Toyota vs Nissan
TOYOTA VS. NISSAN – A CONTRAST IN CULTURE, CORPORATE GOVERNANCE, OPERATIONAL STRATEGY, AND FINANCIAL PERFORMANCE
Mohamad R. Nayebpour Graduate Faculty of Business Administration Keller Graduate School of Management DeVry University 2000 West Loop South Houston, Texas 77027 (713) 212-3610 mnayebpour@keller.edu
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Akira Saito Visiting Research Fellow The Institute of Economic Research Chuo University Japan fujisan@tamajs.chuo-u.ac.jp
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ABSTRACT
Toyota Motor Corporation and Nissan Motor Corporation were established in 1937 and 1933 respectively. They have been facing the same global challenges as well as the same politicoeconomic changes domestically and globally. They have similar business resources such as work force, capital, products, technology, and information. How, then, can there be such major differences in their overall business performance? This case highlights the role of corporate culture, leadership, business creed, and corporate governance in the operational strategy and financial performance of the two corporations. It also addresses recent successes and challenges that Renault-Nissan alliance faces in the future.
Keywords: Toyota, Nissan, Culture, Leadership, Governance, Strategy, Alliance Introduction
The automobile industry was born in France and emerged as a modern industry through the assembly line mass production of Model-T (1913) by Henry Ford who established the Ford Motor Company in 1903. William Durant established the General Motors in 1908, and Chrysler was founded in 1925. Nissan and Toyota were established in 1933 and 1937 respectively. The two major Japanese automakers have been in the same industry, facing the same global forces as well the same as the same politico-economic challenges domestically and globally. Although they have had similar business resources such as work force, capital, products, technology, and information, major differences in their financial performance began to emerge in the 1980s. Toyota had a healthy
Mohamad R. Nayebpour Graduate Faculty of Business Administration Keller Graduate School of Management DeVry University 2000 West Loop South Houston, Texas 77027 (713) 212-3610 mnayebpour@keller.edu
H H
Akira Saito Visiting Research Fellow The Institute of Economic Research Chuo University Japan fujisan@tamajs.chuo-u.ac.jp
H H
ABSTRACT
Toyota Motor Corporation and Nissan Motor Corporation were established in 1937 and 1933 respectively. They have been facing the same global challenges as well as the same politicoeconomic changes domestically and globally. They have similar business resources such as work force, capital, products, technology, and information. How, then, can there be such major differences in their overall business performance? This case highlights the role of corporate culture, leadership, business creed, and corporate governance in the operational strategy and financial performance of the two corporations. It also addresses recent successes and challenges that Renault-Nissan alliance faces in the future.
Keywords: Toyota, Nissan, Culture, Leadership, Governance, Strategy, Alliance Introduction
The automobile industry was born in France and emerged as a modern industry through the assembly line mass production of Model-T (1913) by Henry Ford who established the Ford Motor Company in 1903. William Durant established the General Motors in 1908, and Chrysler was founded in 1925. Nissan and Toyota were established in 1933 and 1937 respectively. The two major Japanese automakers have been in the same industry, facing the same global forces as well the same as the same politico-economic challenges domestically and globally. Although they have had similar business resources such as work force, capital, products, technology, and information, major differences in their financial performance began to emerge in the 1980s. Toyota had a healthy
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