1.
0 Introduction
The company that been chosen is Nissan company. Nissan established in
Yokohama City, Kanagawa Prefecture Japan, in 1933, Nissan Motor Co., Ltd.
currently manufactures vehicles in 20 countries and areas around the world, including
Japan. It has grown to become a worldwide corporation with a diverse range of
products – cars, trucks, forklifts, motorboats and even rockets. And while their
customers are equally diverse, they all have one thing in common: they're their
Number One Priority.
In Malaysia, the Nissan story began in the 1950s as Tan Chong Motors
commenced business as a small motor vehicle distributor. In 1957, it was appointed
the franchise holder for Nissan / Datsun; which sold its first Japanese car make
locally. Since then Tan Chong Motors has grown tremendously and today, is a
dynamic organization with robust achievements. Here are a few notable facts about
Tan Chong Motor Holdings Berhad;
1. The exclusive distributor of Nissan passenger and light commercial vehicles,
Infiniti and Renault vehicles in Malaysia.
2. Boasts 98 sales branches and authorized dealership outlets nationwide; supported
by 91 after-sales service centres.
3. The group averages 13% market share of the non-national car sales and 5.4% of
the Total Industry Volume (TIV).
4. There are 2 dedicated assembly plants in Segambut and Serendah with single-
shift production capabilities of 20,000 and 18,000 units respectively per annum.
In line with Tan Chong Motors' extensive growth plans, the Group then expanded
its operations to Vietnam, Cambodia, Thailand, Laos and Myanmar with the aim to
replicate the same success it had in Malaysia into this region. Tan Chong Motors was
awarded the licencing by Nissan to distribute and market its vehicles in these
emerging markets. The company then launched several Nissan showrooms and after-
sales service centres in this region. Subsequently, Tan Chong Motors officiated its
first overseas CKD plant in Da Nang, Vietnam with the roll-out of the Best Selling
Global Sedan, the Nissan Sunny.
2.0 Common macro environment
Macro environments are categorized into six main types of political, economic,
social, technological, environmental and legal. Understanding the components of a
macro environment is crucial to determining the success of a business. This is because
it helps entrepreneurs to make informed decisions in the organization. Some examples
of macro environments that influence organizations are tax changes, new laws, trade
barriers and more. Let's analyse the macro environment.
2.1 Politic
The political systems, the policies of a country influence an organization's
strategy. The activities of an organization's business activities will be influenced by
the stability of the political system of the country. According to Muralidaran (2007) a
country's political legislation will affect various areas such as education, labour,
infrastructure and national health. Therefore, researching the political system before
doing anything is very important to ensure that the form of the political system is
practiced.
An organization must be prepared with a plan of action for future risks, while at
the same time taking into account the potential of the country's leaders to ensure the
long-term benefit of the organization. Some of the political actions that affect an
organization include imposing high corporate taxes on the company or directing the
organization to invest most of its profits in the country itself. The establishment of
AFTA is one of the ways in which tariffs on industrial goods can be reduced at the
same time political involvement can diversify incentives such as loosening taxes to
invest and making business policies open to all corners of existing business
opportunities.
2.2 Economic
Environment plays a vital role in the success of any new venture. A macro-
economic environment encompasses the total of all goods ad services produced,
distributed, sold and consumed. Entrepreneurs need to analyse this environment at the
global, national and local levels where their business operates. Each business is
related to each other. Entrepreneurs should scan, monitoring, forecast and assess the
macroeconomic conditions that affect the new venture. They should be able to see the
changes that happen in the economy and be able to determine the variables that are
relevant for analysis.
2.3 Socio-cultural
The socio-cultural environment consists of two highly related aspects,
demographics and cultural trends. There are business opportunities that exist in a
society culture, for example, business opportunities for consumer and durable goods,
retailing and services, leisure and entertainment and housing and construction.
2.3.1 Demographic changes
They occur due to change the population, ethnic and population structure
according to age, gender, geographical location and population distribute of income.
