Temple College How Nissan Should Compete in The Automobile Industry Report Analysis Exercises Critical analyses must be a maximumof three pages in length;

Temple College How Nissan Should Compete in The Automobile Industry Report Analysis Exercises Critical analyses must be a maximumof three pages in length; only the first three pages will beread and evaluated by the instructor. You will identify the problem or opportunity and discuss a viable solution based on your analysis of the case.

The general structure of all critical analyses:

1.Describe the business situation, including the macro-environmental and micro-environmental conditions facing the organization.

2.Develop the problem statement: the opportunity or threat facing the organization.

3.What alternative strategies and programs would you consider to deal with the opportunity or threat to the organization? Present each alternative in sufficient detail to give the reader an idea of why it may be beneficial.

4.Recommend one or more of the alternatives you have identified. Inform the reader of your reasons for these recommendations.

5.Describe tracking metrics to determine whether your recommended strategies and programs are effective. Be sure to include both intermediate metricsand conclusive metricsto guide management’s redirection of ineffective strategies.

6.Summarize what you have learned from your critical analysis.

You are encouraged to do external research on the industry or the company as a context for your analysis. In-text source citations (Author Last Name(s), Year) and a comprehensive bibliography in APA styleare required. Your report must include the focal reading plus at least three references in addition to the company’s website or Wikipedia. Nissan Cuts Forecast as Recovery Bid Sputters
McLain, Sean . Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Nov 2019: B.1.
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YOKOHAMA, Japan — Nissan Motor Co. slashed its business outlook after reporting another quarter of declining
sales and profit.
The results released Tuesday showed the car maker struggling to overhaul its operations amid a downturn in the
global auto industry and turmoil within the company in the year since the arrest of former Chairman Carlos Ghosn.
The company cut its operating profit forecast for the 12 months ending March 2020 by more than a third to 150
billion yen ($1.37 billion) in part because of disappointing sales in the fiscal year so far.
The company trimmed its full-year sales forecast by 300,000 vehicles to 5.24 million, and said it expected annual
revenue of about $97 billion, down more than $6 billion from its previous projection.
China has proved especially painful for Nissan. In May, the company said it would boost sales in China to offset
declines in the U.S. Now it expects declines in both countries.
While U.S. sales fell in the July-September quarter, the company is seeing the first signs of a turnaround, said
Stephen Ma, the Nissan executive tapped to take over as chief financial officer next month.
Mr. Ma said operating profit in the U.S. was nearly flat, meaning Nissan’s plan to boost how much it makes on
each vehicle sale is working.
“It’s going in the right direction. With the new Versa and also new Sentra, and new models coming this year, I
expect these trends to continue going forward,” he said.
However, the U.S. market has continued to skew toward trucks and sport-utility vehicles, making it hard for
companies to profit from small cars like the Versa and Sentra. And although Nissan lowered its operating-profit
forecast for the current fiscal year, through six months it was only about one-fifth of the way.
Nissan said operating profit for its fiscal second quarter fell 70% from a year earlier to $274 million. Revenue
slumped 6.6% to $24 billion, as sales declined 7.5% to 1.27 million vehicles.
Nissan in July announced broad production cuts and plans to lay off around 9% of its global staff. Asked whether
further cuts were needed, Mr. Ma said the company would assess the matter factoring in its reduced sales outlook.
Nissan’s weak performance comes amid an overhaul of its top management. In September, the company’s board
pushed out Hiroto Saikawa — who as chief executive was the architect of the current turnaround plan — in part over
Nissan’s financial state. A triumvirate of top executives is set to take office Dec. 1.
Nissan said it would hold a shareholder meeting Feb. 18 to add its new executive team to the board. Nissan
partner Renault SA also plans to replace one of its representatives on the Japanese auto maker’s board. Thierry
Bollore, who was ousted as Renault CEO last month, will be replaced as a Nissan director by Pierre Fleuriot, who is
a Renault director.
After the arrest of Mr. Ghosn in late 2018, Mr. Saikawa argued that the company had to undo much of his
predecessor’s legacy. A push for market share had led to an unhealthy reliance on discounts, particularly in the
U.S., and the company’s profitability was in danger of taking a hit unless those discounts stopped, Mr. Saikawa
said. His plan was to sell fewer cars, but make more money on each.
A year later, Nissan’s sales have contracted, but profits have yet to rebound. Mr. Saikawa had said it would likely
take two years to see the results of his turnaround plan.
Credit: By Sean McLain
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DETAILS
Subject:
Automobile industry; Corporate profits; Shareholder meetings; Automobile sales;
Executives; Vehicles
Location:
China United States–US Japan
People:
Ghosn, Carlos Saikawa, Hiroto
