Maintaining resilience currently represents one of the main tasks that companies must meet in the ever-changing and quite competitive environment of the global market. The development of operational resilience involves building an effective risk management approach and designing sustainable resource management techniques that will provide a company with enough flexibility. Though Nissan has demonstrated impressive skills in maintaining its operations efficient and cohesive, the company has been experiencing challenges in building operational resiliency due to production damages and supplier issues.
With Toyota as its more aggressive rival, Nisan has been evolving quite fast due to its focus on deploying innovative solutions and expanding into the Western market. A flexible and efficient supply chain facilitated Nissan’s rapid success, allowing the organization to outperform its rival (Schmidt & Simchi-Levi, 2013). However, the firm’s risk management strategy as a product of a series of disasters that Nissan had to confront could use adjustments. Specifically, it does not allow the organization to make effective forecasts, therefore, putting it in danger. Specifically, the 2013 report explains that Nissan should focus on developing a proper understanding of the specific interdependencies between the company’s core processes and performance rates and the emergence of risks signaling the possibility of a disaster.
Therefore, the organization is presently at the crossroads of selecting an appropriate and functional framework for risk management. Given the challenges of the local and global markets, as well as the need to adjust to the new economic settings, Nisan will require a sustainable and effective approach for disaster management, risk analysis, and risk prevention. Therefore, relevant tools for responding to risks and mitigating disasters must be introduced into the company’s organizational context.
Reference
Schmidt, W., & Simchi-Levi, D. (2013). Nissan Motor Company Ltd.: Building Operational Resiliency. Harvard Business Review, 13-149, pp. 1-12.