WESTG

ATE
Executive Summary

NISSAN MOTOR CO., LTD. manufactures and sells vehicles, forklifts and
marine products. The Company has two business segments. The Automobile
segment manufactures and sells vehicles, forklifts, marine products and
accessories. The Sales Financing segment is engaged in the provision of
sales financing services. As of March 31, 2011, the Company has 207
subsidiaries and 24 associated companies. On March 22, 2012, the Company
fully acquired Aichi Machine Industry Co., Ltd., which is engaged in the
development, manufacturing, sale of engine and manual transmission in
Nagoya, Japan.
Established in Yokohama City, Kanagawa Prefecture in 1993, Nissan Motor
Co., Ltd . currently manufacture vehicles in 20 countries and areas around
the world, including Japan. And Nissan offers products and services in more
than 160 countries and areas worldwide. Below is the latest corporate
information summary:
Company Name

NISSAN MOTOR CO., LTD.

President and Chief

Carlos Ghosn

Executive Officer
Registered Head Office

2, Takara-cho, Kanagawa-ku, Yokohama-shi, Kanagawa 2208623, Japan

Headquarters

1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi,

Kanagawa 220-8686, Japan
TEL. 81(0)45-523-5523

Business Outline

Manufacturing, sales and related business of automotive

products and marine equipment.

Date of Establishment

December 26, 1933

Paid-in Capital

605,813 million yen

Stock Information

Number of authorized shares:6,000,000,000

Common stock (issued and outstanding):4,520,715,112
Number of shareholders:267,600

Number of Employees

28,403 (non-consolidated basis)

155,099 (consolidated basis)

This strama paper will present the corporate overview and strategic plan of Nissan
Motor Global (as main company) and NMPI (Nissan Motor Philippines Inc.)
particularly the Nissan Motor Westgate Alabang in which the proponent chose to
delimit the research. The proponent becomes interested and curious with the
proliferation of automotive dealerships in the Southern Region particularly in
Alabang-Cavite area. In relation with this, competitors profile and data were also
gathered with the help of friends working in different automotive industry.
Moreover, other sources were gathered through Automotive Industry websites,
Entrepreneur Magazines, Business World Journals and Strategic Management books
by Fred R. David and Michael Hitt. The study will also cover the global scenario to
become cognizant of the external forces affecting not only domestically but also
the International arena. It has become a crucial factor to scan not only the internal
environment but also the external forces that might affect the business in terms of
Political, Economic, Social, Technological, Environmental, Demographic and Legal.
A globally-competitive industry will closely monitor the trends and transitions of

these forces to formulate, develop and implement comprehensive strategies to

sustain the competitive position in the market.
In the Philippines, automobile Industry is growing at a rapid race. The demand for
cars over time has increased a lot due to its becoming as a necessity, stability of
people economic condition and also with growth of economy. This has attracted a
number of producers towards the market. Nissan along with other producers like
Toyota, Ford, Diamond Motors, Suzuki and Honda etc. is a player in the automobile
market. For the success of the car in industry a deep study and research has been
undertaken to develop an effective and efficient plan.
Automobile Industry Overview
Global Industry for Automobile
Automobile Industry is a business of manufacturing and selling vehicles. It has
encouraged the expansion of road systems and allowing consumers to commute
long distances. It has also allowed other industrial product to contribute as well,
such as steel and thus is the key determinant for economic growth.
Globalization of automotive industry accelerated exponentially after the 1980s.
This was due to the construction of important overseas facilities and mergers
alongside with improved production techniques adopted by Japanese in the
1970s.By 2005, the industrys global output touched 64.6 million vehicles. The
auto market today is one of the largest segments in world trade. Today the annual
automotive exports have reached a level of $600 billion which accounts for 10% of
the worlds export. With increase awareness in consumers about potential hazards,
automobile industries are in constant competition with each other to produce a

better vehicle for the right consumer. It is estimated that the car industry will
continue to prosper to increasing trends as national economies and population
increases

.Mobility

2030,

of

the

World

Business

Council

for

Sustainable

Development, reported that per capita mobility of China, Latin America, Russia and
rest of Europe would double by 2030 to 5000-14000 km per year. This will
contribute to the automotive industry a big deal.

Automobile Industry in the Philippines

Philippines is a member of the Association of South East Asian Nations (ASEAN), a
regional trading block with combined annual vehicle sales of 1.5 million units
(1996, pre financial crises.)
In spite of the pall of gloom descending upon the global automotive industry in the
recent years, as threats of soaring fuel prices and shrinking purchasing power
continue to cause jitters among nervous consumers, and as when major auto
markets like the US are reporting double-digit sales slump and shedding thousands
of jobs, the Philippines auto industry provides a stark contrast.
In fact, the Philippines auto industry continues to experience double-digit growth,
with total vehicle sales rising 14.2% in 2008 compared to previous year. This can
be attributed to the steady stream of dollar inflows from overseas Filipino workers
and investments by rising entrepreneurs that the local auto industry has so far
bucked the trend and side-stepped the global slowdown in car sales.

The local auto industry is dominated by global auto brands but it plays a major role
domestically as an economic driver through the downstream industries that
depend on it from the assemblers and distributors, to the makers of various
automotive parts and components, dealers who retail the vehicles, not to mention
the many ancillary industries that include car accessories, after-sales service
businesses, oil and lubricant industry, among many others.
There are more than 530 players in the automotive industry, which includes 21
passenger car and commercial vehicle assemblers/distributors, 256 parts makers,
and more than 240 dealer outlets nationwide.
The economy benefits in the form of government revenues from taxes paid which
enables it to spend on infrastructure development. In 2007 alone, the local
automotive industry contributed a total of Peso18.92 billion in taxes, up from
Peso14.94 billion in 2006.
Trade Barriers
In order to produce vehicles in the Philippines, manufacturers must be recognized
as part of one of the Motor Vehicle Development Programs (MVDP), to produce
either passenger vehicles or commercial vehicles. To participate in either of these
programs, certain requirements must be met, including having a minimum of 40
percent local parts content as well as meeting foreign exchange requirements in
order to import components.
The MVDP was first initiated in 1987 with the Car Development Program, which
was designed to help foster the development of a local components industry. At
that time the number of manufacturers was limited to three (all Japanese

manufacturers). Since 1995 the trend in the Philippines' automotive sector has
been towards liberalization, with President Ramos' initiative to remove quotas on
vehicle imports. In 1996 steps were taken to open up the MVDP to all
manufacturers.
Nissan Motor Philippines Corporate Overview

Heritage
The only thing constant is change. Nissan's commitment to constantly
challenge the status quo and improve practices and processes has been
proven in its two decades of existence in the Philippine automotive market.

Never compromising quality, each and every Nissan product introduced is a result
of research and human engineering that fully complements the Filipino's changing
lifestyle. From the seemingly insignificant details to the essential safety functions,
each product is made with only international excellence in mind. Giving the Filipino
the freedom of choice to select the vehicle that fits their lifestyle at a cost that will
give them the best value for their money.

Nissan set foot in the Philippines in the 80s. It was then known as Pilipinas Nissan
Incorporated. Year after year, a number of Nissan models was introduced to the
Philippine market. Throughout the entire decade, Nissan launched a total of 7 new
models. Just the right number and the right choices at the right time.

April 1982
Pilipinas Nissan Inc. (PNI) was established as the forerunner of Nissan

Motor Philippines, Inc.

October 1982
Joint venture agreement with Nissan Motor Co., Ltd. & Marubeni

Corporation is finalized.
September 1983
PNI begins full commercial operation. The roll-off ceremony of the first
locally assembled Nissan car, the Stanza was launched at the Quezon

City Plant.
February 1986
Nissan Pulsar launched.
June 1987
Nissan Sentra Series I launched.
September 1987
Nissan Sentra California launched.
March 1988
PNI is registered with the Car Development Program of the Board of
Investments.
July 1988
Nissan Sunny Pick-up launched and PNI is registered with the commercial
vehicle program of the Board of Investments.
January 1989
Nissan Bida launched.
August 1989
Nissan Cefiro 2.4 launched.

Roaring is the right word to fully grasp the way Nissan made noise in the 90s.
We launched eleven new Nissan models that were warmly received in the
Philippines. Across the years, numerous dealers were inaugurated and many
affiliations commenced. In this decade, Nissan paved the way for the change
that promised growth.

October 1990
Nissan Bluebird launched.

October 1991
The Nissan Valley inaugurated.
November 1991
The corporate name of Pilipinas Nissan Inc. was change to Nissan Motor

Philippines Inc. Increase in authorized capital stock and paid in capital

stock is consummated.
December 1992
A site development ceremony was held at the future assembly plant on a

20-hectare property in Sta. Rosa, Laguna.

February 1993
The Nissan Quezon Avenue and the Nissan Cebu Distributors, Inc.
inaugurated.
The first Nissan Vanette is launched. NMPI signs joint agreement with

Nissan Car Lease Phils. (Nissan Rent-A-Car).

May 1993
Groundbreaking ceremonies marked the beginning of the construction of
the Nissan Technopark in Sta. Rosa, Laguna.
October 1993
Nissan Altima launched.
April 1994
The Nissan Gallery Ortigas is inaugurated.
June 1994

Nissan Cedric launched. Inauguration ceremonies of the Press Plant is

held in Sta. Rosa, Laguna.

September 1994
Nissan Cabstar launched.
October 1994
The Nissan North Edsa-Balintawak is inaugurated.
November 1994
Nissan Ad Resort is launched.
March 1995
Nissan Sentra Series III launched.
The Nissan Cagayan de Oro is inaugurated.
May 1995
The Nissan Southwoods is inaugurated.
December 1995
Groundbreaking ceremonies of the Sta. Rosa Assembly Plant is held.
August 1996
The Nissan Commonwealth is inaugurated.
April 1997
The Sta. Rosa Assembly Plant starts production.
July 1997
Nissan Sylvia launched.
October 1997
The Nissan Technopark is inaugurated.
August 1998
The Nissan Cefiro launched.
June 1999
Nissan Ad Max launched.
December 1999
NMPI receives certification for ISO 9002 from BVQI.

In the turn of the millennium, change continuously challenges the hearts and
minds of the people behind Nissan. With more models launched and more
coming in the way, Nissan in the Philippines is bound to live up to its Shift_
principle.

March 8, 2000
Nissan Sentra Exalta launched.
May 16, 2000
Nissan Cefiro 2.0 (Brougham VIP, Elite, Classic) launched (minor change).
July 14, 2000
The Nissan Verita launched.
September 2000
SEC approves the investment of Yu Tai Investment Co., Ltd in Nissan
Motor Philippines, Inc.
June 13, 2001
Nissan Sentra Grandeur launched.
April 23, 2002
Nissan Serena launched.
June 6, 2002
The new model Cefiro was launched.
July 23, 2003
Nissan X-TRAIL launched.
November 27, 2003
Nissan 350Z launched.
July 2004
Nissan Cefiro 300EX introduced.
july 2005
Nissan Sentra I-STYLE launched.
March 29,2006
Nissan Murano launched.

Nissan is made up of a richly diverse group of people, as reflected in the

company's leadership team. Together, we have what it takes to build cars and
vans with the power to change both the way you view the world and the way
you move in it.

There is much more to Nissan than what you can experience in the driver's
seat. If number-crunching is what you need, we have got that kind of behindthe-scenes information, too.

We value our people. Employees are the heart of the company. Having chosen
personnel with commitment to the highest standards, through teamwork, we
aim to create corporate understanding and loyalty to one another.
We value our partners. With dealers and suppliers, we will work a long-term
partnership, encouraging pride in Nissan and being receptive to all suggestions
and improvements.
We value trust. We will demonstrate trust and respect by encouraging each
other to accept responsibility and be accountable for our actions.
We value challenges. We will constantly question the status quo and improve
practices and processes through innovative suggestions and constructive
criticism, without any fear of recrimination.

It is no secret that the success of a quality-oriented company begins with a

highly trained and professional workforce. With over 200 customer-oriented
employees, Nissan continues to strengthen its dynamic corporate structure by
continuously adjusting its organizational backbone to keep the company in the
forefront.
In line with the company's commitment to provide each customer with total
quality service, Nissan provides all employees with an ideal people and
environment management strategy. This maintains the positive work attitude
prevalent throughout the company.
Nissan is able to achieve a high efficiency rate with the help of MOTIVATIONDISCIPLINE-SKILL style of management.
MOTIVATION for Nissan is in direct relation to the efficiency of an employee.
Studies have proven that a workforce that maintains a high morale, positive
attitude and team spirit contributes to the productivity of that group. From the
assembly line to upper management, each worker is given the pride and
respect each of their vital positions merit.
DISCIPLINE is likewise, a vital aspect given importance at Nissan. Instilled in
each of the employee is an essential discipline: TO ALWAYS DO THINGS RIGHT
THE FIRST TIME. This is the main element of the Nissan worldwide culture to
ensure customer satisfaction. Beyond the hiring of the most competent and
able persons for each position, Nissan also provides special manpower training
through intensive seminars, on-the-job training programs, thorough job rank
education and exposure/updating trips in and out of the country.

