NISSAN AUTOMOBILE

CASE STUDY ASSIGNMENT

QUALITY MANAGEMENT
GROUP ASSIGNMENT
19.1 UGC
 MGT 2309 – Quality Management
Case Study Assignment
By

Team No: 20
Student/s Name Index No
ARTD Jinadasa 22004021

NMPNN Chathurangi 22004248

WAMP Gunawardhana 22005183

TNK Karunaratne 22005488

LBP Fernando 22005761

EMJA Samarakoon 22002821

JAIA Jayathilaka 22011401

MGDT Manussawa 22002788

NPP Nuwan 22004368

Group assignment
Submitted to the National School of Business Management
In partial fulfillment of requirements for the module of
MGT 2309 – Quality Management
19.1 UGC, 2020
BSc in Business Management
Year 02 Semester 02
Module Lecturer: Ms. Vageesha Rajapaksha

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 DECLARATION

I/ We declare that:

a) Except where due acknowledgement has been made, the work is that of the student/s alone;

b) The work has not been submitted previously, in whole or in part, to qualify for any other
academic award;

c) Any editorial work, paid or unpaid, carried out by a third party is acknowledged; and

d) Procedures and guidelines of the faculty have been followed.

Signature/ e-signature

22004021 - ARTD Jinadasa

22004248 - NMPNN Chathurangi

22005183 - WAMP Gunawardhana

22005488 - TNK Karunaratne

22005761 - LBP Fernando

22002821 - EMJA Samarakoon

22011401 - JAIA Jayathilaka

22002788 - MGDT Manussawa

22004368 - NPP Nuwan

11.09.2020

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 Feedback Form- Group Report submission of Case Study
Team No:

No. Student Name Contribution

Number
01 22004021 ARTD Jinadasa Analytical answers for question no. 1,
Summary
02 22004248 NMPNN Chathurangi Identification of quality management
tools deployed by Nissan automobiles,
Analytical answers for question no. 1
03 22005183 WAMP Gunawardhana Identification of quality management
tools deployed by Nissan automobiles,
Analytical answers for question no. 1
04 22005488 TNK Karunaratne Introduction to Nissan in terms of
quality perspectives, Analytical
answers for question no. 2,
05 22005761 LBP Fernando Analytical answers for question no. 3
06 22002821 EMJA Samarakoon Analytical answers for question no. 3
07 22011401 JAIA Jayathilaka Analytical answers for question no. 2
08 22002788 MGDT Manussawa Analytical answers for question no. 2
09 22004368 NPP Nuwan Analytical answers for question no. 3

Total Marks
Evaluation Criteria – Group Report
Marks (%) Obtained

1. Introduction to Nissan- in terms of quality perspectives 5

2. Identification of quality management tools deployed by Nissan

Automobiles 10

3. Analytical answer for Case Study Question 1 30

4. Analytical answer for Case Study Question 2 20

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5. Analytical answer for Case Study Question 3 20

6. Formatting of the report 5

5. Referencing 10

Other Comments

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Acknowledgement

The completion of this assignment could not have been possible without the participation and
assistance of so many people. We would like to express our special thanks and gratitude to
our lecturer Ms. Vageesha Rajapaksha who gave us this opportunity to do this assignment of
quality management on analyzing the case study of the Nissan automobiles and answering
the questions covering the two areas namely the introduction to Nissan in terms of quality
perspectives and identification of quality management tools deployed by Nissan automobiles
and this assignment cannot be completed without the effort and corporation from our group
members. Their efforts are warmly embraced and gratefully acknowledged. Finally, we
would like to dedicate this report as an appreciation for all your support.

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Contents
1. Introduction
1.1 Introduction to Nissan- in terms of quality perspectives…………………………………7
1.2 Identification of quality management tools deployed by Nissan Automobiles…………10
2. Case Study Analysis
2.1 Analytical Answers for Question No. 1…………………………………………….13
2.2 Analytical Answers for Question No. 2
2.2.1 Leadership ……………………………………………………………………21
2.2.2 Commitment………………………………………………………………….23
2.2.3 Strategic requirements………………………………………………………..27
2.3 Analytical Answers for Question No. 3…………………………………………….31
3. Summary………………………………………………………………………………...36

4. References……………………………………………………………………………….37

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1. Introduction

1.1 Introduction to Nissan- in terms of quality perspectives

Nissan is a Japanese multinational automotive producer located in Nishi-Ku, Yokohama.
Nissan Motor Company Ltd. is the sixth-largest automotive company among the automotive
industries, after Toyota, General Motors, Volkswagen, Hyundai Motor Group, and Ford.
Yoshisuke Aikawa established this automotive industry in 1928 and the name Nissan
emerged during the 1930s. The business produces automobiles under the names of Nissan,
Infiniti, and Datsun.

The company develops and sells more than 3.7 million automobiles in over 180 countries
worldwide. The Firm is engaged in the manufacture and selling of passenger cars, as well as
the procurement of automotive parts, heavy automobiles, and equipment such as trucks,
coaches, aircraft, buses, engines, construction machinery, and marine appliances. It works
through Japan, Canada, the United States, Mexico, South Africa, Australia, New Zealand,
the Middle East, and Asia.

By developing a new business strategy, Nissan intends to expand and increase its market
share so as to be more competitive not just in the domestic market but also in the international
market in the future. In 1999 Nissan was partnered with Renault, and in 2016 with Mitsubishi.

