Analysis Of Mitsubishi: Strategy, Structure, Govt. Role.

Mitsubishi is a community of independent companies that consist of more than 200 companies with a centralized management philosophy and cultural events, in this brief, we will particularly look into Mitsubishi motors. Mitsubishi Motors in the recent years is the sixth biggest car manufacturer in Japan and the 16th largest car production in the world but later on acquired by Renault and Nissan as a part of an alliance and has control over 10 major car brands in the world, namely Dacia, Alpine, Infiniti, Renault, Mitsubishi, Nissan and more. Since 1986, Japanese car makers in its early stages tend to follow the steps of bigger car manufacturer in the United States namely Ford and General Motors by having modification on the products. The internationalization of these Japanese carmakers is further attributed to 2 external factors, namely due to the appreciation of Yen in 1985 and the import regulation imposed on the car manufacturers in foreign countries. In the 1970s because of the oil crisis, the Japanese manufacturer also experience an increase in popularity, reputation, exports in European countries with their more fuel-efficient vehicles from 1970s to 1990s increasing by about ten times in exports. Mitsubishi although it's initial penetration into the EU and US markets, adopted business alliance with foreign car makers in an attempt to reduce cost, but in a study has shown that Mitsubishi has lost its whole ownership in the production capabilities to Chrysler.

With the strong technological capabilities in motors and production, Chrysler and Mitsubishi initially ventured into American in 1985, and since then Mitsubishi has acquired 100% ownership of the joint venture under Mitsubishi manufacturing of America (MMMA). MMMA later went on to produce and continue to supply Chrysler in their products although this venture in Illinois did not perform well because of cash flow problems, Mitsubishi Motor's Asian strategy performed better with the alliance with the Korean car manufacturer in form of technology licensing to Hyundai and with China motor company (CMC) in assistance in technological transfer to Chinese products as well as gaining benefit from licensing agreements. In a more recent study, Mitsubishi focuses more on electric car production as the global market is moving away from fuel and towards renewable energy and carbon reduction in major cities. Major cities in Asia also worked with Mitsubishi to sign deals and provide job openings to these countries such as Vietnam and Indonesia in producing electric cars. This alliance with these ministries also marks with incentives, joint study, and research.

Internally, Mitsubishi Motors is governed by a committee of executives committee and executive officers. although throughout 1998, experiencing one of the biggest downfalls, and hidden complaints scandal by the executives to give a false image of the brand in 2000, Mitsubishi has since then reformed the committee and improvements in 4 major area, corporate ethics, compliances, governance and the operations of the corporation.