...Master in Management Organizational Behavior & Leadership Case #2: The Personality of Leaders The Personality of Carlos Ghosn: The $10 Billion Man Read the following dossier of article extracts and answer the final questions. 1.- “The $10 billion man” Feb 24th 2005, The Economist Having turned round Nissan, Carlos Ghosn is about to run Renault as well It is said that he could add $10 billion to the market value of Ford or General Motors with a stroke of his pen. But Carlos Ghosn is not about to sign up as chief executive of either firm. Instead, in May, he will become the boss of Renault, France 's second-largest carmaker, while continuing to head Nissan, Japan's number two car firm. To ease the transition, this week he named Toshiyuki Shiga as Nissan's chief operating officer. Although Renault and Nissan have cross-shareholdings and a deep alliance, their relationship deliberately stops well short of outright merger. Perhaps that is why it has been so successful, avoiding the integration pain that has marred, for instance, DaimlerBenz's takeover of Chrysler. In his book, “Shift: Inside Nissan's Historic Revival”, published in English last month, Mr Ghosn says that the strength of the alliance “can be found, on the one hand, in its respect for the identities of the two companies, and on the other, in the necessity of developing synergies.” Certainly the benefit has flowed both ways since the Franco -Japanese deal was done in 1999. First, Renault rescued...
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...The Personality of Carlos Ghosn: $10 Billion Dollar Man 1. Describe Carlos Ghosn using the “Big Five” dimensions of personality. The Big Five: 1. Extraversion reflects the tendency to experience positive emotional states and feel good about oneself and the world around one 2. Agreeableness is the tendency to get along well with others and cooperates 3. Conscientiousness is related to the extent to which a person is careful, scrupulous and preserving 4. Emotional stability describes a steadiness of mood and the ability to withstand minor setbacks, difficulties. Stable persons don’t easily become anxious, nervous, tense or angry. 5. Openness to Experience reflects the extent to which a person is original, has broad interests and is willing to take risks Characteristic Extraversion Agreeableness Conscientiousness Emotional stability Openness to Experience Carlos Ghosn in short Man of action, praised, feels good about himself, self-esteem, selfconfidence, fearless, hardnosed International background, acceptance as leader, listens to people, respected, devotion, motivation and empowerment Careful, scrupulous, follow-up, demanding, comprehensiveness, ready for unforeseeable incidents Risk prone, no step down or retreat Internationality, curiosity, overcoming anxiety, creativity, innovation, bearing huge risk through managing 2 companies In case of Carlos Ghosn it makes sense to start with his openness to experience. From the beginning of his live on he was facing constant changes...
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...Case study: Leading a Global Organization This paper will evaluate Carlos Ghosn’s approach to turning Nissan around from his appointment of COO at a very critical time in Nissan’s history. After many years of success, Nissan began facing difficulties in the 90s and Carlos Ghosn was invited to help turn the organization around. Both national and organizational culture was very strong in Nissan and made changes difficult, but Ghosn’s management style enabled him to implement the Nissan revival plan (NRP), which turned the company around to profitability. Background The case revolves around Nissan and its management. The company was established in 1933 under a different name, but quickly changed to Nissan Motor Co. Ltd. Following the Second World War, Nissan expanded its operations around the world and grew steadily. By 1991 Nissan was highly profitable and had four out of the top ten cars in the world. The success didn’t last though. In the years 1993-1999 Nissan had seven consecutive years of losses and credit rating services were threating to lower their status from “investment grade” to “junk”. Part of the problem was the managerial decision to emphasize short-tem market share growth rather than long-term success. Inspired by local Japanese culture and customs, especially keiretsu, Nissan invested heavily in suppliers. This was done to encourage loyalty and cooperation between members of their value chain. Unfortunately, the Asian financial ended up devaluating...
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... Summary Well-known for his ability of reconstructing failing companies, Carlos Ghosn is a great leader in modern business. He restored the Nissan motor group from the brink of bankruptcy, achieving record profits in two years. He is the best model for transformation leadership, which could be a spotlight in our society today. Transformational leadership gives more attention to the charismatic and effective elements, concerned with emotions, values, ethics, standards, and long-term goals (Northouse, 2013, p. 185). As many industries are becoming extremely competitive, the importance of effectively motivating subordinates is being emphasized. In addition, Ghosn’s transformational leadership demonstrates how leaders diagnose the cause of the problem and manage crisis. He is a successful businessman and a competent leader. A whole series of events brought him fame as a leader and demonstrate ideal leader’s roles in highly competitive society. When he joined Michelin tire in France, he was only 25 years old. He experienced life as a staff and manager in a factory in his first business career. Throughout the period of being a factory manager, he learned the importance of ‘Field based management’ and ‘fulfillment’, which is about the reality of the shop floor and trust of the employees. Although this was just the beginning, his experience of management level has had a decisive effect on his overall leadership career so far. As a factory manager in Michelin...