Nissan is a Japanese industry leader in Russia, Mexico, and China. Nissan is the world's
largest producer of electric cars with worldwide sales of moreover 320 000 as well as the
top-selling product in the fully electric range of the auto manufacturer is the Nissan Leaf
which is a highway-capable electric vehicle plug-in in history. Nissan cars were marketed
under the Datsun name in most foreign markets, and premium versions under the Infiniti
name.

Vision – “Enriching people’s lives”

Mission – “As a company worthy of trust, Nissan Corporate Mission is providing unique
and innovative automotive products and services that deliver superior measurable
value to all stakeholders.”

Performance has multiple facets of it. Nissan aims to offer high-quality consumer service at
all levels. To accomplish this, Nissan follows a successful, cross-functional, and cross-

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regional, company-wide partnership. The business focuses on both product quality and
quality of sales and service, with the goal of achieving the highest level in each field
internationally.

A vehicle's product consistency is important for a consumer to use it in a safe and convenient
way for the foreseeable future. Nissan strives to offer a high-quality standard that satisfies
consumer needs over a vehicle's entire lifecycle. Nissan integrates expected consistency,
initial reliability, and longevity into product design. Quality management efforts cover a
vehicle's entire lifecycle, from planning and design to R&D, production, delivery, storage,
and after-sales support.

Nissan reviews third-party standard survey results to be used as internal indexes and makes
adjustments during the PDCA period (planning, doing, testing, and acting). This
encompasses the expected consistency when a buyer opens the door of the car in the
showroom, sits in the seat, and takes a test drive; the original consistency in the first year
after purchase; and the reliability that persists even after several years of use. Under Nissan
Power 88's quality enhancement targets, render Infiniti a leading premium brand, and render
Nissan an FY2016 world-leading car brand.

Nissan is also introducing measures to improve customer loyalty in the field of quality of
product and service. The business strives to meet requirements by visiting dealerships at any
customer touchpoint, acquiring a vehicle, and providing repairs until the customer wishes to
upgrade the vehicle. Accomplish Top-Level Output by FY2016 in all target markets. Nissan
aims to boost customer loyalty by successfully monitoring the quality of products and support
at distribution firms in large national markets around the world.

Centered on the ideals of Nissan Sales and Service Way, the company's aim is to reach top-
level customer satisfaction in 16 main domestic markets like Japan, the United States, and
major European markets, thus improving its brand reputation worldwide. In its pursuit of
customer loyalty, Nissan listens to clients and incorporates their input in the company-wide
process.

To further boost overall customer loyalty, Nissan has revised its Quality Management System
(QMS) to enhance its delivery process, led by executives responsible for ensuring
consistency. Thus the control system clarifies accountability for a wide array of product

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products. It encourages programs that not only improve the consistency of Nissan's products
but also provide for cross-functional control of manufacturing and service operations, the
production process, and part suppliers. This helps Nissan to deliver top-level quality and will
impress consumers in any way.

Quality is a way of showing how Nissan communicates effectively with its consumers. The
goal is to offer the service customers demand and react promptly if they are not happy. The
business listens to all input, representing it in quality management steps at all levels – from
product design and production to after-sales service. Employees who purchase Nissan
vehicles are significant owners and consumers too. The organization is aggressively pursuing
its opinions on consistency for incorporation into the measures for change.

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1.2 Identification of quality management tools deployed by Nissan
Automobiles

A specified collection of graphic methods defined as being most useful in addressing quality-
related problems is commonly referred to as quality tools. There are seven quality tools under
quality management and Nissan Motor Company Ltd. Uses multiple instruments out of
seven, including cause and effect diagrams, control charts, Pareto charts, and scatter plots.

A structured approach to cause and effect diagrams helps simplify problem-solving strategies
by defining groups of causes that may cause issues.

In the above diagram, Nissan Motor Company Ltd. has analyzed the cause and effect diagram
in order where the main problems arise due to legislation, policy, organization, people,
special usage, price, and product. Climate change, tax compliance, minimum wage rate,
property tax, H and SE compliance are sub problems of legislation. In price, the sub problems
of Nissan are inflation, LCC sourcing, global sourcing, Value for money, and benchmark are
some of them. In the organization, the scope, global function, outsourcing, on-site suppliers
are some of the sub problems.

The control charts are used for determining whether a mechanism works within the standards
set. It has a centerline, upper limit of control, and a lower limit of control. Observed values
between the upper limit of control and the lower limit of control suggest the mechanism is
under control. The diagram below helps to define the monthly progress against each objective
and also helps to identify patterns. This indicates that the third model master plan is achieving
100% of critical items related to production control.

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Pareto maps are used to classify the issues to be addressed and to prioritize them. This is
reinforced by the 80/20 law that states that 80% of the dollar deficit caused 20% of the quality
problems.

The above diagrams elaborate on how the overhead performance of NMUK has influenced
the automobile industry within the years 2006 to 2007 and the overhead costs business plan
of FY2007 has influenced the weighted volume and cost per car.

The scatter diagrams illustrate how two variables interrelate. The below diagrams illustrates
the scatter plots of Nissan Motor Company Ltd. relevant to the results of control items. LCV
retail cumulative shows a positive upward-sloping relationship and LCV market share
cumulative shows a downward sloping relationship.

