3.1 Nippon Automobile Corporation (NAC)
3.1.1 Company profile: Nippon Automobile Corporation is an emerging manufacturer of a full range of passenger automobiles, SUVs, pick-up trucks and motorcycles. NAC has been run by engineers since it was founded. The company is the most research and development oriented corporation within its domestic industry; allocating R&D spending at 5.9 per cent of corporate sales. The company prides itself on its superior engineering efforts and the use of advanced technology in the vehicles that it produces. NAC started producing vehicles only in the past few years. NAC’s strategic plan calls for it to become one of the top three Japanese vehicle manufacturers within the next five years. To achieve its strategic goal, NAC must double its manufacturing capacity and penetrate export markets. To date, nearly all of its output has been sold domestically. The company’s deep commitment to export its products is reflected in the recent formation of a 200 person technical task force to design its vehicles for foreign markets and negotiate arrangements for overseas dealer franchises as well as contracts to transport the products to the foreign markets. NAC expects to be exporting 60 per cent of its production within five years. The NAC profile is shown in Figure 1.