SKILL plays an important role in the qualification and continuing education of

Nissan's workforce.

Amidst the technological revolution that now takes the world by storm, Nissan
is proud to announce that they continue to keep pace with mankind's constant
race for new breakthroughs in science and technology. Keeping up-to-date with
the digital world, Nissan continues its search for automotive excellence. In
doing so, Nissan's active employee roster is kept abreast of new market
developments through regular training seminars spurred by results, successful
research and development work.
Latest Press Releases
Nissan Goes the Extra Mile for Biodiversity
Some 100 representatives of the business community, media, people's
organizations, local government units, and international organizations trooped
to Ang Pulo Mangroves in Calatagan, Batangas on May 15 for a media forum
and mangrove planting activity. The multi-sector event dubbed "Conserve
Marine Biodiversity, Conserve Life" forms part of the events organized for the
International Day for Biological Diversity (IDB) 2012 and the National Oceans
Month.

Mr. Val de Leon, NMPI SVP for Administration and IT (extreme left) leads the
planting of mangroves for the International Day of Biological Diversity 2012.

Nissan Motor Philippines, Inc. (NMPI), together with Pilipinas Shell Petroleum
Corporation,

the

ASEAN

Centre

Gesellschaft

fr

Internationale

for

Biodiversity

Zusammenarbeit),

(ACB),
the

GIZ

(Deutsche

Department

of

Environment and Natural Resources - Protected Areas and Wildlife Bureau

(DENR-PAWB), the Batangas Government Provincial Environment and Natural
Resources Office, the Provincial Government of Batangas, and the Municipal
Government of Calagatan led the planting of 200 mangrove propagules at Ang
Pulo.

Mr. Val de Leon, NMPI SVP for Administration and IT (left) and Mr. Lee Junia,
NMPI VP for Marketing, Sales & After-Sales goes the extra mile for biodiversity
by planting mangroves in Ang Pulo, Calatagan, Batangas.
Mangroves, known in the Philippines as bakawan, are tropical, salt-tolerant
trees or shrubs, often clustered together and can grow up to 25 meters. They
are found mainly in marshy areas between the shore and the sea called intertidal zones.
"The territory occupied by the Philippines and the rest of the ASEAN Member
States houses a third of the world's mangroves, coral reefs and seagrass areas.

These ecosystems support the highest concentration of coastal and marine

fauna and flora in the planet. An estimated 600 million people in the ASEAN
region depend directly on these resources for food and income, which also
forms the economic base for the fishing and tourism industries of the region.
Thus, it is of great importance that we all contribute to conservation efforts,"
Mr. Rodrigo U. Fuentes, executive director of ACB, said.
For its part, NMPI believes that as a corporate citizen, it plays an important role
to communicate and cooperate actively with the communities. "NMPI has
formed various partnerships with international groups, citizen groups and
government

agencies

to

effectively

promote

real-world

reductions

in

environmental impact," NMPI President and CEO Allen Chen said. "Through this
event, we hope to go the extra mile in preserving biodiversity to complement
our environment philosophy of achieving a symbiosis of people, vehicles and
nature."

In recognition of its efforts to achieve a symbiosis of people, vehicles and

nature, NMPI received the Friend of Biodiversity Award from the ASEAN Centre
for Biodiversity. This award is given to organizations and business sectors that
exhibit a conscious effort in taking action for biodiversity conservation.
Receiving the award are Mr. Val de Leon, NMPI SVP for Administration and IT
(left) and Mr. Lee Junia, NMPI VP for Marketing, Sales & After-Sales. With them
are representatives from the ASEAN Centre for Biodiversity: Dr. Filiberto
Pollisco, Jr. Program Development Specialist and Dr. Sheila Vergara, Director for
Biodiversity Information Management.
Journalists from Brunei, Philippines and Thailand participated in the media
forum at the mangrove site to highlight the importance of conserving marine
habitats and species. Experts from the participating organizations will brief
media representatives on the status of mangroves and marine biodiversity in
the Philippines and the ASEAN region. The impact of climate change on marine
biodiversity, as well as actions of people's organizations to conserve
mangroves, was also discussed.
The results of such studies and developments reflect in Nissan's state-of-the-art
machinery and a competent workforce that elevate all Nissan products and
services to international standards.
Nissan Advances To Become No. 2 Asian Brand in Americas in 2011,
Reports Record Sales and Share Growth Across Region
Nissan Americas reported record sales of 1,561,230 in 2011 calendar year for
Nissan and Infiniti brand vehicles throughout the region encompassing North,

Central and South America - a record year in both market share and volume for
Japan's second largest manufacturer. The Nissan brand alone gained 0.6 points
of market share over the 2010 calendar year and advanced to become the No.
2 Asian automotive brand in the Americas.
The company's sales and share growth was consistent across each of the
geographic regions throughout the Americas, with the U.S., Mexico and Brazil
posting the largest single-country gains. In total, sales of Nissan and Infiniti
vehicles in the Americas increased more than 229,000 units last year, or 17.2
percent, over 2010 for a combined share of 7.5 percent, a record for the
company's single largest region worldwide.

Nissan Americas Sales & Share: CY11 vs.

These gains, coupled with the company's ability to outpace both the overall
CY10
market and key competitors, advanced Nissan's standing to the No. 2 position
among all Asian automotive brands in the Americas.
'Big 5' Asian Automotive Brands in the Americas

"2011 was a breakthrough year for Nissan in the Americas in a multitude of

ways," said Colin Dodge, chairman, Nissan Americas. "We outperformed our
key Japanese competitors in every market throughout the Americas while the
Nissan brand became one of the fastest-growing Asian automotive brands in
the region."
Nissan Americas Highlights
In the U.S., Nissan gained market share for the sixth consecutive year, ending
2011 with 8.2 percent of the U.S. market, up from 6 percent just a few years
ago
In Mexico, Nissan has been the market leader for three consecutive years and
ended 2011 with a record market share of 24.8 percent, up 1.7 points from the
prior year

In Brazil, Nissan's business has been rapidly expanding with sales that nearly
doubled in 2011. Nissan was Brazil's fastest-growing automotive brand in 2011
and is now the 7th best-selling car brand in the country

In Latin America, Nissan finished 2011 with 10 percent market share for the
first time, up 0.4 points from the prior year
Nissan values safety, comfort
The World Health Organization (WHO) recently sounded the alarm over how
road accidents are claiming millions of lives every year. For vehicle buyers, this
is really alarming. However, the chances of increasing one's safety behind the
wheel can be achieved simply by choosing the right vehicle.
For Nissan Motor Philippines Inc. (NMPI), safety and comfort are "nocompromise" issues.
Two of its bestselling vehicles, the X-TRAIL and the Sentra, have surpassed the
tough Japan New Car Assessment Program (JNCAP) for crash safety and each
earned a five-star rating.
The JNCAP rating measures crash protection in three major collision points:
frontal, side and rear.
Collision at an average of 60 kilometers per hour usually results in severe
internal injuries or in extreme cases even death. The JNCAP rating assures a
better passenger and driver survivability in an accident.
Body Zone Concept
The X-TRAIL and the Sentra's five-star rating on safety brings little surprise
because of Nissan's Zone Body Concept. Front and rear crushable zones, as
well as well-placed impact beams, absorb the energies that will normally be

transferred to a vehicle's passenger. Moreover, the rigid passenger cabin

surrounds occupants with a "shield" of steel further adding protection.
Braking System
Aside from having a five-star safety rating from JNCAP, the X-TRAIL and the top
variants of the Sentra have a braking system with 4-wheel discs, equipped with
Anti-Lock Brake System (ABS) with Electronic Brake Force Distribution (EBD)
and Brake Assist (BA) features.
EBD and BA maximizes the use of brake force by distributing brake power
where it is needed. On the other hand, BA takes the stress out the right foot by
equalizing pedal pressure in all driving conditions.
On top of that, the four-wheel drive version of the X-Trail features an
electronically-controlled coupling that reacts faster to the need for torque than
conventional hydraulic (viscous coupling) systems.
Known as "All-Mode Four Wheel Drive", the system offers a choice of two-wheel
drive, four-wheel drive or auto mode. Auto mode does the selection duties
depending on terrain, speed and torque requirements.
Set on AUTO, the X-TRAIL launches off from a stop with power in all four wheels
then shifts torque from the rear wheels when there is no need for all-wheel
torque. This "no-slip on start-ups" feature gives the X-TRAIL engaging
performance on-road while allowing exciting feats off-the-asphalt.

It also makes for a safer sport utility vehicle (SUV), since losing traction during
the most grueling driving conditions can invite danger.
Likewise, the Sentra and the X-Trail have as standard equipment front and rear
seatbelts. On top of that, the X-TRAIL and the Sentra 180GT have front
seatbelts with pretensioners and load limiters.
With the X-TRAIL and the Sentra setting the pace in passenger safety, NMPI
believes these will gain more followers in the Philippine market, especially now
that more people are becoming more aware about vehicle safety.
Comfortable Ride
The four-wheel fully independent suspension with long stroking shock absorber
and a full suspension travel on the X-TRAIL makes easy work of even the most
demanding terrain. On the other hand, the famous Mutli-Link Beam Suspension
of the Sentra provides a firm yet pliant ride with a tight race car-like handling.
Leather seats are common to the X-TRAIL 250X and the Sentra 180GT. Cloth
and jersey combinations are found in the 200X and the 4x2 variants of the XTRAIL as well as on the Sentra 1.6 models. Soft cloth in gray trim cover the
Sentra GX 1.3.
The rigid body shell of both the X-TRAIL and the Sentra also assures a
comfortable ride and taut handling as the suspension can absorb the ruts and
bumps, something a flexing chassis cannot do. This is comfort beyond just
deep seat cushions and tall seat backs.

All these features bring one the peace of mind knowing just how safe one's
vehicle is.

The power comes from inside."

This simple phrase familiar to every Nissan employee conveys a powerful truth.
Any company is only as strong as the people who bring it to life. Companies do
not create products, deliver services or solve problems; people do.
And the people who work at Nissan are facing major evolutions that are
changing the global automotive industry as we know it today.
One trend is the shift in demographics. The world's population is expanding at
a rapid pace, from 6.7 billion today to more than 9 billion by 2050. More people
will create the demand for more cars. Today, there are 600 million vehicles
worldwide; by 2050, statistics show there may be up to 2.5 billion vehicles.
Where will the growth occur? Many vehicles will be sold to the rising middle
classes all over the world, particularly in emerging markets. A car is an
important symbol of freedom, status and personal achievement, and growing
numbers of new drivers will seek affordable transportation and the benefits
that car ownership provides.
Another important trend is the growing demand for a cleaner environment.
Automakers are accelerating the development of products to offer greater fuel
efficiency and fewer CO2 emissions, from more efficient gasoline-fueled
engines to hybrids, clean diesel, electric vehicles and fuel cell vehicles.

The world is changing, and Nissan is adapting with it. We are harnessing the
power that's inside Nissan to prepare solutions that our customers will want
and value, now and in the years to come. Solutions such as:
electric and fuel cell vehicles that are attractive, fun-to-drive cars with the
appealing benefit of zero emissions;
global entry cars that make mobility more accessible and affordable for all; and
innovative technological advances that are good for the environment, enhance
safety,

improve

dynamic

performance

or

provide

greater

life-on-board

satisfaction.

Nissan has a clear vision for the future, and - with our Alliance partner, Renault
- we are working with passion to achieve it. Our mission is to enrich people's
lives, building trust with our employees, customers, dealers, partners,
shareholders and the world at large.