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...Question 1: Describe Carlos Ghosn using the “Big Five” dimensions of personality Extraversion Ghosn is a very outgoing and energetic person. His behavior makes people around him feel comfortable and good about themselves. He knows how to communicate efficiently with every level of the company. “ Ghosn was noted for the clarity of his vision and ability to communicate throughout the organization.” Moreover, Ghosn has no problem addressing everyone in the company in a regular basis unlike the Japanese traditional management where worker had limited communication with management. “This was the first time in the company’s history that the president spoke directly to everyone in the organization. He addresses the entire company in a regular basis. Everywhere he goes he makes a point to talk to employees at all levels.” We can also see that he is a very energetic person going everywhere he can to get information from everyone. It is obvious that Ghosn seek simulation throughout the employees. “ He first goes to the people who come in contact with the customers everyday…He listens to them intently. He asks a lot of questions.” From this we can conclude that Ghosn is an extraverted person. Agreeableness One of Ghosn’s apparent traits of personality is agreeableness. Wherever he goes, he has this ability to relate to people and somehow connect to them...
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...TUTORIAL 8: CARLOS GHOSN: LEADING FOR GLOBAL SUCCESS AT RENAULT-NISSAN ● Summary [Identifying key issues] ■This case discusses Japan’s number-two automobile manufacturer,. (www.nissan-global.com), its CEO Carlos Ghosn, his leadership style, and the company's strategy. The questions focus on these issues and whether the strategy of Renault-Nissan is global or multinational. The case provides a good example of a firm that uses a global, integrated strategy for its worldwide operations. It is also a good example of a large company with ambitious goals to produce high quality products and sell them on every continent. BACKGROUND ■ Based in Tokyo ■ 2009- Sales were nearly $90 billion ■ Management planning to launch 48 new car models ■ A few years ago- on the verge of bankruptcy. ■ Renault- The French automaker took a 44 percent stake and installed Carlos Ghosn as Nissan’s CEO ■ Dramatic turnaround- Ghosn returned Nissan to profitability and became a celebrity in Japan ■ Ghosn- Born in Brazil, raised in Lebanon, and educated in France, he is a charismatic leader who speaks four languages and is idolized for saving one of the world’s premier car companies. ■ Ghosn closed inefficient factories, reduced Nissan’s workforce, curbed purchasing costs, shared operations with Renault, and introduced new products. NISSAN’S ORGANIZATIONAL CULTURE ■ Ghosn cut through antiquated thinking, defying Japan’s often bureaucratic and clubby business...
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...Project Spring Semester 2016 CARLOS GHOSN The “COST KILLER” Presented By: Michel Gerges Samar Nimer Introduction: Carlos Ghosn, born on March 9, 1954 is a French-Lebanese-Brazilian businessman born in Porto Velho, Brazil, who is currently the Chairman and CEO of France-based Renault, a European leading carmaker, and Chairman and CEO of Japan-based Nissan, a Japanese leading Carmaker, and Chairman of Russia-based automobile manufacturer AvtoVAZ. He completed his secondary school studies in Lebanon, at the Jesuit school College Notre-Dame de Jamhour. He then completed his preparatory classes in Paris, at the “College Stanislas” and the “Lycée Saint-Louis”. Carlos Ghosn earned two engineering degrees in Paris, the first from the “École Polytechnique” in 1974, and the second from the “École des Mines de Paris” in 1978. He joined Michelin in 1978 as a management trainee and soon he became a manager of the “Le Puy” plant in France. Then, he became Chief Operating Officer of Michelin’s South American activities based in Brazil before being appointed Chairman and Chief Executive Officer of Michelin North America in 1989. He joined Renault as Executive Vice President in 1996. In addition to supervising Renault activities in Mercosur, he was responsible for research, automobile engineering and development, manufacturing, powertrain operations, and purchasing. Carlos Ghosn joined Nissan Motor as...
