Strategy/Goal Analysis: What are Nissan’s Financial Targets for Fiscal The company aims at reaching an overall market share of 8% in the Fiscal year 2014. It also targets to be in a position to take advantage of the emerging markets by enhancing its presence and that of its products in these markets. What do you think is the company’s strategy? The company has a valid strategy, which can work if a viable action plan is made. The plan should involve all stakeholders in the company. The involvement will be necessary to increase market research efficiency to avoid losses associated with entry into new markets.
The capacitation strategies are also important in this realization. Performance Analysis: The overall Nissan performance at a glance in the first quarter of 2014 seems less than expected. It is less than what the company had projected. However, the confidence in the performance is that the company is well aware of the challenges that it faced that deterred the growth and performance. The company has in the past year gone beyond the 8% projection and with the presence in the emerging market and strengthening of the internal structures will make the company reach even higher performance. With the growth and expected engagement in the emerging market, Nissan is capable of performing better in regions where its potential has been felt over time. What measures of performance are Carlos Ghosn and the announcer referring to? The measures of performance that the CEO and the announcer are referring to are the sales, market share growth and the speed at which the company is taking over new markets.
All this is in comparison with the expected or the projected values as well as the performances of the rival companies. What are he and the announcer benchmarking the company’s performance to? The CEO and the announcer are benchmarking the company and its performance on the expected market growth and profit margin, the presence in emerging market and the performance of rival companies especially Toyota and Honda. What is the overall conclusion here?
Do you buy it? Are there any red flags? The conclusion is that despite the low performance in the first quarter of 2014, Nissan is on course of realizing profit.
This conclusion is tricky to agree with. It may be true because the company has had profitable performance in the past. This means that a repeat of the same is possible if the identified problems are solved. However, there are issues related to competition from other companies that may not be solved from the inside. Therefore, the conclusion should not be regarded with utter confidence. Internal Analysis: What are Nissan’s resources that will be deployed in supporting its financial targets? Nisan has enough technological capacity and experience in the field to solve the performance issue and achieve the targets. What are the internal changes that Carlos Ghosn highlights as important in the above? The company aims at having internal evaluation to solve the problems that are identified as the root causes of low performance.
They are useful in bringing up the solutions to improve its marketing issues. The company also aims at putting up a strategy, announcing it beforehand, and later performing to achieve the strategy. What is the overall conclusion here? Do you buy it? Are there any red flags? The conclusion here is that there is a chance for improvement of the company with adequate evaluation of internal threats and making use of the opportunities.
However, in as much as this may be true, the company does little to consider the external environment such as competition and technological challenges. Environmental Analysis: What elements of the environment does Carlos Ghosn identify? The CEO identifies emerging markets, motorization levels and issues related to political, social and economic environment. What countries’ environment does he highlight and what is their outlook? He highlights Thailand, where the company is cautious, but does not intend to stop investment.
In Indonesia, the company is wary of Short-term results and therefore cautious about short term investments. In Russia, the fluctuation of the economy limits short-term investments but in all these countries, there is no concern for mid and long-term investments. What are the challenges and opportunities in these countries/regions? In these regions, there are emerging markets in which the company can take advantage of and establish itself. The challenge however is the low level of motorization and the socioeconomic and political environment. Why was India not mentioned?
India has not been mentioned because Nissan’s presence in the Indian market has so far been successful with the introduction of Datsun. What is the overall conclusion here? Do you buy it? Are there any red flags? The company is exercising due caution I emerging market. I agree with this conclusion. The red flags in this case are unpredictability of the markets in the emerging markets. Work cited Nissan CEO confident on emerging markets, profit revolution http: //www. reuters. com/video/2014/05/13/reuters-tv-nissan-ceo-confident-on-emerging-markets? videoId=312924502&videoChannel=118110