Business Environment Analysis Report
Added on 2020-05-16
25 Pages5623 Words77 Views
Running head: NISSAN AUTOMOBILESNISSAN AUTOMOBILESName of the StudentName of the UniversityAuthor Note
1NISSAN AUTOMOBILESExecutive SummaryThe report is based on the analysis of different factors related to the external environment,which can affect the various aspects of the organization including the political environment,the economic environment, social environment, technological development, legal factors, andthe environmental factors as well. The organization that is taken into consideration is NissanMotors. Nissan is analysed based on the countries in which they operate and the differentissues that the organization needs to face. The PESTLE framework is used to analyse theoperations and profitability of Nissan in the market. This helps in examining the ways bywhich these issues affect the organization. The second part of the report throws light on the Marketing Communications Mix ofthe company. The concept of marketing communications mix has been discussed along withits application to Nissan. The objectives of the company behind the strategic marketing mixhave been discussed. The marketing mix of a company tends to have a huge influence on thedecisions of the company, which have been considered. The report also providesrecommendations to the company and summarizes the report in the conclusion.
2NISSAN AUTOMOBILESTable of ContentsIntroduction....................................................................................................................4Part 1..............................................................................................................................5PESTLE Analysis of the external environment of Nissan Motors................................5Political Factors..........................................................................................................5Economic Factors.......................................................................................................6Social Factors.............................................................................................................7Technological Factors................................................................................................7Legal Factors..............................................................................................................8Environmental Factors...............................................................................................9Importance of PESTLE Analysis...................................................................................9Part 2............................................................................................................................10Marketing Communications Mix of Nissan.................................................................10Objectives of Marketing Communications Mix:......................................................13Influence of the Marketing Communication mix on the policy and Decision makingof Nissan...............................................................................................................................15Effectiveness of the organization`s response...........................................................15Recommended areas of improvement......................................................................16Conclusion....................................................................................................................16References....................................................................................................................18Appendices...................................................................................................................21
3NISSAN AUTOMOBILESAppendix 1...............................................................................................................21Appendix 2...............................................................................................................21Appendix 3...............................................................................................................22Appendix 4...............................................................................................................22Appendix 5...............................................................................................................23Appendix 6...............................................................................................................23
4NISSAN AUTOMOBILESIntroductionThe report is based on the analysis of the effects that the external environment of anorganization has on its operations and the profitability as well. The external factors related tothe organization are analysed based on the different factors including political environment,economic factors, social factors, technological factors, legal factors and the environmentalfactors. The organization that is taken into consideration for this analysis is Nissan MotorCompany Ltd. The company is commonly known as Nissan and it has its origins in Japan,with it has headquartered in Nishi-Ku Yokohama (Nissan-global 2018). Nissan mainlyoperates in the automobile industry and sells the cars under brand names like Nissan, Datsunand Infiniti. Nissan Motor Company Ltd. had made a partnership with Mitsubishi Motors andRenault in the year 1999 (Birnleitner2014). Nissan had earned the position of the sixth highest automaker organization of theworld in the year 2013. The organization has been holding this position after other largeautomobile organizations like, Toyota, General Motors, Volkswagen Group, Hyundai MotorGroup and Ford. The alliance of Nissan and Renault has also held the fourth position in theautomobile industry of the world. Nissan is also considered to be the highest manufacturer ofelectric vehicles in the whole world and they had global sales of around 275,000 electricvehicles within the year 2016. The organization was named Nissan Motors in the year 1934.The plant of Nissan in Yokohama was established ultimately in the year 1935 (Dubey andGunasekaran2015). The first car was manufactured by Nissan in the same year and they had startedmanufacturing airplanes, trucks and engines for the Japanese Army. In the year 1966 NissanMotors merged its operations with Prince Motor Company and they had launched manyupmarket cars which included models like Gloria and the Skyline. Nissan aimed for
5NISSAN AUTOMOBILESexpanding their operations in the foreign market in the 1950s. The small cars range of Nissanwas aimed towards Australia which was considered to be the largest market of cars in theyear 1950. The organization also expanded its operations in the other parts of the worldincluding the United States of America. Nissan was able to capture the US marketsuccessfully in the year 1973 when the oil crisis occurred and the demand for small carsincreased (Eva et al. 2014). Nissan launched its new brand which was named as Nissan Sunny so that they canmeet the demands of the American consumers. Nissan then planned the expansion of itsoperations in Europe so that the delivery costs and the tariffs related to exports can bedecreased. In the year 2001, a manufacturing plant of Nissan was established in Brazil andfollowing this, the organization further opened its operations in India with the name NissanMotor India Pvt Ltd. The global alliance partner of Nissan was Renault which invested morethan 990 million dollars so that the organization can establish its plant in Chennai, India.Nissan penetrated into the market of the Middle East in the year 1957 and its first car wassold in Saudi Arabia in the same year. The external environment of Nissan Motors will befurther analysed with the help of PESTLE framework (Frynas and Mellahi2015). Part 1PESTLE Analysis of the external environment of Nissan MotorsPolitical FactorsNissan has been outsourcing the processes related to the production of its cars frommany countries other than Japan which are mainly, located in South America and Asia. Thegovernment of the different countries where Nissan has set up its operations during the lastfew years has been setting many rules which are related to benefit of the economy andthereby produce the highest GDP. The political factors of the area where the organization is
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