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2. Case Study Analysis
2.1 Analytical Answers for Question No. 1
Introduction to Nissan

Nissan may be the biggest multinational car producer. This company offers its cars beneath
the brands of Nissan, Infinity, and Datsun. Nissan is the sixth largest automobile corporation
in the industry. Nissan could be a company that continuously primarily center on the
customers. So, they do everything to make customers the main. Nissan continuously makes
decisions by considering the care, exactness, and quality of almost the product because
eventually, it is at long last for the customer. So, at each point within the production, they
center on the quality. When we consider approximately the quality in Nissan it starts from
the exceptionally starting. At each point in their generation, they consider the quality. They
always consider almost the consolation, the strength, and the technology of the generation
and reach the quality to the most noteworthy point. Since their point is to achieve the entire
client fulfillment. Nissan’s point of the TQM (add up to quality management) is in line with
the corporate destinations and to drive the commerce success.

Nissan TQM fundamentally comprise with standards like quality, to begin with, they
continuously ensure the quality of each and each step of generation, indeed the quality for
the services after the item conveyed to the client. And they continuously work with the facts
and information, continuously regard individuals, and utilize PDCA (Arrange, Do, Check,
and Act). Nissan includes a great corporate vision and a corporate mission. Nissan
continuously works by thinking that the quality is all almost the belief. They put the client at
the center of the company and construct the belief between them and the client. Continuously
the Nissan quality isn't as it were almost the conclusion item it is included in each viewpoint.

Nissan’s TQM objective management (Hoshin Kanri approach)

Nissan’s TQM objective administration handle is the Hoshin Kanri based approach of
objectives administration. When we consider this approach which is called the Hoshin Kanri
approach, this can be a strategy for a guarantee that the key objectives of a company drive to
advance and activity at each level inside the company. This approach will kill the squander
that happens due to destitute communication and destitute control. This approach will offer
assistance to induce each worker to the same course at the same time. It accomplishes this by

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adjusting the objectives of the company with the plans of the management and the work
performed by all employees.

When actualizing the Hoshin Kanri approach, there are a few normal sets of implementation
steps,

Step 1 – Make a vital arrangement. This Hoshin Kanri based approach is beginning by
preparing a vital arrange which is like a yearly arrangement. And this key arrangement is
prepared by the best administration of the company. When creating the key plan only a few
key things are considered and it is as it was addressed to a little range. When considering
around a little region and have a little number of objectives will make victory less demanding
than attempting difficult to attain part of the objectives. And will back the company to
achieve the objectives in a viable and effective way.

Step 2 – Develop strategies. Typically planning a few arrange with respect to the overall
strategic plans arranged by the best administration. These strategy plans are arranged by the
center administration at an office level and this will be the best method to achieve the
objectives. In this handle, there's a most critical angle which is called “Catch ball”. Usually,
a backward and forward trade with the best administration to ensure that the key plans are
unequivocally caught on and there's a strong relationship between the vital plans and strategic
plans. But moving forward with there will be a few changes and tactics that may alter in
arrange to satisfy the strategy, so it is exceptionally imperative to have adaptability and
versatility inside the method in order to make changes with the changes happen remotely and
inside.

Step 3 – Take activities. At the most reduced level of the company, the administrators and
team leaders who are the lower-level directors will work out to actualize the strategic plans
and strategies and make them work through workers. In this level, the plans and the objectives
are changed into comes about. So, it is exceptionally vital to be more closely work with this
level.

Step 4 – Audit and Alter. It is exceptionally critical to audit the advance and the results at
each point. Since in case something has gone off-base will affect the ultimate result. So, it is
exceptionally vital to audit and assesses. In the event that something has gone off-base at that

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point, the management ought to take quick activities to recoup it. The advance can be
evaluated ceaselessly or in a customary premise.

Strategic plans Mid-term plans Overall management

(Annual objectives) Systems

Those are the steps include within the usage of the Hoshin Kanri approach to an organization.
When we consider almost how Nissan has actualized this Hoshin Kari approach to their
company, usually the way that they are outlined to explain and clarify what they want to
attain and how they progressing to accomplish it. In this prepare they take after some
principles like:

 They continuously center on the advance and the results.

 Prioritize the imperative few objectives
 Beat down/ foot up
 Continuously center for truths and data
 Continuously be with the ways of how to achieve
 Teamwork

All these standards are done through the Hoshin Kanri approach. When accomplishing the
victory of the trade they distinguished the arrangement management and schedule
administration targets. In arrange to realize arrangement management objectives they had
4Ms which are the Man, Fabric, Strategy, and Machines. With that, they had cross-useful
back to realize the approach administration objectives. And to attain the schedule goals they
were utilizing the current assets efficiently and viably with other supporting systems. The
TQM destinations administration preparation is comprising of six steps. Which describes
how they actualizing the Hoshin Kanri approach in their trade. Those are,

Step 1 – Select breakthrough issues

Step 2 – Create annual objectives plans

Step 3 – Implementation planning

Step 4 – Implementation

Step 5 - Diagnosis
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Step 6 – Actions.

In this way is the way digger they actualize the Hoshin Kanri approach in their company.
When executing the Hoshin Kanri approach they taken after the Arrange – Do – Study – Act
cycle at the side of the approach. This cycle portrays the exercises that ought to be performed
to consolidate persistent enhancement into the operation.

The plan includes distinguishing reason, issue, speculations, and putting arrange into action.
Do is begin to execute your activity arrange. In this sage, it is imperative to gather the relevant
data that needed to assist you once you are assessing the process. The study is utilizing the
point explanation drafted within the “plan” organize, information assembled within the “do”
stage, and determine whether the planed comes about is accomplished or not. The Act
organize will reflect on arranging and result. On the off chance that you have got achieve the
planned outcome at that point standardized it and take into customary utilize. In the event
that not take quick actions to recoup about and expel the issues and proceed the method until
it reaches the planned comes about. This is often the way that how Nissan has executed the
Hoshin Kanri approach and achieve trade victory.

