Accounting Assignment: Business Report On Success Of Nidec Corporation

Question

Task:
Review Nidec’s success so far in the motor business based on the market characteristics and Nidec’s business model and provides a detailed accounting assignment including the following points:

1. What are the characteristics of the motor business and its key success factors?
2. How did Nidec establish its current position?

How would the income statement of Sankyo Seiki change after the acquisition? Apply the management methods described in the case to make your own estimates in completing worksheet. Suggest which organizational capabilities should be needed to achieve these effects and evaluate the management control mechanisms Nidec tapped into.

How should Nidec adapt, given the changing environment surrounding Nidec’s transformation from a “motor manufacture” to a “module provider”? What are the obstacles Nidec may face? What kinds of control system will be necessary?

Answer

1. Introduction
The accounting assignment consists of a detailed business report of the Nidec Corporation of Japan. This article will include a detailed analysis of the business organization and its management. The evaluation of the organization will be based on the ten trillion-yen sales of the company. This article will discuss in detail the characteristics, overview, and its current position. The writing will provide a graph that will represent the projected income of the company by the year 2025. Alongside that, the report will consist of a detailed overview of the work functioning of Nidec Corporation.

2. Overview of the Company
Nidec Corporation is a Japanese organization that was established on July 23, 1973. Shigenobu Nagamori is the present CEO, President, and Chairman of the board who established the company as “Nippon Densan Corporation” with 20 million yen. It was formed in Nishikyo-Ku in Kyoto (Takemoto, 2021).Nidec Group emphasizes and manages electric appliances and manufacturing equipment focusing around a motor business that includes an extensive manufacturing line from small accuracy to huge motors based upon "everything that spins and moves." These commodities are utilized in all types of substances and plans worldwide, vital to livelihood and society.

3. Characteristics of the Motor Business
Motors are electric elements that alter electrical energy towards mechanical energy. Small-size and precision motors are broadly utilized in official automotive equipment, electric tools, small household utensils, motorized electronic equipment, Smartphone for their vibration characteristic, and automation equipment (Veith, 2020). Brushless motors are excess intricate and costly than brushed motors. The turning of brushless motors can be more compliantly attuned hanging on the products. Nidec Corporation has been dedicated to brushless electric motors from its beginning. It detained20% of precision mini motors and80% of the PC hard-disk drive industry.

4. Nidec’s Establishment of Current Position
The CEO and Chairman of the Nidec corporation board had included aggressive management tactics to the organization from the 1990s when the storing size of computer hard-disks developed rapidly, and the quantity of data utilized on personal computers is raised intensely(Mitsuhiro, 2020). Nidec Corporation has developed Tosok and Kyori in 1997 who are systematically manufacturers of elements and measuring instruments and manufacturers of processes. Nidec developed Sankyo Seiki in 2003, which was operating on the elementary technological progress of "fluid dynamic bearings." The organization attained industrial motor producer Y-E Drive to decrease its trust in the IT industry in 2000.

5. Changes in the Income Statement after Acquisition of Sankyo Seiki

Fig: Before Acquisition of Sankyo Seiki (created by author)

Fig: After Accruing of Sankyo Seiki (created by author)

6. Application of the Management Method
Nidec Corporation conducted over sixty Mergers and acquisitions in 2019. The entire attained organizations raised their economic power, and obeying more Mergers and acquisitions enhanced the whole corporation's development (Akamatsu & Syunta, 2020). When numerous Japan-based organizations became unsuccessful in mergers and acquisitions by remunerating excess, this company emerged for its moderate estimates. Nidec Corporation has setup an exceptional calculating technique to govern the procurement charge termed for “Nagamori” that had guidelines to avoid hike up.

7. Recommendation of Organizational Capabilities
The main development job under medium-term management strategy was the automation work. Nidec aimed to sell six hundred billion yen in 2020. There was an increasing trend toward electrification acquire force under pollution less and fuel-efficiency guidelines under the Paris contract(GLANCE, 2020). It can state that, taking gradually into new ground, both Nidec's present technical capability and its administrative feedback to operations demanded by its customers. Nidec expected a repetition of the existing automation motorized market to six trillion yen by 2030.

