...What were the drivers to successful strategy implementation at Nissan? To be successful an intended strategy must be implemented. Strategic resources must be developed, deployed and controlled correctly. An organizations structure and internal processes are key drivers to successful implementation. The Nissan Renewal Plan (NRP) was driven by the following key drivers: • Structure o Pre-Ghosn, managers did not have well-defined areas of responsibility. This resulted in a lack of structure and Ghosn sought to transform the organization from that of a bureaucratic hierarchy to one based on cross-functional integration. This was accomplished via the abolishment of ridged functional silos. o Key reasons for the realignment of the structure: Reduce Costs Optimize Growth & Competitiveness o Decision to form cross functional teams (CFT’s) provided the foundation on which to restructure the organization and provided a sound base for successful implementation of the NRP. o Analysis of Nissan’s structure, using Mintzberg’s framework, enables one to identify several key drivers that support successful strategy implementation: Due to the multinational nature of the organization’s business environment, Nissan faced the challenge of dealing with market differences between various countries. This resulted in the diversification of products across global market, thereby ensuring optimum market penetration. Co-coordinating mechanism was the standardization of outputs in terms...
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...company around? Why could they not prevent the slide of Nissan’s ranking market share, etc.? The former managers of Nissan had been struggling to turn Nissan into a profitable company for eight years. Nissans major problem were the extremely low margins due to its lack of brand power and the very unprofitable cost structure (especially regarding purchasing costs). Nissan’s organizational and financial structures where very traditional and typical Japanese (e. g. the cross-shareholdings within the kereitsu structures). All previous Nissan CEO’s where Japanese , probably each of them with a long tenure and history in the company. Each CEO was surely skilled and experienced in leading an international company. But it can be speculated that it is much harder for a Japanese CEO to make fundamental changes in Nissan's long-standing operating practices and behavioral norms of Japanese society that are deeply integrated in the corporate structure. The former managers were simply stuck in their Japanese organizational structures and no one wanted to break with their own tradition. In addition, the company advisors, a group of senior managers without line responsibilities, made sure that Japanese business practices were implemented and pursued. Some examples of these country specific, traditional structures are the kereitsu partnerships and the predominant seniority rule: Nissan was consistently strapped for cash and could not finance the development of its own products. Although Nissan...
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...administration- Trimester 1- Jan – April 2016: Assignment 1: Strategic and Change Management 1. Does Semc have a strategy? Justify your answer. Yes, Semco has in place a strategy, though unconventional, it is clearly displayed in the radical processes undertaken to change the working conditions of employees. A company’s strategic plan lays out its future direction and performance targets (Thompson, Strickland, Peteraf & Gamble, 2014). The CEO provided a broad vision for employee’s of finding a gratifying way of spending one’s life doing something that is useful. We can perceive the vision through the unconventional changes made by the leadership in the organization where the primary focus is on human capital, wellbeing and their competencies (Joost & Fourie, 2009). Strategies created involve the development of employee participation, profit sharing and open information systems at the company. The needs and welfare of the employees are of paramount importance and this detail is integrated into the employee manual. For instance, it is mandatory for employees to take their 30 day leave. The effects resulted in sales growing and the company experiencing an increase in profits. A well developed business strategy is designed according to the elements of differentiation, thrust, target results and domain sought (Yavitz &Newman, 1982). The main changes of Semco which became part of the corporate strategy dealt with the shift into other...
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...knowledge, resources, and capabilities with the intent of developing processes, products, or services (Rothaermal 244). The most common reasons firms enter into strategic alliances are – * To strengthen competitive position * To enter new markets * To hedge against uncertainty * To access critical complementary assets * To learn new capabilities (Rothaermal 245). The Renault-Nissan alliance was not an exception to the aforementioned reasons. In the late 1990s, Nissan was falling apart, with consistent drop in its auto sales and poor returns. It had been losing market share for 27 years in the Japanese market and by 1999 it had about $20 billion in debts. Analysts attributed Nissan’s bland styling, infrequent model changes, high manufacturing and parts costs, and bureaucratic decision-making to its poor performance. At the time when Nissan was looking for somebody to bail them out of their financials crisis and put the on the profits, Renault came to their rescue. Renault was a maker of small- to medium-size cars with consistent, but slim profit margins. It sold 85% of its automobiles in Western Europe with third of them in France. Renault had marginal international presence and also marginal presence in the premium cars and trucks segment. Renault was both looking to expand in the international market and in the premium cars and trucks segment. Renault thought Nissan, with its strong presence in North America and good engineering capabilities would be potential...
