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Nissan Case Study

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  1. This question here deals as to how Nissan used SDT (Supplier Development Team) to solve the problem in Europe as it related to the supplying the product in that area. But before we dwell on that we will discuss about the Scientific Management, which was introduced by Frederick W. Taylor.

Frederick Taylor is considered as one of the most controversial figures in management history. The innovations that he brought to the world in the field of engineering particularly in time have resulted in dramatic improvements in productivity. But at the same time it has been said his principles have lead to the destruction in the field of work.  In Taylor’s Management system, Factories are controlled and work is done over there through scientific methods rather than using the common rule which was so popular many years ago as many firms adopted that method. Here we will compare what Nissan did to what Taylor has recommended.

In this case we see that Nissan suppliers capability in Japan is 100 when compared to Europe and especially United Kingdom. So what Nissan did, they made a SDT team, which would develop the suppliers in Europe and will help Nissan in achieving their present and future endowers.  Nissan sent two engineers to Japan for nine-week course, and through this training they were taught in improvement activities within Nissan’s Japanese Suppliers as they were trusted the most with as to selling the product.  When they went and met the UK suppliers their aim was to achieve productivity and improvement in quality, which help in convincing The UK suppliers to adopt the Japanese supplier’s way to manufacturing of the product. The main aim here for Nissan was to make those UK suppliers to recognize the importance of adopting the Japanese way of selling and they want to continue with the way of selling even after SDT had left. SDT approach was launched officially in the UK and it involved a group of 12 suppliers.  Because of this Brave step taken by Nissan Corporation as to set up SDT, it has grown since then and has become an important part of Nissan’s suppliers.

If we compare this to Taylor Principle of Management there is one key area, which is very controversial. In Taylor’s Principle it is said that it is a very big risk if the managers make changes in the way the organisation works. So if we apply this principle to this situation and if Nissan Corporation had followed this principle then they would not have achieved what they wanted to achieve. Nissan Corporation made sure that they adapted to situation and that helped them in making great progress in countries that they were struggling. Taylor’s Principle might have been effective at the beginning 1900’s but if a big company wants to expand all around the world it has to adapt to every country’s situation.

  1. Any company that wants to achieve success has to keep improving so that their business expands and it grows internationally rather than in the domestic areas. Nissan realised that the market in Japan was theirs but they wanted to take risk and wanted to expand their business, as that’s what big business enterprise do. So to improve their or for solving the problem they made a presentation as SDT team made sure that the owners are aware of what exactly is going on.  When the SDT Team showed the presentation they were positive with the step taken by SDT and Nissan. The reason that they were positive is because the team was focusing on the improving activities, which include reducing work in progress, reducing defects and so on.  This is a ten-day improvement job and it will require extreme focus and determination to achieve this. When we look at the advantages of Taylor’s Principles of Management, The first is Scientific Task Setting; according to Taylor a particular person or a manager should distribute work among people as he would be to do it without any confusion and feuds. These principles were introduced at an age where people had no choice and had to listen to the man in charge. If Nissan adopts this policy it would not help them at all as the year was 1987. People have become more smart and they leaders know that interacting with the staff and getting to know them is a very good way of distributing task equally and efficiently as this will also result in people doing their work with full heart and commitment. The second is Differential Payment System through Taylor’s Principle it is said that a worker is paid according to the work he is doing or he has done. This is helpful according to the Taylor, as it makes sure that people work hard and will make sure that they do more work as that will result in benefitting them. If this was an advantage then, it is a big disadvantage now because if people work with money in their mind rather than the work the company will decline. The reason that the company will decline is because there will be no trust as every worker will be interested in their own work rather than working together and that’s what Nissan has done. They have sent two people who will coordinate and will make sure that they company benefits due to the trust between workers as the main aim of the workers should be to work hard for the company.  

In the end we can say that by employing SDT Nissan has benefited in a long way as it developed very good relationships with its suppliers. According to Taylor’s principle’s have connection with the people who work for you is bad but when Nissan did this not only did it help the performance but there was trust that had been built between them Trust according to us is the biggest and the most important aspect if a company wants to grow around the world. Nissan is global well known company that is able to capture the market and this is only possible if they adapt to every countries situation and the people’s choices. In this case it’s the relationship between the suppliers and Nissan that has been observed and we can see that Nissan chose to know the suppliers strength and weakness, as that will help the company to grow and expand.



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