Carlos Ghosn
President and Chief Executive Officer

Seeing around a bend

Allen Chen, President and CEO of Nissan Motors Philippines, Inc., entered the
company mid of 2007. He foresees the road ahead with emphasis on the image
and strength of the brand to carry the company.
"We at Nissan Motors Philippines, Inc. have an aggressive vision for the long
run. It is to once more lead in the Philippine automotive industry. This vision is
like a huge curve on the road, though one cannot see beyond the bend, the
proper planning and adequate information of the surroundings can equip one to
anticipate the obstacles that may come ahead. Our planning come in terms of
aggressively pursuing new products to reinvigorate ourselves in the markets
we are in and create new markets. Our awareness of the markets commits us
to value creation better products and better customer service. We are
constantly shifting the future at Nissan at the same time shifting expectations
of our customers."
Allen Chen
NMPI President and CEO

"Symbiosis of people, vehicles and nature" is the fundamental concept

underlying automotive design and engineering at Nissan.

We believe that the basis of environmental protection lies in striving to

understand the environment better. In every facet of the company's activities,
Nissan brings to bear a shared concern for the environment and the Earth with
the aim of contributing to the further advancement of society.

Nissan is working hard to achieve a future state of overall zero emissions.

Additionally, extensive efforts are being made to design and engineer vehicles
that combine environmental friendliness with driving pleasure. Based on this
philosophy, Nissan set "the environment and driving pleasure 3-2-1" as its
future R&D objectives in September 1998. These figures mean tripling fuel
economy, doubling driving pleasure and achieving exhaust emissions as clean
as the ambient air.

The ultimate R&D goal is to incorporate all of these performance attributes into
all vehicles. In line with these objectives, Nissan intends to continue to develop
technologies highly beneficial to the environment and implement them steadily
in the company's products at prices readily affordable to customers in the
coming years.

Nissan Motor Global Vision

Nissan Motor Global Mission

Nissan Westgate Alabang Corporate Vision

To become the Pacesetter Nissan Dealership in the Philippines by
providing High Standards of Quality Sales,
Satisfaction

After-Sales and Customer

Nissan Westgate Alabang Corporate Mission

Establish a Nissan Dealership that would provide the Best Quality Sales,
After-Sales, and Customer Satisfaction

Analysis of Vision-Mission Statements

According to Fred R. David, an organization achieves a heightened sense of
purpose when strategists, managers, and employees develop and communicate a
clear business vision and mission. Drucker further says that developing a clear
business vision and mission is the first responsibility of strategists.
Well-designed vision and mission statements are essential for formulating,
implementing, and evaluating strategy. A vision statement should answer the basic
question , What do we want to become? . A clear vision provides the foundation
for developing a comprehensive mission statement.
A mission statement answers What is our Business? and a good one reveals an
organizations customers; products or services; markets; technology; concern for
survival, growth, and profitability; Philisophy; self-concept; concern for public
image; and concern for employees.
Analyzing the firms global Vision seems to be too vague and does not clearly
specify what it wants to become in the future. It could have specified future
direction or positioning relative to its nature of business (automotive Industry),
core competencies and markets.

Analyzing the domestic dealerships vision seems to be a good statement since it

specifically reveals what it want to become stating the purpose and services they
are commited of.
The firms global mission seems to be a good statement since it clearly specifies
the business it is engaged in and the services it can offer and committed to.
However, following Fred Davids components of mission statement, it lacks five
components such as the Market, Concern for Survival, growth and profitability,
concern for public image, and concern for employees. Though it reveals in their
Corporate Philosophy the concern for employees, environment, shareholders, and
public image, they were not mentioned in the Mission statement. Thus a revised
mission statement could be :
Nissan provides unique, customer-driven and highly innovative
products and services in the world, operating at the highest level of
ethics and focusing on exemplary corporate governance and commited to
generating superior returns to our shareholders as well as enhancing the
well-being of the communities we serve , embracing the culture of
diversity and treating our employees with dignity while delivering
superior measurable values to all our shareholders in alliance with
Renault
A revised Mission statament for Nissan Westgate Alabang dealership could be:
Establish a Nissan Dealership that would provide the Best Quality
products and services, delivered by Highly competent people with
commitment to the highest standards, striving to develop technologies

highly beneficial to the environment, commited to maximizing

shareholders return and striving to achieve maximum customer
satisfaction.
External Audit
The purpose of an external audit is to develop a finite list of opportunities that
could benefit a firm and threats that should be avoided. It is not aimed at
developing an exhaustive list of every possible factor that could influence the
business; rather, it is aimed at identifying key variables that offer actionable
responses. Firms should be able to respond either offensively or defensively to
the factors by formulating strategies that take advantage of external
opportunities or that minimize the impact of potential threats. External forces
can be divided into five broad categories: (1) economic forces, (2) social,
cultural,

demographic,

and

natural

environment

forces;

(3)

political,

governmental, and legal forces (4) technological forces; and (5) competitive
forces.
Economic Forces in the Philippines
The rapid change in National Economy greatly affect the purchasing power of
people, with priorities continue changing, the affordability of cars has improved
and resulted to increase in car sales. However, the trend in Phiillipine economy
is in unstable condition brought about by different economic risks. Economic
risk involves the likelihood that events, including economic mismanagement,
will cause drastic changes in a country's business environment that adversely
affects the profit and other goals of a particular business enterprise. In other

words, Economic risk is the danger that the economy could turn against your
investment. The Country Risk Tier (CRT) reflects A.M. Bests assessment of
three categories of risk: Economic, Political and Financial System Risk. A.M.
Best defines country risk as the risk that country-specific factors could
adversely affect a business enterprise ability to meet its financial obligations.
The Philippines has high levels of economic, political and financial system risk.
A.M. Best considers the majority of countries in Southeast Asia to be
categorized as CRT - 3 or CRT - 4. The exceptions are Vietnam, the sole CRT - 5,
and Singapore the sole CRT -1.
In 2007, Phillipines achieved a GDP growth rate of 7.3 per cent, the highest for
the country in 30 years. This was attributed to the "positive growth" in all
sectors of the economy, especially services and industries.
This impressive result continues the encouraging and positive trend of the past
five years, and reflects the Philippines Government's impressive efforts on
fiscal management. It has maintained fiscal discipline and recently increased
spending in the social sector, agriculture and infrastructure.
If Philippines can maintain the growth trend, public and international
confidence will strengthen further and provide confidence to the international
investors that there is no economic risk of doing business in Philippines.

Clearly the most significant challenge is to continue to strengthen the

fundamentals of the economy to ensure sustained high growth that will lead to
a sustained decline in poverty.
However on the flip side, the economy faces challenges of implementing
essential policy reforms particularly in areas like tax administration, tax
revenue collection, public expenditure management, budget execution and
transparency. The global meltdown would also pose a challenge to Philippines
economy.
On the expenditure side, the continued rise in prices resulted in lower
consumer spending at 0.8 percent in 2009 from 5.1 percent a year ago.
Social, Cultural, Demographic and Natural Environmental Forces
Philippine Environment
The Philippines is an archipelago comprising some 7,100 islands with a total
land area of almost 300,000 square kilometres. Indonesia, Malaysia and Brunei
border the Philippines to the south, Chinaand Taiwanto the north, Vietnam
to the west and the Pacific Ocean to the east. Three main island groups divide
the country: Luzon in the north, the Visayas in the centre, and Mindanao in the
south. Luzon and Mindanao together make up 65 per cent of the Philippines'
total land mass. The capital city, Manila, is located on Luzon.
The projected population of the Philippines is 94 million in 2010, with about 15
per cent belonging to indigenous groups. It is estimated that about 80 per cent
of the population are Catholics and 5 per cent are Muslims. The most

commonly spoken language in the Philippines is Filipino, a language derived

from the Tagalog language of central and southern Luzon. English is also widely
spoken, particularly in urban areas.
There are some 87 ethnic languages and dialects spoken throughout the
Philippines. The Philippines, despite some favourable social and economic
indicators, is yet to reach its economic potential. Growth that has not been
inclusive, and growth that has been steady rather than dynamic over the past
two decades has prevented the Philippines from keeping pace with many of its
East Asian neighbours in reducing poverty.
The Government of the Philippines' Midterm Progress Report on the Millennium
Development Goals (MDGs) shows the country is on track to meet 2015 targets
on reducing child mortality, promoting gender equality, combating HIV/AIDS,
malaria and other diseases, and increasing access to safe drinking water and
sanitation. However, the country needs to increase its efforts to meet universal
primary education and maternal health goals.
The literacy rate of the country is increasing and as a result it has increased
the consciousness in people about the value of safety and quality of travel.
People are now more sensitive about how safe and comfortable is the
automobile they are using. With the increased awareness in people they have
now shifted towards the automobiles which are according to safety standards
and give more comfortable travel. This shift is also helping Nissan Motor Co.s
business as people are moving towards it.

The Population the Philippines is increasing at a rapid race and has touched the
figures of 101,833,938 as of July 2011 est. The age structure is 34.6% from 014 years (male 17,999,279 and female 17, 285,040), 61.1 % from 15-64 years
(male 31,103,967 and female 31,097,203), and 4.3% from 65 years and over
(male 1,876,805 and female 2,471,644 2011 est).

Total Number of Families, Family Income and Family Expenditure and Gini Coefficient:
2009 and 2006
Selected Indicators

2006

2009

Philippines
Number of families (in thousands)

17,403

18,452

Gini Coefficient

0.4580

0.4484

Total family income ( in billion pesos)

3,006

3,804

Total family expenditure (in billion pesos)

2,561

3,239

Total family savings (in billion pesos)

445

565

Average family income (in thousand pesos)

173

206

Average family expenditure (in thousand pesos)

147

176

26

31

Total family income (in billion pesos)

2,180

2,378

Total family expenditure (in billion pesos)

1,857

2,024

Total family savings (in billion pesos)

323

353

Average family income (in thousand pesos)

125

129

Average family expenditure (in thousand pesos)

107

110

19

19

At 2009 Prices

Average savings (in thousand pesos)

At 2000 Prices ( CPI: 2009=160.0; 2006=137.9)

Average savings (in thousand pesos)

Average Income and Expenditure of Families by Region, at 2000 Prices:

2006 and 2009
(in thousand PhP)
2006
Region

Average
Income

2009

Average
Expenditure

Average
Income

Average
Expenditure

Philippines

125

107

129

110

NCR

221

183

227

197

CAR

137

108

136

108

Ilocos

102

89

116

94

Cagayan Valley

108

89

115

90

Central Luzon

147

127

139

119

Calabarzon

153

136

158

135

Mimaropa

82

70

90

77

Bicol

92

81

95

85

Western Visayas

97

86

99

89

Central Visayas

101

87

111

92

Eastern Visayas

94

78

98

78

Zamboanga Peninsula

93

73

88

71

102

84

98

83

Davao

96

82

99

85

Soccsksargen

85

72

96

82

Caraga

86

73

88

74

ARMM

61

52

62

54

Northern Mindanao

Average Annual Family Income and Expenditure by Region

1988 to 2003
(in PhP)
2003
Region
Philippines

Average
Income

Average
Expenditure

148,000

124,000

NCR

266,000

218,000

CAR

152,000

126,000

Ilocos

124,000

102,000

Cagayan Valley

126,000

99,000

Central Luzon

160,000

138,000

Calabarzon

184,000

158,000

Mimaropa

103,000

84,000

Bicol

109,000

94,000

Western Visayas

111,000

98,000

Central Visayas

121,000

102,000

Eastern Visayas

103,000

84,000

93,000

75,000

Zamboanga Peninsula 1/
Northern Mindanao

109,000

91,000

Davao

117,000

100,000

Soccsksargen 2/

113,000

85,000

Caraga

90,000

78,000

ARMM 3/

83,000

67,000

These significant demographic informations can be very helpful to effectively

formulate strategies and market the product. This increase in population has
also increased the number of buyers and expanded the market of automobiles.
Requirement of more automobiles has grown. Automobile industry has also
responded to this scenario.But there is still a huge gap between people
demand and supply of cars. Nissan focuses on this gap and is trying to avail
this opportunity to its best.

Political, Governmental, and Legal Forces

Political forecast can be considered an important part of external audit.
Changes in Patent laws, antitrust legislation,tax rates and lobbying activities
can affect firms significantly. The increasing global interdependence among
economies, markets, governments, and organizations makes it imperative that
firms consider the possible impact of political variables on the formulation and
implementation of competitive strategies.
In the face of a deepening global recession, countries worldwide are resorting
to protectionism to safeguard their own industries, some are raising tariffs on
most imports and subsidizing its own exxports. In the Philippine Automotive
Industry, in order to produce vehicles in the Philippines, manufacturers must be
recognized as part of one of the Motor Vehicle Development Programs (MVDP),
to produce either passenger vehicles or commercial vehicles. To participate in
either of these programs, certain requirements must be met, including having a
minimum of 40 percent local parts content as well as meeting foreign exchange
requirements in order to import components.
The MVDP was first initiated in 1987 with the Car Development Program, which
was designed to help foster the development of a local components industry. At
that time the number of manufacturers was limited to three (all Japanese
manufacturers). Since 1995 the trend in the Philippines' automotive sector has
been towards liberalization, with President Ramos' initiative to remove quotas
on vehicle imports. In 1996 steps were taken to open up the MVDP to all
manufacturers.

