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The automobile industry is one of the most important industries in the world, affecting not only the economy but also the cultures of the world. It provides jobs for millions of people and also generates billions of dollars in worldwide revenues Major changes in automobile industry in the past 5 years : Major changes in automobile industry in the past 5 years The automobile industry directly influences the economies of the United States and other countries around the world. In a typical year, the U.S. automobile industry generates between 12 and 14 percent of manufacturers’ shipments of durable. Automobile production consumes large amounts of iron, steel, aluminium, and natural rubber. The automobile industry also consumes more copper, glass, zinc, and leather, plastic, lead, and platinum than any other U.S. industry. Slide 3: ENRICHING PEOPLE’S LIVES Our vision Enriching people's lives : Our vision Enriching people's lives Nissan’s Mission provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault Nissan Motor Company Ltd (Nissan) is Japanese Company engaged in the automotive industry worldwide. The company and its brands designs, produces and sells more than 3.7 million passenger cars and commercial vehicles in more than 190 countries Slide 5: …………Tracing Back The company was formerly established under the name Jiidosha Seizo Co Ltd. in December 1933. Late in 1934 June the company name was changed to Nissan Motor. Co. Ltd. (Nissan Jidosha Kabushki geisha shortened to Nissan). This accompany earlier marketed vehicles under the "Datsun" brand name. Nissan Model 70 Phaeton, 1938 Slide 6: Today…….. It is a multinational automaker headquartered in Japan. Nissan (Japan) is amongst the top three car manufacturers in Japan and the top five in the world. In 1999, Company joined with Renault SA, a French automobile manufacturer aiming to achieve profitable and balanced growth for the two partners through the creation of a bi-national group. New HQ building under construction(April, 2008) A Nissan dealership in Moncton, Canada Slide 7: The Current CEO of Nissan Charlos Ghosn the current President of Nissan of Japan is a Brazil-born Lebanese businessman. He is mostly accredited for turning around Nissan. As an outsider in charge of one of Japan’s largest companies, Ghosn has been extremely triumphant. He was also voted Man of the Year 2003 by Fortune Magazine. Our first commitment is to quality… and our responsibility is to steer a course through the storm, with focused, disciplined management, and to be poised to grow when economic conditions improve. As we look ahead, we expect our capabilities to continue to be tested Carlos Ghosn is the current CEO and President of Renault of France and Nissan of Japan. Slide 8: Major overseas market for Nissan included Europe, North America, Africa, New Zealand and China. The Company's major production sites are located in Japan, with additional facilities located in the United States, Mexico, the United Kingdom and Spain. Foreign Expansion Strengths and Weaknesses of the Company : Strengths and Weaknesses of the Company Strengths Global Brand: - The popularity of the brand name results in brand loyalty. This in turn helps to drive away other rivals of the same industry. It reduces the pressure created by other competitors. Global Financial position: - One of the biggest strengths of Nissan. This can indicate that Nissan will be able to survive tough economic conditions since its businesses are spread around the world. Renault-Nissan Alliance: -The alliance has provided advantages to both companies. The companies can spread out to new markets with low costs since they don’t have to build new plants. E.g. Renault builds cars in Nissan's Mexico plants and Nissan uses Renault's Brazil plant and distribution networks. Now they have increased purchasing power too excuse now there are two big companies working together, not Nissan alone. The alliance has so far enhance the profitability, market capitalization and sales in 192 countries for both partners Slide 10: Weaknesses Product Innovation time lag; - There have been time lags for their new innovation, especially in the US market. The company was a relative late-comer to the country's high-profit margin and high-volume pick-up markets. Nissan's late entry meant that it has suffered from the decline in the sector as a result of rising fuel prices in the United States. Lack of Diesel Technology: - Diesel technology has been increasingly popular throughout the world as it is said to be reducing fuel emissions and cost. However Nissan lacks the technology and experience to produce diesel engines of comparative quality since demand for diesel engines is low in Japan... Dependence in overseas market: - Nissan produces more vehicle abroad than at home. Increase dependent on overseas production indicating their pace of globalization. However in case of a global economic crisis or a change of government policy in other countries it could mean the home industry could also be affected since it is not stable by its own but dependent on overseas markets. Slide 11: Potential Opportunities Asia market: - Lower penetration coupled with strong rise in income levels, led to continuous jumps in car sales in markets like china and India. Hence it is necessary for global player to be present in these countries. In India in year 2004-05 domestic sales of car and utility vehicles has crossed the 1 million mark. Therefore Asia market will create a huge demand. Relocate its manufacturing unit to reduce cost: - China, India and Thailand have been regarded as the Low Cost Production bases with their unique offering to the outsourcers. Low cost country will provide them the global clientele and technology and also have synergetic operation. Area of opportunity for India lies in the products which have high level of design and engineering requirements, low level of automation and significant assembly requirement. Renault-Nissan Purchasing Organization (RNPO): - The RNPO, was one of the main ways in which Renault-Nissan would combine their resources to create a more competent organization. This has led Nissan to achieve greater purchasing power and has served to reduce costs and reduce the bargaining power of suppliers Slide 12: Potential Threats Cross-Cultural Disharmony: -When the two companies integrate more cross cultural disharmony occurs. If so, overall company performance may be reduced