...The Renault and Nissan alliance Renault, the oldest automaker in France, had been nationalized by Charles de Gaulle in 1945. In the late 1990s, its financial performance had been buoyed by a strong European car market, several popular new models, and extensive cost-cutting. So it was time for Renault to find the partners again since merging with Swedish automaker Volvo had failed due to not match objective; internationalization. In 1997, the Asian financial crisis was like the opportunity for Renault. At that time, Nissan, a Japanese company with a famous bureaucratic management style, was a company on the verge of collapse. It faced with the loss of market share and poor returns. For worse, it was in debt and was under the pressure from the bank. These brought Renault and Nissan to ‘The Renault-Nissan Alliance’ in March 1999. The objectives of Renault are to improve the quality and internationalization. Nissan’s objectives are reduce the cost and the debt. In practice, they formed cross-company teams to study and realize synergies across the major functional areas of both firms since the alliance. They combined two nations together. CCTs had to prepare a report on their progress to the Alliance Coordination Bureau (CB) which functions were providing specialized technical advice, trying to resolve companywide policy issues that went beyond a single CCT, and trying to resolve specific conflicts within the CCTs in a given area. CB must make sure decisions are being taken on time...
Words: 987 - Pages: 4
...Renault-Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan, which together sell more than 10% cars worldwide.[1] The companies, which have been strategic partners since 1999, have nearly 350,000 employees and control six major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia and Lada.[2] The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen for total volume.[3] The strategic partnership between Renault and Nissan is not a merger or an acquisition. The two companies are joined together through a cross-shareholding agreement. The structure was unique in the auto industry during the 1990s consolidation trend and later served as a model for General Motors and PSA Peugeot Citroën,[4] PSA Peugeot Citroën and Mitsubishi, and Volkswagen and Suzuki,[5] though the later combination failed.[6] The Alliance itself has broadened its scope substantially, forming additional partnerships with automakers including Germany's Daimler, China's Dongfeng Motor, and Russia's AvtoVAZ. Corporate Structure and Strategy The Alliance is a strategic partnership based on the rationale that, due to substantial cross-shareholding investments, each company acts in the financial interest of the other—while maintaining individual brand identities and independent corporate cultures. Renault currently has a 44.4 percent stake in Nissan, and...
Words: 1383 - Pages: 6
...พันธมิตรแห่งความสำเร็จ Renault-Nissan ย้อนกลับไป 13 ปีที่แล้ว ก่อนที่ Renault และ Nissan ประกาศความร่วมมือเป็นพันธมิตรกัน ในปี 1999, Nissan ในขณะนั้น แม้จะเป็นผู้ผลิตรถยนต์ขนาดใหญ่เป็นอันดับที่ 2 ในประเทศญี่ปุ่น แต่ก็อยู่ช่วงที่ประสบภาวะตกต่ำอย่างหนัก โดยผลประกอบการขาดทุนมาตลอดตั้งแต่ปี 1992 (ยกเว้นปี 1996) ส่วนแบ่งตลาดในประเทศตกต่ำลงตลอด 26 ปีที่ผ่านมาและไม่มีทีท่าจะสิ้นสุด ภาระหนี้สินที่มีอยู่สูงถึง $20 billion ซึ่งมากกว่า ขนาดธุรกิจของ Nissan อยู่ถึง 4 เท่า ธนาคาที่เคยให้กู้เงินมาตลอด ก็หยุดที่จะปล่อยกู้ให้ พร้อมทั้งกดดันให้ Nissan พยายามหาคู่ธุรกิจเพื่อช่วยลดภาระหนี้สินลง และเพิ่มเงินสดให้ธุรกิจรอดพ้นจากภาวะล้มละลาย สาเหตุที่ทำให้ Nissan ตกต่ำเป็นผลมาจาก โครงสร้างการบริหารงาน ที่ล้าสมัยคล้ายระบบราชการ (Bureaucratic company) มีลำดับขั้นและการตัดสินใจที่ซับซ้อน และรูปแบบการบริหารก็ไม่คำนึงถึงประสิทธิภาพการผลิต มีระบบ Supply Chain ซับซ้อนจากการที่มี ผู้ผลิตชิ้นส่วน (Supplier) มากกว่า 3,000 ราย สำหรับ 25 platforms มีรถเพียง 4 รุ่นเท่านั้นที่กำไรได้ จากทั้งหมด 43 รุ่น ในปี 1992 Yukata Kume, CEO มีความพยายามที่จะแก้ปัญหา โดยออกมาตรการ ‘Plant Closing’ เพื่อที่จะลดความซับซ้อนของระบบ supply chain และเพื่อลดต้นทุนโดยรวม แต่ภาวะตกต่ำก็ยังคงดำเนินต่อไป ในปี 1993, CEO คนใหม่ Yoshifumi Tsuji ยังคงดำเนินการด้วยวิธีคล้ายๆเดิม และในปี 1996 ก็มีการเปลี่ยนตัว CEO อีกครั้งเป็น Yoshikazu Hanawa ซึ่งอยู่ในช่วงที่เงินเยนอ่อนตัวจึงช่วยให้บริษัทสามารถส่งออกรถได้มากขึ้น แต่ก็เป็นเพียงช้วงสั้นๆ จนกระทั่งถึงปี 1998 ที่ภาวะที่เลวร้ายยังไม่สามารถแก้ไขได้ Hanawa จึงเริ่มที่จะมองหาคู่ธุรกิจ...
