Introduction to Ghosn-Nissan Case
After 10 years of decline, Nissan was in a desperate financial situation, 10% only from its models were profitable, its debt getting higher and higher every year, foreign investors or other carmakers walked away from talks to it, they refused to give a hand or make any kind of relationship with it, they all can see the problem of Nissan, it was the huge overheads, compared with other famous carmakers, Nissan has too many plants working with minimum capacity, too many car platforms, too many suppliers, too many dealers, at first glance it look an easy problem from western point of view but actually in Japan its protected by Keiretsu; it is a set of companies with interlocking business relationships and shareholdings, …show more content…
This alliance would not have been possible without the approval of Carlos Ghosn, according to the Renault’s former chairman Louis Schweitzer.
AC1.1 The link between strategic management and leadership
Strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. As this definition implies, strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and computer information systems to achieve organizational success… “Fred R. David”
“Thompson and Strickland” identify the five tasks of strategic management as:
1. Formulating a strategic vision of where the organization needs to be headed-providing a sense of purpose, a long-term direction, and a clear mission as to what is to be accomplished.
2. Converting the strategic vision and mission into measurable objectives and performance targets.
3. Developing and testing strategies designed to achieve the desired results.
4. Implementing and executing the chosen strategy efficiently and …show more content…
Ghosn declares their mission: “they are going to Japan to help fixing Nissan”.
His vision was: “Bring Nissan back to profitability at the earliest date possible and revive Nissan as a highly attractive company”.
Ghosn also set the values that will guide him and his team through the rescue journey:
• Transparency: by allowing the press to attend the annual shareholder meeting.
• Respect different cultures: gathered his team on a crash course to be familiarize with Japanese culture and know what they can do and what they can’t.
• Loyalty: he said “ there is a place for every single person in this company who wants to give
After 10 years of decline, Nissan was in a desperate financial situation, 10% only from its models were profitable, its debt getting higher and higher every year, foreign investors or other carmakers walked away from talks to it, they refused to give a hand or make any kind of relationship with it, they all can see the problem of Nissan, it was the huge overheads, compared with other famous carmakers, Nissan has too many plants working with minimum capacity, too many car platforms, too many suppliers, too many dealers, at first glance it look an easy problem from western point of view but actually in Japan its protected by Keiretsu; it is a set of companies with interlocking business relationships and shareholdings, …show more content…
This alliance would not have been possible without the approval of Carlos Ghosn, according to the Renault’s former chairman Louis Schweitzer.
AC1.1 The link between strategic management and leadership
Strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. As this definition implies, strategic management focuses on integrating management, marketing, finance/accounting, production/operations, research and development, and computer information systems to achieve organizational success… “Fred R. David”
“Thompson and Strickland” identify the five tasks of strategic management as:
1. Formulating a strategic vision of where the organization needs to be headed-providing a sense of purpose, a long-term direction, and a clear mission as to what is to be accomplished.
2. Converting the strategic vision and mission into measurable objectives and performance targets.
3. Developing and testing strategies designed to achieve the desired results.
4. Implementing and executing the chosen strategy efficiently and …show more content…
Ghosn declares their mission: “they are going to Japan to help fixing Nissan”.
His vision was: “Bring Nissan back to profitability at the earliest date possible and revive Nissan as a highly attractive company”.
Ghosn also set the values that will guide him and his team through the rescue journey:
• Transparency: by allowing the press to attend the annual shareholder meeting.
• Respect different cultures: gathered his team on a crash course to be familiarize with Japanese culture and know what they can do and what they can’t.
• Loyalty: he said “ there is a place for every single person in this company who wants to give