Case Studies: Saving the Business Without Losing the Company Essay

2495 Words Jan 1st, 2013 10 Pages
Case Studies: Saving the Business without Losing the Company 1.0 Introduction
Nissan’s position as a profitable and viable global automaker was in complete default by 1999. The once-strong company had lost money for six of seven consecutive years, beginning in 1992. Its global market share was in decline and the company was losing, on average, US$1,000 per vehicle sold in the United States. Carlos Ghosn knew that regeneration of the company product was imperative, but the product alone would not save the company. Thus, Louis Schweitzer, CEO of Renault, asked Carlos Ghosn to lead turnaround at Nissan. The two companies had agree to a major alliance in which Renault will cover the Nissan’s debt in return for 36.6% equity stake in the
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The merger would be the world’s fourth largest carmaker. The alliances deal made sense for both sides: Nissan‘s strength in North America filled an important gap for Renault, while Renault’s cash reduced Nissan’s mountain of debt. The capabilities of the two companies were also complementary: Renault was known for innovative design and Nissan for the quality of its engineering. Renault had just become the owner of the Nissan. As a result, through the deployment of problem-solving and cross-functional, Ghosn and Nissan arrived at a solution.
The results, implemented in all their aspects, led to immediate financial improvement, cost saving. It's allowing Nissan to invest more in the product while giving more to shareholders. They also can reduce staff overheads and establishing a clear pay for performance guidelines for all employee including executives.

* Went against some norms of Japanese society
They went against the grain not only of Nissan’s long-standing effective practices but also of some behavioural norms of Japanese society. The executive in company prefers solving problems like to work with same cultural such as American feel comfortable with others Americans. The trouble is that people working in functional regional teams tend not to ask themselves in the problem.
In cross-functional

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