Words: 518 - Pages: 3
...Renault Nissan Alliance Cotina Mills BSA 555 MBA 462 October 21, 2013 Dr. Peter Natale CERTIFICATION OF AUTHORSHIP: By my signature, and to prevent HONOR CODE violations, I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. Through the use of APA format, I have cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: __________________________________ Cotina Mills Table of Contents Introduction ……………...………………………..………………………………………….. 3 Vision……………………………………………..…......……………………………………..4 Mission…………………………………………………………………………………………4 Issue…………….………….………………..………………………………………………….5 Strategy…..…………………………………..…………………………………………………7 Current Operations……………………………………………………………………………...9 Introduction Renault–Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan. Together they sell more than one in 10 cars worldwide. The companies have been strategic partners since 1999 and have nearly 350,000 employees. They control seven major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia, Datsun and Lada. The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen. As of July...
Words: 2697 - Pages: 11
...The International Journal of Organizational Analysis 1997, Vol. 5, No. 2 (April), pp. 156-179 GAINING A PERSPECTIVE ON INDIAN VALUE ORIENTATIONS: IMPLICATIONS FOR EXPATRIATE MANAGERS Suresh Gopalan Joan B. Rivera West Texas A&M University India's emergence in the international business arena presents challenges to Western-trained expatriate managers assigned there. These expatriates are familiar with management theories and practices based on value orientations very different from those in India. Kluckhohn and Strodtbeck's Value Orientations Framework is used to provide an overview of the different types of cultural values an expatriate manager will confront in Indian society. The impact of Indian values on various management practices, including team composition, leadership, motivation, and human resource management functions is also discussed It is hoped that this examination of the dominant value orientations of Indian employees will facilitate the successful transfer of Western expatriates to India. Over the last two decades, the Pacific Rim countries of Japan, South Korea, Taiwan, China, and Southeast Asian countries of Thailand, Malaysia, Hong Kong and Singapore have achieved tremendous economic success (Adler, 1994; Foster, 1995). A relative newcomer to this group of countries is India, which is emerging as an industrial power to be reckoned with. As a consequence of the free market reforms and economic liberalization programs pursued by the Narasimha Rao administration...
Words: 10568 - Pages: 43
...Nissan case notes Taking on the challenge - Renaults cash injection 5.4 billion us - Renault would get access to North America and Asia - Nissan would get access to Europe and Latin America - Renault would get access to Nissans’ Engineering and Manufacturing expertise - Nissan would get access to Renaults’ Marketing and Design flair - Nissan had posted global losses in six of the previous seven years. - Nissans 4 out of 43 models were profitable - Daimler insiders afraid of Japanese resistance to change - Renaults credibility - referring to the Volvo merger, fueled by cultural problems. - Renault 44% state owned. - An analyst thought that the DaimlerChrysler cultural problems were nothing compared to if RenaultNissan. - Both Renault and Nissan: Nationalistic and Patriotic - News of Renault-Nissan negotiations resulted in a drop in Renault shares. - Nissans’ problems were evident: • Too many plants (some running at 50% capacity) • 25 expensive chassis (compared to volkswagens 4) • Too many suppliers (3000, compared to 300 at ford) • Too many dealers in Japan. • Japanese Culture: - Lifetime employment - Close ties with suppliers - Renaults STAKE: • The power of VETO, meaning that people were afraid of making changes due to the stakes. Building the team - Cross-cultural challenge (mainly French and Japanese) 1 - Ghosn had one condition: He would have full control, and he did not have to seek approval from France. - And he got to handpick 20 or so executives who would accompany...
