Download - Nippon Oil Part Final Submission Week 5
Business Model & Strategic Plan: Nippon Oil SPACE craft program 1
Business Model and Strategic Plan: Nippon Oil Michelle Mc Farland
Bus/475March 30th, 2015
Ms. Heike Soeffker-Culicerto
Business Model & Strategic Plan: Nippon Oil SPACE craft program 2
Table of Contents
I. Title Page (p.1)
II. Table of Contents (p.2)
III. Executive Summary (p.3-4)
IV. Business Model and Strategic Plan Part I: Existing Business
or New Business Division; Vision, Mission, and Value Proposition
(pp. 4-12)
V. Business Model and Strategic Plan Part II: SWOTT Analysis –
Internal and External Environmental Analysis; Supply and Value
Chain Analysis (pp.12-19)
VI. Business Model and Strategic Plan Part III: Assumptions,
Risk and Change Management Plan; Summary of Strategic Objectives;
Balanced Score Card and its impact on stakeholders; the
Communication Plan (pp.20-32)
VII. Conclusion (p.33)
VIII. Reference Page (pp.33-35)
Business Model & Strategic Plan: Nippon Oil SPACE craft program 3
Executive Summary
According to the United States’ Center for Disease Control
(2015),
“Every day, almost 30 people in the United States die in
motor vehicle crashes that involve an alcohol-impaired driver.
This amounts to one death every 51 minutes” and an annual cost of
approximately 59 billion dollars (U.S. CDC, 2015). (Why Hydrogen-
Fueled Cars are not the Cars of the Future: Drunk driving,
distracted driving & other negative externalities, p.5). Nippon
Oil & Energy can lead the world in changing the nature and mode
of personal transportation, while eradicating the negative impact
that existing industries of energy and transportation have on the
planet and human life (Superconductor technology and how it can
truly make JX Holdings, Inc. a “Comprehensive Energy Company”,
p.10).
Superconductors are the predecessors of future personal
travel, not Apple or Google cars. Japan is the perfect proving
ground to initiate the use of personal aircrafts because of its
topography and size, as well as JX Holdings, Inc.’s Nippon Oil &
Energy company is the perfect company to take on the challenges
that this type of innovation presents, due to its resources and
knowledge (Conclusion, p.12).
Business Model & Strategic Plan: Nippon Oil SPACE craft program 4
Business Model and Strategic Plan Part I: Existing Business
or New Business Division; Vision, Mission, and Value Proposition
Hydrogen-Fueled Cars are not the cars of the future
Nippon oil is dependent on the transportation industry and
all of its whims to produce profits because its main focus of
business revolves around supplying fuel and other automotive
products to the automotive industry. Changes are occurring in the
automotive industry that will impact Nippon oil dramatically.
Many companies including Nippon Oil are investing in what is
considered to be the future for automotive transportation;
hydrogen powered fuel cells, which itself is an abandonment of
the totally electric car concept that began only a few years ago.
However, these types of vehicles and new fueling systems
generally do not perform in the market as promised due to tepid
consumer demand for what is often seen as a luxury purchase
(Buss, 2014). These innovations are also not answering what
average car buyers really want and need in the "car of the
future". The majority of consumers buying electric cars and other
alternative fuel vehicles are affluent and are buying these cars
to differentiate themselves remarkably from the rest of the car
buying world; a form of elitism.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 5
Why Hydrogen-Fueled Cars are not the Cars of the Future: Drunk
driving distracted driving & other negative externalities
The CDC’s 2011 survey also confirmed that young people are at the
greatest risk for drunk-driving fatalities involving motor
vehicle accidents reporting that,
“Among drivers with BAC levels of 0.08 % or higher involved
in fatal crashes in 2012, one out of every 3 were between 21
and 24 years of age (32%). The next two largest groups were
ages 25 to 34 (27%) and 35 to 44 (24%)” (U.S. CDC, 2015).
In addition to impaired driving due to alcohol intoxication
a new phenomenon; distracted driving, has been linked to an
increase in automobile accidents and fatalities.
