NISSAN MOTOR COMPANY LTD Case Solution
COMPANY OVERVIEW
Nissan Motor Company Limited was founded on December 26 1933. It headquarters are in Nishi-ku, Yokohama, Japan. Nissan serves worldwide; it is a multinational company with production facilities all around the world. It produces cars of various types, Nissan also produces heavy vehicles like trucks and lorries. Until 2003, it operated solely on its own behalf then it entered in many foreign countries in strategic alliances. The alliance between a French motor company and Nissan is the most popular one; before World War 2, American car manufacturers like general motors and ford dominated the Japanese market. However, soon after when Americans left Japan after the Korean War, Japanese Motor industry stood on its feet and from that time until now, Japanese motor industry is the most popular among other global industries like American motor industry. The Japanese motor industry began to hit its stride in the late 1960’s; Nissan had rapidly increased its productions and exports. The export almost accounted for 25% of the Japanese total exports, in all these years, Nissan carried out its operations worldwide through its flexible supply chain structure. The supply chain is flexible because Nissan operates in a very disaster active area, where tsunamis and earthquakes occur very frequently. Since Japan is prone to disasters, thus large companies like Nissan have build their operation management system and supply chain adjusted according to their circumstance, Nissan has continuously worked on its supply chain over the passage of several years to defend itself from any catastrophe.
CASE OVERVIEW
This document is related to how Nissan created value for its customers in spite of several ups and downs, especially when Renault French motor company rescued Nissan from bankruptcy. After facing Japan’s greatest earthquake, this document is also accompanied with theories and techniques, which Nissan has used to achieve competitive edge over its contemporaries and how Nissan has used the concept of sustainability in different aspects of its operations.
VALUE CREATION
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1. HOW THE COMPANY IN THE CASE STUDY USES OPERATION MANAGEMENT FUNCTION AND GENERATED VALUE FOR ITS CUSTOMERS
Nissan has used operation management functions in great depth in various aspects of production and value creation for its customers. Over the years, the company used and tried to perfect itself in business and capacity planning, scheduling, supplier chain improvement, logistics, inventory control, delivery, and supply chain management. Nissan believes that the adoption of various operation management techniques can provide competitive edge and especially after the earthquake in Japan. Nissan has put in place various function like disaster recovery plans, initiatives to stop export parts to various company, and to reduce export of parts by 50% to produce parts in foreign territories in order to speed up production and to ultimately, create value for its customers
In operations management, Nissan involved itself in various designing and reconstruction of its various processes over the years; it also accommodated various strategies and models to create value for its customers..................
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