Words: 2022 - Pages: 9
...Individual Analysis Paper Chairman and CEO of Nissan and Renault – Carlos Ghosn Chao Ru chao.ru@laverne.edu University of La Verne Graduate School of Business BUS 586 – CRN 1354: Leadership for the Future Professor John C. Sivie June 28, 2012 I. Table of Contents I. Table of Contents 2 II. Background and Award of Carlos Ghosn 3 III. Important Contributes for Nissan from Ghosn 4 IV. Doing the Right Things of Carlos Ghosn 5 V. Learn from Carlos Ghosn 7 VI. References 9 Chairman and CEO of Nissan and Renault – Carlos Ghosn II. Background and Awards of Carlos Ghosn Background Information of Carlos Ghosn: Carlos Ghosn is the president and CEO of Nissan Motor Co. Ltd., a global automotive company with 180,000 employees and $83 billion in revenue. He joined to Nissan in June 1999 as its chief operating officer. And then, he became Nissan’s president in June 2000, and also became the chief executive in June 2001. Carlos Ghson is also the president and CEO of Paris-based Renault, SA which was named in May 2005. Both companies together produce more than one in 10 cars sold worldwide. He is also Chairman and CEO of the Renault-Nissan Alliance, the strategic partnership overseeing the two companies through a unique cross-shareholding agreement (Wikipedia, 2012). Currently, he is not only the president and CEO of Nissan and Renault. He also serves on the board of director at Alcoa Automotive, Inc and Closure Systems International, Inc. He serves these...
Words: 2957 - Pages: 12
...Nissan is one of the world's leading automakers. Jidosha-Seizo Kabushiki-Kaisha("Automobile Manufacturing Co., Ltd." in English) was established in 1933, taking over all the operations for manufacturing Datsun from the automobile division of Tobata Casting Co. LTD, and its company name was changed to Nissan Motor Co., Ltd. in 1934. There were numerous good and bad times the company has faced but it became consistently with the progression of time and now it has turned into one of the main company of making automobiles in the world. The following is a SWOT analysis based on the case study provided of Nissan Motor Co. LTD. Nissan has a number of strengths, one of the most important strength is that it operates globally. After the second world war, Nissan developed steadily, growing its operation internationally. It's got to be particularly fruitful in North America with a lineup of littler gas productive autos and little pickup trucks as well as sports coupe cars. Nissan was extremely remarkable for its advanced engineering and technology innovation, plant productivity, and quality administration. It is because the combination of these strengths the company has held its position over the world. The Nissan company has many strengths, on the other hand it also has weaknesses. One of these is that wrong estimation of customers wants. Customers like stylish, innovative cars, but Nissan thought they preferred good quality cars. As opposed to reinvesting in new product...
Words: 964 - Pages: 4
...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...
Words: 1428 - Pages: 6
...Why was the former Nissan Management unsuccessful in turning the company around? Why could they not prevent the slide of Nissan’s ranking market share, etc.? The former managers of Nissan had been struggling to turn Nissan into a profitable company for eight years. Nissans major problem were the extremely low margins due to its lack of brand power and the very unprofitable cost structure (especially regarding purchasing costs). Nissan’s organizational and financial structures where very traditional and typical Japanese (e. g. the cross-shareholdings within the kereitsu structures). All previous Nissan CEO’s where Japanese , probably each of them with a long tenure and history in the company. Each CEO was surely skilled and experienced in leading an international company. But it can be speculated that it is much harder for a Japanese CEO to make fundamental changes in Nissan's long-standing operating practices and behavioral norms of Japanese society that are deeply integrated in the corporate structure. The former managers were simply stuck in their Japanese organizational structures and no one wanted to break with their own tradition. In addition, the company advisors, a group of senior managers without line responsibilities, made sure that Japanese business practices were implemented and pursued. Some examples of these country specific, traditional structures are the kereitsu partnerships and the predominant seniority rule: Nissan was consistently strapped for cash and...
