Final Stock Price Update

The final stock update for the semester is a positive one. On December 1, 2010 the company closed with a $19.52 price per share. This is an increase compared to the last posting of only $18.57 per share. Nissan is gaining ground on its competitors and look to continue their rise to the top.

Most Interesting...

   Over the past few months I have researched and blogged about Nissan. The company is a globally operating automobile manufacturer that is constantly seeking to create the most innovative vehicle in the market.
   Among all of the things that I have learned about this company, the most interesting thing that I learned was that Nissan also participates in the marine industry. This may not be the most exciting and intriguing thing you have read or learned about the company, but it is for me. I never knew that Nissan participated in the marine industry. All of my life I only knew about Nissan automobiles. My sister drives one, my parents have driven one, and my friends drive one. Being able to learn about the other modes of operation currently occupied by Nissan has definitely intrigued my thought processes.

Stock Price Update

Nissan's latest trade was recorded on November 26th, 2010. The stock price is up 1.78% and closed at 18.57 per share. The company has seen a fairly steady price for its shares over the past few weeks.

http://finance.yahoo.com/echarts?s=NSANY.PK+Interactive#chart4:symbol=nsany.pk;range=3m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Corporate Culture & Code of Ethics

Nissan has a distinct set of rules that define the companies code of ethics. The company has developed multiple codes of conduct which are to be abided by throughout their global operations. The number one code is "Abide by all laws and rules". This implies that no matter where the operations take place, the organization must adhere to that countries laws and rules. Another interesting code of conduct is "Value Diversity and Provide Equal Opportunity". Nissan has constantly made it apparent how much diversity is valued within the company. This only further solidifies their determination in achieving and promoting diversity within the company.

http://www.nissan-global.com/EN/DOCUMENT/PDF/SR/2010/NISSAN_GCC_E.pdf

ISO Certified

Renault Nissan India, which is an alliance group created between Nissan and Renault automotive, was recently ISO certified. The certification was done in two stages by both Indian and German Certification Body Auditors in the month of May and July. This particular plant follows the Alliance Production Way and aims to achieve "Global Top Performer" quality standards in just 3 years. The company received ISO certifications for both Quality-ISO 9001and Environment Management System-ISO 14001.

http://www.motorbeam.com/cars/renault/renault-nissan-plant-receives-iso-certification/

TQM- The way of business

Nissan operates using a Total Quality Management Program (TQM) to improve their production and further their success. The company feels as though they must do all they can to contribute to their Corporate Social Responsibility (CSR). Nissan has defined its approach to achieving CSR management by establishing the Nissan CSR  Policy and eight key areas of focus for efforts in this field. The company has even established a CSR Steering Committee, composed of 20 mid-level managers of the sections involved with those areas, as a means of organizing and tracking developments in each field.

The Nissan CSR Policy states:

We aim for the sustained profitable growth of the company, and at the same time contribute proactively to the sustainable development of mobility and society.

We will listen to, and work with, our stakeholders around the world and create trust, opportunity and long-term sustainable value.

By focusing on continuous development, the company is attempting to improve through a TQM program. "TQM is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operation, 100% accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based work design, benchmarking, and total customer satisfaction." (Crafting and Executing Strategy, Thompson, Strickland, and Gamble, p368) This definition is the epitome of what Nissan is doing. The company is striving for continued improvement throughout the company and is involving employees at all levels. So far the use of a TQM program has been successful for the company.

We aim for the sustained profitable growth of the company, and at the same time contribute proactively to the sustainable development of mobility and society.

We will listen to, and work with, our stakeholders around the world and create trust, opportunity and long-term sustainable value.

Management Structure

Nissan appears to have a decentralized business structure. The company decisions are made at several different levels within the company. The company believes that "the power comes from the inside", thus further showing their commitment to employee development and decision making. The company encourages each employee to think about what they can do individually with the belief that their efforts to overcome challenges are the driving force for Nissan's growth. This is not to say that Nissan's shareholders, board of directors, and upper level management are going to allow the line workers to make every decision. It is however trying to imply the importance of some autonomy and decision making among all employees.

