontinue to strengthening the

alliance between the UAW and American workforce.


XII. Plan of Action