Executing the Hoshin Kanri approach in Softlogic holdings (Health care – Asiri medical
hospital)

Even Nissan may be a multinational car producer this Hoshin Kanri approach that they have
executed for TQM can be connected for the wellbeing care segment. We take an illustration
of such as health care in Sri Lanka, “Softlogic Clinics Sri Lanka”. Softlogic clinics one of
the biggest private healing center chains in Sri Lanka. They have created a chain of healing
centers over the nation. Indeed, Softlogic Clinics giving a service Hoshin Kanri approach can
be actualized to attain the whole quality. Where TQM is basic and persistently moving

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forward exertion by everybody in an organization to get it, meet and surpass the desire of
clients

So, when we consider approximately the actualizing Hoshin Kanri approach, we can
implement the way that Nissan has execute the approach to their organization. Even in spite
of the fact that the Softlogic. Healing centers are driving private clinics there will be some
errors that will happen at a few focuses in their conveyance of benefit. But this Hoshin Kanri
approach will be distant better; a much better; a higher; a stronger; an improved" a much
better way of accomplishing TQM. Soflogic Healing centers give health care offices to the
clients and it is exceptionally vital to construct the belief between the customers and them.
In arrange to that it is exceptionally imperative to supply a zero-error service to the client in
arrange to surpass the client’s desires and construct the trust that the client having therapeutic
care from Softlogic healing centers. This can be accomplished by actualizing the Hoshin
Kanri approach as the way that the Nissan implement.

Select breakthrough issues

The primary step in executing the approach is to select breakthrough issues. Beneath that
ought Softlogic, to begin with, the sources they have. Softlogic has a corporate vision and
mission.

Vision – “To convert into a client-centric healthcare arrangements supplier and be Sri
Lanka’s biggest and most trusted healthcare items organization through sustainable
partnerships.”

Mission – “To enthusiastically convey exceptional items and administrations in this way
enriching the lives of our clients and making predominant esteem to our shareholders. In this
step, they are planning vital plans, mid-term plans, and survey the current year yearly goals.
A few of their vital plans are like.”

 They need to be a national pioneer in individual and wellbeing care solutions.

 Contributing to development businesses with potential for prevalent esteem creation.
 Setting up a territorial impression through a group of enthusiastic, able, and
empowered individuals.
To attain their plans, they will plan a few mid-term plans. They have different
departments like research facility administrations, OPD administrations, specialist
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 channeling administrations and they have surgery facilities, etc. so in arrange to attain
key plans each department is making mid-term plans to realize their primary
objectives. And the midterm plans should be in affix with the universal strategic
plans. Then it is prime to identify the SWOT analysis and PESTEL analysis. SWOT
stands for strengths, weaknesses, opportunities, and threats is an analytical structure
that helps to identify the internal and external positive and negative factors that affect
them. SWOT analysis for the Softlogic:

Strengths:

 They have a well knowledgeable, qualified board of directors and management.

 Excellently-trained sales and marketing groups.

 Well experienced doctors.

Weaknesses:

 The distribution network of pharmaceuticals is not enough to cover a huge area.

Opportunities:

 They have a wide range of services that have the ability to cover different sectors.

 Internationally recognized company and can have the ability to attract more
customers and suppliers.

Threats:

 Have to compete with powerful companies and the PESTEL analysis is a tool that
analyzes the outside factors like political, economic, social, technological,
environmental, and legal.

Political – tax policies, labor law

Economic – Economic growth, interest rates
Social – age, technological changes, health problems
Technological – technological changes Environmental – weather changes
Legal – health and safety law, consumer law

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Then softlogic should prepare objectives strategy proposal sheets (OSP sheets). These are
essential to clarify the objectives and targets to achieve. Under the OSP sheets, Softlogic
identifies the current situation and identify the targets proposed and the gap between the
targets and current position. And then analyzing the data collected.

Create annual objective plans

Here, the development of an overall policy declaration that includes all objectives and
strategies. It will show what to achieve and the results should achieve will be shown. For this
process another approach called SMART where it stands for Smart, Quantifiable,
Achievable, practical, and Timely.

Nissan was a company that every time focus on the results. Like they always evaluate the
result in each activity. So likewise, if Softlogic also mainly focuses on the results it will be
better to achieve the targets. And by learning through results will lead to being more accurate
in their service. And customer satisfaction will be exceeded.

Implementation planning and implementation

Then the next step is implementation planning and implementation. In this stage, the strategic
plans will be separated into small tasks with clear task descriptions. Here will do like
matching the tasks with the skills and responsibilities. And then there will be some master
schedules to monitor the progress and the results. By doing this the concentration for each
and every task will increase productivity. As an example channeling a doctor in this activity
can be broken into small tasks like scheduling the time that doctor arrive the hospital and
when a patient asks to channel give them correct time to come to the hospital and give a
number to patients and orderly coordinate them with the doctor like in that there are so many
tasks to fulfill the final goals and objectives.

Recognition

Then the diagnosis. The diagnosis is done by reviewing objectives, strategies, targets, and
tasks using review documents. Diagnosis can be done continuously or in a regular manner
like daily, weekly, monthly, or even per year its diagnosis can be done.

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Action

Then the last step of the Hoshin Kanri approaches in action. Where take obligatory actions
were to take actions that identified by the diagnosis process. If something went wrong take
obligatory actions to recover it. Here Softlogic can apply some systematic approaches to
answer problems, analyses the current conditions continuously, identify the causes for the
deviation, take obligatory actions to the cause for the deviation, etc. These kinds of activities
can be taken to recover the deviations. This is the way that the Hoshin Kanri approach applies
to the health care sector. It is the best method to attain total quality with total customer
satisfaction.