In 2011, The CDC did another survey to determine the
populations most impacted by distracted driving. The survey was
conducted “in the United States and seven European countries:
Belgium, France, Germany, the Netherlands, Portugal, Spain, and
the United Kingdom.” (U.S. CDC, 2015). The study revealed that
again young people were most at risk for distracted driving. The
CDC’s survey reported that “69% of drivers in the United States
ages 18-64 reported that they had talked on their cell phone
while driving within the 30 days before they were surveyed” and
“In Europe, this percentage ranged from 21% in the United Kingdom
to 59% in Portugal” (U.S. CDC, 2015).
Business Model & Strategic Plan: Nippon Oil SPACE craft program 6
As for texting or sending and receiving emails while
driving, the CDC reports that:
“31% of U.S. drivers ages 18-64 reported that they had read
or sent text messages or email messages while driving at
least once within the 30 days before they were surveyed.
In Europe, this percentage ranged from 15% in Spain to 31%
in Portugal” (U.S. CDC, 2015).
According to Virginia Technical Transportation
Institute:
“Text messaging () is approximately 20 times riskier
than driving while not using a phone [and results in
the] longest duration of eyes-off-road time (an average
of 4.6 seconds). This equates to a driver traveling the
length of a football field at 55 mph without looking at
the roadway” (VITT, 2014).
The VITT study also reports that “texting while driving
raises a driver’s crash risk by 23 times” (VITT, 2014). These
studies provide overwhelming evidence that the very same
technologies increasingly relied upon for convenience, are also
becoming major contributors to an increase in automobile
accidents and fatalities.
The automotive industry’s response to these issues is to
continually reinvent automobiles, or how people interact with
automobiles (some companies are researching driverless cars) but
Business Model & Strategic Plan: Nippon Oil SPACE craft program 7
this does not answer some of the fundamental conflicts that
automobiles present with regards to the environmental concerns of
global warming and oil spills, or the dependency that automobiles
create on natural resources.
Superconductor technology and how it can truly make JX Holdings,
Inc. a “Comprehensive Energy Company”
The disruptions that would be caused by the manufacture of
an Apple or Google car to the automotive industry are numerous
and would directly impact Nippon Oil’s “2020 target” of
increasing its energy, oil, & natural gas segments to 50% of the
company’s core income.
JX Holdings, Inc., the parent company of Nippon Oil, has
aggressively pursued and preemptively prepared in anticipation of
declines in fuel demand and transitions to fuel cell powered
vehicles by adding hydrogen to its existing service stations in
Japan (JX Holdings, Inc., 2014, p.18). The company’s strategic
goals include creating “synergies” between its core market
segments of “oil, gas, and new energy” and to become a
“comprehensive energy company” (JX Holdings, Inc., 2014, pp. 9;
26).
Tsutomu Sugimori, Representative Director and President, JX
Nippon Oil & Energy Corporation (NOE, describes Nippon Oil’s
discusses the strategies of JX Holdings, Inc. for Nippon Oil to
Business Model & Strategic Plan: Nippon Oil SPACE craft program 8
effectively combat the anticipated decline of consumer demand for
fuel in the company’s 2014 Annual report.
As innovations in the automotive industry occur, JX Nippon
Oil & Energy will diversify the company’s petroleum refinement,
transitioning its focus from petroleum fuel to the manufacture of
petroleum products such as “paraxylene and benzene” (JX Holdings,
Inc., 2014, p.25).
However, this diversification does not sufficiently
recognize the strong desire of consumers to answer the negative
externalities created by the interdependent industries of
transportation and energy, through innovation. A true desire
exists, both in consumer and scientific communities, to finally
be provided with a different mode of transportation all together;
specifically, personal aerial transportation.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 9
In the above presentation, Dr. Boaz Almog, a physicist,
demonstrates the true future for both the transportation and
energy industries; superconductors and quantum locking (TED,
2012).
To truly become a “comprehensive energy company” Nippon Oil
& Energy should develop a new type of vehicle; a superconductor
vehicle based on the innovations demonstrated in the above TED
video (JX Holdings, Inc., 2014, p.26, TED, 2012). In much the
same way that Apple and Google are reportedly exploring the
option of entering the automotive industry; exploiting their
dominance in computer-based technology, Nippon Oil & Energy can
utilize its dominance in the energy industry to recreate the
transportation industry entirely.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 10
The future of fuel and the changes occurring in the
automotive industry are interdependent, as well as, unpredictable
(JX Holdings, Inc., 2014, p.17; Taylor, 2015).
