Nissan, LG and their Organizational Structures
Thomas Edison State University
NISSAN AND LG ORGANIZATIONAL STRUCTURE 2
This paper examines Nissan and LG organizational structures. Each firm has developed its own successful structures and led their respective areas of expertise because of it. The two firms that I have chosen to examine are Nissan Motor Company and LG Electronics. Both have dynamic CEO’s that have reorganized the structures of both companies in order to remove waste and inefficient work practices. The Nissan Motor Company designs and engineer engines and cars all over the world. The LG Company has four separate internal companies that sell chemicals, electronics, telecommunication and services. According to W Chan Kim, Renee Mauborgne (2005), LG formed a blue strategy and explained that “A company is not only top management, nor is it only middle management. A company is everyone from the top to the front lines. And it is only when all the members of an organization are aligned around a strategy and support it, for better or for worse that a company stands apart as a great and consistent executor. Overcoming the organizational hurdles to strategy execution is an important step toward that end. It removes the roadblocks that can put a halt to even the best of strategies.” In addition, to achieve an ideal management base, LGE was carrying out the Six Sigma Campaign. In January 2006, the company launched “Blue Ocean10 Management” campaigning to be one among the top 3 Electronics, Chemical, and Telecommunications firms in the world by 2010. According to Gary Witzenburg (2003), CEO of Nissan Motor Company Carlos Ghosen would take the helm of the company in 1999 and restructure from top down. Carlos Ghosen bought with him from Renault about 25 people, but probably no more than 15 were experts and...