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2.2 Analytical Answers for Question No. 2

2.2.1 Leadership

Leadership is the opportunity to make a positive influence on individuals and processes, and
to achieve results with a meaningful impact. Leadership has a significant role to play in such
a dynamic business environment, with economic, political, and cultural impact on business
recently ensuring the implications that leadership styles can have on the performance of the
organization. The role of management and leadership in an organization, when other
organizations are unable or unwilling to change their policies, will lead it to evolve and
execute effective strategies under various economic circumstances.

Reducing procurement prices by 20% was another way that Nissan increased performance,
which was done by lowering the number of vendors and making larger orders. Poor delivery
was also responsible for Nissan's downturn, and Ghosn eliminated dealerships by 10%. Brand
loyalty is very important in Japan and determined by powerful customer relationships which
have been a tradeoff for the lowering of dealerships to make them more entrepreneurial than
business social roles.

Human relations have been improved by not providing guarantees for a lifetime of work and
not complying to the systems of seniority that have been in place for high job performance,
which have led to the replacement of poor middle management with highly qualified
replacements.

Structural leadership needs a managerial capacity to predict and forecast transition while
retaining stability and enabling others to handle strategic change as required. Successful
strategic leaders need to be able to handle projects efficiently, maintain good efficiency, make
appropriate decisions than their rivals, and make proactive and rational decisions. They will
consider how their choices impact organizational processes, and value colleagues and
workers' opinions on their actions and goals.

Ghosn has demonstrated his technical expertise in lowering the amount of power train
combinations and car platforms due to his knowledge of the procedures followed. This
demonstrates its strategic leadership in successfully controlling activities and maintaining
better efficiency.

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Interpersonal skills have been demonstrated when devoting cross-functional teams to the
identification and eradication of business issues. Changing from the seniority system to the
merit pay system also proved his strong interpersonal skills as taking one away but replacing
the loss with something productive and efficient.

Conceptual skills have been proven in his potential to lower the cost of production by as
much as 20 percent by reducing factories, employees, suppliers, and dealers, and attempting
to keep these cost-cutting measures a beneficial spin. This demonstrated his ability to make
better choices than his Japanese rivals, and thus be a successful strategic leader.

A transformational leader is someone who recognizes the change required, inspires the team
to assist in creating a vision to guide, and implements change with the commitment of the
adherents. Ghosn was a transformational leader as he introduced the four l's into his style of
leadership. By putting his job at risk, Ghosn managed to obtain idealized influence by making
a massive commitment to the goals he established. This is a charismatic and self-assured
thing that might have firmly established the belief that he was superiorly competent and
capable.

Ghosn specifically set inspiring incentive as he made his goal clear and confident as he
launched them all at once while trying to prevent leaks in order to eliminate feedback without
realizing. Employees would also have been motivated by the merit pay scheme, as they would
presently realize they could get recognition and promotion for reasons other than seniority.
Ghosn succeeded in installing intellectual stimulation for its employees by using cross-
functional teams that enabled them to be creative and imaginative in their methodology
compared with the previous positions.

Ghosn stars with an autocratic way of making numerous judgments on its own to take the
initial steps to commence with. The justification for the implications of leadership theories
on Nissan case strategic decisions and how leadership style can be tailored to different
circumstances:

Autocratic style

 Focused power
 All interactions moved towards Ghosn.
 The leader makes decisions and has the policy-making authority.
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  Ghosn grabbed the wheel in a package of autocratic judgments.
 The Board has been downsized from 37 members to 10.
 The English language must be mastered by the employees of the organization.

Laissez style

 He began to transform his styles of leadership into laissez-faire by granting them the
freedom to choose the members of the committee themselves.
 Make a decision to transfer the concentration on authority to members.
 Individuals are allowed to make decisions that appropriately belong to management.
 He selected 10 individuals to ignore intense discussion where former Renault
managers are familiar with the process appropriate to the CFTS.

Following the track after executing his Nissan recovery plan and including so many diverse
identities in the managerial base, it is recommended that seminars are conducted were both
1st line and 2nd line manager attend to establish an integrated value atmosphere around the
industry. The workshop would incorporate a variety of educational elements including a
leadership intervention focused on communicating ideal behaviors. One to one leadership
training in communication methodology and a review of what factors will be needed to build
a more successful and productive culture.

2.2.2 Commitment

The employees of Nissan automobile are committed to reducing downtime and ensuring
everything possible to keep the automobiles in excellent working conditions which means
stocking the right parts required by the customer to keep the automobile on the track as they
have partnered with commercial certified parts and service dealers.

The commitment provided by Nissan’s customers is identified as Nissan’s customer promise.

Following are the promises made by Nissan,

 Respect customers’ time.

 Marketing products and services honestly.
 Employing professional, well-trained, and knowledgeable staff.
 Ensure a clean, convenient, and new facility.

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  Offering only products and services that meet customer needs.
 Providing clear explanations of all pricing and paperwork.
 Delivering the vehicles clean with a full explanation of features.
 Treating the customers as a guest.

Nissan is committed to making electric vehicles more accessible to more customers as this
future of mobility fast approaches that lead to a reduction in environmental pollution.