Company / organization:
Name: Nissan Motor Co Ltd; NAICS: 336111; Name: Renault SA; NAICS: 336111
Publication title:
Wall Street Journal, Eastern edition; New York, N.Y.
First page:
B.1
Publication year:
2019
Publication date:
Nov 13, 2019
Publisher:
Dow Jones &Company Inc
Place of publication:
New York, N.Y.
Country of publication:
United States, New York, N.Y.
Publication subject:
Business And Economics–Banking And Finance
ISSN:
00999660
Source type:
Newspapers
Language of publication:
English
Document type:
News
ProQuest document ID:
2313869709
Document URL:
http://libproxy.temple.edu/login?url=https://search.proquest.com/docview/2313869
709?accountid=14270
Copyright:
Copyright 2019 Dow Jones &Company, Inc. All Rights Reserved.
Last updated:
2019-11-13
Database:
ABI/INFORM Collection,US Newsstream
LINKS
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How to Do a Critical Analysis?
Purpose: Develop a Plan To Compete
Key Objectives:
a) Identifies Strategy to Pursue
•
•
How Do We Want to Compete
Which Segment(s) to Target/Who Are The Customers?
b) Describes Tactics to Implement the Strategy
c) Describes Metrics to Evaluate Performance
How to Develop A Marketing Plan
Strategy
Tactics
Metrics
2-2
How to Do a Critical Analysis
1. Read the Article Few Times
2. Conduct SWOT Analysis (Search Appropriate Sources
Academia, Google, Wikipedia …)
•
•
Think About Core Competence of the Company
Identify Strength, Weaknesses, Opportunities, and
Threats For the Company
How to Do a Critical Analysis
3. Decide on the Opportunity or Threat You Want to
Address. Identify Alternatives To Resolve the Key
Opportunity or Threat The Company is Facing
•
Strategic Alternatives (Preferred) or Tactical Solutions
(to implement an identified Strategy)
How to Do a Critical Analysis (Continued)
4. Evaluate Solution(s) and Recommend
•
Reason: Strengths and Weaknesses, Core Competence
•
•
•
•
Select a Strategic Alternative Where the Company’s Core
Competence and Strengths is Applicable or a Tactical
Alternative to Improve the Weakness in Implementing the
Strategy.
If No Core Competence/ is Not Applicable Than Identify it as
a Potential Constraints.
No Personal Feelings/Beliefs
Identify What are the Segments and Which Segment(s)
to Target
How to Do a Critical Analysis (Continued)
5. Identify Tracking Mechanisms
•
How Would You Determine If Strategy/Tactics Have
Been Implemented and Goals/Objectives Stated in the
Problem Statement are Met.
Report Write Up/Format (page 1)
1. Background
i.
First (Short) Paragraph Summary of the Article (5
Points )
ii. Next Paragraph: Discuss Few Strength and Few
Weakness (Internal to the Company; 10 points)
iii. Highlight Core Competence (5 points)
iv. Next Paragraph: Discuss Few Opportunity and Threats
(Based on the Changes in the Environment. Conduct
PEST Analysis or Apply Porter Model; 10 Points).
Report Write Up/Format (page 1)
2. Problem Statement
i.
State What is the Purpose of the Critical Analysis?
Conceptually it is About “How Should Company X
Compete in Y Market? Also State Financial Goals to
Achieve From Implementing the Proposed Solution. (5
Points)
Report Write Up/Format (page 2)
3. Propose and Describe Alternatives (at least two) to
Address the Problem and to Achieve the Goal/
Objective Stated in the Problem Statement. (10 Points)
i.
Either: Strategic Alternatives (which strategy to pursue: e.g.
broad cost leader, niche differentiator etc. given in Section
12 of Capsim Users Guide)
ii. or Tactical Alternatives (state the strategy the company is
pursuing and then describe tactical options such as changes
in R&D, marketing, production and finance Decisions).
iii. Note: You Can Propose to Enter a New Market/Introduce
New Product. However, you still need to suggest
Strategic/Tactical Alternatives to Compete.
Report Write Up/Format (page 3)
4. Evaluate Solutions and Recommend an Option
i.
Choose the Solution Where Company Can
Differentiate Through Core Competence.
ii. Describe Why Did You Chose This Solution (10 Points)
iii. Describe how to implement the recommended option.
Use/Apply Tactics Described in Section 12 of Capsim
Users Guide (10 Points)
iv. Identify Segments and point out which segment to
target (10 points).
Report Write Up/Format (page 3)
5. Tracking Metrics
i.
Intermediate Metrics: How would you verify that all
the tactics to be implemented for the proposed
strategy are carried out?(15 Points)
ii. Conclusive Metrics: How would you verify that
financial goal stated in the problem statement is
achieved? (5 Points)
6. Take Away (5 points)
Report Write Up/Format: FYI (page 4)
A.
Format: 3 pages maximum + a reference page, double-spaced using standard font
(11 or 12 pt.). Write Your Full Name, Course Section and Class Time/Day in the
header. Put page numbers, (- 3 points for a different format)
Make sure to use section (Background, Problem Statement.. Metrics) and
subsection titles (Strength, Weakness… Core Competence, Intermediate Metrics)
B.
•
C.
5 points deduction if missing any.
Make sure that strength and weakness are internal (Skills/Something the
company is good/bad at)
•
D.
5 points deduction if not internal
Make sure that opportunities and threats are environment driven (PEST Analysis,
Porter Model).
•
•
•
E.
Discuss how the environment is changing.
Do not focus on what the company could do.
5 points deduction if content is not about changes in the environment
At Least Three Citations APA Format Required (-2 points per missing citation)
•
(Author(s), Year) in text and full citation in reference page (could be the 4th page)

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