Corporate Governance in the Philippines

Long before the collapse of Enron and WorldCom, the Philippines had its own
share of corporate scandals like BW Resources Corporation, whose share prices
hit record highs and then collapsed in 1999. These scandals brought down the
stock markets image and weakened private investor confidence. The scandals
have their roots in managements desire to project a false picture of
performance, with the aim of driving up the value of the corporation in a
competitive global market.
Corporate governance is needed to make corporate managements more
accountable, and their auditors more rigorous. But good governance requires
fair legal frameworks that should be enforced impartially. In this country, the
Philippine Securities and Exchange Commission (SEC), a principal player in
matters of corporate governance, recently issued Memorandum Circular 2,
Series of 2002, otherwise known as the Code of Corporate Governance, under
resolution no. 135 dated April 4, 2002.
The Code aims to promote corporate governance reforms that will raise
investor confidence, develop the capital market and help achieve high
sustained growth for the corporate sector and the economy.
The code applies to:
Corporations whose securities are registered or listed.

Corporations who are grantees of permits/licenses and secondary franchises

from the Commission.

Public companies and Branches or subsidiaries of foreign corporations

operating in the Philippines whose securities are registered or listed.
Report on the Observance of Standards and Codes (ROSC) assessment of
corporate

governance

in

Philippines

benchmarks

legal

and

regulatory

framework and practice against the OECD Principles of Corporate Governance,

and focuses on listed companies. It is an update of the assessment that was
carried out in 2001.
The

regulators

have

undertaken

significant

reforms

with

view

to

institutionalizing good corporate governance in the Philippines. Reform began

in 2000 with the passage of Securities Regulation Code (SRC) or Republic Act
(RA) No. 8799, which superseded the Revised Securities Act of 1982. Among its
important new provisions were:
The institutional strengthening of the SEC.
The strengthening of its prosecution and enforcement powers.
The clarification of the scope of insider trading and market manipulation,
protection of minority investors through the requirement of a mandatory tender
offer and
Delegation of certain regulatory powers to self-regulatory organizations (SROs)
such as the Philippines Stock Exchange (PSE).

The Anti-Money Laundering Act (AMLA) of 2001 was another reform that was
enacted to establish and strengthen an anti- money laundering regime in the
country. Also affecting the capital market and the practice of corporate
governance is the Revised Accountancy Law, which regulates the practice of
accountancy in the Philippines

Political risk in the Philippines

Political risks are moving higher as a result of negative impact that rising rice
and other food prices are likely to have on society. Although corruption is a
major problem in a number of Asian countries, it is more politicized in the
Philippines than in most.
The rise in food prices potentially poses an even bigger challenge for the
government than corruption scandals. It has plenty of experience fending off
allegations of graft, but the need to respond to a growing number of people
who are having difficulty putting food on the table could be especially
challenging. Cost pressures are likely to drive even more Filipinos to leave the
country in search of better paying jobs abroad, while at home there will be
pressure to offer relief to the poorest Filipinos ,relief that government really
cannot afford in economic terms but which it might feel it has no choice but to
provide due to political pressures.
Defects in the Political System

Continued graft and corruption in key agencies

Lack of transparency and accountability in governance

Regulatory capture agencies captured by vested interests

The weakness of the electoral processes prone to cheating and

manipulation of results
Dynasties and traditional politics
Armed conflict
Worsening human rights situation, particularly extra-judicial killings of

journalists and activists of the left

Apathy or withdrawal from political engagement especially at the
national level.

Political Initiatives

Electoral Reforms.
Advocacy for Human Rights
Advocacy for Peace and Development
Anti-Corruption Advocacy

Technological Forces
Rapid improvement and advancements in technology impacts the automobile
industry a great deal. It affects the manufacturing, assembling and furbishing
of automobiles. New technological advancements pace up the operations;
results in a more rapid production and innovation of cars. Technological
improvements also impact Nissans operations a great deal and forces towards
technological shift. Nissan keeps on improving its technological structure with
time and has to continue its strategy of continuous improvements. Nissan
should pursue strategies that take advantage of technological opportunities to
achieve sustainable, competitive advantages in the marketplace.
Competitive Forces

Consumers are the main target which needs to be understood and satisfied in
the market. Their purchasing behavior will most likely be an impact affecting an
organization in several unprecedented ways. It is important to understand their
mindset patterns of purchasing a family car, the basic pattern includes
affordability, fuel efficiency, safety and comfort giving the consumer a mood of
acceptance and appreciation. The main focus of the Nissan will be the low level
car owners and low income consumers.
An important part of external audit is identifying rival firms and determining
their strengths, weaknesses, capabilities, opportunities, threats, objectives and
strategies.
With strong economic growth and government relaxation on taxes, several
companies are emerging to establish their market position. Nissan stands a
good chance of competing with existing competitors as several of Nissan
products are established in the market. Nissan will position the new product
with customer-driven and highly innovative features such as attractive look-nfeel. In the Philippines, direct competitors in automobile industry could be
Toyota, Ford, Diamond-Motors, Honda and Mazda in which each has a
substantial market share.
Industry Report and Direct Competitors Profile
At the start of 2011 (January to May), auto sales managed to grow by 1.5
percent or a total of 59,022 units sold nationwide. Private consumption
expenditures which we can call demonstrations of private consumption led
growth can be attributed to this augmentation. Some of the factors which lead

to this are: new model launches, aggressive financing offers from banks and
remittances from overseas just to name a few. This growth, however is lower
than the expected growth forecast (but still within the forecasted range) due to
the disaster that happened in Japan last March. Given this situation, CAMPI is
still optimistic that the industry will be able to pick up slowly and regain speed
in July. Some other factors to consider in the sudden dip of sales are: the rising
inflation rate, foreign exchange fluctuations, availability of funding for buyers
(i.e remittances etc.), and business environment (i.e the general confidence of
business and consumer sectors). There is definitely a demand for the products.
It is just a matter of catching up with the supply to meet the demand
expectations.

Early retirement of CAMPI President Elizabeth Lee cause for alarm. Cause
of delay in operations in UMC.

Auto sales declined by 2.2 percent to 138,092 units in the first 10 months
of the year from 141,218 units a year ago due to supply disruption,
according to a combined report from the Chamber of Automotive
Manufacturers of the Philippines Inc (CAMPI), the Alliance of Vehicle
Importers

and

Distributors

(AVID)

and

the

Truck

Manufacturers

Association (TMA). As a result, the industry is expecting a drop in full year

sales of 2.5 percent from a year ago performance.

Toyota continues to lead the industry with a 32.8 percent share of the
market followed by Mitsubishi Motors Philippines Corp (MMPC)

with 19.7

percent and Hyundai Asia Resources Inc (HAR) with 11.9 percent.

Among the top three sellers, only Mitsubishis market share increased by 0.9
percent from only 18.8 percent last year. Toyota and Hyundai on the other hand
lost identical 0.2 percent because of lower sales this year.
The 10-month sales performance of passenger cars, light commercial vehicles
and buses were all lower than last years level. In the passenger car market,
sales of small cars were up due to continued strong sales of the Toyota Vios
and Honda City as well as the introduction of new models like the Hyundai
Accent and Ford Fiesta. Sales of compact cars with engine displacements
between 1300 and 1600cc were also up due to the positive performance of the
1600cc Toyota Altis. In contrast, sales of two-liter compact cars were down by
due to fuel efficiency concerns. The Lancer EX models continue to lead the twoliter Honda Civic and two-liter Toyota Altis.

In the LCV market, sales of most segments were down especially the
mass-market vans, MPVs, AUVs and utility cabs. For SUVs, only sales of
the Mid-Sized 4x2 Wagons were better mainly due to the sustained sales
of the Montero Sport while those of the Small-Sized Wagons are down.

The only LCV segments that increased are the full-sized SUVs, the sport tourers
and the pick-ups.

The shutdown of the automotive local industry will lower the gross
domestic product (GDP) by 2.35 percent and will reduce spending by
P6.96 billion, a study made by the University of Asia and the Pacific
(UA&P) showed.

Car

loans

climbed

in

June

as

the

local

automotive

industry

continued posting sales growth amidst the perceived economic downturn. Data
from the central bank showed that automobile loans (ALs) stood at P79.1 billion
as of end-June, 3.3 percent higher than the loans extended for car purchases at
the end of the first quarter. Automotive loans ratio to the banking industrys
total loan portfolio dipped to 3.4 percent in June from 3.3 percent in March. BSP
data showed that thrift banks dominated the car loan disbursements as they
accounted for 58.1 percent of the auto loans in the second quarter. Universal
and commercial banks cornered 40.4 percent of the loans, while non-banking
financial institutions carried 1.5 percent of the car loans.
The central bank said soured car loans ratio against the total auto loans fell to
5.1 percent in the second quarter. Non-performing car loans against the
banking industrys total non-performing loans portfolio stood at 3.0 percent
from the first quarters 3.2 percent. Data from the Chamber of Automotive
Manufacturers of the Philippines showed that the local car industry sold 61,654
units as of end-June, a 13.6 percent rise from sales as of the same month in
2007. The domestic automotive industry hopes to sell 125,000 units this year.

Factors

that

contribute

to

strong

vehicle

sales

are

* OFW remittances: about $18 billion seen in 2010: with OFW remittances
representing about 12% of GDP, the continued increase directly benefits
vehicle sales as remittances provide the engine of growth for consumption.
* Aggressive financing packages: more than ever, buyers can take out loans for
the purchase of their vehicles with a slew of packages that make car buying
easy and less expensive. Banks are awash with cash and car loans are proving
to be a lucrative growth area that in turn supports SME business expansion
reflected

by

higher

business

and

consumer

confidence.

* Supply: Supply of vehicles are starting to catch up to meet the rise in

demand.
* New models: A number of vehicle makes have launched and will likewise be
launching NEW vehicles within the year. New models give buyers an array of
choices for their needs. A robust and general increase in vehicle sales likewise
encourages the introduction of more new models in the country.
Competitors Highlights

DIAMOND MOTOR CORPORATION is a premier automotive dealership

which sells, markets and services the whole line of Mitsubishi vehicles.
DMC opened its doors to the public in August 1969 as the national dealer of
Fuso trucks. In 1972, DMC expanded its market to passenger cars after it was
appointed as a direct franchisee of Chrysler Philippines Corporation, which
eventually tied up with Mitsubishi Motors Corporation in Japan.
As a pioneer Mitsubishi vehicle dealership, DMC grew rapidly to become a
leading retail partner of what is now Mitsubishi Motors Philippines
Corporation (MMPC), the countrys sole assembler and distributor of
Mitsubishi vehicles. With the market acceptance and growth of Mitsubishi
line, DMC emerged as one of the biggest automotive retail sales and after
sales providers in the country.
In 1979, DMC transferred its sales office to the present address at Ortigas
Avenue in Greenhills. The Ortigas branch also housed the executive and
administrative offices and was considered as the head office of the company.
In the same year, the DMC Service and Parts operations were also relocated
from E. Rodriguez Quezon City to nearby Boni Serrano Avenue (formerly
Santolan) also, in Quezon City.

To further reach wider clientele in the

Eastern Metro Manila area, DMC inaugurated two modern full-service
branches in 1991; the first is located along Quezon Avenue, Quezon City and
the other along Marcos Highway in Cainta, Rizal. Both full service centers are
located in the heart of the business districts of these cities the Quezon
Avenue branch is situated along the automotive row of Quezon City while
the Marcos Highway branch stands next to the vast Sta.Lucia and Robinsons
commercial complex in the Pasig-Marikina area.
In 1997, another full-service branch was built along E. Rodriguez Jr. Avenue in
Ugong, Pasig. This complex is located along the progressive C-5 Highway
linking the South and Eastern part of Manila
To bring the services of the Company yet closer to its customers, DMC put up
the Diamond Service Satellite Center (DSSC) in Fairview, Quezon City in
2000. DSSC is located is an upbeat residential and commercial area
bordering the North of Manila and the province of Bulacan.
From all these business locations, DMC markets and services Mitsubishi
passenger cars, light commercial vehicles and even trucks and buses.