Nissan’s strong commitment to recycling

It was revealed that Nissan's efforts at recycling and recovery in Japan are well ahead of local
target values and also the company is set to strengthen its commitment over the coming years.
Nissan recovered 97.2% of Automobile Shredder Residue (ASR) between April 2013 and
March 2014, the mix of materials left over when a vehicle emerges from an auto shredder.
This represents more than 112,000 tons of recovered material and is the eighth consecutive
year that Nissan has outperformed Japan's legal ASR recovery target rate of 70% in 2015.
The Group also managed to completely eliminate ASR-related landfill and incineration
disposals for the second consecutive year, choosing instead to utilize ASR recycling
facilities. The recovery ratio of Nissan for end-of-life vehicles (ELVs) is now 99.5%. The
company will continue to improve its ELV recycling efforts in the next few years in line with
the Nissan Green Program 2016, working towards achieving an ASR recovery ratio of 100%.

Zero-emission leadership

 Nissan is guiding the pack into a zero-emission society.

Nissan perceives zero-emission vehicle introduction and adoption as one of the key elements
of their business strategy. They take a comprehensive approach that involves boosting zero-
emission vehicle production and sales along with other activities coordinated with a variety
of partners to popularize their utilization. Nissan is committed to becoming a leader in the
zero-emission vehicles industry and they are stepping up their development and production
of zero-emission vehicles, forging numerous zero-emission partnerships with national and
local governments, electricity companies, and other industries to promote zero-emission
mobility and explore how to build the necessary infrastructure by standardizing charging

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methods and secondary usage of recycling of batteries while embracing the new values
represented by them and providing more than just electric vehicles themselves.

 Scenario for CO2 emission volume reduction

The level of CO2 concentration in the atmosphere must be stable below 450 ppm to keep the
average temperature rise in the earth within 2°C. Hence Nissan estimated that by 2050 CO2
emissions from new vehicles would have to be reduced by 90 percent compared to 2000. We
aim to reduce CO2 through enhancements in power sources and energy conversion.

 Assertive use of renewable energy

Since electric vehicles are powered by electricity that can be made from different sources of
energy, it could also be said that this technology is sustainable mobility from a non-
exhaustible resource point of view.

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Commitment towards employees

Nissan intends to create a merit-based workplace where employees are encouraged to

overcome obstacles and can work comfortably and safely. Nissan guarantees employee rights
by requiring all employees to respect other people's human rights and prohibit discrimination
or harassment of others based on race, nationality, gender, religion, age, or other reason.
Employees of Nissan are empowered to report on the discovery of workplace discrimination.
Nissan has three human resource management initiatives, focusing on, a specialized center
of expertise, human resource by function, and human resources by region.

 Facilitating the development of women's careers across the world

The commitment of women, in particular in managerial positions, is necessary for the

provision of diversified value to customers. Nissan is focusing on increasing female
participation at all management levels and providing training to ensure top candidates are
ready to assume greater responsibility. Support for women's career development is provided
in every region where the firm operates. In particular, programs are conducted focusing on
female employees, including training courses on skill-development and networking events.

 Continually Improving Human Resource Systems

Nissan values all skills of the employees and potential outcomes and works continuously to
enhance their human resource capabilities in order to achieve an organization that empowers
employees to accomplish their goals. The assessment-based remuneration system used to
appropriately evaluate employee contributions is organized in a way that empowers them to
set high targets and implement them. The salary of an employee is determined on the basis
of performance assessments that analyze how well the employee accomplished certain goals
and competencies that measure their soft skills, knowledge, and attitude.

 Offering Learning Opportunities

Nissan enforces training programs within the organization that enable employees to acquire
the task- and view-specific skills they need and give them opportunities to boost their
knowledge in the fields of their choice. These measures create a culture of lifelong
improvement at the national level within Nissan.

 Employee Safety and Health Management

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Nissan has implemented a basic health and safety policy since all employees can concentrate
on their work in a secure environment. As a matter of company policy, it gives top priority
to worker safety and to their well-being. Throughout all Nissan sites, both in Japan and
globally, the working conditions relating to workplace safety and health are managed
uniformly as per the basic policy.

 Creating Safe Workplaces

Nissan uses its own treatment strategies for safety management, as well as a risk management
approach to workplace management, to help reduce work environment hazards and avoid
accidents. The Safety Evaluation System (SES) and the Fire Prevention Evaluation System
(F-PES) are two instruments developed internally by Nissan to identify the potential for a
workplace accident.

2.2.3 Strategic requirements

A requirement strategy is a description of how necessities to work are to be completed inside

tasks, divisions, and different kinds of tasks in your association. It is a record that assists with
setting the correct degree of aspiration. The requirement strategy is then a contribution to the
prerequisites plan. The significant pieces of a standard key arrangement incorporate mission,
vision, strengths, weaknesses, opportunities, threats, and objectives.

Effectiveness of the strategic planning techniques.

The key arranging apparatuses and the viability are a lot of significant. The normal pointers
that join redundancy rates, advancement and drop rates, level of the selling of the items,
effectiveness of the administrations, and the information and the yield of the promoting plans.
The outer effectiveness of the organization is identified with the speculation of the
organization. Investigation of the administration limit is another marker for the whole cycle
for the adequacy of the key arranging measure.

Arranging and figuring strategies.

The organization will define the new procedures and it will assist the organization with
carrying prevalence and development to the association. The representatives of the
association and the showcasing individuals need to realize that they need to plan the whole
arrangement as a result of the client inclinations and successful estimating.

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Mission

“As a company worthy of trust, Nissan Corporate Mission is providing unique and
innovative automotive products and services that deliver superior measurable value to
all stakeholders.”

