Nissan
Organizational Leadership
Nissan Case
Submitted by: Team 1
February 21, 2013
Question #1: What were the major problems at Nissan?
Severe negative financial position in the market and unprofitable operation with the following causal factors:
Product Management:
Poor product styling resulting in loss of market share greater than many other car manufacturer’s total production
Decentralization:
Too many vehicle platforms that made production inefficient and was further complicated by a plethora of suppliers and decentralized purchasing
Communications:
Poor communication practices and an absence of transparency (managers were unaware of production costs)
Rigid compartmentalized organization (siloed) structure with minimal cross department interaction
Weak channels to market with unhealthy channel conflict.
Customer Wants / Needs:
Lack of customer focus with reactive stance to competitor actions
Cultural Constraints: keiretsu - Culturally rooted business philosophy
Slow, patient, caution, afraid of change culture in Japan with many failed attempts to address well known problems
Supplier relationships based on cultural and regional ties restricting global expansion
Question 3: Evaluate Ghosn’s first 100 days. Effective leader and/or manager?
Ghosn’s first 100 days proved he is an effective leader,
Per John P. Kotter, Leaders don't make plans; they don't solve problems; they don't even organize people. What leaders really do is prepare organizations for change and help them cope as they struggle through it.
Ghosn’s first 100 days (from June 25 1999 to Nov. 1999)’ actions include the following,
Item
Actions
Change or managing complexity
Manager or Leader symbol
1.
Since appointed as COO, made it clear with President the power allocation – president is a more ambassadorial role change LC
2.
Engage the president to appoint Board Members from Japanese side, downsize the Board from 37-10 members
Nissan Case
Submitted by: Team 1
February 21, 2013
Question #1: What were the major problems at Nissan?
Severe negative financial position in the market and unprofitable operation with the following causal factors:
Product Management:
Poor product styling resulting in loss of market share greater than many other car manufacturer’s total production
Decentralization:
Too many vehicle platforms that made production inefficient and was further complicated by a plethora of suppliers and decentralized purchasing
Communications:
Poor communication practices and an absence of transparency (managers were unaware of production costs)
Rigid compartmentalized organization (siloed) structure with minimal cross department interaction
Weak channels to market with unhealthy channel conflict.
Customer Wants / Needs:
Lack of customer focus with reactive stance to competitor actions
Cultural Constraints: keiretsu - Culturally rooted business philosophy
Slow, patient, caution, afraid of change culture in Japan with many failed attempts to address well known problems
Supplier relationships based on cultural and regional ties restricting global expansion
Question 3: Evaluate Ghosn’s first 100 days. Effective leader and/or manager?
Ghosn’s first 100 days proved he is an effective leader,
Per John P. Kotter, Leaders don't make plans; they don't solve problems; they don't even organize people. What leaders really do is prepare organizations for change and help them cope as they struggle through it.
Ghosn’s first 100 days (from June 25 1999 to Nov. 1999)’ actions include the following,
Item
Actions
Change or managing complexity
Manager or Leader symbol
1.
Since appointed as COO, made it clear with President the power allocation – president is a more ambassadorial role change LC
2.
Engage the president to appoint Board Members from Japanese side, downsize the Board from 37-10 members