Nippon Oil & Energy is the core area of concentration for
growth and profitability concerns for JX Holdings, Inc., because
of the aforementioned changes to, specifically, the automotive
industry. JX Holdings, Inc.’s concept of providing hydrogen is
directly related to the obvious movement in the automotive
industry towards this trend. However, the hydrogen concept does
not sufficiently free Nippon Oil & Energy from its dependency on
the automotive industry and the need to be responsive to its many
innovative whims.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 11
Manufacturing the world’s first superconductor vehicle would
be a better strategy to pursue for Nippon Oil & Energy because it
replaces several negative externalities with positive ones and
keeps in line with JX Holdings, Inc.’s value proposition with
regards to profitability, “Securing stable profitability in
existing business by realizing overwhelming competitiveness
through continuous restructuring and stable operations” (JX
Holdings, Inc., 2014, p.16).
As the above chart demonstrates Japan’s land area is
comparable to Italy, Germany, and Spain; three of the seven
European countries surveyed by the CDC in its 2011 survey to
determine the impact of distracted driving (Country Reports,
2015). However, because of its close, working relationship with
the Japanese government, its vast resources and wealth of
knowledge in the energy industry, and Japan’s archipelagic
topography, JX Holdings, Inc. is uniquely well-poised to
manufacture the world’s first, mass-produced, superconductor,
personal aircrafts.
SWOTT Analysis: Nippon Oil SPACE CRAFT PROJECT
Strength
Japanese government has already
expressed interest in Maglev
technology.
Weakness
The Japanese government’s Maglev
technology project;
Yamanashi Test Line has cost the
Japanese central government
Business Model & Strategic Plan: Nippon Oil SPACE craft program 12
approximately $90B. Resistance
to SPACE crafts may be
experienced if the government
sees it as a competitive
venture.
Opportunity
There has been criticism of the
government’s overbuilding of
airports and it is currently
using the airport reform plan to
reverse the financial impact
this error has caused to the
government. The use of SPACE
crafts to monitor civilian air
travel will require the use of
all of the airports and make
them profitable; the government
can also save face for what was
initially seen as a fiscal
misstep.
Residual income from supportive
services for SPACE craft
customers such as licensing, CAB
insurance, and marketing via on-
Threat
According to North Western
University (n.d.) “there is no
clear evidence of a negative
health impact from exposure to
static magnetic fields, although
biological effects have been
observed” (As quoted by North
Western, n.d.). Accordingly,
“guidelines on limits of
exposure to static magnetic
fields have been issued by the
International Commission on Non-
ionizing Radiation. (ICNIRP,
2009), which is a collaborating
organization with the World
Health Organization’s
International Electromagnetic
Field Project” (North Western,
Business Model & Strategic Plan: Nippon Oil SPACE craft program 13
screen consoles in the craft
when the craft’s entertainment
icons are utilized; similar to
the ads on youtube.com.
“…materials made by the JX Group
depend heavily on demand in
Asian countries, notably China,
and the JX Group is expected to
Undertake further business
expansion in those countries”
(JX Holdings, Inc., 2014, p.
12).
n.d.). Considerable
collaboration with the WHO will
be required to address all
concerns associated with the
biological and environmental
effects of the extensive use of
magnetic fields.
Trend
Maglev technology is increasing
in countries such as China,
Great Britain, and Australia.
Decrease in Demand of fuel due
to hydrogen cell automotive
technology.
Strength
Japanese government has already expressed interest in Maglev
technology.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 14
Weakness
The Japanese government’s Maglev technology project;
Yamanashi Test Line has cost the Japanese central government
approximately $90B. Resistance to SPACE Crafts may be experienced
if the government sees it as a competitive venture.
Opportunity
There has been criticism of the government’s overbuilding of
airports and it is currently using the airport reform plan to
reverse the financial impact this error has caused to the
government. The use of SPACE Crafts to monitor civilian air
travel will require the use of all of the airports and make them
profitable; the government can also save face for what was
initially seen as a fiscal misstep.
Residual income from supportive services for SPACE Craft
customers such as licensing, CAB insurance, and marketing via on-
screen consoles in the craft when the craft’s entertainment icons
are utilized; similar to the ads on youtube.com.