Vision

“Enriching people’s lives.”

Objective

Nissan’s aim is a business accomplishment through customer satisfaction.

SWOT Analysis

 Strengths

The organization's qualities are its deals and circulation cycle and its budgetary development
and execution around the world. Successful alliance with Renault-Nissan which is the long-
lasting automotive alliance at present, effective research and development expenditure
leading to the world's bestselling electric vehicle, a strong presence in the world’s leading
and rapidly evolving automobile market share, procedures of a well-managed organization.

 Weakness
Nissan's shortcoming is its reduction in deals with an incentive in the home market. Its
shortcomings experience been not many with little difficulty in item reviews. Poor marketing
and publicity capabilities leading to poor brand recognition, reminiscent of massive product
in the United States due to safety bag issues.

•Opportunities

Nissan has been cultivating various open doors with the expansion sought after for the zero
emanation vehicles because of which the company has increased worldwide brand
achievement, particularly in the Indian business sectors. The development of the Zero
discharge vehicles is mainstream as it is natural cordial increasing open help and approval. It
has picked up development according to its association methodology with Renault and
Avtovaz. Increasing government regulations commit to the reduction of greenhouse gases
and encourage fuel efficiency initiatives and Nissan takes the advantage of inventing electric
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vehicles, timing, and amplitude of launch of new models and enhancing United States
economy signs of enhancing the economy and rising in customer confidence.

•Threats

There are scarcely any dangers comparable to the profitability of Nissan that follow ascend
in the cost of the crude materials and financial broadening and variances. Notwithstanding,
the significant danger of Nissan being the opposition looked by other automobile
organizations around the world, for example, Volkswagen, Honda, Ford, Toyota, Hyundai,
General Motors, and others have higher budgets and brand recognition and can be easily
expanded in China. The opposition has raised because of mechanical greatness and
advancement. Even though, the dangers are moderately however needing proper
consideration influencing Nissan's efficiency and execution. Japanese yen currencies rise
hence the company profits and revenues highly depend on the fluctuating of exchange rates,
natural disasters result in lower production volumes and profits, low fuel prices could
adversely affect sales at Leaf cars.

A New Strategy for Nissan

The new procedure for Nissan there is scarcely any dangers comparable to the profitability
of Nissan that follow ascend in the cost of the crude materials and financial broadening and
vacillations. Nonetheless, the significant danger of Nissan which is the utmost competition
between automobile industries worldwide due to higher brand recognition, mechanical
greatness, and development. Even though, the competition needed to be considered as it
influences Nissan's efficiency and execution. Its managing and conveyance channel, Nissan
will put key vendor arrange that will reinforce its market position. Corresponding to its
limited time exercises, Nissan will in general publicize and mission through different ways
with the usage of print media, TV commercials, online sources, web-based media, and
endeavoring to enjoy with good cause occasions that will cultivate its advancements of the
forthcoming scope of models.

With innovative technology and enhanced services, Nissan has established a new strategy to
transform the customer aftersales perspective. As a result, connected car services and better
selection in accessories and customization will stimulate growth in the aftersales business of
Nissan, which is expected to contribute 25% of aftersales revenue by 2022. This method is

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all about offering their clients more options and new services to make the experience of
ownership better. It will also allow them to develop their connected car, big data, and
innovations in customization to enhance the customer experience and allow access to new
revenue streams for the business. Nissan has led the way in the development of factories that
can construct multiple models on the same line. Nissan takes fabrication towards the next
level of sophistication. Customers at Nissan want cars adapted to their lifestyles and
expectations. The ultimate objective is hyper-personalization.

Conclusion

From the above examination, it is perceived that Nissan is a rising organization perceived for
its qualities. The organization has been fruitful in building worldwide business culture.
Nissan should be set up in meeting the forthcoming difficulties and dangers from the
worldwide condition. With the development of businesses in its extravagance portion, Nissan
needs to guarantee its working and execute its techniques in meeting the worldwide market.
Nissan can grow its item extend in understanding to the expanded piece of the overall
industry of vehicle items and vehicle deals and income assortment. Nissan needs to put more
in improving and coordinating its creation limit in the coming a long time by presenting new
models and changing the current models.

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2.3 Analytical Answers for Question No. 3

The total quality management objectives management process helps the senior management
in the Nissan automobile business to get a clear direction to address critical breakthroughs
issues to get strong support in the business and to break habits in order to create new
breakthroughs.

Nissan the automobile business caters to normal range automobile as well as luxury brands.
The success of the company depends on technology, skill full management, and the practices
of cooperating strategies and concepts.

The Benchmarking

It is a process of comparing the cost, efficiency, cycle time, or consistency of a specific

process or system to another commonly accepted industry standard or best practice
benchmarking that gives a brief indication for the organization to realize where you are in
comparison to a given standard.

Benchmarking is used to measure performance using indicators such as,

● Cost per unit of measure

● Productivity per unit of measure
● Cycle time of x per unit of measure
● Defects per unit of measure
After identifying where you are in the relation to a particular standard the company makes
necessary changes to make improvements so that they can achieve the standards of the
organization.

The definition of benchmarking can be varying to countries, continents, and also industries
according to the case study.

The benchmarking practice of Nissan is a fraught practice. The international measurements

of the automobile industry can be known as

● Labor productivity
● Lead time

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But the measurement can be different from one automobile company to another therefore it
is difficult to compare

Fundamental types of benchmarking

Benchmarking

Internal benchmarking External benchmarking

Internal benchmarking is a process in which a company or an organization looks within its

own business to try and get the best practice or methodology for conducting a particular task
using minimum efforts or resources.

