Page 65 - PRAGMATIC STRATEGY
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2. What were Nissan's main objectives in locating their factory in
Sunderland?
Your answer ought to contain the following points:
By 2013 Nissan had developed a history of car production at Sunderland. It sought
with its further investments to build upon this and aimed to:
A. reduce production costs (increase efficiency and effectiveness) because the
car industry is highly price competitive;
B. achieve location specific factors e.g. to find a location where rents were low;
C. answer competitor strategic thrust by accessing a location where there was
low cost, skilled labour.
Nissan web site
Nissan has set sales targets and these are reflected in the production and
investment levels of the model range produced at Sunderland.
Model Investment Employment New Production
(£m)
Sunderland Component
Plant Suppliers
Invitation 125 400 1475 100,000
Quahqai 192 225 900 80,000
Leaf 420 350 (safeguarding 2000 jobs) 50,000
Infinity 250 280 700 60,000