“…materials made by the JX Group depend heavily on demand in
Asian countries, notably China, and the JX Group is expected to
Undertake further business expansion in those countries” (JX
Holdings, Inc., 2014, p. 12).
Threat
According to North Western University (n.d.) “there is no
clear evidence of a negative health impact from exposure to
Business Model & Strategic Plan: Nippon Oil SPACE craft program 15
static magnetic fields, although biological effects have been
observed” (As quoted by North Western, n.d.). Accordingly,
“guidelines on limits of exposure to static magnetic fields have
been issued by the International Commission on Non-ionizing
Radiation (ICNIRP, 2009), which is a collaborating organization
with the World Health Organization’s International
Electromagnetic Field Project” (North Western, n.d.).
Considerable collaboration with the WHO will be required to
address all concerns associated with the biological and
environmental effects of the extensive use of magnetic fields.
Trend
There is an anticipated decrease in fossil fuel demand in
the next coming few years due to automotive technologies that
utilize alternative energy such as electricity and hydrogen power
cells (Buss, 2014; JX Holdings, Inc., 2013). In anticipation of a
need to establish a true alternative energy for powering vehicles
and providing transportation, countries such as China and Great
Britain, are currently researching Maglev technology (Mick, 2013;
Royal Institute, 2013).
The illustration on page 19 is a proposed solution for the
concerns related to exposure to EMF. Similar to power lines which
deliver electricity, magnetic delivery to propel the SPACE crafts
can be erected with “…superconducting wires using fibers made of
single crystals of sapphire” (Polad, 2011) as is being currently
Business Model & Strategic Plan: Nippon Oil SPACE craft program 16
researched by Tel Aviv University’s Dr. Boaz Almog and Mishael
Azoulay working in the group of Prof. Guy Deutscher at TAU’s
Raymond and Beverly Sackler School of Physics and Astronomy.
The associated risks of drunk and distracted driving
outweigh the associated risks of Maglev technology which can be
mitigated by developing a superconductor cable deployment system;
a system which can deploy and retract magnetized cables to ground
level.
The concept is simple, a minimum amount of magnetism is
delivered through the cables to ground level; just enough to
raise crafts through the netting of the cables. Increasing the
magnetism incrementally, or on a gradient, through the cables
until crafts reach the zone of the main delivery system allows JX
Holdings, Inc. and the Japanese government to control the flow of
magnetism to the ground level and thereby control the risk of
attracting potential projectiles. The delivery system controlled
by CAB will then interface with the SPACE craft and propel it,
either North, South, East, or West towards the requested
destination. Once the SPACE craft has arrived within a specific
range of its destination, deployed cables allows the descent of
the craft to ground level and delivers it onto ground tracks with
minimal attraction values that can then guide the craft to its
final destination.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 17
It is mentionable that Tel Aviv University is also
researching a traffic control system, SAFEPED that is useful in
the infrastructural considerations of this project. Specifically,
“Ph.D. student Gennady Waizman of Tel Aviv University’s
Geosimulation Lab at the Department of Geography and the Human
Environment and Porter School of Environmental Science has
developed SAFEPED, a computer simulation that integrates robotics
and statistics” (Polad, 2011). The collaborative efforts of
building a comprehensive supply chain that incorporates not only
the manufacture of SPACE crafts but also the development and
creation of a stable superconductor delivery system, an on-board
nitro glycerin delivery system, as well as a CAB database
feasibly includes a complex research structure which should begin
with the research of SAFEPED. Controlling the deployment of the
cables to the ground and sheathing the area surrounding the
cables, once a craft is inside the deployment area, will prevent
the risks of projectiles on the ground; something that SAFEPED
can be valuable in actuating. It is also mentionable that Dr.
Almong, the physicist highlighted in the TED video on
superconductors in the initial presentation of this proposal is
affiliated with Tel Aviv University, or TAU (Polad, 2011).
