Carlos Ghosn: Multicultural Leader as Ceo of Nissan and Renault

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Case study report: Carlos Ghosn: Multicultural Leader as CEO of Nissan and Renault

Written by
Syeda (Alaina) Irfan- 15180
Think of a company with losses worth $5.5 Billion, debts of $19 Billion, poor product portfolio, rapidly decreasing market share and diminishing brand value. Now ask yourself would you invest in such a company? The obvious answer is probably not but would you re consider had you known that in 3-5 years time the company would be the third largest automaker in the world and one of the most profitable? (Renault, 2010) Such is the case of the phenomenal turnaround brought about by Carlos Ghosn when he took over the reins of the Japanese auto maker Nissan. Carlos Ghosn- The Turn Around Artist

Carlos was born in Brazil in 1954. His parents were both of Lebanese origin. Since childhood he showed credible signs of strong leadership traits, analytical skills and managing capabilities. He was brought up amongst students from a variety of cultures which encouraged him to master 5 languages (Arabic, Portuguese, French, English and Japanese). Straight after graduation he was recruited by French tyre company Michelin where he served for 18 years. He joined Renault (French auto maker) in 1996 where he earned the nick name, ‘Le Cost-killer’. After Renault’s publicly criticized alliance with Nissan, Yoshikazu Hanawa (CEO Nissan) requested that Carlos join Nissan as COO in 1999. The “Nissan Magic”- Case Summary

Carlos arrived in Japan with no knowledge of the culture there. He once said, “I did not try to learn too much about Japan before coming, because I didn’t want to have too many preconceived ideas. I wanted to discover Japan by being in Japan with Japanese people”. Known for his strict regimes and cost cutting strategies his arrival in Nissan was not a welcoming one. He was faced with the challenge of making Japanese employees understand the concept of accountability and ownership without the use of dictator ship that would quickly...
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