http://www.nissan-global.com/EN/DOCUMENT/PDF/SR/2010/SR10E_P071_Governance.pdf

Nissan Careers for MBA Students

Nissan offers several opportunities for future employment opportunities. The company is currently operating a program for MBA graduates. The program is known as the Nissan Rotational Development Program (NRDP). This program was established for MBA graduates with at least five to eight years experience. The program is places its employees on an accelerated path by operating on 9-18 month rotations at various Nissan locations throughout the world. NRDP allows its employees to enjoy more strategic opportunities than their peers in other competitive programs.

http://www.nissan.jobs/students_grads.html

Nissan Introduces New Juke

Nissan has recently added a new edition to its automobile lineup. The all new JUKE 16GT and the 16GT FOUR are the newest editions to the Nissan line-up. The new JUKE is a sportscar crossover with a newly developed turbo engine and a sleek design with a sportier driving feel. The new car has an appeal for all types of drivers, offering both a sporty feel with an affordable price, bold design, strong presence, and superior driving. It offers a step shift with the CVT mode that offers a strong step shift feel when accelerating.
 This and other information can be found at http://www.nissan-global.com/EN/NEWS/2010/_STORY/101102-01-e.html

Stock Prices Fall

Looking at the past few closings for Nissan it is sad to see that the company took a loss on Friday October 29th. Although the company did not take a huge loss it is kind of a let down after seeing the prices rise every week. The company closed with a stock price of 17.47. This is down only .57 points from its closing price on Friday October 22, 2010 of 18.04. This fluctuation in price can be considered a  normal occurance in the stock market because it is not drastic but slight.

You can see all of this information and more at http://finance.yahoo.com/echarts?s=NSANY.PK+Interactive#chart3:symbol=nsany.pk;range=20091001,20101029;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on

Nissan Recalls Vehicles

Nissan has issued a recall for six of its models: the Titan, Armada, Frontier, Pathfinder, InfinitiQX56, and the Xterra. Nearly 2.1 million of these models have been recalled due to an ignition problem that may stall the engine when starting the vehicle. Nissan has said that there have been no report of problems. The company is just issuing the recall as a preventative measure. The recall only affects vehicles manufactured between August 2003 and July 2006.

http://www.thestreet.com/_yahoo/story/10903595/1/nissan-recall-visa-hot-trends.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Nissan & Renault Converge

Nissan and Renault are currently under the same corporation. However, the two companies have decided to come together and jointly develop ten new models. By doing this, the company hopes to cut down its costs by consolodating the number of suppliers and reducing the procurement costs. A value-chain match-up exists through this joint venture. Unfortunately, the two companies only share 8 components out of hundreds involved in the production of their vehicles. Although this does cut down on costs, the savings are limited. However, the companies are looking into developing and sharing even more components in the near future.

http://www.abs-cbnnews.com/business/09/23/10/nissan-renault-jointly-develop-platform

Stock Performance

Nissan's stock price is still on the rise. As of close on 10/18/2010, Nissan's stock price was $18.55. The stock performance is yet another indicator of how well Nissan is performing in the automobile industry. This increase in stock price could also be attributed to the much anticipated release of their newest design the Leaf, an electric automobile.

More information on the Leaf can be found at the website: http://www.forbes.com/2010/10/20/electric-vehicles-battery-technology-nissan-leaf.html?partner=yahootix
Stock information can be found at: http://finance.yahoo.com/echarts?s=NSANY.PK+Interactive#symbol=NSANY.PK;range=3m

Nissan Mergers

It has been many years since the last merger involving Nissan took place. It was 1999 when Nissan and Renault decided to merge together and become one of the top three automobiles in every category ranging from quality, value, and technology.

Renault is a European owned automobile manufacturer. The company is best known for its creation of the MPV, multi-purpose vehicle. It is known for having the best customer satisfaction in the world. It has also been the leader in the light commercial vehicle in the European nation for the past eleven years. By joining with this company, Nissan hoped to become at least in the top three of every ranking category if not first. The merger with renault provided Nissan with a larger target market as well as a larger net profit and retained earnings for its shareholders.

The merger with Renault can be found at both http://www.nissan-global.com/EN/COMPANY/PROFILE/ALLIANCE/RENAULT01/ & http://www.renault.com/en/groupe/marques-du-groupe/pages/renault.aspx.

Chinese Operations

Nissan has several different operations in China. Just to name a few of the operations currently in China: Nissan Investment Co, Ltd., Dongfeng Nissan Technical Center, as well as Dongfeng Motor Co., Ltd. Each of these business have operation facilities in China.

