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Managerial Accounting Case Solution & Answer

Managerial Accounting

Recommendations of the Organization Capabilities

The main job of development under the management strategy was the excellent work related to the automation. The goal of Nidec Corporation for 2020 was to generate the sales of six 600 billion yen as there was an increase in trend toward the electrification of the acquired force under the sustainable goals of Paris Contract such as less pollution and fuel efficiency. It states that a gradual take into the new ground of technical core competencies of Nidec Corporation was in high demand by the customers. Now, the company has sat its goal to make sales of 30 trillion yen by 2030.

Evaluation of the Nidec’s Management Control Mechanisms

The corporation is based on the proposition of value creation management mechanism. However, Nidec also focuses on growth strategy mechanism – HR value, Marketing value, financial value, market value, economic value and customer value. The company is well-known for its work hard and bright, tenacity, enthusiasm and passion toward the mission that is “All for dreams”. The corporation relishes an excellent corporate culture of speaking with respect.

Changes in Environment of the Company

The corporation has gone through four big waves listed below:

  • A medium-term management plan
  • An initiative for modularization
  • New technologies in automotive elements
  • Tough Competition from China and ten trillion yen sales by 2030

All of the above describe the changing environment of the Nidec Corporation. An initiative for modularization has shifted the company from motor corporation to motor modules. However, changes occurred mainly due to the company’s incorporation of new technologies in their automotive elements.

Obstacles for Nidec

Nidec focuses on incorporating new technologies which may pose threats to the mid-size management. Furthermore, their focus on electrification may also lack stability in the future. And the external environment might pose threats to the internal environment of the company. Alongside all that, the aggressive leadership of the CEO might give rise to issues for undergoing purpose.

Recommendations

  • Nidec should raise its focus on understanding their business operation so as to create ways for improving the automotive electrification concept.
  • The company should also center its focus on elaborating the home appliances motors.
  • The company should keep in view the needs and wants of the current customers and deliver superior value to them
  • The company should strengthen its marketing capability to attract more true customers as the greater the customers and reach to them, less uncertainty will be to achieve the target sales in 2030
  • The company should embed robotics systems and new technologies as industrial revolution 4.0 uses AI for production of goods and services
  • The company should reshape its management structure to decentralization
  • The company should train its employees as per the needs
  • The company should design a compensation and reward system for increasing sales to achieve the target by 2030

Conclusion

The report contains in detail the business functions of the Nidec Corporation. It shows that how the management of the company has used its assets efficiently to generate and increase sales. It also reflects the position the company achieved after the acquisition of Sankyo Seiki. All of the evaluation rests on the target sales of ten trillion yen by 2030. The report also includes the income statement before and after acquisition and the positions of the company therein. To conclude, the report ends up with recommendations to the Nidec Corporation…

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