PAMANTASAN NG LUNGSOD NG MAYNILA

(University of the City of Manila)

Intramuros, Manila
GRADUATE SCHOOL OF MANAGEMENT
GME 616 BUSINESS POLICY

CASE ANALYSIS 3:
NISSAN USA

Submitted to:
Prof. Jose Waldemar V.Valmores

Submitted by:
Antonio G. Carolina
MBA-TEP Batch 6
PLM-PICPA

*VIEWPOINT:

President Marvin Runyon

*TIME CONTEXT: 1983

I.

PROBLEM STATEMENT
What work philosophy would best fit in the operations of the Smyrna,
Tennessee plant of Nissan Motor Corporation USA?

II.

STATEMENT OF THE OBJECTIVE

To make sure that the actions of the employees are founded on common
ground of values and beliefs that would promote efficient and effective
productivity at the plant operations.

III.

AREAS OF CONSIDERATION
a. STRENGTHS:
One of the most robotized factories in the world and is pacing up with

technology.
Management style that employee satisfaction and welfare is of top
priority, encourages open communication between management &

workers, and involves employee in decision making process.

Japanese management style that encourages quality that increases

output as a way of life.

The company has a wide span of distributors located in 130 foreign

countries
With 56,285 stockholders as of 1980 and employs 56, 702 employees
With more than two decades of operation, the company was vigorous and

successful organization
It is the second largest seller of import cars in US
Has the capability to transport its products-owns fleet of 16 auto carrier

ships
Skilled employees that passed through rigid training and applicants who
passed the training given will be hired.

Nissan is a vigorous and successful organization reaching its twenty

second years in the US. Its sales continued to be strong and surpassed
its target five (5) years ago.

Established itself as the second largest seller of imported cars in the US

and ranked as the fourth largest manufacturer of motor vehicles next to
Ford, General Motors and Toyota.

Many of Nissans top management have come out of retirement and are
between 50 t0 65 years old and are but seasoned veterans that can uplift
Nissans operation in US.

b. WEAKNESSES:

Many of Nissans top management have come out of retirement and are
between 50 t0 65 years old

Unionized workforce and host American auto workers feel the need for a
union.

The biggest problem between the Japanese company in Smyrna and

Nissan itself is the language barrier

Different values with Americans working at the Japanese plant with

different culture

Management and employees do not see eye to eye which is a problem in

the US operation

c. OPPORTUNITIES:
American government established a foreign trade zone that allows
industries which import parts and raw materials to delay paying import
taxes until assembled into finished product and ready for shipping.

The difference in culture and management techniques will either become

a hindrance or may help produce a model plant the other US firms will

wish to follow.
With the establishment of a manufacturing plant in USA, Nissan is
geographically expanding which can make then to be a market leader in
selling cars in the US.

d. THREATS:

The difference in culture and management techniques will either become

a hindrance or may help produce a model plant the other US firms will

wish to follow
The UAW is fighting hard to organize the Nissan Plant, which may affect
the implementation of the Japanese style of management in Tennessee

Nissan Plant.
.Cultural differences may find it difficult for to train and educate local
American employees to suit a different culture of Japanese management

style.
The Domestic Bill Content would force Nissan to purchase 90% of the
parts of on the domestic market which would take away much of the
benefit of the foreign trade zone.
IV.

ASSUMPTIONS
No assumptions made

V.

ALTERNATIVE COURSES OF ACTION

ACA No.
1
2
3
VI.

Implement the American management way of doing things to

employees where managers hand out work directives
Apply a mixture of Japanese and American management methods
that would influence the actions of employees that would create a
new culture
Employ the Japanese management style to American employees
working at the Nissan Smyrna plant

ANALYSIS

ACA

Advantages

Disadvantages
a. Does not conform with
Nissan Japanese methods

1. Implement
the American
management
way of doing

and would affect the

a. American workers are
attuned to the American
concept.
b. With managers handing
down instructions, work

where
managers hand
out work

Kaizen management
philosophy of "continuous

things to
employees

Nissan's

coordination is synchronized to

improvement."
b. Absence of participative
management

expected output.
c. May result to

directives

misunderstanding between
two cultures.
a. Does conform with Nissan's
Kaizen management

3. Employ the
Japanese
management
style to

improvement."
b. Top priority is given to
employee satisfaction and

American
employees
working at the
Nissan Smyrna
plant

VII.

philosophy of "continuous

welfare.
c. Participative management
and would imbibe a strong
sense of teamwork.
d. Conforms with the Nissan

a. May be a culture shock to

American workers that would
result to higher turnover.
b. Entails time for the
Americans to embrace the
Japanese culture.

standards

CONCLUSION
a. Decision Matrix

ACA Criteria

Score:

Score:

Score:

ACA 1 - American

ACA 2 - Apply a

ACA 3

management way of

mixture of

-Japanese

doing things

Japanese and

management

American

style

management
methods
1. Ease

of

17
2
(1-5; 5= Best)

13
3

19
1

Implementation.
Absence

of

and

can

difficulty
be

implemented with little

effort.
2. Effectiveness.
degree

to

The
which

something

is

successful

in

producing

result.
3. Timeliness.

desired
May be

achieved in a given
timeline.
4. Acceptability.
Adequate to satisfy a
need, requirement, or
standard; satisfactory.
Total Weighted Score
Rank
Legend:

Chosen ACA: ACA 3 Use the Japanese Management Style

VIII.

PLAN OF ACTION

PLAN OF ACTION

PERSON(S)

TIMELINE

Employees orientation about

RESPONSIBLE
HRD Head

2 days

HRD Head

2 weeks

cascading
Companys code of conduct

HRD Head

2 days

roll out
Signing off the orientation

HR Head

1 day

program
Initial assessment and

HRD Head

1 month

evaluation
Monitoring results and

Management and

Within 2 months

feedback

Department Heads

the company, its mission and

vision and organizational
goals
Training on policies and
procedures and philosophy