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...2018 at a 5.2% CAGR in the period (PwC, 2012). The major contribution to this growth will come from emerging markets, with 84%, with the BRIC2 countries alone representing 64%. The Automotive industry is still a very concentrated market, where the top 12 manufacturers represent 83% of the units assembled in 2011 (PwC, 2012). Despite this market structure, there have been a few new entrants, such as Tesla Motors and BYD, both electric car manufacturers. In Table 1, an analysis of the Automotive market environment is presented. FACTORS Political COMMENT IMPACT ON DEMAND/SUPPLY Governments and municipalities interest in green vehicles Positive for green product lines Disposable income Growing wages in developing countries, growing middle class with purchasing power Positive Low interest rates in developed economies Positive Currency fluctuation Loss of competitiveness due to strong currencies (Dawson & White, 2012) Negative for Japanese /Brazilian Lifestyle changes Approach to Western lifestyle in developing countries, demand for low-end cars (Ayres, 2012) Positive Green issues Global awareness regarding pollution Positive R&D expenditures Available market space for innovation, both incremental and breakthrough Positive New technology adoption Technological Negative for global companies Interest rates Socio-cultural Governments impose strong import taxes to foster local production Green...
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...recommendations bibliography abstract A strong car brand can create significant value in the automotive industry. The price consumers expect to pay for otherwise identical luxury vehicles can vary as much as $4,000, depending on the car's brand. For mass-market cars, brand helps determine which products a consumer considers buying. Furthermore, superior brands extend their halo across every model of vehicle within the brand. It's no surprise that most auto manufacturers make brand positioning and development a key item on their marketing agenda. Because of the prominent role that brand positioning and development play in many auto manufacturers' business strategies, this research has been conducted under extensive research and analysis to better understand how consumers think about car brands. The study analyzes the set of factors which provide valuable insights into consumer brand perceptions. The consumers have a simple yet sophisticated understanding of what differentiates car brands. Notwithstanding automakers' attempts to distinguish their brands on the basis of lifestyle or emotional imagery, consumers evaluate brands in terms of their earned reputation for product excellence relative to their total ownership cost. Consumers' perceptions are based on their accumulated direct and...
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...Chapter 10 Strategies for Communicating Change Learning Objectives On completion of this chapter you should be able to: • Identify communication strategies appropriate to different images of managing change. • Appreciate a variety of strategies involved in communicating change. • Identify key elements involved in the communication process. • Describe appropriate communication strategies for announcing organizational change. • Understand how successful communication processes will vary depending on the stage and type of organizational change. Chapter Summary The way change is communicated is central to its success. Many problems can disturb the process of communication – message overload, message distortion and message ambiguity. Language, power, gender and emotion can also impact the communication of change. How change managers perceive their role in communicating change will vary; for example, their ability to shape rather than control information about the change will vary depending on their image of managing change. This chapter outlines the variety of strategies that managers can use to communicate change including contingency approaches. It explores dilemmas underlying different change communication strategies such as whether you can communicate too much, how the strategy is linked to the type of change and the phases of a change and whether the strategy acts to “get the word out” or to get “buy-in.” Finally, it discusses...