In 2003, however, the DMC Boni

Serrano Parts and Service Center ceased operations with the Ortigas Sales
office following suit in 2009 but since then has returned in the EDSA
Mandaluyong area as the Diamond Greenhills Inc., a full service outlet
fronting the vast Robinsons, SM and Shangrila Commercial complex. The
Executive Offices, which were formerly housed in the Greenhills Branch then

moved to the newly renovated DMC Marcos Highway location where they
presently hold office.
Today, Diamond Motor Corporation operates five full service Mitsubishi
outlets in Metro Manila. All outlets had been refurbished to keep attuned to
the ever increasing demand of the automotive buyers for modern, wellequipped sales and service facilities run by a team of dynamic and dedicated
people trained in addressing every need and every wish of all its loyal
customers.
To this day, Diamond Motor Corporation promises to be true to its
commitment of delivering only the best quality service you have been
accustomed to.

CUSTOMER SATISFACTION IS JOB #1

PHILOSOPHY

OUR MISSION
To market, sell and provide after sales services for the complete line of
Mitsubishi vehicles. In the pursuit of excellence in this business, we are fully
committed to providing quality service to ensure total customer satisfaction
among all customers of the organization, both external and internal. We vow
to main utmost flexibility in responding to the demands of the times as we
stand firmly focused on these basic objectives.

OUR VISION
To be the countrys premier automotive dealer in its ability and commitment
to serve its customers.

CORPORATE RESPONSIBILITY
DMC continues to improve its business facilities and has remained innovative
in its focus on customer satisfaction and quality management. It continues to
initiate programs designed to streamline operations and improve on
customer service capabilities. By putting the customer first, the Company
has achieved a high level of customer retention despite the erratic business
environment. Thus, through the years, the DMC has consistently positioned
itself as the countrys pioneering automotive dealership group. The track
record and the staying power of the dealerships can attest to its continuous
commitment to provide superior service to all its customers.
DIAMOND AUTO
GROUP OF COMPANIES
Head Office: Marcos Highway corner MRR Street, Brgy. San Isidro, Cainta
Rizal 1900
Trunklines: 645-0309 / 647-5908 / 645-1193 / 645-0093
Diamond Greenhills Inc.
169 EDSA , Mandaluyong City 1550
The newest Mitsubishi outlet of the Diamond
Group, Diamond Greenhills Inc was inaugurated
November 23, 2010. It boasts of full service
capabilities in line with Mitsubishi Motors
Philippines Corp.s latest brand imaging and its
upgraded facilities assure all its loyal customers
the full spectrum of quality services only an
exclusive Mitsubishi dealer can offer.
Located across SM Megamall and fronting the
Wack Wack Subdivision, DGI hopes to continue on
the tradition of being the dealer of choice for all
San Juan and Mandaluyong Mitsubishi lovers.
Diamond Motor Corporation Quezon Ave.
784 Quezon Avenue., Quezon City 1100
Map

One of the pioneer full service Mitsubishi Service

Outlets, Diamond Motor QA sits in the automotive
row of Quezon Avenue and Araneta Avenue.
Recently upgraded, DMC QA owns a proud
tradition of service excellence and once was
regarded as among the top Mitsubishi Service
Centers in Asia. The facilties and equipment
upgrade only bode well in the carrying on of this
excellent service tradition.
Located in Quezon Avenue by the Quezon Ave
Araneta underpass, DMC QA is a haven for the
loyal Mitsubishi clients of Quezon City and nearby
Manila.
Diamond Marcos Highway Inc.
Marcos Highway cor. MRR St., Dela Paz, Cainta, Rizal 1900
Map
The other of the pioneer Mitsubishi Service
outlets for the Diamond Auto Group, Diamond
Marcos Highway Inc., is situated in the heart of a
progressive commercial district in the PasigCainta-Marikina area. A recipient of the
Mitsubishi Dealer-Outlet of the Year for 2001,
DMHI prides itself with an excellent sales and
service performance truly befitting its status as a
premier automotive dealer.
Located in Marcos Highway, Dela Paz, Cainta,
Rizal, DMHI caters to the automotive needs of the
Mitsubishi customers in Pasig-Cainta-Marikina and
the nearby municipalities of the Rizal province.
Diamond Motor Corporation Valle Verde
100 E. Rodriguez Jr, Avenue, Pasig City 1604
One, among the multiple recipients of the
Mitsubishi Dealer Outlet of the Year award of the
Diamond Auto Group, Diamond Motor Corp. Valle
Verde, is the dealer of choice for the
discriminating Mitsubishi customers of the PasigMandaluyong area. Just across the Valle Verde
subdivisions, DMC VV offers its full array of
services with a personal concern customers have
grown accustomed to from the Diamond Auto

Group.
Located in E. Rodriguez Ave, Bo. Ugong in Pasig, it
fronts Lanuza Street in Valle Verde and services
Mitsubishi clients in Pasig, Taguig, Mandaluyong
and Quezon City.
Diamond Satellite Service Center Fairview
Don Mariano Ave. Cor. Pesetas St., North Fairview, Quezon City 1121
To bring its services closer to its clients, the
Diamond Auto Group put the Diamond Satellite
Service Center in Fairview, Quezon City. This Full
service satellite center boasts of up to standard
Mitsubishi sales and service capabilities in a
neighbourhood setting.
Located in Don Mariano Ave in North Fairview,
Quezon City, DSSC services the needs of its
clients in Fairview, Novaliches and the nearby
towns and municipalities of Bulacan.
Caleb Motor Corp. Naga City
Roxas Avenue Diversion Road, Concepcion Pequena, Naga City 4400
The Diamond Auto Groups foray into expansion
outside the Metropolis has yielded two excellent
full service outlets in the South of Luzon. Caleb
Motor Corp. In Naga City now offers the people of
Bicol a taste of the Diamond Auto Groups
standard of excellence. A recipient of the
Mitsubishi Dealer Outlet of the Year in 2007,
Caleb Motor Corp. has established its strong
presence in the automotive scene in this
progressive region of the country.
Located in the heart of Naga City, CMC caters to
clients in Bicol, Quezon and as far as Leyte and
Samar.
Jabez Motor Corp. Dasmarinas Cavite
Km. 28 Emilio Aguinaldo Ave. Salitran Dasmarinas Cavite City 4114/em>

The 2001 Mitsubishi Dealer Outlet of the Year,

Jabez Motor Corp. in Cavite has proven that
excellent service may only come from a well
trained, well focused team of aspiring
individuals. Through the years, JMC has
outperformed itself year after year and has
earned the reputation as one of the strongest
Mitsubishi dealerships outside Metro Manila.
Located In Emilio Aguinaldo Avenue Dasmarinas
Cavite, Jabez services the Mitsubishi faithful in
Cavite, Laguna and Batangas.

SERVICE
This is your guide to Mitsubishi Motors Service Plus Periodic Maintenance
Schedule or PMS. It will indicate the type of service classification that will be
done on your vehicle at certain kilometer readings. We have enumerated the
type of work that will be done to your vehicle everytime you bring it for a
periodic check up. It is highly recommended that you bring your vehicle
regularly to our authorized servicing dealers for a periodic check up to
ensure that the proper work required is done. Complying with the regular
periodic check up is more economical in the long run and prevents early
breakdown, thereby extending the life of your vehicle. This is what we call
Mitsubishi Service Plus.
Periodic Maintenance Service Menu
SERVICE CLASSIFICATION PER KILOMETER READING
LIGHT
5,000

55,000

1,000 KM CHECKUP

15,000

65,000

1000

25,000

75,000

35,000

85,000

45,000

95,000

REGULAR

HEAVY

10,000
30,000
50,000
70,000
90,000

20,000
40,000
60,000
80,000
100,000

Please be reminded that failure to avail of the specified periodic maintenance

as performed by any Authorized Mitsubishi Service Center and non-usage of
Mitsubishi Genuine Products could adversely affect the performance, safety
and durability of your vehicle and may render void the warranty coverage.

TOYOTA ALABANG INC., the fourth dealer to be appointed by Toyota Motor

Philippines Corporation, was organized on March 15, 1989 by a group of
businessmen & professionals headed by Cesar T. Lee. After identifying the
appropriate site for its facilities, Toyota Alabang completed construction of its
showroom, parts warehouse, office & service facilities in a 5,000 square
meter lot within a record time of 90 days. With his business acumen, Toyota
Alabang turned into a success almost immediately and expanded its facilities
to a total land area of four hectares after the first four years of operation.
Located strategically on the South towards the rapidly growing Cavite,
Laguna, Batangas, and Rizal, Quezon area (Calabarzon) TOYOTA ALABANG
was establish to engage in the selling of Toyota vehicles, parts, service &
ancillary products to industrial, commercial & residential consumers.
It
embarked on a mission to provide its customers with quality vehicles coupled
with reliable after-sales service. The idea was simple yet essential: "To
provide a product every customer will be proud to own and a kind of
service worthy of everyone's trust".
TOYOTA ALABANG has for twenty one years now upheld its tradition of
service excellence & its endless pursuit of total customer satisfaction. Its
management team endavors to continually build the competencies of its
personnel & to upgrade the technical skills of its service team who are
provided with state-of-the-art equipment. Over time, adherence to this goal

enabled Toyota Alabang to develop a reputable name in the market, which

become synonymous with exceptional quality, value and reliability.

MISSION STATEMENT
To be the No. 1 Toyota dealer in the Philippines, We shall build, operate
and maintain an integrated service establishment manned by a highly
motivated, competent and professional company team so as to provide Total
Customer Satisfaction.

VISION STATEMENT
1. To ensure customer, with prompt delivery of quality cars, genuine parts
and accessories and service.
2. To provide Team Members with an environment that will make everyone
strive for teamwork, provide continuous professional and personal growth
and foster sense of responsibility, discipline and mutual security.
3. To develop and maintain a mutually beneficial and harmonious business
relationship with the suppliers.
4. To give our shareholders optimum returns on investments, create
opportunities for growth and ensure organizational stability.
5. To let the community participate in sustained efforts to uplift the quality
of life starting with our immediate environment consistent with our social
responsibility

Technology

Toyota is a world leader in the research and development of advanced

automobile technology. Creating intelligent solutions for today's mobility
challenges and taking responsibility for future generations. That's the
mission that motivates Toyota.
Innovation
The quest for innovation is the foundation for Toyota's new technology
concepts. Unconventional ideas need room for creativity and the
technologies of the future need testing in real-life conditions. This is why
Toyota develops concepts such as the Fine-N powered by a Fuel Cell or the
CS&S roadster powered by Hybrid Synergy Drive.

Engines
Engine technology is one of Toyota's greatest assets. Toyota's award-winning
engine range reflects the high design and quality standards set by its
engineers. All Toyota engines are developed for performance and
responsiveness with a big focus on reducing emissions and saving fuel. So
today Toyota can pass on these benefits to customers with:
- Advanced variable valve technology VVT-i and VVTL-i petrol engines
- Common-rail D-4D turbo diesels - now available with D-CAT on the Avensis
- Toyota's unique Hybrid Synergy Drive power train.
Safety
Safety is a top priority for Toyota: Advanced steering, braking, suspension
and traction control technologies help keep you on the road and out of
trouble. In addition, every new Toyota model is carefully designed to
maximise safety, using computer simulations and real-life crash tests. The
body and chassis are built to absorb impact and provide maximum occupant
protection, whilst SRS airbags in place in case of a collision.

