ANS TO THE QUE NO 1

Cost and Benefit analysis of several aspects of the Nissan responses that were particularly
beneficial:
Sharing information: - The company decided to send two staff members from each region to
Japan to gather information concerning their interests rather than providing them unwanted
information which could later be misused.
Allocating Supply: - Nissan mainly focuses on high margin goods for allocating supplies instead
of low margin. For example, the supply of Integrated Global Positioning System (GPS) was
confined to high-end models of cars rather than low-end models. This helps in optimal utilization
of scarce resources available, enables manageable supply allocation in different regions and
further enhances revenue generation of the Company during the time of such catastrophe.
Managing Production: - In such a situation, the production process of any Company gets
affected. Hence, Nissan slowed their production upstream and downstream considering
anticipated bottlenecks. This further saved them from costly overtime.
Empowering Action: - The well-developed emergency response plan established beforehand
helped the Company in making quick decisions after the disaster. Foreseeing situations arising
from a major disaster and preparing well for them enabled the Company to take prompt actions
when the time came.