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...INDEX TOPIC | PAGE NO. | INTRODUCTION | 2 | Nissan motors history | 3 | Engineering business function definition | 4 | Nissan organization performance | 4 | Departments in Nissan organization | 5 | Departments of Nissan | 5-13 | Examples of interdependence departments | 13 | Conclusion | 15 | Recommendations | 16 | Financial planning process | 17 | References | 19 | Introduction In this assignment research we will cover some specific business analyses from the Engineering side , Engineering and business are attached to each other’s because Engineering solutions may also include business solutions and the Engineer should have a brief background about the business management and the marketing strategies Therefore, and in depth understanding of business management is required in order for the engineering organization to thrive. Nissan Motor Company will be used as an example to help us grasp the concepts of business functions, how departments relate to one another and the process of decision making in an organization. Brief History of Nissan Motor Company Nissan is a Japanese multinational automaker located in Nishi-ku, Yokohama in Japan. ,they were not always known as Nissan. They actually started out as Kwaishinsha Motor car works in 1911 then changed its name to Kwaishinsha Motorcar co. around 1918. It did not actually start using the name...
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...ETM / IEL Working Paper Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Subramanian A.M. No. 01/12 Division of Engineering & Technology Management (D-ETM) Institute of Engineering Leadership (IEL) Faculty of Engineering 1 Disruptive Innovation in Emerging Markets: Strategies Used in India and China Ruan Y., Hang C.C., Annapoornima M.S. Abstract The appropriate type of innovation which can meet the needs of the mass population in the bottom of pyramid (BOP) has not been studied much in the literature. Based on the theory of disruptive innovation, we offer 11 cases from India and China – the two biggest emerging markets to show that disruptive innovation could be an appropriate, feasible, and powerful innovation force to the companies and the economies involved. We also examined the R&D strategies used in these cases based on the framework proposed by Yu & Hang (2011) and found that 3 out of the 4 strategies commonly used in the cases from developed markets were also applied in the cases from emerging markets. In addition, we have identified 3 unique strategies which emerged from the cases from India and China, namely frugal engineering, modularization, and drastic manufacturing cost reduction. Based on the frequency of the usage of these strategies, we drew practical implications for local companies and multinational companies. Our study also provides critical insights to policy makers...
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...environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal From its inception, it has not been plain sailing for the planned share swap between two of the country's most bitter airline rivals — Malaysia Airlines (MAS) and AirAsia — given the many issues involved. "The collaboration between MAS, AirAsia and AirAsia X was flawed from day one because it cannot bring in a rival. From the start, the share swap had been marked by controversy, suspicion and infighting so much so that it distracts from the real issues in MAS. External and Internal MAS Analysis 1.0...
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...investments in new industries and geographies. shareholder value creation, efficiency gains and enhance corporate governance in companies controlled by the government, commonly known as Government-Linked Companies, or GLCs. Khazanah is set up as a company, and has a nine-member board comprising representatives from both the public and private sectors. Khazanah is also the key agency mandated to drive Khazanah is Malaysia’s strategic Prime Minister & Finance Minister Razak sits on the Board of Khazanah. Mohd Najib Tun Abdul Khazanah’s management team is headed by Managing Director Azman Mokhtar and the team comprises of professionals with backgrounds and experience in investments, finance and consulting. 1 Our Mandate Leading strategic investment house that creates sustainable value for a globally competitive Malaysia Accomplish Strategic Vision and Mission 1 Legacy investments 2 GLC transformation 3 New investments 4 Human Capital Management Execute Strategic Pillars Streamline, repair, restructure portfolio rd Increase shareholder value, strategic value New strategic sectors and geographies Active development of Human Capital for the nation Get foundations right, build capacity 3 : Building capacity: in...
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...Would an exit from the EU benefit the British economy? Advocates of the UK leaving the EU claim that there would be little trouble negotiating a free trade agreement with the EU once it left, because the UK has a large trade deficit with the rest of the Union. If trade barriers between Britain and the remaining member-states were erected upon exit, the EU would lose more exports earnings from Britain than vice versa. At the same time, the UK would be freed from the burdens of EU regulation and hence able to boost trade with faster growing parts of the world, nations such as China, US and emerging markets that include India that are not part of Europe. This could be done by eliminating tariffs and signing trade agreements without the constraints of EU membership. Undermining this assertion is the belief that the UK is a big enough economy to be an effective trade negotiator in its own right. As a result it might be concluded that the UK would see little impact from leaving the EU except perhaps a minor reduction in trade while new arrangements were made. However, it would be ill judged to assume that the UK would be able to dictate terms with the EU simply because it is running a trade deficit. Primarily, the EU buys half of Britain's exports whereas the UK accounts for little over 10 per cent of exports from the rest of the EU, so the UK would be in a weak position to negotiate access on its terms. Furthermore, it could be argued that the UK's access to many non-EU markets comes...