External benchmarking is involved in finding competitive outside organizations that are

known to be best in class and comparing their performance with that of its competitors in the
industry.

Strategies of,

Internal benchmarking External benchmarking

SWOT Collaborative benchmarking
Best practice benchmarking Process benchmarking

Performance benchmarking Product benchmarking

Financial benchmarking Corporate benchmarking

Functional benchmarking Strategic benchmarking

Internal benchmarking creates a culture that creates competition within the organization and
it will increase the communication among the departments with sharing information. The
internal benchmarking process consists of,

● Identifying the prerequisites process must be redeveloped

● Organizing efforts of benchmarking
● Prioritizing the ideas which have identified best practices while inspecting with
meeting deadline

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 ● Implementing and controlling

In external benchmarking production must be consisted of profit margins and cost

preferences of customers etc. than individual job production

Application of TQM benchmarking

The aim of Nissan automobile company is to achieve business success through total customer
satisfaction. Therefore, that use 3 quality approaches such as

● Quality of design
● Quality of production
● Quality of service

The Nissan Company assumes that they can achieve internal benchmarking if they could
implement solutions to issues such as individual remuneration there were lots of initiatives
without any real drive which could result in a lack of sustainability.

And as for solutions for such issues, Nissan laced at the priority urgency, cost-benefit, and
select appropriate tools for the job aligned with the needs of the business, and also Nissan
endeavors to improve its supply chain management.

As for the external benchmarking for Nissan automobile. The Nissan leaf had to update its
features in 2020 due to previous results of benchmarking .in 2015 Nissan LEAF was
benchmarked because of the specialization of Honda. Therefore, in 2020 we could identify
features such as a compact hatchback, 360 safety shield than 2019 model, etc.

Hoshin Kanri Approach

This approach is also called as policy deployment Hoshin kanri approach ensures that the
strategic goals of a company drive progress and action at every level within that company

This approach consists of 7 steps

1. Establish organization vision

2. Develop a 3-5 year plan
3. Develop an annual objective
4. Cascade goals throughout the organization
5. Execute annual objectives
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 6. Monthly reviews
7. Annual reviews

The approach is not very complex but each and every step is important to create an action
plan that can be effectively executed in the expected time frame
Hoshin planning is dimming cycle composited plan do check and act of phase prerequisite to
accomplish the strategic organization objectives
The Hoshin kanri concept is often utilized by the automobile industry. The success rate of
the approach can be easily seen when observing Toyota and Nissan automobile companies
The Nissan automobile company has practice thirteen core areas. The company also reviews
how the employees are engaging with core competencies.

Total Quality Management

Total quality management is that it comprises a corporate initiative to 'build' and create a
lasting climate in which employees constantly develop their capacity to deliver on-demand
goods and services of special importance to consumers.
Basically Total Quality Management is a structured approach to overall organizational
management. This process focuses on improving the quality of an organization’s outputs
through continual improvement of internal practices such as;
● Improving customer experience
● Culminating errors
● Giving employees appropriate training to improve themselves

Nissan automobile company uses quality management in many ways to meet the quality
standards it has to complete a process which has several stages departments and expertise
also synchronized the operation activities. As the first step, they redevelop the process to
improve the validity production system and management system. Then through a proper
investigation process, the appropriate methods will have implemented.

The quality management framework facilitates appropriate training programs therefore we

can identify that Nissan has assured there is a commitment among subordinates and
preservations of quality among suppliers before delivering goods to the customers. There is

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a required amount of technical and training system to grasp the opportunities to be
benchmarking in the automobile industry.

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3. Summary
By implementing the Hoshin Kanri approach will help the management to get a great idea
about the business and it will give a clear definition of each and every point in the
organization. Hoshin Kanri approach allows management to identify problems within the
organization as well as take drastic action. Nissan has always made quality a priority. They
focus on every part of the organizational process. They have created an internationally
recognized brand in the market called Nissan. They have also gained a large market share
and are now highly developed as they have been in constant contact with customers. They
have highly skilled professionals who have been able to find tools and techniques to increase
productivity and efficiency. This is a great help for everyone to adopt the organization to the
new charge and reach their plans and goal.

Nissan has helped to establish strong customer relationships. Since they are able to gain
customer loyalty by delivering success with everything they do by their Total quality
management. They have better understood what the consumer needs and how customer
loyalty could be accomplished. They've got good management. That enables the organization
to respond to new developments and move forward toward achieving its goals and objectives.
This is how Nissan has been able to attain the consistency with the Hoshin Kanri strategy
and hit customer loyalty.

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4. References

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of Company TOP. [online] [Link]. Available at: [Link]
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 [Link]. (n.d.). Nissan Motor Company Limited, Japan. [online]
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Sep. 2020].
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Essay. [online] Available at: [Link]
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2020].
 Jurevicius, O. (2013). Nissan SWOT analysis. [online] Strategic Management Insight.
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 Nissan. (n.d.). Nissan Commitment | Reduce Downtime | Nissan Commercial Vehicles.
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commitment to you. The treatment you receive is just as important as the vehicle you
own. We promise to work tirelessly to exceed your expectations before, during and after
the sale. [online] [Link]. Available at:
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 The Alliance - Renault Nissan Mitsubishi. (2014). Progress report confirms Nissan’s
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 NISSAN MOTOR Co., Ltd (2016). “Zero-emission Leadership.” [online] NISSAN
TECHNOLOGICAL DEVELOPMENT ACTIVITIES. Available at:
[Link]

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