Business Model & Strategic Plan: Nippon Oil SPACE craft program 18
VI. Business Model and Strategic Plan Part III: Assumptions,
Risk and Change Management Plan; Summary of Strategic Objectives;
Balanced Score Card and its impact on stakeholders;
As previously discussed, the fundamental concern of
utilizing superconductor vehicles is the impact of using magnetic
fields. The World Health Organization’s EMF, or electromagnetic
field project, established in 1996 located in Geneva, Switzerland
is the premier authority on the impacts of EMFs.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 19
According to the WHO’s EMF Project (2014) the project’s core
purpose is to:
• “Review the scientific literature on biological effects
of EMF exposure;
• Identify gaps in knowledge requiring research that will
improve health risk assessments;
• Encourage a focused agenda of high quality EMF
research;
• Formally assess health risks of EMF exposure,
• Encourage internationally acceptable harmonized
standards;
• Provide information on risk perception, risk
communication, risk management; and,
• Advise national programs and non-governmental
institutions on policies for dealing with the EMF issues”
(WHO, 2014, p.4).
In its research the W.H.O.’s EMF project is associated with
eight international organizations:
• International Commission on Non-Ionizing Radiation
Protection (ICNIRP)
• International Agency for Research on Cancer (IARC)
• United Nations Environment Programme (UNEP)
• International Labour Organization (ILO)
• International Telecommunications Union (ITU)
Business Model & Strategic Plan: Nippon Oil SPACE craft program 20
• European Commission (EC)
• International Electrotechnical Commission (IEC)
• North Atlantic Treaty Organisation (NATO)
(WHO, 2014, Programmes)
To reasonably persuade the Japanese government to
support JX Holdings, Inc. and Nippon Oil & Energy’s SPACE craft
project the organization must actively participate in the WHO’s
EMF project. A balanced scorecard of the SPACE craft project must
consult the annual progress reports of the WHO EMF project. The
metrics being if the goals of the SPACE Craft project can be
achieved within the confines of the recommendations for human
exposure to magnetic fields by the WHO’s EMF project.
It is imperative that all of the SPACE crafts, as well as
the needed magnetic fields for propulsion do not conflict with
the WHO’s recommendations for exposure to magnetic fields.
Contact information for each of the individual organizations
participating in the project can also be found on the projects
website at:
http://www.who.int/pehemf/project/intorg/en/index7.html.
Once the necessary collaborative balance is obtained from
the W.H.O.’s EMF project; its collaborators and contributors, the
second area of concern is acquiring the right staff to contribute
to the structuring of the SPACE craft project. JX Holdings, Inc.
is currently a holdings company but in light of the vast
Business Model & Strategic Plan: Nippon Oil SPACE craft program 21
resources it currently possesses within the organization, a
restructuring to a matrix organization will allow key individuals
the collaborative flexibility to provide invaluable input to the
project.
The scientists that have been most prolific in Maglev
research, namely Dr. Almong; a physicist associated with Tel Aviv
University or TAU, should also be involved with the project to
formally understand the needed components of the internal
operations, operation metrics, strategic objectives, such as
infrastructural accommodations, and organizational assessments
that will make the project a successful one.
The cost of creating a SPACE Craft as opposed to the
anticipated market is obviously also another score card item. How
much money can Nippon Oil and JX Holdings, Inc. generate with the
creation of SPACE Crafts? Quite logically, this is a difficult
yet important question to define since the market itself is still
undefined and there will be considerable cost involved with the
project; the Japanese government has already invested $98B on its
Maglev train (Mick, 2013). A better question is:
“What will it cost JX Holdings and Nippon Oil & Energy not
to invest in the SPACE craft project?”
More specifically, what is it costing Nippon Oil & Energy to
invest in what can be reasonably defined as a short-term goal of
the transportation industry, or hydrogen cell technology?
Business Model & Strategic Plan: Nippon Oil SPACE craft program 22
As previously discussed, the current trend that Nippon Oil &
Energy is bracing for is the transitioning from fossil fuel use
for consumption by the transportation industry to hydrogen cell
technology. Preemptively, Nippon Oil & Energy has invested in the
conversion of its downstream operations to include hydrogen at
its fuel service stations in Japan (JX Holdings, Inc., 2013).
Currently, the following are the goals and metrics being
used to evaluate the organization’s performance under its current
strategy of maintaining interests in fossil fuels while
diversifying its platform to include expansions into alternative
fuels. The “2020” plan is JX Holdings, Inc.’s long-term strategy
for the organization and expresses a desire to not be
“susceptible” to fluctuations in earnings by concentrating too
heavily on one business due to changes in “crude oil and copper
prices as well as foreign exchange rates and interest rates” (JX
Holdings, 2013, Annual report; p.9). The plan goes on to explain
that the desired outcome of this approach is stable growth.