Toyota Captures 9th Consecutive Triple Crown

Toyota Motor Philippines (TMP) finished 2010 strong with year-end sales of
56,855 units capturing 33.7% market share. TMP has once again proven its
stance as the No. 1 automotive company in the country after posting the
highest number of vehicle sales in the entire history of the automotive
industry. In addition, it has also outperformed itself after achieving recordbreaking yearend sales, which is a fitting complement to its 9th consecutive
Triple Crown Title.
According to the report of the Chamber of Automotive Manufacturers of the
Philippines, Inc. (CAMPI), total industry sales for 2010 reached 168,490 units.
This translates to an astounding 27.2% growth compared to the same period
of last year. 2010 has been another banner year for Toyota. We started the
year on a strong note achieving record-breaking sales from January to
October and then finally capping the year with 5,623 units in December. This
is the highest monthly sales we have posted since the start of our operations
in 1989. Also, we have remained consistent in being the leader in Passenger
Car Category, Commercial Vehicle Category and Overall Sales, now for the
9th consecutive year, expressed Yuji Goto, TMP Executive Vice President.
We are also pleased that TMP was able to respond to the robust market

performance in 2010, with our locally manufactured Vios and Innova models
as the countrys top-selling vehicles, Goto added.
In the PC Category, Toyota captured 35.5% share with 21,032 units sold.
Leading the strong PC line-up are the Vios, Camry and the New Corolla Altis
models, which reigned supreme in their respective segments. Toyota also
maintained leadership in the CV category with 35,823 units sold, cornering
32.8% of Total CV market.
TMP sees 2011 as another growth year for the industry. We remain
confident that the market will continue to post positive growth. While 2010s
market performance is exceptional due to the success of the national
elections and spillover demand of urban flooding, we forecast the market to
go back to its normal course this year. For Toyotas part, we would like to
extend our heartfelt appreciation to our customers for their continued
patronage to Toyota, to whom we owe all these achievements. In return, we
shall continue to enhance our operations to provide innovative products and
outstanding service to our customers who have made and will keep us No. 1
all these years, concluded Goto.
Toyota Motor Philippines Corporation (TMP) believes that a companys
strength lies in its people, and that its greatest assets are its Team
Members. From the time a Team Member is hired in TMP, he begins a journey.
A Team Member is always a work in progress.
As the Team Member acquires essential skills for his work, he is also exposed
to other training programs that would make him a highly-skilled, competent
worker, and a well-developed individual. Personality development courses
and livelihood seminars are offered to help Team Members reach their full
potential.
The Toyota Way
TMP fully embraces the Toyota Way, the core system that marks TOYOTA as a
unique business entity and unifies all Toyota affiliates around the world,
regardless of location, ownership structure, specific operation or local
culture. The Toyota Way is an ideal, a standard and a guiding beacon for the
global Toyota organization. It expresses the beliefs and values shared by all
Team Members.
The Toyota Way is built on two pillars: Continuous Improvement and
Respect for People.
Continuous Improvement refers to the continuous search for a better way to
do things, in production, engineering, design, marketing, logistics,

distribution, finance, administration, human resources, and every other

activity in the Company, including trimming the hedges. It is grounded on
the PDCA cycleplan, do, check, actand is possible only with a welltrained, motivated, and empowered work force that is able to endlessly ask
over and over what can be done to lower costs, raise quality, get results
faster, and satisfy the customer more efficiently.
Respect for People comes from understanding that the Company has many
stakeholderssuppliers, dealers, shareholders, customers and employees
who are interdependent. All sectors want to thrive, and so must be
responsible for each other. Recognizing that we have mutual interests, we
work together in an atmosphere of fairness, openness and trust, marked by
sincere communication. We therefore give the highest priority to people,
particularly our Team Members, and their needs, concerns, development and
sustenance.
Our Mission
Driven by the will to serve, we hereby commit ourselves: To dominate our
markets through dynamic selling and timely delivery of attractive products,
with excellent customer service and continuous product improvement. To
produce vehicles and components of outstanding quality, using advanced
technology, continuously improving methods and environment-friendly
processes while maintaining safe working conditions. To sustain Company
profitability, stability, productivity and growth by efficiently engaging in
effective financial and resource management for the collective gain of the
Toyota Family and the society we serve. To sustain Team Members morale
and productivity by developing their full potential and total well-being, and
by establishing mutual trust, mutual responsibility, and harmony through
open communication.
Our Vision
To be the No.1 AUTOMOTIVE COMPANY where GREAT PEOPLE work as a TEAM
to provide the BEST products and service to our CUSTOMERS.
TOYOTA PRODUCTION SYSTEM
If there is any one reason for our worldwide success, it is the way we build
cars. The Toyota Production System is the most efficient manufacturing
system in the automotive industry. What makes the system unique and
powerful are (1) the way it turns production into a smoothly-flowing process,
and (2) the way it liberates human creativity. Workers at Toyota are not cogs
in some vast machine, but self-organizing centers of constantly improving

activity. The system encourages personal initiative and rewards the

individual with job satisfaction.
LEAN & QUALITY PRODUCTION
TPS is characterized by the Just-in-time (JIT) philosophy, which shortens
production lead-time and makes the total system as efficient as it is flexible.
JIT refers to the production and conveyance of only what is needed, only
when it is needed, and only in the quantity needed. Implementation of JIT
results in higher productivity, lean inventories and operating savings.
Toyota Motor Corporation (TMC) is a top ten Fortune Global 500 enterprise,
and ranks among the worlds leading global corporations. Toyota is one of
the world's largest automobile manufacturers, selling 7.5 million models
annually on all five continents. Toyota is proud to be one of the most
admired car makers of all time , an achievement the company believes
stems from its dedication to customer satisfaction. Like many enterprises
that have made their mark in history, Toyota has been shaped by a unique
set of values and principles that have their roots in the companys formative
years in Japan.
The Toyota story begins in the late 19th century, when Sakichi Toyoda
invented Japans first power loom, which was to revolutionise the countrys
textile industry. In January 1918, Sakichi founded the Toyoda Spinning and
Weaving Company, and with the help of his son, Kiichiro Toyoda, he fulfilled
his lifelong dream
of building an automatic loom in
1924. Two years
later, he established Toyoda
Automatic Loom
Works.

Like his father, Kiichiro was an innovator, and during his visits to Europe and
the U.S. in the 1920s he became deeply interested in the nascent
automotive industry. Making the most of the 100,000 that Sakichi Toyoda
received for selling the patent rights of his automatic loom, Kiichiro laid the
foundations of Toyota Motor Corporation (TMC), which was established in
1937. From looms to cars, the Toyota experience has been a constant story
of extending the frontiers of manufacturing.

1 As published in the July 2003 edition of Fortune magazine

2 Including Hino and Daihatsu brands
3 As published in the February 2003 edition of Fortune magazine

Honda is a Japan-based car company. It is known for the production of

cars and motorcycles. Its most well known cars are the Civic and the Accord.
The Tokyo-based Honda Motor Company builds cars, vehicle parts, scooters
and motorcycles in Japan and 16 other countries. The multinational company
also has plants to manufacture robots, trucks, jet engines and electrical
components. Honda operates five plants in Japan; 13 in the U.S.; six in
Pakistan; three in the Philippines; two each in Brazil, Malaysia, India and
Vietnam; and one each in Canada, Mexico, Belgium, Colombia, Turkey,
Thailand, Argentina, China and United Kingdom.

Honda was the first Japanese automobile manufacturer to release a

dedicated luxury brand, Acura, in 1986. Aside from their core automobile and
motorcycle businesses, Honda also manufactures garden equipment, marine
engines, personal watercraft and power generators, amongst others. Since
1986, Honda has been involved with artificial intelligence/robotics research
and released their ASIMO robot in 2000. They have also ventured into

aerospace with the establishment of GE Honda Aero Engines in 2004 and the
Honda HA-420 Honda Jet, scheduled to be release in 2012.
Honda Cars Manila (HCMA) was established in Otis, Paco, Manila on March,
1997 wherein Sales has started its operation after the completion of its
showroom while the service began operation on November of the same year.
A franchised dealership, HCMA is engaged in the sale of Honda automobiles
and parts as well as the service, maintenance, repair and body building,
primarily of Honda vehicles. HCMA is a member of the Yuchengco Group of
Companies which counts Rizal Commercial Banking Corporation, RCBC
Savings Bank, Malayan Insurance Group, Great Pacific Life Insurance Group
and House of Investment Group as the primary members.

Staffed by manpower complement presently 135 strong, HCMA has

consistently been among the top Honda dealership in unit Sales since 1999
and the Honda dealership that has achieved the prescribed target of unit
sales amongst the 14 dealership in the country. It also among the recognized
leaders in service volume, parts sales and customer satisfaction index a
recognition of the dedication and strength of the dealership, its officers and
staff.

Management Goals

To establish the most prestigious Honda car dealership

group

in

the

Philippines

by

providing

total

customer

satisfaction in all our activities.

To perform our social responsibility in the development

of our community and in the efforts of nation building.

To provide a fair

continuing

career

for

return to our

our

associates

stakeholders, a
and

achieve

dealership in the country.

Ford Motor Company is focused on creating a strong business that builds

great products that contribute to a better world.

#1

Ford and the Community

CORPORATE CITIZENSHIP
As we endeavor to become a leading contributor to a more sustainable
world, corporate citizenship has become an integral part of every decision
and action we take. We believe corporate citizenship is demonstrated in who
we are as a company, how we conduct our business and how we take care of
our employees, as well as in how we interact with the world at large. It is our

aspiration to be among the most respected, admired, and trusted companies

in the world.
Dearborn Motors /Ford Alabang
Ford Company Milestones
June 16, 1903- Henry Ford and eleven (11) investors signed the Articles of
Incorporation for the Company. Ford started as chief engineer, then later, as
president.
October 1, 1908- Ford introduces the Model T (destined to be one of the
worlds most popular cars)
March 9, 1932- Ford builds its first V8 vehicle.
March 1, 1941- Ford builds its first general purpose (GP or jeep) vehicle for
US military at Rouge plant.
December 31, 1988- Worldwide earnings reached an all time high of $5.3Bhighest to date for any automotive company.
February 28, 1990- Ford acquires Jaguar Cars for $2.5B
April 29, 1994- Ford acquires 100% of Hertz Corporation, worlds largest car
rental company.
March 1, 1999-Ford enters into a definite agreement with AB Volvo for the
purchase of Volvos worldwide passenger car business for a price of $6.45B
September 17, 1999- FORD PHILIPPINES inaugurates its plant at Greenfield
Automotive Park in Sta. Rosa, Laguna.

VISION
EXCELLENCE THROUGH CONSISTENT CUSTOMER CARE AND SERVICE
Realizing that the life and blood of the organization are its customers, it is
but proper to make them the motivator of our actions. We have to show that
we CARE for them by being sincere in our actions and by showing empathy
towards their feelings and needs. The degree of SERVICE that we have to
render should be beyond expectations. The delivery of CARE and
SERVICE should be on a consistent basis. We can achieve EXCELLENCE in
our individual task if we achieve all these.
MISSION

TO BUILD COMPETENT AND PASSIONATE TEAMS

Everyone should be a team player. The need to constantly coordinate with
other team players is always present. Building competent and passionate
teams is a continuous process so the company may realize the need for
trainings in order to imbibe this attitude to everyone. The vision of the
company will be achieve by having competent and passionate teams.
CORE VALUES
GOD and FAMILY
The company believes in putting God and Family first in everything that it
aims to achieve, all its endeavours and actions are attributed for His greater
Glory and the preservation of Family values.
ACCOUNTABILITY
The company is accountable to all its owners and stockholders by way of
ensuring business growth and profitability. It is committed to its employees
by ensuring that their welfare is well taken cared for. The company likewise
expects from their employees to perform and accomplish their respective
responsibilities according to or beyond expectations and for each to take
ownership of all their actions they conduct themselves as responsible
employees of the company.
INTEGRITY
Utmost integrity is expected of all its employees regardless of rank, position
or affiliation at all times. All members of the Dearborn family must always
keep in mind that integrity is and should never be compromised in all its
business relationship.
TRANSPARENCY
Transparency of purpose, condition and or situation is and will always be part
of the companys values

DISCIPLINE
It is expected from all members of the company to abide at all times with all
established company rules, policies, and regulations. Act according to
acceptable norms and within the bounds of the law and morality.

MERITOCRACY
The company believes that all employees have the right to the fruits of their
labor. As such recognition and reward have been based on the employees
level of productivity, work attitude and resulting output.
BOARD OF DIRECTORS

Francisco C. Eizmendi, Jr. (Chairman)

Maximo F.O. Borromeo (President/ Dealer Principal)
Isidro Benitez
Rene Benitez
Javier J. Calero
Joel S. Ferrer
Rodolfo B. Herrera
Competitive Analysis: Porters Five-Forces Model

Rivalry among competing firms

Through the information gathered, we can clearly see that there is intense
rivalry among competing firms. All automobile Industry players are
aggressively stirring up on their sales as basis of gaining market share in the
market. One strategy can be met with retaliatory countermoves such as
lowering prices, enhancing quality, adding features, providing additional
services, competitive financing scheme, extending warranties, waiving other
miscellaneous cost such as LTO and Insurance.
Potential Entry of New Competitors
The threat of new entrant in automobile industry is relatively low because
there can be some factors which can be considered as barriers to entry such
as the need to gain technology, large capital requirements, specialized knowhow to run the business, lack of experience, strong customer loyalty, strong
brand preferences, a share in distribution channels government regulatory
policies, tariffs and counterattack by entrenched firms and potential
saturation of the market.