The Nissan Investmment Co., Ltd is responsible for the negotaions with government organizations as well as business affiliates and partners.

Dongfeng Nissan Technical Center's major operation/function is within the research and development department. The center is responsible for the engineering and testing of new vehicles designed by Nissan.

Dongfeng Motor Co., Ltd. is part of the production team for Nissan. This organization is responsible for the production of passenger and commercial vehicles such as the Bluebird and Sylphy which are cars not sold in the United States.

These and several other operations conducted in Asia are located at http://www.nissan-global.com/EN/COMPANY/PROFILE/EN_ESTABLISHMENT/ASIA/.

Company Outsourcing or Vertical Integration

  Nissan uses outsourcing for the production of its cars. The company has several companies that assist in the production of its vehicles. The company is not able to produce the lithium ion batteries necessary for its cars, nor is it able to produce the rubber or synthetic parts. The company may be able to produce these parts, but the cost of buying the parts from somewhere else is less expensive than producing it themselves. By outsourcing, Nissan is able to focus more of its attention to its core competencies of designing and developing creative and innovative new products.


A list of the companies affiliates and subsidiaries can be found at http://www.nissan-global.com/EN/DOCUMENT/PDF/PROFILE/2008/Profile08_E.pdf.

Nissan Strategy

  After looking into Nissan's company profile for the past few weeks, I have gathered that the company uses a broad differentiation strategy. The company produces many different styles of automobiles, marine boats and equipment, as well as forklift equipment.

  The company offers low cost to high cost cars. They cover such a large range in order to gain more customers by providing something for everyone. They know not everyone wants a $80,000 car, and that there are some people who are wanting a car that will boost their image and will pay that price tag. The company is constantly trying to create new and innovative features in their cars to help diversify the products to attract new customers.

  The marine business helped to increase sales for the company. It first started out with the company only selling marine engines. Now the company has a fully operational boat production as well as engines. This section of the business has flourished due to the constant innovation of its products to meet the customer's needs and by providing reliable after sales service.

  Nissan's forklift business is also known for its reliability. Customers praise the reliability of the products offered by the company. This portion of the company uses quality manufacture differentiation by offering products that will not only perform but outlast the competition.


http://www.nissan-global.com/EN/COMPANY/PROFILE/BUSINESS/

Stock Market

Nissan is doing fairly well in the stock markets. Its current stock price has been rising over the past few days. As of 09/29/2010, Nissan closed with a price per share of $17.65. That is the highest price per share earning that the company has seen since 04/05/2010.

http://finance.yahoo.com/echarts?s=NSANY.PK+Interactive#chart3:symbol=nsany.pk;range=6m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

SWOT

Nissan strives for innovation in its products. The company prides itself on having a diverse group of employees as well as efficient and effective production lines.
Strengths:
-The company has a very strong and innovative team in the R&D departments
-By promoting innovation, the company is able to increase its product lines from cars to forklifts and boating.

Weaknesses:
-I wouldn't necessarily say that Nissan's marketing isn't good. But the company fails to advertise in the United States as much as it might in its home countries. Increased advertising might lead to even more sales.

Opportunites:
-Nissan could widen its new market segments in the marine/boating industry. There is much opportunity in this field. If the company would be as innovative with its boats as it is with its cars, it could be very profitable.

Threats:
-The most obvious threat is the slow economy in the United States. Although the company does sell to other countries, the slow economy has caused the company to miss out on potential revenues.
-Changes in demographic factors. According to an article on Yahoo.com, generation Y-ers who are 30 and under are putting a damper on car sales. Author Jim Ostroff spoke with president of Learning Resources Network Jim Draves on the  matter. “This generation focuses its buying on computers, BlackBerrys, music and software and views commuting a few hours by car a huge productivity waste when they can work using PDAs while taking the bus and train,” says Draves.

http://autos.yahoo.com/articles/autos_content_landing_pages/1523/generation-y-giving-cars-a-pass/

Vision/Mission Statement

  Nissan's vision statement "Enriching people's lives" and mission statement "Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault" are lacking in a few areas according to our text. The vision statement alone is very vague in it attempt to convey where the company is headed. How will it enrich people's lives? How can the company measure the level of success? Maybe the company should have stated how they will enrich people's lives, e.g "enriching people's lives by having a Nissan or Infiniti in every drive way". The mission statement does a slightly better job at conveying who Nissan is, what they do, and why the company is there. According to the text, it is important to have a strong vision statement to pass down to lower-level management and employees. The vision statement is often used as a motivational tool for the employees of a company, and to point them in the direction  that will lead to achieving the company's goals.

