1, January 2002. due to Nissan’s aging product line rather than to Moriyama’s performance. Because Renault has strong position in Europe, France and in Latin America, especially in Brazil, but it lacks a high market in North America and Asians markets. Sales have grown from approximately $60,000 to $1,784,080 with a profit of $17,610. As a result, both Moody’s and Standard & Poor’s announced in February 1999, that if Nissan could not get any financial support from another automobile company, then each of them would lower Nissan’s credit rating to “junk” status from “investment grade”. As it turned out, Nissan regained billions in tied up capital to use for debt servicing and new product development without losing any significant pricing advantages. This was a large departure from the traditional Japanese compensation system, in which managers usually received no stock options or bonuses. Nature if industry in which organization operates. Even they have no idea about this. In this situation ghosn took the charge of Nissan . Nissan was very well known for its advanced engineering and technology, plant productivity, and quality management. It also didn’t have a HR Department that’s why it lacked in perfect strategy and management. No shared vision or common long term plan . Unique selling proposition of the company. Lack of market share and distribution channels Nissan lacked market share and distribution channels in Latin America. To define criteria for quality evaluation from the customer’s point of view, Nissan evaluates cars using the opinions of numerous employee product monitors and specialists with in-house training. Nissan has been focusing on more production regardless of the fact that their product line is lagging in terms of design and other customer expectations. So if Nissan can follow this in a planned way, it has a good scope to do much better than now. SAMPLE NISSAN CASE STUDY ANALYSIS 2. But the member of teams routinely spent much time on concept and details rather than the risk taking or the new action taking according to the urgency of the work. There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. 48 Vitosha Boulevard, ground floor, 1000, Sofia, Bulgaria Bulgarian reg. Weakness Nissan was going through a severe financial crisis by the late 1990s Cultural clash between French and Japanese’s leadership creates problem in Nissan. Use particular terms (like USP, Core Competencies Analyses etc.) Individual Term Paper Case 11: Carlos Ghosn: Multicultural Leader as CEO of Nissan and Renault Executive Summary Leadership is the ability to influence others to achieve a common goal. Willingness of the employees in surpassing of all culture and imposing new management: Clear strategy and effective communication help employees to work pleasantly and to get this they influence Ghosn to transcend culture and impose new management strategy. They have some offensive idea that customer only prefer to buy only good quality cars rather than stylish and innovative cars. Specifically, it allowed them to understand how the standard measures of success for their own departments were meaningless to Nissan unless they were framed in a way that connected to other departments to result in customer attraction and retention. Ghosn’s main focus areas included (1) Development of new automobiles and markets (2) Improvement of Nissan’s brand image (3) Reinvestment in research and development, and (4) cost reduction. SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. And promotions were no longer limited to age, length of service, or educational level. These three principles are as follows: 1. Shortly after that in 1934, the company name was changed to Nissan Motor Co. , Ltd. After the Second World War, Nissan grew steadily, expanding its operations globally. Nissan has always emphasized on short term market share growth rather than long term strategic success. All new goals were to be accomplished by April 1, 2005. The CEO as well as the other top level managers have to do all of their plans organized and make it clear to others, who work under them. Moreover, it is also called Internal-External Analysis. Nissan's fortunes had begun to decline, resulting in dropped profits and sales, quelling hopes that the 1990s would be as lucrative as the 1980s. Resources are also valuable if they provide customer satisfaction and increase customer value. Through these informal contacts, participants try to poll the opinions of other participants beforehand in order to test which positions have the strongest support so that their position is aligned with the position most likely to be influential. Before that, Japanese employees, including Nissan’s, did not worry about corporate problems because the government was always saving the day. This strategy is usually associated with large-scale businesses offering “standard” products with relatively little differentiation that are perfectly acceptable to the majority of customers. Increase sales, market shares, return on investments. He repeated this often to drive home the point that the way to restore the power of the Nissan brand was through each individual customer’s experience. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. Under Ghosn’s compensation system, the highest achievers got the highest rewards. He had earned the nickname “Le Cost-Killer” among Renault‘s top brass and middle management personnel because of his intense cost-efficient strategies even before joining Nissan in March 1999. Additionally, in an unusual break from Japanese business culture, there were communication problems between the layers of the organization. Within this matrix, he assigned each staff member two responsibilities: functional (e. g. marketing, engineering) and regional (e. g. , domestic, North America). Position and current economy trend i.e. Service Quality & Customer Satisfaction A case study in Banking Sector Sara Qadeer November 2013 - Second Cycle Supervisor: Prof: Dr. Maria Malama . Ghosn also made it clear, however, that engineers were not to reduce product cycle times or do anything that would negatively impact product quality or reliability. Customer satisfaction is the core things of the company. Lack of a sense of urgency 4. Based on the differentiation strategy, Nissan has to extend its sustainable mobility technology to all Nissan cars through using their hybrid technology that aims to respond to the environmentally friendly trend and reduce the operation costs to achieve the low price advantage in the world automobile market. Nessian need to turn on within two to three years or the company faced the prospect of going out of business. this describes the threat to company. Ghosn’s main focus areas included: (1) Development of new automobiles and markets, (2) Improvement of Nissan’s brand image, (3) Reinvestment in research and development, and (4) Cost reduction. Apply the analyses at proposed level. One of the regular members acted as a pilot who took responsibility for driving the agenda and discussion. so top management may faced to find out the problems and their proclivity may falls. Conventional wisdom that conscientiousness and cooperation are the key elements to maintaining operational efficiency and group harmony became a reason for delayed decision making process, as it had inconsiderably aimed at achieving consensus. As Nissan is giving priority to the thing that maintain 95% execution and 5% strategy is organizational prosperity which is tied directly to measurably improving quality, costs, and customer satisfaction. The requirement for Nissans from its base of supplies was approximately 75 percent. And its effects on company, Effect of globalization on economic environment. His philosophy was that if he would do better with a mix of his own outlook and the Japanese ones too. 8% stake in Nissan, allowing Nissan to invest $5. I did not accept any report that was less than totally clear and verifiable, and I expected people to personally commit to every observation or claim they made. After defining the problems and constraints, analysis of the case study is begin. By contrast, working together in cross-functional team’s helps managers to think in new ways and challenge existing practices. After the implementation of the ANPQP, Nissan employs a system of checks to ensure that its suppliers maintain a superior level of quality assurance. So the employees of functional level and regional level department tend not to ask any question regarding their performance. The Nissan Qashqai doesn’t score quite as well, but it does still score very well compared to many other models. After these interviews, he decided that the employees were quite energetic, as shown by their recommendations and opinions. So Ghosn mobilized existing Nissan managers by setting up nine cross functional teams of approximately 10 members each in the first month that makes the company developing new corporate culture form the best elements. 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