Nissan Case Study Solution

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The case study identifies several aspects of the Nissan response that were beneficial. Identify the potential costs and benefits of these actions. What else could Nissan have done to prepare for and respond to the disaster? Articulate the cost and benefits.

• Due to the disaster on the coast of Japan on March 11, 2011 involving several earthquakes, tsunami waves, and nuclear reactor meltdowns, caused a devastating impact for governments, corporations and people around the world. This case particularly talks about Nissan, damage caused to the Company by the earthquake and consequently its response to the disaster. Several protective measures were taken up by the Company post the disaster to gain back the momentum of business operations and …show more content…

Such as capacity constraints and dependencies across the Nissan operational network. However, allocating component parts was a critical decision for the Company. Allocation of supplies is another important area of aspect which is to be considered by the Company and seriously looked into. This determines continuity of operations and vigilance. The Company particularly focused on high margin goods for allocating supplies instead of low margin goods. For example, the supply of Integrated Global Positioning System (GPS) was confined to high-end models of cars rather than low-end models. This helps in optimal utilization of scarce resources available, enables manageable supply allocation in different regions and further enhances revenue generation of the Company during the time of such catastrophe. Based on Exhibit 3 in the case study it showed greater revenue likely in the hundreds of millions of Yens, instead of decreasing sales by delaying production of higher cost …show more content…

The well-developed emergency response plan established beforehand helped the Company in making quick decisions after the disaster. Foreseeing situations arising from a major disaster and preparing well for them enabled the Company to take prompt actions when the time came. Management of the Company was empowered to make decisions without any lengthy analysis from a central authority. The Company also used flexible approach by modifying its delegation of authority to speed up critical decision-making process for recovery concerns. One of these decisions includes launching the Global Disaster Control Headquarters after mere 15 minutes of the disaster. The team further, worked upon the situation effectively by assessing damage while overseeing restoration efforts at various facilities. Latest information including details about employees’ safety and damage caused was absorbed and appropriate actions based on this were taken. Hence, the Company used proactive measures post the disaster situations rather than consuming time and delaying decisions which were indispensable. This was possible only through preparing a backup recovery plan well before the disaster, integrating tasks and taking several imperative decisions

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