Potential Development of Substitute Products

The potential development of substitute products can be considered Medium
since there is a proliferation of Motorcycles and Bicycles which can be
considered substitutes. The producers of these substitute products targeted
the low and middle income earners by providing competitive pricing, easy
and flexible financing scheme and require less documents in buying the item.
Also, we can consider the continuous plans, improvements, and expansion of
the Countrys Public transportations system such as the LRT,MRT, PUV, Taxi,
as well as car rentals and Airline companies.
Bargaining Power of Suppliers
Automobile Industry differs in Supply chain system. This is one of the factors
which can be considered a significant contributor to the success of the
company. Strategic sourcing of raw materials and establishing long-term
partnership with suppliers can provide effective strategy to produce best
quality products, improve processes and systems that will gain customers,
thus generating and enhancing long-term profitability of the company.
Bargaining Power of Consumers
The intensity of rivalry among competing firms tends to increase as the
number of competitors increases, as competitors become more equal in size
and capability, as demand for the industrys products declines, and as price
cutting becomes common. For automobile Industry, customers can be
considered as the life and blood of their business. With the presence of
Internet, consumers can easily compare or canvass prices in different
automobile dealers causing them to have the ability to switch brands easily
due to undifferentiated products. Service nowadays spells the difference and
is becoming a crucial factor in winning potential customers and gaining
customer loyalty. Majority of automobile industry players offer value added
services such as extended warranties, accessory packages, and this could be
the result why consumers can dictate the terms of the business

Financial Highlights (Local

Industry)
(P million)

Gross
Revenue
Net Sales
Net Income
(Loss)
Fixed Assets
Current
Assets
Total Assets
Short-Term
Loans
Current
Liabilities
Long-term
Debt
Total
Liabilities
Stockholders'
Equity
Retained
Earnings

Toyota Motor Philippines

Corp.

Nissan Motor
Philippines Inc.

58,949.00

2,205.00

2,022.00

58,537.00

2,151.00

1,944.00

3,110.00

(233.00)

65.00

727.00

698.00

58.00

15,051.00

2,244.00

612.00

17,791.00

3,376.00

718.00

1,574.00

303.00

2,429.00

410.00

9,946.00

2,488.00

463.00

7,845.00

888.00

256.00

5,387.00

(1,058.00)

126.00

8,648.00

Dearborn Motors
Inc.

246.00

Source: Business World, 2010-2011

Competitor's comparison

Gross
Revenues
Net Income
Gross Profit
Margin (%)
Current Ratio

Toyota Motor
Philippines Corp.

Nissan Motor
Philippines Corp.

Dearborn Mot
Corp.

58,949.00

2,205.00

2,022.00

3,110.00

(233.00)

65.00

11.20

5.00

9.40

(%)
Debt-Equity
Ratio (%)
Net Cash

174.00

92.40

149.10

126.80

280.20

181.10

1,745.00

(991.00)

(61.00)

Source: Business World, 2010-2011

Global Financial Highlights

FUNDAMENTAL DATA

FINANCIAL HIGHLIGHTS

Gross Margin

Sales
Income

117.90 Bil
4.28 Bil

Net Profit Margin

4.02%

Return on Equity

11.21%

Debt/Equity Ratio

1.22

Shares Outstanding
Market Cap
Institutional Ownership

Revenue/Share

2,250.55

Earnings/Share

1.02

Book Value/Share

9.41

Dividend Rate

0.25

Dividend Yield

2.65

Payout Ratio

25.00%

REVENUE - QUARTERLY RESULTS (IN

MILLIONS)

1st

FY

FY

FY

(03/12)

(03/11)

(03/10)

26,086

25,688

18,980

28,637

28,429

42,393

29,207

26,347

67,406

33,963

29,461

51,797

220 %

95 %

16 %

-6 %

160 %

-14 %

-20 %

467 %

-8 %

-63 %

-41 %

Qtr
4th

Qtr

al

178 %

Qtr
3rd

Qtr

Tot

FY (03/10)

Qtr

4th

FY (03/11)

Qtr
2n

3rd

FY (03/12)

1st

Qtr
2n

QTR. OVER QTR. EPS GROWTH RATE

$117,8

$109,9

$180,5

93

25

76

Qtr
Financial Data in US Dollar

EARNINGS PER SHARE - QUARTERLY RESULTS

EPS GROWTH RATE
FY (03/12)

1st

-22 %

FY (03/11)

740 %

YR. OVER YR.

FY (03/10)

-131 %

Qtr

2nd

-3 %

Qtr
3rd

4%

Qtr
4th

156 %

FY

FY

FY

(03/12)

(03/11)

(03/10)

900 %
1st

-92 %$0.25
$0.25

$0.24
$0.32

Qtr
41 %
2nd

31 %
$0.29

$0.30

Qtr
-10 %

$0.17
($0.05)

$0.03

109 %

Qtr
3rd
Qtr
4th

$0.23

$0.09

$0.10

$1.02

$0.95

$0.25

Qtr
Total

INDUSTRY:
GROWTH RATES %

COMPANY

INDUSTRY

S&P 500

Sales (Qtr vs year ago qtr)

15.3

NA

8.8

Net Income (YTD vs YTD)

NA

NA

NA

144.8

NA

23.5

Sales (5-Year Annual Avg.)

-2.11

NA

8.18

Net Income (5-Year Annual Avg.)

-5.82

NA

8.26

Net Income (Qtr vs year ago qtr)

GROWTH RATES %

Dividends (5-Year Annual Avg.)

COMPANY

-10.07

INDUSTRY

S&P 500

NA

5.38

Financial data in USD

INDUSTRY:
PRICE RATIOS

INDUSTRY

S&P 500

9.2

NA

18.7

P/E Ratio 5-Year High

NA

128

P/E Ratio 5-Year Low

NA

3.7

Price/Sales Ratio

0.36

NA

2.16

Price/Book Value

NA

20.74

3.6

NA

11.8

Current P/E Ratio

Price/Cash Flow Ratio

COMPANY

Financial data in USD

I
INDUSTRY:
PROFIT MARGINS %

INDUSTRY

S&P 500

17.39

NA

39.56

Pre-Tax Margin

5.63

NA

17.85

Net Profit Margin

4.02

NA

13.13

Gross Margin

COMPANY

PROFIT MARGINS %

COMPANY

INDUSTRY

S&P 500

18.6

NA

39.8

5Yr Pre Tax Margin (5-Year Avg.)

3.8

NA

15.9

5Yr Net Profit Margin (5-Year Avg.)

2.3

NA

11.4

5Yr Gross Margin (5-Year Avg.)

INDUSTRY:
FINANCIAL CONDITION

INDUSTRY

S&P 500

1.22

NA

3.43

Current Ratio

1.6

NA

1.4

Quick Ratio

1.3

NA

0.9

Interest Coverage

NA

NA

31.7

Leverage Ratio

3.5

NA

7.9

9.41

NA

27.59

Debt/Equity Ratio

Book Value/Share

COMPANY

Financial data in USD

INDUSTRY:
INVESTMENT RETURNS %

Return On Equity

COMPANY

11.21

INDUSTRY

S&P 500

NA

27.52

INVESTMENT RETURNS %

COMPANY

INDUSTRY

S&P 500

Return On Assets

3.5

NA

8.7

Return On Capital

NA

11.6

Return On Equity (5-Year Avg.)

6.3

NA

24.6

Return On Assets (5-Year Avg.)

1.9

NA

8.1

Return On Capital (5-Year Avg.)

3.3

NA

11

Financial data in USD

INDUSTRY:
MANAGEMENT EFFICIENCY

COMPANY

INDUSTRY

S&P 500

Income/Employee

NA

NA

137,793

Revenue/Employee

NA

NA

1.11 Mil

Receivable Turnover

2.6

NA

15.5

Inventory Turnover

7.8

NA

12.7

Asset Turnover

0.9

NA

0.8

Financial data in USD

INDUSTRY:

03/1

AVG

PRICE/

PRICE/

NET PROFIT MARGIN

P/E

SALES

BOOK

(%)

0.1

0.1

0.1

0.1

0.1

0.1

2
03/1
1
03/1
0
03/0
9
03/0
8
03/0
7
03/0
6
03/0
5
03/0
4
03/0

AVG

PRICE/

PRICE/

NET PROFIT MARGIN

P/E

SALES

BOOK

(%)

BOOK
VALU

03/1

DEBT/

RETURN ON

RETURN ON

SHAR

EQUIT

EQUITY

ASSETS

INTEREST

(%)

(%)

COVERAGE

9.44

1.22

10.8

3.1

15.9

8.85

1.39

10.8

16.3

8.35

1.5

1.6

0.4

8.2

8.11

1.81

-8.9

-2.3

-7

2
03/1
1
03/1
0
03/0
9

BOOK
VALU

03/0

DEBT/

RETURN ON

RETURN ON

SHAR

EQUIT

EQUITY

ASSETS

INTEREST

(%)

(%)

COVERAGE

10.82

1.35

13.8

19.7

10.85

1.44

13

3.7

22

9.47

1.56

16.8

4.5

30.3

7.6

1.6

20.8

5.2

28.8

6.21

1.53

24.9

6.4

27.7

8
03/0
7
03/0
6
03/0
5
03/0
4

BOOK
VALU

03/0

DEBT/

RETURN ON

RETURN ON

SHAR

EQUIT

EQUITY

ASSETS

INTEREST

(%)

(%)

COVERAGE

5.46

1.61

27.4

6.7

26.3

3
Financial data in USD

INCOME STATEMENT: 10-YEAR SUMMARY

TOTAL

TAX

DEPRECIATIO

NET

RATE

EBIT

INCOME

6.65 Bil

7.10 Bil

4.29 Bil

1.03

28.60

6.04 Bil

7.78 Bil

4.01 Bil

0.96

27.50

DAT
E

SALES

03/1

118.27

2
03/1

EPS

(%)

Bil
110.28

TOTAL

TAX

DEPRECIATIO

NET

RATE

EBIT

INCOME

94.49 Bil

1.78 Bil

8.12 Bil

532.84 Mil

0.13

64.60

106.05

-2.75

9.39 Bil

-2.94 Bil

0.00

Bil

Bil

136.06

9.65 Bil

10.21 Bil

6.06 Bil

1.48

34.20

8.77 Bil

9.77 Bil

5.79 Bil

1.40

30.40

118.51

10.17

8.30 Bil

6.51 Bil

1.58

31.40

Bil

Bil

107.80

9.97 Bil

6.66 Bil

6.44 Bil

1.56

32.50

93.39 Bil

9.26 Bil

5.80 Bil

6.33 Bil

1.52

29.70

85.84 Bil

8.73 Bil

4.67 Bil

6.22 Bil

1.47

28.60

DAT
E

1
03/1

SALES

EPS

(%)

Bil

0
03/0
9
03/0
8
03/0
7
03/0
6
03/0
5
03/0

0.72

Bil
131.59
Bil

Bil

4
03/0
3

BALANCE SHEET: 10 YEAR SUMMARY

CURRENT

CURRENT

LONG TERM

SHARES

DATE

ASSETS

LIABILITIES

DEBT

OUTSTANDING

03/12

139.18 Bil

99.59 Bil

31.39 Bil

4.19 Bil

03/11

134.96 Bil

97.96 Bil

26.78 Bil

4.18 Bil

03/10

128.40 Bil

94.34 Bil

29.99 Bil

4.08 Bil

03/09

128.71 Bil

95.68 Bil

30.18 Bil

4.07 Bil

03/08

150.08 Bil

106.00 Bil

24.00 Bil

4.07 Bil

03/07

155.90 Bil

111.30 Bil

24.60 Bil

4.11 Bil

03/06

144.32 Bil

105.51 Bil

27.98 Bil

4.10 Bil

03/05

123.80 Bil

92.80 Bil

24.68 Bil

4.08 Bil

03/04

98.80 Bil

73.36 Bil

21.30 Bil

4.10 Bil

03/03

92.38 Bil

69.65 Bil

20.15 Bil

4.16 Bil

Income Statement
2012
2009

2011

2010

2008

03/31/2012

03/31/2011

03/31/2010

03/31/2009

03/31/2008

12 Months

12 Months

12 Months

12 Months

12 Months

Tanshin

Yuho

Yuho

Yuho

Yuho

Stmt Source Date

05/11/2012

06/30/2011

06/30/2010

06/24/2009

06/26/2008

Stmt Update Type

Updated

Updated

Updated

Updated

Updated

9,409,026.0

8,773,093.0

7,517,277.0

8,436,974.0

10,824,238.0

0.0

0.0

0.0

0.0

0.0

9,409,026.0

8,773,093.0

7,517,277.0

8,436,974.0

10,824,238.0

7,772,832.0

7,155,100.0

6,146,219.0

7,118,862.0

8,407,398.0

1,636,194.0

1,617,993.0

1,371,058.0

1,318,112.0

2,416,840.0

1,036,386.0

1,017,880.0

987,939.0

1,371,519.0

1,542,703.0

Research & Development

0.0

0.0

0.0

0.0

0.0

Depreciation/Amortization

53,969.0

62,646.0

71,510.0

84,514.0

83,307.0

Period End Date

Period Length
Stmt Source

Revenue
Other Revenue, Total
Total Revenue
Cost of Revenue, Total
Gross Profit
Selling/General/Administrative
Expenses, Total

0.0

0.0

0.0

0.0

0.0

23,196.0

74,538.0

75,211.0

97,795.0

80,468.0

0.0

0.0

0.0

0.0

0.0

522,643.0

462,929.0

236,398.0

-235,716.0

710,362.0

0.0

0.0

0.0

0.0

0.0

6,792.0

14,407.0

6,004.0

51,324.0

78,551.0

-13,850.0

-15,162.0

-18,243.0

-27,375.0

-24,743.0

529,329.0

480,141.0

141,620.0

-218,771.0

767,958.0

Income Tax - Total

151,506.0

132,127.0

91,540.0

36,938.0

262,708.0

Income After Tax

377,823.0

348,014.0

50,080.0

-255,709.0

505,250.0

-36,390.0

-28,793.0

-7,690.0

22,000.0

-22,989.0

Equity In Affiliates

0.0

0.0

0.0

0.0

0.0

U.S. GAAP Adjustment

0.0

0.0

0.0

0.0

0.0

Net Income Before Extra.

