SAMPLE Nissan Westgate Strama Paper

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, competitor’s 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 1980’s. This was due to the construction of important overseas facilities and mergers alongside with improved production techniques adopted by Japanese in the 1970’s.By 2005, the industry’s 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.

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       

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

für

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 organization’s 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 firm’s 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 dealership’s 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 firm’s 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 David’s 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 shareholder’s 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. Best’s 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, China—and Taiwan—to 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 market’s image and weakened private investor confidence. The scandals have their roots in management’s 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

a

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 Nissan’s 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 Competitor’s 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 Mitsubishi’s 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 year’s 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 SUV’s, 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 industry’s 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 industry’s total non-performing loans portfolio stood at 3.0 percent from the first quarter’s 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. Competitor’s 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 country’s 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 Robinson’s 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 Robinson’s, 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 country’s 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 country’s 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 Group’s 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 Group’s 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 country’s 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 2010’s 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 Toyota’s 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 company’s strength lies in it’s 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 cycle—plan, do, check, act—and 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 stakeholders—suppliers, 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 500¹ enterprise, and ranks among the world’s leading global corporations. Toyota is one of the world's largest automobile manufacturers, selling 7.5 million models annually² on all five continents. Toyota is proud to be one of the most admired car makers of all time³ , 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 company’s formative years in Japan. The Toyota story begins in the late 19th century, when Sakichi Toyoda invented Japan’s first power loom, which was to revolutionise the country’s 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 world’s 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, world’s largest car rental company. March 1, 1999-Ford enters into a definite agreement with AB Volvo for the purchase of Volvo’s 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 company’s 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 employee’s 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: Porter’s 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 Country’s 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 industry’s 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)

d

Qtr

4th

FY (03/11)

Qtr 2n

d

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

1

NA

128

P/E Ratio 5-Year Low

0

NA

3.7

Price/Sales Ratio

0.36

NA

2.16

Price/Book Value

1

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

6

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

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0.1

0

0

0

0.1

0

0

0

0.1

0

0

0

0.1

0

0

0

0.1

0

0

0

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

(%)

3

BOOK VALU

03/1

E

DEBT/

RETURN ON

RETURN ON

SHAR

EQUIT

EQUITY

ASSETS

INTEREST

E

Y

(%)

(%)

COVERAGE

9.44

1.22

10.8

3.1

15.9

8.85

1.39

10.8

3

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

E

DEBT/

RETURN ON

RETURN ON

SHAR

EQUIT

EQUITY

ASSETS

INTEREST

E

Y

(%)

(%)

COVERAGE

10.82

1.35

13.8

4

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

E

DEBT/

RETURN ON

RETURN ON

SHAR

EQUIT

EQUITY

ASSETS

INTEREST

E

Y

(%)

(%)

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

N

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

N

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