“Information on net sales, income and loss, assets,
liabilities, and other items from each reporting segment” Such as
JX Holdings Oil & Energy were segmented in the 2013 Annual report
to show each segments contribution to the organization (JX
Holdings, Inc., 2013, Annual Report; p. 110). A few of the
indications can be seen in this balanced scorecard:
Business Model & Strategic Plan: Nippon Oil SPACE craft program 23
Business Model & Strategic Plan: Nippon Oil SPACE craft program 24
Summary of Strategic Objectives & Communication Plan
Marketing and IT strategies and Tactics:
According to Pearce & Robinson (2013), marketing and sales
are “Activities, costs, and assets related to sales force
efforts, advertising and promotion, market research and planning,
and dealer/distributor support” (Pearce & Robinson, 2013, p.
156). The ENEOS brand of JX Holdings, Inc. is the downstream,
retail side of Nippon Oil & Energy; it is the brand that
customers look for when pulling into the company’s service
stations to buy fuel and hydrogen (JX Holdings, 2013). The SPACE
Craft project needs to create an equally recognizable brand to
ensure that Nippon Oil’s SPACE crafts stand out from the possible
competitive crafts that are being researched by other companies.
The motivation behind the concept of Nippon SPACE crafts is
basic; to release the hold that the transportation industry has
on Nippon Oil due to its shift from fuel to hydrogen cell
vehicles. At the same time, there is the desire to create a blue
ocean strategy alternative that would create positive
externalities, specifically, reduce the amount of automobile
injuries and fatalities caused by societal issues such as drunk
and distracted driving. In this perspective the wisdom that
Sprite utilized in its “Obey your thirst campaigns” and others
would be relevant in the marketing considerations for Nippon Oil.
Pina Sciarra, Director of Youth Brands, Sprite stated in a
Business Model & Strategic Plan: Nippon Oil SPACE craft program 25
Digital Films video “Sprite’s Anti-Marketing Campaign” that "Hip
hop, for us, became the sort of vehicle or the lens for us to get
to teens and talk to them in a credible way. And the way we did
that was to develop relationships with artists". (Digital Films,
2001). The campaign was in response to dissension in Sprite
marketing focus groups for a sort of anti-marketing campaign
featuring celebrities making fun of how much money is invested in
marketing campaigns featuring paid endorsers; an anti-marketing
campaign. The strategy changed to actually taking the challenge
of investing in the hip-hop culture; to become a part of it by,
as Ms. Sciarra stated by developing “relationships with artists”.
According to Balaban (2010), Hip Hop “…is one of the most
popular music genres in existence and is available to people in
every country across the globe”. Balaban also states “Hip Hop
dictates fashion, hairstyle, dialect, car choice, everyday
mannerisms, musical preference, and even common greetings” and
Business Model & Strategic Plan: Nippon Oil SPACE craft program 26
that “Corporations continue to find the culture to be a highly
effective means of marketing, advertising, and product
promotion…” Balaban’s statement that hip hop “dictates” car
choice is a key reason why Nippon Oil would be well-advised to
pursue forming relationships with Japanese hip-hop artists. The
hip-hop culture is world renowned for promoting opalescent albeit
ostentatious, focus on monetary status and symbols; specifically
cars. This is not to be mistaken with the common themes of
attrition in hip hop music which may sometimes conflict with the
cultural cues of prosperity; if you haven’t got the latest,
fastest car essentially you are not a worthy opponent as a hip
hop artist. The conquering of attrition from the music genre’s
urbane roots is achieved with status symbols such as luxury cars.
