Nissan Revival Shows How Leadership Personalities, Management Style and Embracing Culture Changes Could Rescue a Company.
CASE: Ghosn and Nissan A & B
Introduction
Nissan revival shows how Leadership personalities, management style and embracing culture changes could rescue a company. We would analyse the problems and especially Gohsn leadership in reviving Nissan.
Problems
Prior to the partnership and after 1990s, Nissan does not have a clear vision and mission. Complacency sits in during the 1990s and rather than building their core strength, they diversified into telecommunications and property estates. These resulted into USD450 million losses. Poor plan like selling assets and reducing the selling price (devalue the brand) resulted in four straight years of losses. Moreover, they were great in hardcore (engineering) but weak in customer intimacy. Too much concentration in chasing competitors in engineering excellence than in customer needs. When results require immediate step to revive the company, the anticipation and urgency were not exist. Lapse in communications from all departments. People were not hungry as promotion is based on seniority. Promoting Keiretsu System in supporting other allied parties in stock market also resulted in a shortage of funds. The company is practically in a mess.
Analysis of the Partnership
Great synergy as Nissan had great engineering system and global presence where Renault had management experience to overcome crisis (failed merger with Volvo). Renault need a global presence and possessed financial and management skill to rescue Nissan. The Cross Company Team discussion further reduces the learning curve. Essentially, is the foresight of both managements to insist Gohsn as the person to transform Nissan.
Analysis of Gohsn Personalities and Leadership
Gohsn arrival and earlier involvement in partnership negotiations bring about a realization that the declination had to do with leadership style. He possessed industry operational experience in crisis dealing with different continents(turnaround 3 crisis: Michelin Brazil as COO,
Introduction
Nissan revival shows how Leadership personalities, management style and embracing culture changes could rescue a company. We would analyse the problems and especially Gohsn leadership in reviving Nissan.
Problems
Prior to the partnership and after 1990s, Nissan does not have a clear vision and mission. Complacency sits in during the 1990s and rather than building their core strength, they diversified into telecommunications and property estates. These resulted into USD450 million losses. Poor plan like selling assets and reducing the selling price (devalue the brand) resulted in four straight years of losses. Moreover, they were great in hardcore (engineering) but weak in customer intimacy. Too much concentration in chasing competitors in engineering excellence than in customer needs. When results require immediate step to revive the company, the anticipation and urgency were not exist. Lapse in communications from all departments. People were not hungry as promotion is based on seniority. Promoting Keiretsu System in supporting other allied parties in stock market also resulted in a shortage of funds. The company is practically in a mess.
Analysis of the Partnership
Great synergy as Nissan had great engineering system and global presence where Renault had management experience to overcome crisis (failed merger with Volvo). Renault need a global presence and possessed financial and management skill to rescue Nissan. The Cross Company Team discussion further reduces the learning curve. Essentially, is the foresight of both managements to insist Gohsn as the person to transform Nissan.
Analysis of Gohsn Personalities and Leadership
Gohsn arrival and earlier involvement in partnership negotiations bring about a realization that the declination had to do with leadership style. He possessed industry operational experience in crisis dealing with different continents(turnaround 3 crisis: Michelin Brazil as COO,