These elements are the contributing factors to consumers’ demand, purchasing power
and industrial capacity. These elements contribute to the creation of markets. The
demographic trend and changes are beyond entrepreneurs’ control. The assessment of
the demographical changes in order to identify business opportunities. The increasing
number of society create the opportunities for examples, the need of foods and
clothes.
2.3.2 Social trends
To the modes and manner in which people live in their lives. Lifestyle reflects the
society preferences. Entrepreneurs need to scan and monitor lifestyle changes in order
to identify business opportunities. The variables that need attention are household
formation, work modes and labour force participation rates, educational levels,
patterns of consumption and pattern leisure. The information from the public sources
of data scan the changes. It also need to forecast and assess the meaning of changes
for a new venture by looking after their own self-interest. Thus, they can predict how
people behave.
2.4 Technology
The knowledge deals with the industrial arts, applied science, engineering,
process, invention or method can be defined as technology. Technology analysis
require scanning and monitoring from the time of basic research through product
development and commercialization. Technological change is in two forms:
2.4.1 Pure invention
It refers to the creation of something new that is different from existing
technology or products. For this reason, invention usually has economic value and has
competitor. It is often about the monopoly by the individual who has the legal right in
the invention. New inventions can create new markets and opportunities for business,
for example, the invention of semiconductors that created business opportunities in
computers.
2.4.2 Process innovation
It refers to the small changes in design, product formulation and manufacturing,
materials and distribution. This will be discussed in the further detail in the section of
opportunity. Scanning and monitoring changes in technology is not an easy task
because of the information is not easy. Even the scientist who is involved in the basic
research does not know when the commercialization stage is reached. However, it is a
great advantage and opportunity if entrepreneurs know this information.
3.0 Macro-economic of Nissan Malaysia
Nissan's growing macro is one of the successes of the company. Nissan is a long-
standing Nissan company known for centuries. However, even though it is a long-
standing company and is still known as a successful company, there are a number of
factors that contribute to its macro development such as:
3.1 Sociology
Cultural societies are made up of institutions and other influences that influence
the basics, perceptions, and preferences and behaviour of consumers. Society is a
group that builds trust in the product. Socio-cultural is made up of the demographic
and cultural aspects of the local community. Nissan's entry into the Malaysian market
is based on the environment of the public, for example, Nissan has vehicles that meet
the needs of the age range such as four-wheel, sport car and more. This meets the
needs and behaviours of users according to age and demographic parameters.
3.2 Economic
The economic environment plays an important role in the business as it measures
the success and failure of a venture. Macros comprise a large number of businesses in
the goods and services they produce. This refers to the globalization where
entrepreneurs join shareholders to monitor, predict, and evaluate in order to have a
positive impact on the development of micro businesses.
In the automotive industry it is one of the businesses that gives investors a huge
and special opportunity. So many companies have ventured into this area of business
to make it a core business or branch. Just as Nissan demand for its high-quality
imported vehicles is gaining ground in Malaysia and building its own reputation based
on the needs of consumers who choose Nissan. Nissan develops its assets based on
vehicle quality that rivals all other types of motor companies to the extent they are
economically and economically viable.
3.3 Technology
The branch of knowledge has developed numerous studies on education and
learning that shape economic development such as science, engineering and more.
The definition of technology requires specific monitoring and time to produce a
design that meets the requirements of authenticity and the development and
innovation of a creation. Pure design refers to the originality of the product that is
produced in accordance with global competitiveness and is capable of monopolizing
the market.
Like Nissan, it retains its originality in every systematic design of its vehicle
model that satisfies its lifelong taste. The design made by Nissan has high economic
value and good criteria. As such, Nissan’s continued adoption of good technology
continues to be a factor affecting the company's development from its roots and is
known as a strong contender in the industry.
