Analyzing Business Strategy of Nissan: A Case Study

Business
Strategy

INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
TASK 2....................................................................................................................................................5
TASK 3....................................................................................................................................................9
TASK 4..................................................................................................................................................10
CONCLUSION.......................................................................................................................................13
REFERENCES.........................................................................................................................................14

INTRODUCTION
In business sector, comeptiton isn rising at rapid scale. With this threat of competiton
it has become eessential to adopt strategy. So, business strategy refers to process of using set
of actions to gain copmetitive advantage in market. Nissan, a multinational automobile
corporation hedquartred in Japan. Eneteprise deals in varities of produsts such as cars,
equipment, and many different models of cars. Moroever, it has increased its global presence
at larger scale. This report comprises of macro environmental factors on working of Nissan
through PESTEL and Four corner analysis. Then, it analyse internal capabilities of respective
business firm by implementing VRIO and 7s McKinsey. Moreover, for analysing competitive
forces Nissan implement Porter’s five force model. In addition to this, respective report will
implement Ansoff matrix and Porter’s generic model for interpret strategic planning of
Nissan.
TASK 1
Macro environmental factor is related with the economic condition or of specific
region as well as sector. In addition to this, it includes tendencies in inflation, gross domestic
products, fiscal policies, spending and several other. Moreover, for Nissan it is crucial to
analyse macro factors within better manner because elements included within this have
optimistics & negative both have effect on operations (Mussolino and et. al., 2019).
Explanation of these are discussed below-
PESTEL analysis – It is framework which is used by enttiesd to examine the external
factors affecting business operation. It is further elaborated as Political, Economic, Social,
Technological, Environmental and Legal. Explanation of respective analysios in relation of
PESTEL analysis are mention below :-
 Political – This involves several elements such as rules, regulation, policies, political
instability of nation and several other. For example, Brexit is political factor as it
result in adjusting within respective Company because Britain comes in favour for
moving out EU within historic referendum in 2016. There are several terms linked to
the economic as well as trade post Britain’s exit which are not certain and result in
wide effect on Nissan (Rivera and Clement, 2019). The factors which are include in
poliitical component are affect the business structure of entity at depth.

 Economic – This elements comprises of variaous varibales like inflation & deflation
rates, tariff, non-tariff rates etc. These types of variables are non controllable by
companies. In reference with chosen firm, Brexit have affect a organisational
structure at depth & has also slows down their growth. It duty of manager to make
assure that thse factos do not affect functions of business.
 Social – People are getting more aware about environment which means that
customers are preferring environmental friendly transportation through that respective
sector go with wide transformation (Lüdeke‐Freund, 2020). With rise of social
awareness, indviduals are becoming more concerned about their level of income and
health. In relevance enteprise, they deliver low price products to high end cars
targetting every income of indvidual.
of hybrid/ electric vehicle adoption.
 Technological – In every country digital advancement is taking places which help
Nissan in bringing something innovative as well as attractive for customers in proper
way. As customer of selected entity, selected entity is getting aware on daily basis
which require respective company to come with something eco-friendly. Thus,
strategy of respective business is affected through legal policies which is related to
clear air as well as problem of climatic changes. Moreover, it encourages respective
company to built-in powerful battery, sleek aerodynamic along with latest
technologies that provide assistance to Nissan in making customer satisfy. This
strategy will result in reducing carbon emission.
 Environmental – This element includes climate change, pollution, green agenda etc.
Now a days, it has become necessary to focus on environment factors so that problem
do not occur in near future. In reference with selected firm, they follow proper
guidline accoridngly thery haver produced hybrid cars to protect environment from
getting polluted.
 Legal – For Nissan Company it is essential to implement strict norms within their
working in relation of emission regulation and passenger safety (Nason and et. al.,
2019). In addition to this, with customers Nissan have to focus on their staff as well as
also conduct their operations within legal consideration.