Case Analysis
Case Analysis
Case Analysis
Jeramie G. Alag
Summary
The competition in automotive industry is existing for decades now. Many companies
and organizations launch new innovations for the design, manufacturing, marketing and
selling of motor vehicles. This industry known to be one of the world’s largest economic
sectors of revenue, except from the industries dedicated to vehicle maintenance,
deliveries, repair and fuel refilling.
In this kind of scenario, it can bring struggle not only to the consumers but also to the
companies. There is a huge risk that could lead to over production or decline of the
market. There are many companies competing to sell and produce products according
to the market’s demand that is why a strategy must be formulated in order for these
companies to survive.
After the huge success of their main factory that was dated back in 1986 when they
first launched their Bluebird Model, NMUK continued to produce other models. On
1991 they launched their first and official car, P10 Primera which turned the plant’s first
profit of 18.4 million euros. Last 2003, NMUK produced 331,924 vehicles, and 70% of
the output was exported worldwide. The reason behind the success of Nissan Motor
Manufacturing (UK) Ltd, or NMUK is no miracle. They implemented what they think
were the best strategies that could help them attain there goals. From the location,
production and management of employees, NMUK made sure that they know what
they are doing.
They chose Sunderland as a location for the car plant for its easy access to good roads
and rail links to all major UK areas. The fact that the site was also near the Port of Tyne
makes it easy to import vehicles to UK and to export to possible markets.
Manufacturing was already a part of tradition in the area which makes it easy to find
skilled workers for the company. Government also plays a role in this set up by
providing financial and incentives to manufacturers that could provide employment
opportunities to the locals.
Under NMUK are four (4) other sites responsible in keeping NMUK one of the most
productive subsidiaries of Nissan Motor Company.
1. Nissan Design Europe (NDE) - This Nissan subdivision is responsible for detailing and
designing product not only for the European Market but also for the global design
2. Nissan Technical Centre Europe (NTCE) - This Nissan subdivision in Cranfield, is one of
Nissan’s development centers that focuses on the engineering performance and
classification of product for its market. It also concentrates on European customers
requirements.
3. Nissan Motor (GB) Ltd (NMGB) - Stands as the sales and marketing division for UK
The strategy that made a huge impact on NMUK’s success is their use of Total Quality
Management (TQM). Nissan believes that “Going for quality” emphasizes “building
good quality in” rather than “inspecting poor quality out” which means, by making sure
that the quality of the product is good they could avoid throwing out poor quality
output that was invested money on. In short, by applying this principle they can avoid
the risk of losing too much from the production.
Therefore, what Nissan did to their subsidiaries is an example of how people and
machines work together if there is an improvement culture.
S.W.O.T. Analysis
Strengths Weaknesses
*Location *Misunderstandings
Opportunities Threats
Questions
1. Enumerate and describe, with examples, which critical components of total quality
management did Nissan use in its operations?
2. Research on Nissan’s vision and mission. How did they incorporated these in the
company?
3. What are the core values that can be seen in Nissan;s total quality management? Use
examples to defend your answers.
4. Describe how Nissan used just in time management to ensure quality in its products.