* Views expressed in this report are those of the authors.
COMMGMT 3001INTERNATIONAL MANAGEMENT III
NISSAN IN EUROPE
AUTHORS:MATT WOOLLEYSIANG (CHRISTINE) LOWJOEL IRWINROSLYN HAYNIE
ii
Executive Summary
This report analysed Nissan's operations in Europe. The current vehicle industry inEurope was analysed in detail along with potential cultural differences. The reportthen looked into the internal and external environment which Nissan currently is inwithin Europe. It was found that Nissan is performing relatively well. This isparticularly due to the strong Nissan-Renault alliance that is providing Nissan withconsiderable competitive advantage. However, it was also found that Nissan was atrisk of cultural conflict which could threaten this alliance. Furthermore, it was foundthat the Central and Eastern European markets pose a great opportunity for Nissan inthe region. However, Nissan lacks the diesel technology to compete in the Europeanmarket where diesel is strongly preferred over petrol. Thus, it was recommended thatNissan increase its expenditure on diesel technology and seek to gain competency inthis area through Renault. Finally, it was recommended that Nissan obtain ISO 9001accreditation to ensure that any quality issues with their vehicles are overcome.
1
Contents
EXECUTIVE SUMMARY....................................................................................................................I
CONTENTS............................................................................................................................................1
INTRODUCTION..................................................................................................................................2
R
ENAULT
-N
ISSAN
................................................................................................................................2
CULTURAL DIFFERENCES...............................................................................................................3
COMPETITOR ANALYSIS.................................................................................................................6
INTERNAL AND EXTERNAL ANALYSIS.......................................................................................7
INTERNAL FACTORS.........................................................................................................................7
S
TRENGTHS
.........................................................................................................................................7
Global Financial Position
..............................................................................................................7
Manufacturing Processes
..............................................................................................................9
Local Management Development Programs
.................................................................................9
Partnership with Renault
.............................................................................................................10
W
EAKNESSES
....................................................................................................................................11
Product Recalls
............................................................................................................................11
Lack of Diesel Technology
...........................................................................................................11
EXTERNAL FACTORS......................................................................................................................13
O
PPORTUNITIES
................................................................................................................................13
Eastern and Central Europe
........................................................................................................13
Renault-Nissan Purchasing Organisation
..................................................................................13
Distribution Network
....................................................................................................................13
T
HREATS
...........................................................................................................................................14
Market Saturation
........................................................................................................................14
Cross-Cultural Disharmony
.........................................................................................................14
Commodity Prices
........................................................................................................................14
Competitive Rivalry
......................................................................................................................15
RECOMMENDATIONS.....................................................................................................................17
APPENDIX A – INTERNAL FACTOR ANALYSIS SUMMARY (IFAS).....................................21
APPENDIX B – EXTERNAL FACTOR ANALYSIS SUMMARY (EFAS)...................................22
APPENDIX C - MEETING MINUTES AND COMMUNICATION SUMMARY.............
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