Mitsubishi Motors Case Study
CASE ANALYSIS: MITSUBISHI CORPORATION
I. Time Context
Present
II. Viewpoint
Viewpoint of the chief executive Mr. Minoru Makihara
III. Central Problem
Pint-size profit margin of only 12%.
IV. Statement of Objective
Must:
Increase profit
Want: Persuade subordinates who have been too comfortable and aimed to be global.
V. Areas of Consideration
INTERNAL ENVIRONMENT
Strength 1. Diversified industry. 2. Machineries, technology and facilities. 3. Brand reputation.
Weaknesses 1. Small profit margin. 2. Employee’s lack of motivation on going global.
EXTERNAL ENVIRONMENT
Opportunities 1. Maximizing technology and facilities worldwide
Threats 1. Threat of competition.
VI. Alternative Courses of Action 1. Create sense of crisis by firing people.
Advantages: a. It may motivate the subordinates to perform better.
Disadvantages: a. Culturally un-acceptable. b. It may cause labor unrest.
2. Invest in far-away businesses that have no ties in Japan.
Advantages: a. It may push employees to perform better since they’ll be catering to different market/client. b. If successful, may inspire the subordinates and aim global.
Disadvantages: a. Investment is not a guaranteed to be profitable. b. Effects on employees may not be desirable.
3. Create new business - Multimedia.
Advantages: a. New / Fresh industry for the company – a breath of fresh air. b. May excite subordinates resulting to motivation. c. Upcoming industry trend globally.
Disadvantages: a. No established expertise on the said industry. b. Cost of investment.
VII. Recommendation
The best action to take is the ACA 3.
VIII. Action Plan
Person Responsible | Activities | Time Frame | Mr. Makihara | Research on venturing to Multimedia Business (cost, expected profit, market shares) | *30 Days | Mr. Makihara & Board
I. Time Context
Present
II. Viewpoint
Viewpoint of the chief executive Mr. Minoru Makihara
III. Central Problem
Pint-size profit margin of only 12%.
IV. Statement of Objective
Must:
Increase profit
Want: Persuade subordinates who have been too comfortable and aimed to be global.
V. Areas of Consideration
INTERNAL ENVIRONMENT
Strength 1. Diversified industry. 2. Machineries, technology and facilities. 3. Brand reputation.
Weaknesses 1. Small profit margin. 2. Employee’s lack of motivation on going global.
EXTERNAL ENVIRONMENT
Opportunities 1. Maximizing technology and facilities worldwide
Threats 1. Threat of competition.
VI. Alternative Courses of Action 1. Create sense of crisis by firing people.
Advantages: a. It may motivate the subordinates to perform better.
Disadvantages: a. Culturally un-acceptable. b. It may cause labor unrest.
2. Invest in far-away businesses that have no ties in Japan.
Advantages: a. It may push employees to perform better since they’ll be catering to different market/client. b. If successful, may inspire the subordinates and aim global.
Disadvantages: a. Investment is not a guaranteed to be profitable. b. Effects on employees may not be desirable.
3. Create new business - Multimedia.
Advantages: a. New / Fresh industry for the company – a breath of fresh air. b. May excite subordinates resulting to motivation. c. Upcoming industry trend globally.
Disadvantages: a. No established expertise on the said industry. b. Cost of investment.
VII. Recommendation
The best action to take is the ACA 3.
VIII. Action Plan
Person Responsible | Activities | Time Frame | Mr. Makihara | Research on venturing to Multimedia Business (cost, expected profit, market shares) | *30 Days | Mr. Makihara & Board