Enriching People’s Lives

8/14/2019 Enriching Peoples Lives

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ENRICHING PEOPLES LIVES


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PRESENTATION ON

NISSAN MOTOR CO. 2002

PRESENTED BY-

GAGAN

MAMTA

SHOAIB

POOJA

PRAVEEN

NAMRATA


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ROADMAP

Change in management.

Employee involvement.

Innovation.

Internal communication.

Investment.

Leadership.

Lifetime time employment.

Motivation

Organisational crises.

Organisational culture.

Well workforceManagement.

Employee relationship.

Cost Cutting.

The case is about an Automobile sector. This case deals with how Ghosn turned thecompany around., which focused on these factors :


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ORGANISATIONAL

DETAILS Nissan Founded in 1933.

One of the first Japanese companies to manufacture automobiles.

In March 1999 Renault CEO Louis Schweitzer recruited Carlos Ghosn.

Well experienced leader ghosn.

Nissan turned around in 1987 as demand for cars, luxury cars was suddenlyincreased.

Management Launched expansion paln to achieve 1.5 million sales unit inJapan.

Money was readily available as Japans leading banks were willing to supplythe needed funds.


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ISSUES IN NISSAN

Ghosn observed it was always someones else fault.

Managers lack of - well defined responsibility andaccountability.

In shareholder meeting following decision were taken-

No. of Director were reduced to 9 from 43.

Ghosn became new COO of Nissan.

18 senior executive resigned


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ISSUES IN THE CASE

Culture of blame.

Debts

In 1999 70% of Nissan dealers in Japan were reportedly came across huge

losses.

Highly bureaucratic organization and a divisive culture beset by company

politics.

Nissans financial condition deteriorated.


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ISSUES IN CASE CONTD

Closed major plants.

5,000 employees through attrition.

Nissan had more than $1.3 billion in debt. Which was literally a do-or-die

situation.

Focus

High Cost.


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CROSS FUNCTIONAL TEAMS

D1 D2 D3 D4 D5

D5

D4

D3D1

D2


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ANALYSIS OF ISSUES

Optimize R&D capacity

Cross functional teams

Moved towards global integrated organization.

Launched Nissan 3-3-3 program

Cutting purchasing Cost.(targeted 20% in 3 yrs)

Focus on core technologies


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ANALYSIS OF ISSUES CONTD

Close coordination with the groups.

Started burning entrepreneurial spirit among the dealers.

Unveiled the Nissan Revival Plan (NRP) on October 18.

More focus On Customers.

Direct Communication with Workers unions stake holders.


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ANALYSIS OF ISSUES CONTD

Introduced new models.

Nissans new global approach-

which reflected banking relationships.

Promotion and pay were linked

to performance.

Communicated the goals directly

in a personal letter.

New Product Development-


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CHALLENGES AHEAD

Nissan purchasing cost is still higher thanRenault.

Brand did not command market as Toyota andHonda.

Customer satisfaction did not match the rivals.

Intense competition in United states

The greatest challenge is to achieve the target setby Mr. Ghosn


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IMPACTS AND LEARNINGS

Positive approach towards goal.

Being a leader first rather than from specific cultural background.

Being punctual in timing.

Clarity of vision and ability to communicate throughout the organization.

Being straightforward, direct, and simple.

opportunity to communicate vision.

Directly interacting with all levels of organization.(lower-Upper)


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LEADERSHIP TRAITS

Consistent

Clarity of Vision

Data Driven

Demanding but Respectful

Listening but Deciding

Set example by his own behavior

Insists on Time factor

Communicate clearly


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REFRENCES

http://www.nissan-global.com/EN/index.ht

http://www.nissan-global.com/EN/OURBRA

http://en.wikipedia.org/wiki/Nissan_Motors

http://www.nissancidef.cl/sp/web/homepag
http://www.nissan-global.com/EN/index.htmlhttp://www.nissan-global.com/EN/OURBRANDS/http://en.wikipedia.org/wiki/Nissan_Motorshttp://www.nissancidef.cl/sp/web/homepage/index.htmhttp://www.nissancidef.cl/sp/web/homepage/index.htmhttp://en.wikipedia.org/wiki/Nissan_Motorshttp://www.nissan-global.com/EN/OURBRANDS/http://www.nissan-global.com/EN/index.html

Enriching People’s Lives

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