3.4 Politics and law
Politics and law play an important role in the development of these
macroeconomic contexts with varying degrees of competition. Every policy made by
politics and law must be obeyed because the political power of a large business is
significant. Each country has different political and legal policies in managing its own
economic resources. Global issues should be aware of trade barriers to taxes, tariffs
and so on. Free resource is also a barrier as it can provide protection to certain home
countries. Generally politics here refers to the opening up of opportunities for
entrepreneurs to expand their businesses and start businesses
Like Nissan, it is a rapidly growing foreign company. With the expanding Nissan
brand, the development of stocks and the presence of political legislation in the
business, Nissan has successfully entered and expanded its wings in Malaysia today.
This refers to the policy of openness to domestic and foreign economic competitors.
Thus, Nissan succeeded in developing every country that opened the door for growth
in the local economy.
4.0 Suggestions for improvement
Although there are various facilities available in the special elements of the
macro business, there are still many improvements that can be made from time to time
to enable more efficient development. The development of every business is very
important. Therefore, it is imperative to make improvements in order for the business
or company to remain in the business environment broadly.
4.1 Economic recommendations
The first proposal is that the management of macro environment elements in an
organization is economic. For example, the automotive-based business is one of the
top branding assets such as the company of choice, Nissan. Economic development of
a country will usually go up and down. However, Nissan companies need to take
some important steps to maintain the profitability of the economic problems faced by
a country.
Various promotions can be done by Nissan company to develop its automotive
business concept. However, less attractive promotions in some branches make certain
parties or buyers less interested in visiting this company. As such, the promotion will
affect the current economy for Nissan. Because a good promotion will affect the sales
of the product.
4.2 Technology recommendations
The second proposal to manage the macro environment elements is the
technology aspect. This refers to the use and development of new and more efficient
technologies. Companies or organizations need to be smart in controlling and
monitoring current technological changes as well as tracking the use of technology to
meet human needs and wants. This is intended to make the product more inviting and
remain accepted in the market. Like the Nissan, the vehicle that the Nissan produces
is first class. However, there are many enhancements that can be made from the safety
aspects of the vehicle. As more and more vehicles advance, more safety systems need
to be offered to create better safety for consumers.
4.3 Socio-cultural reserves
According to (Kotler, 2008), demographics are closely related to population data
such as size, location density, age, gender, race, occupation, migration, geography,
and population density distribution. While social flows are related to the mode of life
of a person in relation to social class, and other statistics concerning the population of
a country.
Entrepreneurs need to carefully monitor local lifestyle changes, tastes, and
community preferences to identify more business needs. In the pursuit of profit, both
the company and the entrepreneur must have great responsibility for the care of the
environment (Maria Che Othman, 2016). Nissan companies also have to play an
important role in ensuring that the environment is always at their best, with such
biographies always on the lookout.
5.0 Summary
Based on the analysis of Nissan companies it can be concluded that the macro
environment affects the service strategy within a company. Macro business comprises
four aspects of socio-cultural, economic, technological, and political-legal. While
socio-cultural issues highlight demographic issues and social flows.
The economy reflects the current economic rate, affecting the business of the
macro element. Technology is defined by the level of creativity and innovation of a
technology in animation equipment and processes. Politics and legislation highlight
issues such as legal barriers, political risks, trade agreements, and taxes and
regulations, all of which do not benefit or complicate business processes. But with the
macro business proposal a little can improve the existing marketing quality.
Whereas technology needs to be refined through every aspect of processing more
R&D. Socio-cultural should be sensitive to environmental issues as well as the local
community. Therefore, support from all parties, both internally and externally, is a
powerful influence on the business development of a business organization.
6.0 References
Kotler P.a (2008). Principles of marketing. Harlow: Financial Times. Prentice Hall
Abd. Aziz Yusof.(2000). Usahawan dan keusahawanan: Satu penilaian. Prentice Hall
Sprint Print
Marc (2007). Entrepreneurship: Strategies and resources, Illinois: Marsh Publications
Habshah B, Norita D, Julient B. (2004). Asas Keusahawanan. Kuala Lumpur:
Thomson
Brief History of Nissan Motor Company. Archived from the original on 9 May 2017.
Retrieved 6 April 2017.
National Science Museum of Japan. National Museum of Nature and Science, Tokyo.
Retrieved 6 April 2017.