http://www.nissan-global.com/EN/COMPANY/MESSAGE/VISION/

Increasing Marketing Strength

  Nissan recently announced on its official website that it will begin the integration of its brand, marketing, and communication functions. The combinded functions will create a new organization to be further known as the Global Marketing Communications team. The company has decided to integrate these functions in order to refine and strenthen its global brands in markets worldwide. The leaders of these functions will come together beginning October 1, 2010, in the hopes that the Global Marketing Communications team will be fully operational by the start of the 2011 fiscal year. The alignement of these functions will help to increase the market strenth for the both the Nissan and Infiniti models.

http://www.nissan-global.com/EN/NEWS/2010/_STORY/100921-02-e.html

Nissan Performance Proves Profitable

  Nissan has recently posted on its investors website that increased demand caused the company to increase production. The demand for its Altima sedan and Titan truck increased production by 1.1% in the United States alone. Overall the company saw a 17.9% increase with a production of 330,041 units in the month of July.
  The company experienced a 14.7% increase in sales in the United States. Globally, the company experienced a 12.6% increase in sales, an all time record for the month of July. Innovation and product design have led the company to its successful performance. This increase in sales coupled with production lead the company to achieve a net profit margin of 69%! Due to this success, Nissan has decided to not alter its 2010 financial forecast consisting of a global operating profit of $3.89 billion and net income of $1.67 billion.

http://www.nissan-global.com/EN/NEWS/2010/_STORY/100729-01-e.html

Closing Stock Price

Nissan has seen a slight increase in its stock price over the past week. At the close of business on September 10, 2010 Nissan had a stock price of $15.90. This stock price could have been caused by the anticipation of Nissan announcing its pricing for the 2011 Altima.

Made to Order

  The automobile industry is a rapidly growing industry. It, like many other industries, has to adjust their production and selling behaviors according to the external environment in which they operate. Nissan is no exception to this behavior.
  In August, Nissan released a statement stating that the company will begin the order specification for the 2011 Nissan Leaf. The Leaf is the company's first 100% electric car. Nissan's consumers will be able to specify everything from the color down to the trim level. This type of product differentiation is done in the hopes of attracting more consumers.
  Environmental regulations have had a huge impact on the design of new models produced by the automobile industry. In order to reduce the amount of emissions given off by automobiles, the industry is beginning to head towards electric fueled cars. Although the electric cars will help reduce the effect of global warming, the design of the cars is not appealing to many consumers. Nissan will have to create a design that is not only appealing to its consumers, but also cost effective for the average consumer.

Current Stock Prices- NSANY.PK

 As of the close of business on August 31, 2010, Nissan NYSE rating has increased by .66%. The company closed at a price of $15.23 per share, which is up from its previous close of $15.13 on August 30, 2010.
 Looking at the chart provided by Yahoo!Finance, it appears as though Nissan has suffered a bit of decline in its share price in recent months. This decline could be attributed to their recent recall on several of its models.
 I will keep you posted on any exciting or interesting fluctuations in their prices. If nothing too exciting happens, I will try to post their statistics at least once a week in addition to anything happening with the company itself.

http://finance.yahoo.com/echartss=NSANY.PK+Interactive#chart1:symbol=nsany.pk;range=6m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Nissan's Strategy

   Nissan prides itself on diversity, both in its operations and its hiring practices. The company operates on the phrase "Diversity is our advantage. Diversity is my advangtage." The current President & CEO, Carlos Ghosn, states "To be successful in the global economy, companies depend on their ability to understand and reflect a range of human characteristics found in all the markets where they do business."
   Nissan is able to create competitive advantage by diversifying it products. The company is better able to diversify its products for specific target markets by employing people from different cultures, backgrounds, and gender that have insight to those specific target markets' needs. By allowing its employees to come together and create innovative solutions to meet the growing demands of its consumers, the company is able to keep its competitive advantage and continue its growth. The company is working to expand its production of electric and fuel cell cars that emit virtually zero emissions. This and several other solutions stand to increase Nissan's growth in the automobile industry.

http://www.nissan-global.com/EN/COMPANY/DIVERSITY/