Nessan Case Study
Culture Change at Nissan
Case Study
For Organizational Behavior Course
Dr. Rabaa Amr
Presented by
Nadeen Khedr
Marwa El Masry
Mohamed Nabhan
Culture Change at Nissan
Case Study
Introduction
Nissan is an originally Japanese company that markets both locally and in the UK and USA and is one of the world’s most leading manufacturers of cars. Nissan’s vision is ‘enriching people’s lives’ and the mission statement is ‘Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault’.
In the 1980s, Nissan was in crisis, which influenced the organization’s perception. There was a slow-down in demand in Japan and a fall of the domestic market share from 30% to 24% in 1987. This invariably caused employees to become discontented and blame the top management for focusing all their attention overseas than on the local market. This caused deterioration in the labor-management relations. Primarily Nissan’s growth was due to the labor-management cooperation in the 1960s and 1970s, which was the heart of the Nissan culture. This breakdown in the structure and culture of the company caused the labor and the management to not communicate. In 1985, Mr. Yakata Kume was appointed as CEO of Nissan in an effort to save the downfall of the company. He placed a new motto: “management and the labor union should both discharge their duties properly” and he asked everyone “to change the traditional currents and create a new corporate culture”. Throughout his new motto, he encouraged the workforce to focus on the marketplace without being restricted by the company’s hierarchical structure and customs. The new corporate structure had emphasized customer satisfaction and the importance of expanding the customer base. Yakata also decided to actively create new products and emphasized on the need to develop the people of the company. Yakata visited the company offices and firms
Case Study
For Organizational Behavior Course
Dr. Rabaa Amr
Presented by
Nadeen Khedr
Marwa El Masry
Mohamed Nabhan
Culture Change at Nissan
Case Study
Introduction
Nissan is an originally Japanese company that markets both locally and in the UK and USA and is one of the world’s most leading manufacturers of cars. Nissan’s vision is ‘enriching people’s lives’ and the mission statement is ‘Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders in alliance with Renault’.
In the 1980s, Nissan was in crisis, which influenced the organization’s perception. There was a slow-down in demand in Japan and a fall of the domestic market share from 30% to 24% in 1987. This invariably caused employees to become discontented and blame the top management for focusing all their attention overseas than on the local market. This caused deterioration in the labor-management relations. Primarily Nissan’s growth was due to the labor-management cooperation in the 1960s and 1970s, which was the heart of the Nissan culture. This breakdown in the structure and culture of the company caused the labor and the management to not communicate. In 1985, Mr. Yakata Kume was appointed as CEO of Nissan in an effort to save the downfall of the company. He placed a new motto: “management and the labor union should both discharge their duties properly” and he asked everyone “to change the traditional currents and create a new corporate culture”. Throughout his new motto, he encouraged the workforce to focus on the marketplace without being restricted by the company’s hierarchical structure and customs. The new corporate structure had emphasized customer satisfaction and the importance of expanding the customer base. Yakata also decided to actively create new products and emphasized on the need to develop the people of the company. Yakata visited the company offices and firms