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...GriffCh15v3.qxd 10/27/06 08:12 PM Page 439 CHAPTER 15 • LEADERSHIP AND EMPLOYEE BEHAVIOR IN INTERNATIONAL BUSINESS 439 Part 3 Closing Cases Ben & Jerry’s—Japan On an autumn evening in Tokyo in 1997, Perry Odak, Angelo Pezzani, Bruce Bowman, and Riv Hight gratefully accepted the hot steaming oshibori towels their kimonobedecked waitress quietly offered. It had been just over nine months since Odak had committed to resolving the conundrum of whether to introduce Ben & Jerry’s ice cream to the Japanese market and, if so, how. The next morning would be their last chance to hammer out the details for a market entry through 7-Eleven’s 7,000 stores in Japan or to give the goahead to Ken Yamada, a prospective licensee who would manage the Japanese market for Ben & Jerry’s. Any delay in reaching a decision would mean missing the summer 1998 ice cream season, but with Japan’s economy continuing to contract, perhaps passing on the Japanese market would not be a bad idea. Perry Odak was just entering his eleventh month as CEO of the famous ice cream company named for its offbeat founders. He knew the 7-Eleven deal could represent a sudden boost in the company’s flagging sales of the past several years. He also knew that a company with the tremendous brand recognition Ben & Jerry’s enjoyed needed to approach new market opportunities from a strategic, not an opportunistic, perspective. imported ice cream, and expectations of falling tariffs on dairy products suggested new opportunities...
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...Read one paper about Hofstede or Kolhberg « Cultural constraints in management theories » « Management scientists are human ». Find an example company from your country to explain the company development. Hofstede, « Cultural constraints in management theories » To explain these cultural constraints in management theories, I choose the French company Renault. Renault is an historical group, strongly present in Europe. Renault has always been a vector for innovation. It is the 2nd French car manufacturer and possesses three brands: Renault, Dacia and Renault Samsung Motors. ------------------------------------------------- ------------------------------------------------- I/Introduction to the subject The source of the issue takes place in the “Technocentre”, in Guyancourt (Yvelines). This building is the Renault’s neuralgic center, where all futures cars are designed and devised. End of 2006 and beginning 2007, thee employees have committed suicide. The letters leaved revealed harder and harder working condition, harassment and a high pressure put on workers. Since then the auto builder has been sentence for “inexcusable fault” in 2011 and 2012. Second occurrence, in January 2011, three managers have been relieved of their function in an industrial espionage affaire. The evidences used for the accusation seemed after to be false. This scandal made a lot of noise, more than the second. Confidential documents have been revealed by France Info and France Inter. Renault...
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...Carlos Ghosn Carlos Ghosn, born 9 March 1954 is a Brazilian-Lebanese businessman who is currently the Chairman and CEO of Yokohama, Japan-based Nissan and holds the same positions at Paris-based Renault, which together produce more than one in 10 cars worldwide.[1] Ghosn is also Chairman and CEO of the Renault-Nissan Alliance, the strategic partnership overseeing the two companies through a unique cross-shareholding agreement. For orchestrating one of the decade's most aggressive downsizing campaigns and spearheading the turnaround of Nissan from near bankruptcy in the late 1990s, Ghosn earned the nicknames "le cost killer" and "Mr. Fix It."[2] After the Nissan financial turnaround, he achieved celebrity status[3] and ranks as one of the 50 most famous men in global business and politics.[4] In Japan, he is the superhero protagonist in a popular "manga" comic book series.[5] His polemical decision to spend $5 billion to develop the world's first mainstream electric car, the Nissan Leaf, is a subject of the 2011 documentary "Revenge of the Electric Car." Personal life Ghosn was born in Porto Velho, Brazil on 9 March 1954 to a French mother and Lebanese father. At age 6, he moved to Beirut, Lebanon, with his mother. He completed his secondary school studies there, in a Jesuit school (Collège Notre-Dame de Jamhour). Then he completed his classes préparatoires at Lycée Stanislas in Paris.[7] He graduated with engineering degrees from the École Polytechnique in 1978 (X1974) with...
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...Name: Saintha Maistry Due Date 9th March 2016 ID: 7612260142083 Masters of business administration- Trimester 1- Jan – April 2016: Assignment 1: Strategic and Change Management 1. Does Semc have a strategy? Justify your answer. Yes, Semco has in place a strategy, though unconventional, it is clearly displayed in the radical processes undertaken to change the working conditions of employees. A company’s strategic plan lays out its future direction and performance targets (Thompson, Strickland, Peteraf & Gamble, 2014). The CEO provided a broad vision for employee’s of finding a gratifying way of spending one’s life doing something that is useful. We can perceive the vision through the unconventional changes made by the leadership in the organization where the primary focus is on human capital, wellbeing and their competencies (Joost & Fourie, 2009). Strategies created involve the development of employee participation, profit sharing and open information systems at the company. The needs and welfare of the employees are of paramount importance and this detail is integrated into the employee manual. For instance, it is mandatory for employees to take their 30 day leave. The effects resulted in sales growing and the company experiencing an increase in profits. A well developed business strategy is designed according to the elements of differentiation, thrust, target results and domain sought (Yavitz &Newman...
