...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...
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...(Nissan automobile manufacturing unit exists in Chennai, India. Following points are written by assuming that Nissan Motors is currently not operating in India.) 1. Background: Nissan Motor Co. Ltd. is a Japanese car manufacturing company established in 1933, manufacturing vehicles in 20 countries and providing services in more than 160 countries. {The present workforce consists of 23,605 workers globally.} 2. Automobile Manufacturing industries in India: In order to effectively establish the Nissan Motors industry we need to do a thorough market study of India Automobile Industry. India is presently, the sixth largest passenger vehicle producing country in the World. We need to identify whether: a. Is it feasible to establish the Nissan Industry in India considering all factors like: current global economy, political scenarios, etc.? b. Who are the major competitors in India? Which other manufacturing industries have firmly established them in India? We also need to study their respective current statistics. c. What quality and price range is required? i. What is the target consumer base for which Nissan is aiming? ii. Once identified, how many units per annum will be manufactured? 3. Obstacles: d. Identifying the operations of Nissan in India: iii. Whether to set up a plant in India iv. Import assembled vehicles in India e. Political permissions/issues : v. We need to do a...
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...1. To enlist support from the employees, I think a shared vision and a clear strategy is key success factors. One of the fundamental problems when Carlos Ghosn arrived at Nissan was the lack of vision from management. By a restructuring in the organization and the grouping of Cross Functional Teams, I believe that the explaining and communication sharing, hereunder common vision, across the entire company was improved. Next step was the formulation of the new strategy. When formulating a strategy it is very important to choose a strategy that is compatible with the organizational culture. It is my opinion that Carlos Ghosn succeeds with the adaption of strategy into organizational structure, by letting the employees in the CFT’s create the strategy themselves, or at least be a big part of the strategy creation. In order to achieve an effective strategy execution you need to adapt the culture to the selected strategy. By reaching to conclusions of plant closures and employee reductions, I think that the CFT’s managed to adapt the culture to the selected strategy. Overall Carlos Ghosn experienced a willingness of the Nissan employees at all levels to change their mindset and embrace new ideas. In my opinion Carlos succeeded in enlisting different parts of the organization, because he created and communicated a shared vision and included many of the employees in the new strategy and the underlying process. The employees in the Cross Functional Teams and sub-teams...
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...| Nissan Motor Company | Revival Plan Review | | ) | | In 1987 Japan’s economic expansion was driven by the inflation of stock prices and real estate values. As consumer confidence increased, so did the population’s appetite for luxury goods. In response to this national trend in consumer spending, Nissan Motor Company (Nissan) launched an aggressive expansion plan to meet the demands of the marketplace. The organization invested heavily in new manufacturing facilities and upgraded their distribution network. Nissan’s debt grew from $11.8B to $32.7B. Japan’s bubble economy collapsed in the early 1990s and Nissan’s profits deteriorated in parallel (Wiki – 2011). In response to a dire operating situation, Nissan formed a partnership with Renault in 1999. While the injection of capital was much needed by the Japanese car manufacturer, the most important asset exchanged in the strategic alliance turned out to be Carlos Ghosn, the Renault Executive Vice President appointed to turn around Nissan. The following analysis focuses on Carlos Ghosn’s leadership and the Nissan Revival Plan (NRP). The NRP saved Nissan and its roots seem to have originated from the Lean Action Plan framework. Get Started (First Six Months) Find a change agent (Score - 5 of 5) The Lean Thinking textbook places a considerable amount of emphasis on starting the Lean Leap. While it may seem basic in nature, kicking off the process is not easy, and it requires an organization to have an executive...
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...A Concise Research on Siemens AG and Nissan Contents I. Introduction………….…………………………………………………...…………….….1 II. Finding…………………………………....……………………………...…………...…...2 2.1 A concise background of Siemens AG and Nissan………………..…2 2.2 The high performance culture of Siemens….…………….….…………….........2 2.3 Comparison of organisational structure and culture…………….………………...…..2 2.4 Effectiveness of different leadership styles………………………………………......3 2.5 Approaches to management among Siemens AG and Nissan………………………..4 2.6 Factors influence individual behaviour at work………………………………………5 2.7 Different motivational theories………………………………………………………5 2.8 Nature of groups and group behaviour of Siemens…………………………………..6 2.9 Factors to the development of effective teamwork at Siemens………………………6 III. Conclusion…...……………………….………………………………………..………8 3.1 Structure and culture affect the performance of Siemens…………………………..8 3.2 Explanation of the leadership of Siemens AG……………………………………….8 3.3 Organisational theory influences the practice of management……………………8 3.4 Different leadership styles motivate organisations in periods of change……………9 3.5 The usefulness of motivational theories for managers………………….…………10 3.6 Impact of technology on team functioning within Siemens……………………10 Reference………………………………………………..………………….……….……….12 I. Introduction All my research is about two huge companies: Nissan Motor Company and Siemens AG. One topic has already been set...