and the current strengths that the Alliance provides may become instabilities. Rising Commodity Prices: - The price of steel used in car production has risen by nearly 30%. As this increase in cost has been passed on to the consumer, demand for new vehicles has reduced Market saturation: - Due to overall market saturation, the individual company new product development strategy towards market expansion is changing from iterative year on year model changes to drastic innovation. The emergence of SUV market few years back is an evidence of how product and market innovation has changed the very composition of US auto market. Various competitors in the automotive industry : Various competitors in the automotive industry Ford : Ford Ford Motor Company was founded in 1903 by Henry Ford. Honda : Honda Honda Motor Co. (HMC) was established by Soichiro Honda in 1946. It originally began producing Motorcycles in the mid 20th century and began manufacturing automobiles (the Honda Civic) in 1972. Toyota : Toyota Toyota was established as a public company in Japan in 1937. It entered the U.S. market in 1957, but only became successful with the introductions of the Corona in 1965 and the Corolla in 1968. Toyota’s success is based largely on its forward-thinking, innovative management style and its rigorous standards of quality. Slide 17: Lotus Cars Final Assembly Line The plans Nissan uses to compete with others : The plans Nissan uses to compete with others In 2012, they are going to be in the main markets in the world with electric cars — both from Nissan and Renault — and it is not going to be one car, we are going to have a product line up. You are going to have a small car for the city, and a family car, and you're going to have a 4-by-4. Nissan Concept Car to Showcase Anti Drunk-Driving Technology : Nissan Concept Car to Showcase Anti Drunk-Driving Technology Nissan has revealed a new concept car featuring multiple preventative features designed to help reduce drunk driving. Alcohol Odor Sensors : Alcohol Odor Sensors A hi-sensitivity alcohol odor sensor is built into the transmission shift knob, which is able to detect the presence of alcohol in the perspiration of the driver's palm as he or she attempts to start driving. Nissan to Test Intelligent Transport System Using Cell Phones : Nissan to Test Intelligent Transport System Using Cell Phones Nissan is developing an advanced Intelligent Transportation System (ITS) employing cellular communications to help reduce accidents involving pedestrians. Nissan Advances Testing of Intelligent Transportation System : Nissan Advances Testing of Intelligent Transportation System Nissan has introduced intelligent transportation system (ITS) project, employing vehicle-to-infrastructure communication that allows synchronized communication between vehicles and traffic light signals. Nissan's New CARWINGS Service Promotes Eco-Driving : Nissan's New CARWINGS Service Promotes Eco-Driving This service will assist drivers to become more conscious of their vehicle’s fuel-efficiency performance by providing them with the average fuel-consumption data according to their day-to-day driving habits, and allows the driver to track and monitor improvements to their eco-driving skills over a period of time. Non-automotive products : Non-automotive products Nissan has also had a number of ventures outside the automotive industry, most notably the Tu-Ka mobile phone service (est. 1994), which was sold to DDI and Japan Telecom (both now merged into KDDI Corporation) in 1999. Nissan also owns Nissan Marine, a joint venture with Tohatsu Corp that produces motors for boats and other maritime equipment. Hr Policies of nissan : Hr Policies of nissan “Nissan we believe our people are the most valuable asset” - Carlos GhosnPresident and Chief Executive OfficerNissan Motor Co., Ltd. The nature of the organization Nissan works under the theme “We call it the Nissan way”. They believe in expanding in their horizons. They claim that Nissan is more than just a great car company. It's a way of doing things that's designed to bring the best out of every employee The Themes they follow under Human Resources : The Themes they follow under Human Resources Cross-cultural/Cross-functional Nissan is about being open and showing empathy towards different views. We welcome Transparent Nissan is about clarity and simplicity, not vagueness and hiding LeanerNissan is about being passionate and seeking to learn from every opportunity CompetitiveNissan is about continuous benchmarking and striving to be "the best in the class". FrugalNissan is about striving to achieve maximum results with minimum resources What the workers should expect from the company : What the workers should expect from the company Nissan offers a strong career development plan to help employees achieve their goals and reach their career aspirations. They provide ample opportunities for the workers to work on your their initiative as well as cross-functionally and within an international environment. Life at Nissan presents exciting new challenges every day for those who are keen to grow and who are hungry to learn. To meet our ambitious targets, we need highly motivated people with drive and commitment to thrive in a fast-moving environment What the company expects of them? : What the company expects of them? Company expects all type of diversity from their workers. Diversity isn’t limited to gender issues nationality, age, personal values and lifestyle are all areas of continuing interest to us, and addressing the issues surrounding them can produce great value for the organization. Naturally, we felt that tackling gender issues was a logical first step. Business Ethics : Business Ethics The new business plan, known as Nissan GT 2012, begins in fiscal year 2008. The “GT” name stands for growth and trust. During this five year plan Nissan GT 2012 will focus the company’s efforts on long-term performance and their responsibilities to stakeholders as Nissan becomes truly global business. Information Technology : Information Technology Nissan motor manufacturing in UK relies heavily on Information Technology to function. Computer-controlled robots and other machinery, particularly in the Body Shop, are vital to production. These machines are maintained and controlled by specialist engineering teams. Thank You For Your Cooperation : Thank You For Your Cooperation THE END…… : THE END…… You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.