Since Nippon Oil is taking transportation to the “next
level” as many a hip hop icon would use to describe their status
and because hip hop culture has greatly influenced the norms of
popular culture to such a vast extent, it is a natural marketing
stance to rely on what works; using popular music to identify
with target and potential markets. While not all of the customers
buying a SPACE craft from Nippon Oil will be rappers all it would
take to solidify the brand would be to attract a few well
selected artists as customers. People want to be cool, or “with
it”, they don’t want to be dated or “out of touch”, if SPACE
crafts can be identified as what is “with it”, the “next big
Business Model & Strategic Plan: Nippon Oil SPACE craft program 27
thing”, or “what’s hot” the demand for SPACE crafts may be almost
unanswerable. Forming relationships with “J-Rap” artists such as
KG (Condry, n.d.) for the creation of a new culture seems
appropriate here because that is exactly what Nippon Oil will do
when they enable individuals to fly instead of drive; a new,
innovative way of life. The marketing for such a product needs to
be as equally bold, fresh, and uninfluenced as the product
itself; the marketing needs to convey a break from traditional
barriers. SPACE craft marketing needs to demonstrate how in the
interest of the world, its communities, and its children, Nippon
oil has done away with the stuffy, old, confines of global
strategies and developed not only a new way of life, but also
have humbly accepted the subculture of J-rap as well in the same
spirit.
A television commercial with KG watching one of his music
videos while flying in an automated flight plan on his brand new
Space craft would convey that reciprocal acceptance of culture in
Japan and open new lines of marketing in itself due to the
onboard consoles. Nippon Oil will also become a venue, a market
place, a social network that generates income from ancillary
sources such as on-board marketing campaigns; dictating the new
way, for not only Japanese consumers to connect, but eventually
the world.
Business Model & Strategic Plan: Nippon Oil SPACE craft program 28
The achievement of personal aerial travel will be a shining
achievement for Japan, as well as the world; everyone will want
to achieve the same technological and social benchmarks. A
website dedicated to SPACE craft travel that allows people in
other parts of the world to receive aerial travel vines; short
multimedia presentations comparable to posts on sites such as
Facebook and Youtube.com, would increase global demand for Nippon
Oil SPACE crafts in other countries. Governments will need to
scramble to prepare similar infrastructures; yet another
franchise that Nippon Oil and its partners can capitalize on by
selling the SPACE Craft program’s blueprints and offering
technological advisement.
There are four strategic controls that ensures the proper
operation and stability of an organization’s value chain
framework. A properly organized value chain’s strategic controls
“…divides activities within the firm into two broad categories:
primary activities and support activities” (Pearce & Johnson,
2013, p. 156). Primary activities consist of inbound logistics,
operations, outbound logistics, marketing sales, and service.
Implementation controls, strategic surveillance, and special
alert controls that help organizations stay ahead of changes that
might impact its strategies. Implementation controls oversee the
different incremental targets, or “milestones” of a strategy to
Business Model & Strategic Plan: Nippon Oil SPACE craft program 29
ensure that the strategy is progressing as planned (Pearce &
Robinson, 2013).
Accordingly, Nippon Oil’s implementation controls should
initially consider all of the necessary prerequisites to gaining
cooperation from not only the Japanese government that is
currently researching its own Maglev system (Mick, 2013; Royal
Institute, 2013)but also the collaborative requirements with the
World Health Organization’s EMF Project to satisfy concerns of
electromagnetic field exposure, as well as determine the
scientific, manufacturing, operational, marketing, legal,
communication i.e. information technology, and financial
requirements of the SPACE craft program. A balanced scorecard
establishing the metrics and goals of each of the above mentioned
categories will help in analyzing the project’s success and any
needed adjustments in the future.
An effective option for creating the needed balance for
interaction between stakeholders, data archiving, and analytical
data systems to discover trends and markets, is to consult with
companies such as IBM and/or Hitachi Data systems to acquire an
“object storage” platform capable of handling the needs of the
project (Adshead, 2013).
VII. Conclusion
Business Model & Strategic Plan: Nippon Oil SPACE craft program 30
Once the implementation controls have been established it
will possible to establish the inbound logistic and operational
controls for the SPACE program and make SPACE Crafts a reality.
The expedient action of Nippon Oil’s transitioning into the
manufacture of SPACE Crafts is vitally important to the success
of the project. There are at least three other countries
aggressively pursuing the possibility of integrating Maglev
technology into their infrastructures, this includes China; one
of Japan’s major customers and competitors in many industries.
The environmental concerns of large magnetic fields are not
so much related to the physiological impacts of magnetic fields
on human beings, but rather the ability to control the risks of
attracting other metals, which potentially can become
projectiles. As illustrated in the diagram on page twenty based
on research at TAU that problem is easily resolved. The time to
act is now; to regain supplier control of Nippon Oil with SPACE
Craft vehicles.
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