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...Quality Practices at Nissan Motor Company Management 532 Table of Contents TITLE PAGE………………………………………………………………………..1 TABLE OF CONTENTS…………………………………………………………..2 ABSTRACT………………………………………………………………………….3 CHAPTER I – INTRODUCTION…………………………………………………4 CHAPTER II – PLAN DEVELOPMENT………………………………………..5 CHAPTER III – ANALYSIS……………………………………………………….7 CHAPTER IV – OUTLINING FINDINGS………………………………………..8 CHAPTER V – SUMMARY AND RECOMMENDATIONS…………………..9 REFERENCES…………………………………………………………………….11 Abstract Nissan Motor Company, Limited, is a global corporation with three automotive businesses (Nissan, Datsun and Infiniti) and a marine business (Nissan Marine). Nissan Motor Company and its sub-companies practice quality management using a Field Quality Center concept with 7 seven centers located around the world to serve customers. This group project discusses Nissan Motors Corporation’s history, recent quality downturn and their attempt to “expedite improvements that exceed customer expectations” to regain their lost reputation for quality. We will examine what and how quality practices have been developed and implemented by the Nissan Motor Company in response to these recent trends. In addition, we will determine if adopted quality practices have been successful in fostering a...
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...Research on Nissan Motors Philippines, Inc. Gallego, Reyjen Ibasco, Robert Marcelo, Mary Christine Tolentino, Keziah Ty, Rey Jumar BSBA 4C Nissan Motors Philippines, Inc. Nissan Motors Philippines, Inc. (NMPI) is an affiliate of Nissan Motor Limited of Japan. It was established in April 1982. Shortly after its incorporation, it acquired the Volkswagen facility. As of the moment, it assembles passenger vehicles and serves its customers with around 200 employees. Moreover, there are seventeen authorized dealers of Nissan in the whole country. Nissan Philippines Research The ABS used in Mercedes-Benz, BMW, and Volvo cars is made in the Philippines. Ford, Toyota, Mitsubishi, and Nissan are the most prominent automakers that make cars in the country. A 2003 Canadian market research report predicted that further more investments in this sector were expected to grow in the next following years. Toyota has been the most used vehicle in the country. (http://www.termpaperwarehouse.com/essay-on/External-Analysis-Of-The-Philippines/38204) Automotive industry in the Philippines New Motor Vehicle Development Programs (MVDPs) However, the economic and political crisis in 1983 had a devastating impact on the expanding industry. Because of the declining market for Philippine exports and the resulting capital flight, the industry was left with only two international participants (PAMCOR-Mitsubishi Nissan) and in 1984. Furthermore, only 40 local parts manufacturers...
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...First, target costing originally starts with mangers estimate the cost that customers are willing to pay and how competitor will price the same products or services. (Cost Accounting. Page 545). In the Nissan case, customers are very knowledgeable because the customer demand requires more variations and model types of automobiles. This is a favorable market for Nissan. Nissan managers can set an expected profit margin because the customers has a very high demand of automobiles and they know the automobiles market very well. Second, target costing for a product includes direct manufacturing costs direct materials, direct manufacturing labor, and direct machining costs. (Cost Accounting. Page 519). Analyzing each cost element and eliminate the unnecessary value-added is one of the cost management goals in the target costing system. In order to have a competitive price, Nissan managers have to eliminate some value-added costs which are unnecessary and not so helpful for the automobile manufacturing and selling process. Target costing can shorten the product lives and save Nissan company time to do marketing and financial management. A good example in the Nissan case it that they eliminated the "five-door variant" because it is unnecessary. Last, target costing system helps Nissan build a cross-functional team. The design department, manufacturing department, sales department and management department work together to analyze the cost drivers and eliminate the unnecessary steps...
