Applied consumer behaviour
Assignment #1 (Due 10-December-2013 before midnight)
Case: Reinventing Nissan
Questions:
What benefits will Nissan gain if its procurement of parts is combined with Renault’s parts procurement on a global basis? Are there any costs to this change? What problems does Nissan create if it abandons the keiretsu system for purchasing parts? In what ways might the Internet facilitate this change?
2. Suppose natural attrition fails to allow Nissan to reach its goal of reducing its workforce by 21,000 people. If this occurs, what would you advise Carlos Ghosn to do?
Should he abandon the planned job cuts? Or should he begin to fire workers and risk violating one of Japan’s strongest cultural norms?
3. Given Japan’s culture, will the introduction of performance- based compensation schemes create any problems for Nissan in Japan? If so, what is the nature of these problems? Do you have any suggestions for overcoming these problems?
4. Prime Minister Obuchi’s comments send a clear signal that Japanese politicians will resist any restructuring of Nissan’s operations that lead to significant losses of domestic jobs. How important is this political threat to Ghosn’s plans? What advice would you give to Ghosn to overcome or address Obuchi’s concerns?
5. As it turned out, Ghosn’s strategies paid off. Nissan has become one of the most dramatic turnaround success stories in years. The firm returned to profitability in 2001 and since that time has been systematically cutting costs, boosting profits, and growing market share. Some observers are now arguing that only a foreigner (a non-
Japanese) could have turned Nissan around so quickly. Do you agree?
Synopsis:
Case: Reinventing Nissan
Questions:
What benefits will Nissan gain if its procurement of parts is combined with Renault’s parts procurement on a global basis? Are there any costs to this change? What problems does Nissan create if it abandons the keiretsu system for purchasing parts? In what ways might the Internet facilitate this change?
2. Suppose natural attrition fails to allow Nissan to reach its goal of reducing its workforce by 21,000 people. If this occurs, what would you advise Carlos Ghosn to do?
Should he abandon the planned job cuts? Or should he begin to fire workers and risk violating one of Japan’s strongest cultural norms?
3. Given Japan’s culture, will the introduction of performance- based compensation schemes create any problems for Nissan in Japan? If so, what is the nature of these problems? Do you have any suggestions for overcoming these problems?
4. Prime Minister Obuchi’s comments send a clear signal that Japanese politicians will resist any restructuring of Nissan’s operations that lead to significant losses of domestic jobs. How important is this political threat to Ghosn’s plans? What advice would you give to Ghosn to overcome or address Obuchi’s concerns?
5. As it turned out, Ghosn’s strategies paid off. Nissan has become one of the most dramatic turnaround success stories in years. The firm returned to profitability in 2001 and since that time has been systematically cutting costs, boosting profits, and growing market share. Some observers are now arguing that only a foreigner (a non-
Japanese) could have turned Nissan around so quickly. Do you agree?
Synopsis: