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


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)


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 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.


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).


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


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


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.


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.

https://www.youtube.com/watch?v=PXHczjOg06w&feature=youtube_gdata_player


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.


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


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,


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.


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


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


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.


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).


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.


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)


• 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


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?


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:


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


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


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


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.


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


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


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.

References


Adshead, A. (2013). Big data storage: Defining big data and the

type of storage it needs. Retrieved from:

http://www.computerweekly.com/podcast/Big-data-storage-

Defining-big-data-and-the-type-of-storage-it-needs

Aoki, M. (20120. Bubble era’s aviation legacy: Too many airports,

all-ailing. Retrieved from:

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