Nissan Motor Industry Market in Kuwait (Case Study Sample)

A CASE STUDY OF THE NISSAN MOTOR INDUSTRY MARKET IN KUWAIT
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Nissan Company Background
Nissan Company started in 1933 in Japan as Jidosha-Seizo Kabushiki-Kaisha. It acquired several small-scale automobile manufacturers including the Datsun and Tobata and grew rapidly to become one of the most common brands in Kuwait. The organization has over the years adapted to use of efficient technologies to produce quality, reliable and low fuel consuming vehicles. By 1990, four of its merchandise featured in the top ten cars in the world. Despite the achievement, numerous factors have undermined the progress of the brand to become the most reliable auto in the globe. The enterprise fails to put the customer’s opinion about the design and the style. If the management takes the input of the clients’ view and considers the market dynamics, it is strategically positioned to join the league of the high profile rides internationally in terms of the overall quality, including style and design (Millkin 2005, p. 547). Besides, the improvement will also boost the sale and recognition of the business name in all nations. The objective of this paper is to verify whether the Nissan group has potential to become the leading auto manufacturer through analysis of the strengths, weaknesses, opportunities and threats that are unique to the automaker.
The table below represents the strengths, weakness, opportunities and threats of the Nissan Company.
Strengths Weakness Opportunities Threats Nissan produces quality, reliable and fuel efficient vehiclesFocus on short term market dynamicsFocus on new designs inventionHigh global rivalry in automotive industry Quality management Do not invest in new designsFocus on investing in few companies and invest more in the car industry aloneSqueezed returns as a result of increased cost of purchasing raw materials Advanced technology, plant productivity and engineering Retaining equity in other companies Focuses on producing fuel efficient cars that are favorite to many people clients due to the high fuel cost Natural disasters such as earthquakes causes massive disruption in Nissan manufacturing plants in industries in Japan and other countries 
Nissan has quality management and over the years, it has become one of the leading and the most profitable company, boasting of quality, reliable and fuel-efficient cars with quality engineering. Despite the progress, the management has chosen to focus on maintaining the same design that they have proven to be reliable, and invest extra profits in the real estate and other companies. Nissan management tends to focus on the short-term market trend rather than concentrate on long-term market plan and profitability. In spite of the few shortcomings, Nissan has a chance to revise some of its strategies essential to compete with the best dealers in the industry. The management should consider investing in a new design and stylish car and concentrate on investing only in a few companies (McGonagle & Vella 2001, 50).
Alghanim Industries
Alghanim Industries is headquartered in Kuwait and is among the largest privately owned companies in the Gulf region. It was founded in 1932, and grew to become a multinational company with more than 300 brands operating in 40 countries around the globe. The estimated capital market of the company is above $61 million, and it has employed over 12,000 workers worldwide (Cameron, Freeman, & Mishra 1991, 17). Some of the most common brands that the company offers include advertisement and media, automotive and engineering services, sales and transportation services in the different countries it operates. A study conducted by ASIAS to determine the best employer in Asia in 2012 ranked Alghanim Company as the first among a selection of 19,000 companies (Alghanim n.d, 1). The study considered analyzing employees and finding they pay, terms of services among other benefits that the business provides. Most of the employees interviewed indicated satisfaction with the condition of work, benefits and the current salary that they received from the enterprise. The CEO noted that he was happy with the ranking and cited the continued success and profitability of the merchandiser from the handwork and the dedication of the employees (Alghanim n.d, 1).
When companies expand very much, managing the employees becomes problematic, and sometimes they are forced to downsize so that it improve efficiency in the management. Downsizing means cutting the number of staff to a manageable size. It is not always that downsizing is a result of handling of increasing number of employees; at times, the downsizing might be a result of recession in the company, which forces the management cut the size of the workforce in order to reduce the operating costs (Cameron, Freeman, & Mishra 1991, 25). Downsizing has various impacts on the organization and the employees as well. The paper will discuss some of the effects of downsizing Alghanim Company – to the employees and the organizations (Moorhead & Griffin 1998, 35).
Effects of Downsizing on Employees
Alghanim Company might choose to downsize because of various reasons such as the company experiencing loss or improvement in the technology making it unnecessary to have many employees since the technology can replace some of the employees. The choice of whether to downsize is intricate, and the management must consider the following repercussion to the employees (Littler, Bramble, & Mcdonald 1994, 26).
Downsizing will result in adverse effects on the workers who will be forced to lose their jobs. The employees who fired from the company will experience financial difficulties, especially if they do not get the severance pay. The fired employees might be forced to engage in debts in order cater for the expenses (Muirhead & Conference Board 2003, 79). Downsizing will lead to low morale among the remaining workers because they will consider their fate in the company uncertain. Downsizing might give rise to the employees losing their confidence and skills because of the uncertainty. Employees who are fired will experience psychological problems and might become despondent (Littler, Bramble, & Mcdonald 1994, 33).
Effects of Downsizing on the Organization
Employees are critical assets of an organization. If Alghanim Company chooses to downsize them, it must consider the impact of firing some professionals will cause. There are merits and demerits of firing of experts to the organization. One of the benefits of firing them is that it reduces the cost...