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...Module 7 – Leadership and decision-making (13%) Leadership and ethics What is leadership? Identifying leadership attributes Transformational leadership Strategic Leadership The nature of strategic leadership The role of leaders in strategic thinking and decision-making The role of leaders in strategic analysis The role of leaders in setting direction The role of leaders in strategic formulation and selection The role of leaders in implementing strategy The Naked CEO Preview Leaders are required to develop the strategy, drive the change and align the organisation’s structure, resources and culture with the strategy. There are various viewpoints about what actually constitutes the leadership, the qualities required and its level of importance. The purpose of this module is not to present and analyse these arguments, but to provide a practical approach based on the transformational leadership that focuses specially on the role of strategy and strategic leadership. Irrespective of the approach taken to strategic leadership, there exists an important distinction between leadership and management. A leader is primarily involved in: setting direction, aligning and communicating, and inspiring and motivating. A manager is primarily in charge of: planning and budgeting, organising and staffing, and controlling and problem solving. Objectives You should be able to: (1) describe the role of ethics and corporate social responsibility in leadership; (2) identify and discuss...
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...For the exclusive use of T. Song, 2015. 9-714-413 REV: JANUARY 24, 2014 ERIC VAN DEN STEEN Tesla Motors “Tesla is in California, so it is not April Fool’s yet!” tweeted Elon Musk, CEO of Tesla Motors, around 10 PM PT on March 31, 2013. “First profitable Q for Tesla thanks to awesome customers & hard work by a super dedicated team”1 he had tweeted a few minutes earlier. And indeed, on May 8, Tesla announced a net income of more than $10mln on $560 mln in sales.2 Tesla had outsold both Nissan and GM in electric cars in the U.S.3 Its Model S had sold more than the BMW 7 and Audi A8 combined.4 Tesla raised its Model S sales target for its first full year from 20,000 to 21,000 cars.5 Over the next three months, its stock price almost tripled.6 In its 10 years since founding, Tesla had launched both a high-end limited edition “Tesla Roadster” and its “Model S” production car, and was now taking reservations on its upcoming “Model X” electric crossover SUV. Despite a public controversy about its range, the Model S had received the coveted Car of the Year award and earned the highest rating that Consumer Reports ever gave to a car, an astonishing feat for a company that was only at its second car. While some of its most visible EV competitors went bankrupt or halted production,7 Tesla became profitable. Elon Musk wanted Tesla to be a mass manufacturer of electric cars.8 Becoming profitable meant that that goal was within reach. Or was it not? The Car Business ...
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...Course Description Perspective and Themes This course is about the creation and maintenance of a long-term vision for the organization. This means that it is concerned with both the determination of strategic direction and the management of the strategic process. As such, it deals with the analytical, behavioral, and creative aspects of business simultaneously. The course is organized around six themes in strategic management: the role of the general manager, the components of business strategy, corporate strategy development, divisional-level strategy development, managing strategic change, and the development of general managers. Our perspective in this course is that of the leader whose responsibility is the long-term health of the entire firm or a major division. The key tasks involved in general management include the detection of and adaptation to environmental change; the procurement and allocation of resources; the integration of activities across subparts of the organizations; and, at the most senior levels, the determination of purpose and the setting of corporate direction. General managers, from our perspective, are managers who are in the position to make strategic decisions for the firm. Note that such managers are not “generalists” in the sense that they need to know a little bit of everything, but not very much of anything. To be effective, general managers need to have in-depth understanding of the generic problems in all the relevant functional...
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