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Course Project Task 4-5 - Essay Example

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Given the decline in reserves of fossil fuels, increasing concern of the environment and potential for the eco-car etc., a complete abandonment of the eco-car project would be unwise though possible at the loss of the investment put into the project. Instead, alternative courses…
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Course Project Task 4-5
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Download file to see previous pages The corporate level strategy has a good chance of succeeding because Nissan’s management is not new to Thailand. Nissan already enjoys an established presence in Thailand.
In order to turn its weaknesses into strengths, Nissan must steer its expansion program carefully so that justification for the eco-car is clear, and the investment pays off. Further, since Nissan is already in the process of corporate restructuring under the Recovery Plan, it can use this to its advantage by molding the new structure so that it specifically supports the expansion program in Thailand. Also, as Thailand has cheaper labor than Japan, the expansion program in Thailand will further help Nissan in slashing labor costs. This would make it a leaner company that can focus on the eco-car and lead the future more profitably. There is thus a greater chance for profitability in Thailand than in Japan with the strong yen.
As Nissan already has a presence in Thailand, it has established access to suppliers and dealers. This enables Nissan to use its existing business relationships as a springboard for carrying out the expansion programs. Development of the eco-car specifically is also of special interest to Thailand’s government and to environmental groups. Therefore, gains can definitely be made from synergy and the environment of Thailand is supportive. Nissan’s corporate strategy could identify the new eco-car more closely with Thailand to consolidate the relationship and open up new opportunities for moving beyond Japan and its alliance with Renault. The change would make business sense for Nissan to further its Recovery Plan on one hand and set the stage for the future with its new eco-car on the other. Change is necessary if Nissan wants to thwart its troubles of the past and invent a new eco image for itself in promotion of its Green Program.
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