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...Current performance and strategy Overview of current strategy, structure and performance Coral Divers Resort, located in a small but quiet island, has been a safe and knowledgeable scuba diving resort with solid reputation over the past ten years. Its current strategy is to provide not only a wonderful place for diving, but an ideal beachfront location. For ten years’ operations, Coral Divers’ annual revenues are as high as $554,000. However, situations get worse reflected directly by continually declining revenues. Critical issues, key decisions, opportunities and challenges The biggest issue for Coral Divers is the lack of specialized features to distinguish itself from the competition. From Greywell’s perspective, Coral Divers has not provided any different services in aspect of diving or resort. Accordingly, Greywell has proposed three main choices to improve the current dilemma. As families are a growing market segment, engaging in family diving vacations would be a feasible solution, with the aid of Rascals in Parades; a travel company specialized in family diving vacations. Another potential strategy is to develop adventure diving. Although associated with threats that other resorts in the Bahamas also offer adventure-oriented dives, Coral Divers Resort enjoys natural underwater attractions such as Shark Wall and Shark Buoy, which are popular and close to Coral Divers. The final option is to leave New Province and relocate elsewhere. But he is still wondering whether...
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...Ejemplo de empresa japonesa Toyota Es un fabricante de automóviles japonés con sede en Toyota (Aichi), Japón. Toyota fue el mayor fabricante de automóviles en 2012 (por producción) por delante del Grupo Volkswagen y General Motors,2 y tuvo ventas mundiales aproximadas de 9,98 millones de vehículos en 2013.3 Es una de las "tres grandes" empresas automovilísticas japonesas desafiando a los fabricantes de automóviles estadounidenses que también incluye Nissan Motors y Honda Motor con gran éxito. Produce automóviles, camiones, autobuses y robots (no para la venta al público); es la quinta empresa más grande del mundo. La sede de la empresa se encuentra en Toyota, Aichi, yBunkyō, Tokio (Japón) con fábricas y oficinas alrededor de todo el mundo. La empresa fue fundada en 1933 por Kiichiro Toyoda. Proporciona servicios financieros a través de su subsidiaria Toyota Financial Services y participa en otras líneas de negocio. Fabrica vehículos vendidos en los Estados Unidos bajo las marcas de Toyota, Scion y Lexus. Toyota también posee grandes inversiones en Daihatsu e Hino, y un 8,7% de Fuji Heavy Industries, que fabrica vehículos Subaru. Toyota tiene una amplia cuota de mercado en los Estados Unidos, Europa y África y es el líder del mercado en Australia. También tiene cuotas de mercado significativas en varios países del Sureste Asiático de alto crecimiento. Conclusión En la cultura japonesa en los negocios, se considera al trabajo como un destino compartido. Todos los empleados...
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...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...
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...two products Life Cycle Assessment of Nissan Cars *ASR: Automobile Shredder Residue. ASR is what remains after material recycling is done to recover as much ferrous and non-ferrous metallic material as possible from the automobile shredder residue. Nissan conducted LCAs since the early 1990s, and made quantitative comparisons to understand the environmental impact of materials that were changed in the following parts. * Radiators * Air conditioners * Front-end modules * Back doors Based on the results of the LCA Project carried out by the LCA Committee of the Japan Automobile Manufacturers Association from October 1997 to March 2001, Nissan reviewed in-house LCA methods and calculated results for major models. * May 2005: Inventory analysis was certified as being in accordance with the LCA method stipulated in JIS Q14040 by the Japan Environmental Management Association for Industry. Models that have undergone LCA: Skyline (made in Japan), Dualis (made in England) To develop more environmentally-friendly vehicles, LCAs are also conducted for new technologies that are introduced. These results are used to achieve the goals set out in the Nissan Green Program 2010* and the Nissan QCT-C* management policy, which clarify our environmental efforts. * *Nissan Green Program 2010: An environmental program that establishes activity plans and specific numerical targets for Nissan to achieve by 2010. * *QCT-C: Quality...
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...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...
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...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...
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...Renault/Nissan: The Making of a Global Alliance Prepared By: Jason Park & Isaac Hattem Why is Renault seeking a strategic partner? What are Renault’s strengths and weaknesses in seeking a partner? The most successful strategic alliances are between companies with complementary strengths and weaknesses. Renault has been building cars since it was started under the name Socié Renault Frè té res. Louis Renault, his brothers Marcel and Fernand, and his friends Thomas Evert and Julian Wyer founded it in 1899. Since the beginning they have been an industry leader in small car designs, combining functionality with style. In 1998 Renault was the world‟s ninth-largest car manufacturer with 4.3% of the market. During the 90‟s globalization was occurring in all industries including the automobile industry. Major manufactures were seeking strategic alliances and mergers as ways to increase market share, reduce costs, and improve productivity. Renault has been an established French automaker since it started producing cars in 1897. Like many other companies Renault has been looking to expand into the Asia for its large potential market. They felt that the best way to do this was through a strategic alliance. Renault has been looking for another automobile manufacturer to peruse a possible alliance with since the early 90‟s. From February 1990 to December 1993 Renault attempted a merger with Swedish car manufacturer, Volvo. It was expected that the merger would go through, than in December...
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