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...STRATEGIC MANAGEMENT TEXAS EXECUTIVE MBA PROGRAM FALL 2011 Professor David B. Jemison CBA 3.232 Telephone 471-8757 David.Jemison@mccombs.utexas.edu Texts: Porter, Michael E. Competitive Strategy. (New York: Free Press, l998). Course Description Perspective and Themes This course is about the creation and maintenance of a long-term vision for the organization. This means that it is concerned with both the determination of strategic direction and the management of the strategic process. As such, it deals with the analytical, behavioral, and creative aspects of business simultaneously. The course is organized around six themes in strategic management: the role of the general manager, the components of business strategy, corporate strategy development, divisional-level strategy development, managing strategic change, and the development of general managers. Our perspective in this course is that of the leader whose responsibility is the long-term health of the entire firm or a major division. The key tasks involved in general management include the detection of and adaptation to environmental change; the procurement and allocation of resources; the integration of activities across subparts of the organizations; and, at the most senior levels, the determination of purpose and the setting of corporate direction. General managers, from our perspective, are managers who are in the position to make strategic decisions for the firm. Note that such...
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...AUTOMOTIVE INDUSTRY ANALYSIS Submitted by Team A Donald Bradley Morgan Bruns Adam Fleming Jay Ling Lauren Margolin Felipe Roman Presented to: Prof. Alan Flury December 5, 2005 ME 6753: Principles of Management for Engineers Executive Summary Chosen industry: This analysis focuses on the automotive industry, specifically, large-scale manufacturers of automobiles. The automotive industry is inherently interesting: it is massive, it is competitive, and it is expected to undergo major restructuring in the near future due to globalization and decreasing oil reserves. The analysis team members (we) feel qualified to perform this investigation due to our familiarity with the industry and our education—several of us have studied and worked on problems associated with automobile manufacturing and we are all mechanical engineering graduate students. Analysis Methodology: The report begins with a historical overview of the automotive industry. This is followed by an analysis of the industry’s structural characteristics using Porter’s 5 Forces Model as a framework, which provides an understanding of the automotive industry as a whole in its current state. Next, ten representative companies of varying sizes are analyzed and compared; the chosen companies and selection criteria follow. General Motors, Ford, and Toyota were chosen because they are the current market leaders. DaimlerChrysler, Nissan, Volkswagen, and Honda were chosen because of their status as stable international...
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...Breakout Strategy Meeting the Challenge of Double-Digit Growth Sydney Finkelstein Charles E. Harvey Thomas C. Lawton (McGraw-Hill, New York, 2006) Table of Contents Dedication Acknowledgements Table of Contents List of figures Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Breakout Strategy Getting on the Fast Track Staying out Front Breakout Dynamics Putting Vision to Work Being a Magnet Company Delivering the Promise Executing Breakout Breakout Leadership Appendix: case study companies Index List of Figures Figure 1.1 Figure 2.1 Figure 3.1 Figure 4.1 Figure 5.1 Figure 5.2 Figure 5.3 Figure 5.4 Figure 5.5 Figure 6.1 Figure 6.2 Figure 6.3 Figure 6.4 Figure 7.1 Figure 7.2 Figure 7.3 Figure 8.1 Figure 8.2 Figure 8.3 Figure 9.1 The Breakout Strategy Cycle Companies Getting on the Fast Track Companies Staying Out Front Types of Capital and the Capital Accumulation Process The Vision Wheel State Transition for Harley-Davidson: Organization State Transition for Harley-Davidson: Culture State Transition for Harley-Davidson: Relationships State Transition for Harley-Davidson: Markets The Six Pillars of a Value Proposition Leveraging up the Apple Value Proposition Reconciling Different Value Propositions Leveraging up Samsung Electronics’ Value Proposition Components of a Business Model Aligning the Business Model and Value Proposition Business Model Needs Analysis Delivering Strategy System Balance and Strategy Delivery at...
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...Understanding Cross-Cultural Management Second Edition Marie-Joëlle Browaeys & Roger Price Part One CULTURE AND MANAGEMENT Concept 1.1 Facets of culture Introduction to Part One Setting the scene This introductory chapter will give an outline of the research in the field of culture and management, which in turn serves as a framework for Part One. The concept of culture Many experts in their fields have wracked their brains to come up with what they consider to be their concept of ‘culture’. Those working in the field of cultural anthropology, alone, for example, have come up with a long list of definitions of the concept, based on their analysis of ethnological, social, psychological and linguistic data. The attempt made by Bodley (1994) to summarize these (Table I.1) gives an idea of all the facets of culture that need to be taken into account from an anthropological perspective. Although acknowledging the multiplicity of cultures, the authors of this book consider that the fundamental aspect of culture is that it is something all humans learn in one way or another. It is not something people inherit, but rather a code of attitudes, norms and values, a way of thinking that is learnt within a social environment. Family, the social environment, school, friends, work – all these help to form this code and determine how people see themselves and the world. The national culture and the particular region which people live in also help to shape a...
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