Article Discussion
Title of Article: Ghosn Creating Value across Cultures

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1. What is the author’s/authors’ purpose in writing this article?

The author, presenting the alliance between Renault and Nissan, wants to make perfectly clear that partnering globally is an opportunity. An equal relationship with two winners. He explains the benefits which are produced by the relationship between the two at a corporate level, and the positive effects at the workforce as well. Learning through differences is essential is the send message. Moreover, the author is warning us of the hidden risks. Losing the corporate identity will have as consequence a lack employees’ motivation. Lastly, the author states that motivation is the engine of performance.

2.

Name and discuss three major points on which the author(s) focus in their discussion of their primary purpose.

Learning through differences: The author describes the different skills of the French, the Japanese and the Americans. The combination of these skills can disentangle difficult situations more easily and multiplies the possibilities of having Eureka Moments. I find this cross cultural consociation remarkable, people from the two edges of the world, coming from different cultures, having different expertise and knowledge, working together, creating a harmonious relationship, allowing to achieve things which differently would need much more time, money and research. I see this as defining an important new direction and 100 per cent efficient.

Motivation, the engine of performance: “For any company, the motivation of its employees is its greatest asset and only power...” says the author. The importance of motivation is enormous. High motivation equals higher productivity. Furthermore, motivated employees always look for better ways to do a job, retain a high level of innovation while producing higher quality work at a higher level of efficiency.

Partnering globally is an opportunity: The fact that Renault re-entered the Mexican market using Nissan’s local plant and Nissan entered at the Brazilian market using the plant and the dealers- network of Renault proves that we are confronting a win- win situation. Both companies, with very small investments, without the need of creating new plants and networks entered new markets and generate profit. With a very smart way these companies broke the ‘‘you have to give in order to get’’ law.

3.

To which conclusion or conclusions do the author(s) come?

The author comes to the conclusion that this strategic Franco-Japanese partnership is not only working, it also is a global business model. He states that this alliance creates substantial value in a global aspect.

4.

Do you agree or disagree with the author’s or authors’ conclusion or conclusions?

Since the begging of this relationship, market-share has increased radically for both companies. Today their brands are stronger than ever and their products are magnetic for the costumers. Numbers never lie! Nissan’s share value has been tripled within 3 years and Renault’s has been increased 25%. So I agree that this strategy is working. How could I not? Nissan in a very short period turned around from near-bankruptcy and became a healthy automobile manufacturer. Renault became even more productive. Both companies with the help of each other entered new markets, reaching more than 10% of global market share. It totally is a global business model. Otherwise other major players of the automobile industry would had not adapt it. It served as a model for General Motors and PSA Peugeot Citroën, PSA Peugeot Citroën and Mitsubishi, and Volkswagen and Suzuki. With the exception of the Volkswagen and Suzuki alliance, (this combination failed) this model proved that is drastic and successful and I believe that is responsible for the current vitality of Nissan Motor Company.