Items

341,433.0

319,221.0

42,390.0

-233,709.0

482,261.0

Total Extraordinary Items

0.0

0.0

0.0

0.0

0.0

341,433.0

319,221.0

42,390.0

-233,709.0

482,261.0

0.0

0.0

0.0

0.0

0.0

4,180.76

4,175.98

4,075.46

4,073.23

4,095.41

81.67

76.44

10.4

-57.38

117.76

Interest Expense (Income), Net

Operating
Unusual Expense (Income)
Other Operating Expenses, Total
Operating Income
Interest Income (Expense), Net
Non-Operating
Gain (Loss) on Sale of Assets
Other, Net
Income Before Tax

Minority Interest

Net Income

Total Adjustments to Net

Income
Basic Weighted Average Shares
Basic EPS Excluding

Extraordinary Items
81.67

76.44

10.4

-57.38

117.76

4,180.76

4,175.98

4,075.46

4,073.23

4,102.33

Diluted EPS Excluding

Extrordinary Items

81.67

76.44

10.4

-57.38

117.56

Diluted EPS Including

Extraordinary Items

81.67

76.44

10.4

-57.38

117.56

Dividends per Share - Common

Stock Primary Issue

0.0

0.0

0.0

0.0

0.0

Dividends per Share - Common

Stock Issue 2

0.0

0.0

0.0

0.0

0.0

Gross Dividends - Common

Stock

83,746.0

41,838.0

0.0

44,807.0

163,300.0

Interest Expense, Supplemental

32,892.0

28,357.0

28,995.0

33,798.0

36,118.0

559,492.0

612,894.0

639,928.0

740,396.0

804,428.0

1,110,582.0

1,156,147.0

957,758.0

608,969.0

1,602,823.0

Normalized EBIT

545,839.0

537,467.0

311,609.0

-137,921.0

790,830.0

Normalized Income Before Tax

550,984.0

546,058.0

217,048.0

-165,806.0

777,440.0

Normalized Income After Taxes

394,782.8

397,383.93

101,285.55

-219,008.85

514,076.22

Normalized Income Available to

Common

358,392.8

368,590.93

93,595.55

-197,008.85

491,087.22

Basic Normalized EPS

85.72

88.26

22.97

-48.37

119.91

Diluted Normalized EPS

85.72

88.26

22.97

-48.37

119.71

5,251.0

5,786.0

6,221.0

6,494.0

7,565.0

0.0

0.0

0.0

0.0

0.0

Basic EPS Including

Extraordinary Items
Diluted Weighted Average
Shares

Depreciation, Supplemental
Normalized EBITDA

Amortization of Acquisition Cost

Amortization of Intangibles

Financial data in USD

Values in Millions (Except for per share items)
Business Type: Industry
Financial statements are prepared in this standard format to allow direct comparisons of all companies and industries across multiple time
frames.

Balance Sheet

Period End Date

03/31/2012

03/31/2011

03/31/2010

03/31/2009

03/31/2008

Tanshin

Yuho

Yuho

Yuho

Yuho

Stmt Source Date

05/11/2012

06/30/2011

06/30/2010

06/24/2009

06/26/2008

Stmt Update Type

Updated

Updated

Updated

Updated

Updated

Stmt Source

Assets
Cash and Short Term
Investments

842,899.0

1,156,834.0

853,051.0

759,682.0

594,868.0

Total Receivables, Net

3,974,720.0

3,403,831.0

3,195,554.0

3,040,654.0

3,842,824.0

1,018,966.0

982,233.0

802,278.0

760,070.0

1,005,165.0

0.0

0.0

0.0

0.0

0.0

773,487.0

802,937.0

729,527.0

718,976.0

851,367.0

6,610,072.0

6,345,835.0

5,580,410.0

5,279,382.0

6,294,224.0

3,731,246.0

3,637,042.0

3,858,129.0

4,110,047.0

4,626,552.0

0.0

57,562.0

64,454.0

0.0

0.0

Intangibles, Net

120,114.0

76,207.0

79,457.0

167,218.0

186,346.0

Long Term Investments

371,259.0

381,549.0

268,755.0

300,577.0

452,169.0

5,617.0

17,147.0

11,125.0

23,045.0

24,555.0

233,745.0

221,351.0

352,490.0

359,271.0

355,636.0

0.0

0.0

0.0

0.0

0.0

11,072,053.0

10,736,693.0

10,214,820.0

10,239,540.0

11,939,482.0

Accounts Payable

1,377,254.0

1,181,469.0

1,001,287.0

621,904.0

1,119,430.0

Payable/Accrued

0.0

0.0

0.0

0.0

0.0

Accrued Expenses

660,369.0

580,350.0

523,444.0

452,065.0

563,672.0

Notes Payable/Short Term

Debt

283,019.0

849,696.0

523,820.0

1,300,108.0

1,940,185.0

1,047,656.0

1,098,854.0

1,167,769.0

1,062,757.0

892,396.0

Total Inventory
Prepaid Expenses
Other Current Assets, Total
Total Current Assets
Property/Plant/Equipment,
Total - Net
Goodwill, Net

Note Receivable - Long Term

Other Long Term Assets,
Total
Other Assets, Total
Total Assets

Liabilities and
Shareholders' Equity

Current Port. of LT
Debt/Capital Leases

776,930.0

670,176.0

640,538.0

551,860.0

726,933.0

Total Current Liabilities

4,145,228.0

4,380,545.0

3,856,858.0

3,988,694.0

5,242,616.0

Total Long Term Debt

2,497,543.0

2,130,463.0

2,385,677.0

2,400,863.0

1,909,003.0

Deferred Income Tax

486,699.0

463,347.0

445,299.0

447,140.0

461,792.0

Minority Interest

300,883.0

329,953.0

305,367.0

298,331.0

342,765.0

Other Liabilities, Total

492,586.0

488,555.0

511,881.0

476,790.0

476,628.0

7,922,939.0

7,792,863.0

7,505,082.0

7,611,818.0

8,432,804.0

Redeemable Preferred Stock

0.0

0.0

0.0

0.0

0.0

Preferred Stock - Non

Redeemable, Net

0.0

0.0

0.0

0.0

0.0

Common Stock

605,814.0

605,814.0

605,814.0

605,814.0

605,814.0

Additional Paid-In Capital

806,885.0

806,885.0

806,857.0

806,559.0

806,184.0

3,009,090.0

2,733,253.0

2,456,523.0

2,415,735.0

2,726,859.0

-149,542.0

-162,024.0

-267,841.0

-269,540.0

-269,003.0

ESOP Debt Guarantee

0.0

0.0

0.0

0.0

0.0

Unrealized Gain (Loss)

-2,074.0

8,821.0

-15,797.0

-24,720.0

78,644.0

-1,121,059.0

-1,048,919.0

-875,818.0

-906,126.0

-441,820.0

3,149,114.0

2,943,830.0

2,709,738.0

2,627,722.0

3,506,678.0

11,072,053.0

10,736,693.0

10,214,820.0

10,239,540.0

11,939,482.0

Total Common Shares

Outstanding

4,191.31

4,183.14

4,077.93

4,073.3

4,074.72

Total Preferred Shares

Outstanding

0.0

0.0

0.0

0.0

0.0

Other Current Liabilities,

Total

Total Liabilities

Retained Earnings
(Accumulated Deficit)
Treasury Stock - Common

Other Equity, Total

Total Equity
Total Liabilities &
Shareholders Equity

Cash Flow
03/31/2012

03/31/2011

03/31/2010

03/31/2009

12 Months

12 Months

12 Months

12 Months

Tanshin

Yuho

Yuho

Yuho

Stmt Source Date

05/11/2012

06/30/2011

06/30/2010

06/24/2009

Stmt Update Type

Updated

Updated

Updated

Updated

Net Income/Starting Line

529,329.0

480,141.0

141,620.0

-218,771.0

767,958.0

Depreciation/Depletion

559,492.0

612,894.0

639,928.0

740,396.0

804,428.0

Amortization

0.0

0.0

0.0

0.0

0.0

Deferred Taxes

0.0

0.0

0.0

0.0

0.0

116,124.0

154,711.0

198,029.0

340,128.0

166,777.0

Changes in Working
Capital

-508,648.0

-580,244.0

197,649.0

37,414.0

-396,846.0

Cash from Operating

Activities

696,297.0

667,502.0

1,177,226.0

899,167.0

1,342,317.0

Capital Expenditures

-1,026,269.0

-883,654.0

-774,673.0

-1,050,199.0

-1,331,302.0

Other Investing Cash

Flow Items, Total

341,216.0

552,536.0

278,141.0

476,615.0

463,679.0

Cash from Investing

Activities

-685,053.0

-331,118.0

-496,532.0

-573,584.0

-867,623.0

Financing Cash Flow

Items

-11,098.0

992.0

-850.0

-2,569.0

-5,849.0

Total Cash Dividends Paid

-62,748.0

-20,922.0

0.0

-126,303.0

-151,725.0

Issuance (Retirement) of
Stock, Net

-9,015.0

-13.0

-54.0

-34.0

-48,138.0

Issuance (Retirement) of
Debt, Net

-225,596.0

130,518.0

-663,085.0

-6,107.0

-101,290.0

Cash from Financing

Activities

-308,457.0

110,575.0

-663,989.0

-135,013.0

-307,002.0

-15,630.0

-60,315.0

-2,239.0

-27,760.0

-52,978.0

-312,843.0

386,644.0

14,466.0

162,810.0

114,714.0

Period End Date

Period Length
Stmt Source

Non-Cash Items

Foreign Exchange Effects

Net Change in Cash

03/31/2008

Financial data in USD

12 Months Values in Millions
Yuho (Except for per share
items)
06/26/2008
Updated Business
Type: Industry

Financial statements
are prepared in this
standard format to
allow direct
comparisons of all
companies and
industries across
multiple time frames.

Financial data in USD

Values in Millions (Except for per share items)
Business Type: Industry
Financial statements are prepared in this standard format to allow direct comparisons of all companies and industries across multiple time
frames.

Stage 1 The Input Stage

CPM

EFE

IFE
Stage 2 The Matching Stage

TOWS Matrix

SPACE Matrix

BCG Matrix

IE Matrix

GSM Matrix
Stage 3 The Decision Stage

Strategy- Formulation Analytical Framework

References:
Fred R David, Strategic Management : Concepts and Cases, 13 th Edition 2012
BusinessWorld Top 1000 corporations in the Philippines , 2011
http://www.nissan-global.com/EN/COMPANY/RECRUIT/
http://www.scribd.com/doc/19445142/Nissan-Marketing-Plan#outer_page_3
http://www.nissan.com.ph/corp_wforce.html
http://www.tradechakra.com/economy/philippines/automobile-industry-in-philippines-254.php
http://www.indexmundi.com/philippines/demographics_profile.html
http://www.nscb.gov.ph/secstat/d_income.asp
http://business.inquirer.net/42111/auto-industry-sees-9-growth