Strategic Analytical Report on Nissan

management

Contents
Executive summary....................................................................................................................3
Introduction................................................................................................................................3
PESTLE framework-..................................................................................................................3
Porter`s five forces-....................................................................................................................6
Potential future scenarios and recommendation........................................................................9
Conclusion................................................................................................................................11
References................................................................................................................................13

Executive summary
This report brings out a strategic analytical report on Nissan. Nissan is ranked on sixth when
it comes to automakers in the globe. Moreover, it stands on the second position when it
comes to manufacturing either in terms of volume and offer huge range of vehicles such as
SUVs, Sentra cars and sports car. This report interprets the organisation`s environment and
other key strengths and weaknesses which affect the Nissan`s strategic conduct, design and
finally analyse its current corporate and business level strategy and provide future
recommendation for improvement.
Introduction
Nissan is named as world`s top electric plug-in vehicles selling brand. Various products
offered Nissan includes business transport vehicle, fork life trucks, and luxury vehicles.
Nissan is well known brand that has been struggling from less market share (Nissan, 2017).
In order to acquire the market, this report includes strategic analysis of internal and external
business environmental analysis. Under external analysis, this report undertakes competitor`s
analysis, Pestle framework, and Porter`s five forces model and finally give recommendation
so that company can change business environment in the automobile industry. This analysis
will help the company to figure out future tactics to have a stable future growth.
PESTLE framework-
Political factors- UK is ruled by constitutional monarchy with a parliamentary. Nissan is
exposed to several political risks that affect the profitability of Nissan (Nissan, 2017).
Government around the world favours low emission vehicles. EU and UK provides
government subsidy for low emission vehicles. Political factors affect the laws and
legislations relating to environment problems, competition policies, and taxation. The

government of UK and EU is stable and supportive to this sector. UK`s government help
automotive industry through Automotive Assistance programme (AAP). UK`s is integrated
within EU. Recent challenges related to UK Brexit voting had negative impact on the
operations of Nissan as 60% of motor parts supplied for the cars manufactured in the UK are
imported. UK government has introduced financial measures to favour the manufacturing of
cars with least CO2 emissions. If any automobile has high Co2 emission rate, it will have to
pay high Tax charges. It is important for Nissan to evaluate the free-trade legislations in the
country it wants to enter. The government can promote some rebates to the industry in order
to use their local resources for benefits of the company as well as the country (Sarwar,
Ramachandran, and Hosseinian-Far, 2017). This is because to the fact that certain territories
do not allow high performing vehicles such as Nissan Skyline model as a driver may misuse
that vehicle for illegal street racing (Atighechian, Maleki, Aryankhesal, and Jahangiri, 2016).
Economic factors- Economic factors influence the purchasing power of the customers and
cost of capital. Certain factors such as inflation rate, trade distribution, wealth, GDP, personal
disposable income, and interest rate (Nissan, 2017). Immense economic growth of UK
economy enhances more sales and increases its related sector. For instance- US is the largest
market of Nissan but recently the company has faced issues for 930000 Nissan cars named as
“Altima.” Moreover, 768000 issues have been reported for crossovers model and SUVs
(Mittal, 2017). (Nakamichi, and Warnock, 2014). UK is fifth largest economy in the world
with its nominal GDP. Many British households faced many challenges in 2017. Price of
motor parts of automobile industry increased at fast rate as the pound started getting weak
that has increased the cost of importing goods. The inflation rate rose to 3.1% in 2017, which
further increased the interest rate too.