Words: 2177 - Pages: 9
...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...
Words: 2174 - Pages: 9
...Article Discussion Title of Article: Ghosn Creating Value across Cultures ___________________________________________________________________ ___ 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,...
Words: 611 - Pages: 3
...Same wine in Different Bottles Cross-badging,or selling the same car with cosmetic changes under different brand names, has not worked so far in India. This case study looks at In January 2012, Japanese auto major Nissan's Indian subsidiary Nissan Motor India sold 1,855 units of its compact car Micra. The same month French carmaker Renault launched its compact car Pulse in India. In February this year, Micra sales were down to 608 units, while Pulse sold 420 units. Turn to sedans. In August 2012, Nissan's sedan Sunny sold 2,757 units. In September that year Renault launched its sedan, Scala. By February this year Sunny sales had fallen to 1,191 units, while Scala sold 620 units. And guess what? Nissan and Renault are not even competitors. They have been strategic partners since 1999. Micra, Pulse, Sunny and Scala are all products of the Nissan-Renault alliance. Or take German car manufacturer Volkswagen's sedan Vento. It sold 3,474 units in India in October 2011. A month later, carmaker Skoda launched its sedan Rapid. Vento's sales have since fallen to 1,909 by February this year. Once again, Skoda is part of the Volkswagen group - Vento and Rapid are from the same stable. In fact, Micra and Pulse are essentially the same cars, with some cosmetic differences, made in the same factories, but sold under different names. So too are Sunny and Scala, or Vento and Rapid. Welcome to the strategy of crossbadging , or selling the same car under different brand names...
Words: 1069 - Pages: 5
...Ghosn Bets Big on Low-Cost Strategy African Plant Underscores Race to Head Off Chinese, Indian Car Makers TANGIERS, Morocco -- The plan by French automotive group Renault SA and Japanese partner Nissan Motor Co. NSANY -0.75% to build a joint assembly plant in this North African port city highlights the accelerating race among global car makers to redefine the meaning of "low cost" for the auto industry, not just for emerging markets but for the developed world as well. With the sort of flourish that has become his trademark, Renault-Nissan Chief Executive Carlos Ghosn flew to Tangiers Saturday, where, in a carpeted tent overlooking the Mediterranean Sea, he signed the draft agreement with Morocco Prime Minister Driss Jetto for the future Tangiers plant. If Renault-Nissan and the Moroccan government can agree on certain key details, the two companies will invest as much as €1 billion ($1.36 billion) to erect one of the largest auto-production facilities on the African continent, designed to feed low-cost cars and trucks to showrooms in Europe, Asia and North America. The plant's initial capacity of 200,000 vehicles per year will increase gradually to 400,000 a year, including variants of Renault's low-cost Logan car line and a new range of $10,000 trucks under development at Nissan, the companies said. The plant is slated to open during the second half of 2010. Mr. Ghosn said moving into the no-frills segment represents a tough challenge. He set a high standard for...
Words: 1519 - Pages: 7
...“Renault-Nissan Alliance” Case Report "I pledge on my honor that I have not given or received any unauthorized assistance on this assignment/ examination." 1.What are the strategic reasons for the Renault-Nissan alliance? Strategic alliances are voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services (Rothaermal 244). The most common reasons firms enter into strategic alliances are – * To strengthen competitive position * To enter new markets * To hedge against uncertainty * To access critical complementary assets * To learn new capabilities (Rothaermal 245). The Renault-Nissan alliance was not an exception to the aforementioned reasons. In the late 1990s, Nissan was falling apart, with consistent drop in its auto sales and poor returns. It had been losing market share for 27 years in the Japanese market and by 1999 it had about $20 billion in debts. Analysts attributed Nissan’s bland styling, infrequent model changes, high manufacturing and parts costs, and bureaucratic decision-making to its poor performance. At the time when Nissan was looking for somebody to bail them out of their financials crisis and put the on the profits, Renault came to their rescue. Renault was a maker of small- to medium-size cars with consistent, but slim profit margins. It sold 85% of its automobiles in Western Europe with third of them in France. Renault had...
Words: 2516 - Pages: 11
