Carlos Ghosn Leader of Nissan and Renault
Individual Term Paper
Case 11: Carlos Ghosn: Multicultural Leader as CEO of Nissan and Renault
Executive Summary
Leadership is the ability to influence others to achieve a common goal. Culture is the values, understandings, assumptions, and goals that are passed from generation to generation. Strategy is the choices an organization makes on how they will operate and differentiate themselves from competitors. All of these three variables (leadership, culture and strategy) make up the formula for successful performance of a firm: P=f (L+C+S). A firm’s successful performance depends on strong leadership, adaptability to any culture, and a strong strategy. Leadership, Culture and Strategy all need to work hand-in-hand for an organization to be successful and achieve their goals. The problem many mangers face is the ability to have a Global Mindset, adapt to many different cultures, and have the flexibility to make adjustments in any situation.
Carlos Ghosn, a French businessman, born in Brazil to Lebanese parents, became the CEO of both Renault and Nissan. Carlos was a successful and effective leader because he had a Global Mindset. Carlos knew how to listen, kept his promises, encouraged, motivated, and instilled a sense of urgency in the Japanese workers. Carlos Ghosn was able to turnaround Nissan from $254 million in losses and a debt of $19 billion. Even though he was not Japanese and faced many challenges, he was able to revive the ailing Japanese automobile company, Nissan, within two years. While in Japan, Carlos Ghosn made culture a priority, was able to adapt to the Japanese culture, and even received praises from the Japanese workers and public. Carlos Ghosn’s strategy of forming cross-functional teams among the Japanese workers was hard at first due to their resistance; but the teams ended up bringing much success to the revival of Nissan, while also being the CEO of Renault. Carlos Ghosn, CEO of Renault and Nissan, is a perfect example of the
Case 11: Carlos Ghosn: Multicultural Leader as CEO of Nissan and Renault
Executive Summary
Leadership is the ability to influence others to achieve a common goal. Culture is the values, understandings, assumptions, and goals that are passed from generation to generation. Strategy is the choices an organization makes on how they will operate and differentiate themselves from competitors. All of these three variables (leadership, culture and strategy) make up the formula for successful performance of a firm: P=f (L+C+S). A firm’s successful performance depends on strong leadership, adaptability to any culture, and a strong strategy. Leadership, Culture and Strategy all need to work hand-in-hand for an organization to be successful and achieve their goals. The problem many mangers face is the ability to have a Global Mindset, adapt to many different cultures, and have the flexibility to make adjustments in any situation.
Carlos Ghosn, a French businessman, born in Brazil to Lebanese parents, became the CEO of both Renault and Nissan. Carlos was a successful and effective leader because he had a Global Mindset. Carlos knew how to listen, kept his promises, encouraged, motivated, and instilled a sense of urgency in the Japanese workers. Carlos Ghosn was able to turnaround Nissan from $254 million in losses and a debt of $19 billion. Even though he was not Japanese and faced many challenges, he was able to revive the ailing Japanese automobile company, Nissan, within two years. While in Japan, Carlos Ghosn made culture a priority, was able to adapt to the Japanese culture, and even received praises from the Japanese workers and public. Carlos Ghosn’s strategy of forming cross-functional teams among the Japanese workers was hard at first due to their resistance; but the teams ended up bringing much success to the revival of Nissan, while also being the CEO of Renault. Carlos Ghosn, CEO of Renault and Nissan, is a perfect example of the