8. Evaluate the Management Control Mechanisms of Nidec
The company runs on the mechanism of value creation management mechanism. On the other hand, the company also focuses on the company's virtuous circle of growth, such as financial value, HR value, market value, customer value, and economic value(Kanai et al., 2017). The company is viewed to uphold the attitudes like enthusiasm, passion, work hard and bright, and tenacity. The organization endorsed its initial unprinted did as the "Nidec way." One of the causes was the developing quantity of attained external associates. The style of Nagamori to visit every organization and speaking to the workers is fascinating.

9. Changing Environment of the Company
Four big waves, a medium-term management plan, an initiative for modularization, new technologies in automotive components, tough competition from China, and the ten trillion yen club together constitute the company's changing environment (Sadoi, 2018). The big waves in their entire management have helped Nidec as a whole Corporation undertakes a suitable modularization initiative. It shifted from a motor company to motor modules as systems. On the other hand, the change in the company's environment was mainly due to incorporating new technologies in their automotive components.

10. Obstacles Nidec May Face
The new technologies adopted by the Nidec Corporation might face an issue regarding the company's medium-term management. Their trend towards electrification might face a problem regarding suitability (Manatsha, 2018). On the other hand, uncertainties in the company's external environment might create an issue for the company (Kaneko, 2019). Besides that, the leadership of Nagamori might be difficult for undergoing purpose. The management relying on Charisma might create a big issue for the entire company. Various parts of Nidec Yashimoto inherited from Nagamori might create problems for the company's middle-term management.

11. Recommendation

• Nidec Corporation should focus on elaborating their business operation by paving the way to better their automotive electrification concept.
• The company should also focus on elaborating the motors of various home appliances.
• They should focus on retaining their existing customers by focusing on meeting their needs and demands.
• The company should focus on standardizing the various next-gen technologies emerging from the 5G mode of communications.
• Particular emphasis on developing robotic applications should be made to expand the roots of the business.
• The company should duly train the employees of the organization to increase the productivity of the organization.

12. Conclusion
The writing consists of a detailed overview of the business report on the Nidec Corporation of Japan. The article reflects how the management of the company has gradually increased its asset over time. On the other hand, the report reflects the position of the company after acquiring Sankyo Saiki. The entire evaluation is based on the ten trillion-yen sales of the company. Apart from that, the writing consists of a mathematical analysis that shows the company's position after merging with international giants by the end of 2025. The report ends by stating suitable recommendations for the company.

13. References
Akamatsu, M., & Syunta, S. (2020). System, method, and computer program for mobile body management (pp. 1–26). Google Patents.

GLANCE, A. A. T. A. (2020). BEST PRACTICES 2020 ONLINE EVENT! 1–36.

Kanai, T., Tanaka, Y., Matsushita, H., & Endo, T. (2017). Gear motor including reduction mechanism (pp. 1–21). Google Patents.

Kaneko, M. (2019). A Lifecycle Analysis of the Corporate Average Fuel Economy Standards in Japan. Energies, 12(4), 677.

Manatsha, B. T. (2018). Japan’s resource and energy diplomacy in southern Africa: Botswana as a conduit. Botswana Journal of Business Volume, 11(1).

Mitsuhiro, A. M. O. (2020). Moving body (pp. 1–19). Google Patents.

Sadoi, Y. (2018). The impact of Euro 4 automobile emission regulations on the development of technological capabilities in ASEAN. Journal of the Asia Pacific Economy, 23(2), 279–296.

Takemoto, H. (2021). Identification method and identification device for identifying type of brushless dc motor, and brushless dc motor (pp. 1–12). Google Patents.

Veith, C. (2020). SUSTAINABLE CROSS–CULTURAL BUSINESS BETWEEN ROMANIA & JAPAN IN THE AUTOMOTIVE INDUSTRY. New Trends in Sustainable Business and Consumption, 563.