Nissan Case Study
BACKGROUND
The Global Leadership of Carlos Ghosn at Nissan
During March 1999, Brazilian Carlos Ghosn took over as the first non-Japanese Chief Operating Officer of Nissan, when Nissan had been incurring losses for seven of the prior eight years. Many of the industry analysts expected a culture clash between the French leadership style and his new Japanese employees. Analysts said, because the financial situation at Nissan had become critical so the decision to bring Ghosn in came at the worst possible time. The continuing losses were resulting in debts (approximately $22 billion) that were shaking the confidence of suppliers and financiers alike. Furthermore, the Nissan brand was weakening in the minds of consumers due to a product portfolio that consisted of models far older than competitors. In fact, only four of the company’s 43 models turned a profit. With little liquid capital available for new product development, there was no indication that Nissan would see increases in either margin or volume of sales to overcome the losses.
Some of the issues Carlos Ghosn faced are
Consensus Decision-Making and its Relationship to Career Advancement
Addressing Corporate Culture Issues
Carlos Ghosn’s Philosophies of Management
The First Months in Japan and the Cross-Functional Teams
Reforms in Full Swing
Reducing Redundancies
Keiretsu Partnerships
Reorganization
Performance Evaluations and Employee Advancement
The next leader of Nissan was either going to turn Nissan around within two to three years, or the company faced the prospect of going out of business.Understanding the immediacy of the task at hand, Ghosn boldly pledged to step down if Nissan did not show a profit by March 2001, just two years after he assumed duties. But within eighteen months Nissan began to operate profitably under his leadership.
Background of Carlos Ghosn
Carlos Ghosn was borned in Brazil in 1954 to French and Brazilian parents, both of Lebanese heritages; he received his
The Global Leadership of Carlos Ghosn at Nissan
During March 1999, Brazilian Carlos Ghosn took over as the first non-Japanese Chief Operating Officer of Nissan, when Nissan had been incurring losses for seven of the prior eight years. Many of the industry analysts expected a culture clash between the French leadership style and his new Japanese employees. Analysts said, because the financial situation at Nissan had become critical so the decision to bring Ghosn in came at the worst possible time. The continuing losses were resulting in debts (approximately $22 billion) that were shaking the confidence of suppliers and financiers alike. Furthermore, the Nissan brand was weakening in the minds of consumers due to a product portfolio that consisted of models far older than competitors. In fact, only four of the company’s 43 models turned a profit. With little liquid capital available for new product development, there was no indication that Nissan would see increases in either margin or volume of sales to overcome the losses.
Some of the issues Carlos Ghosn faced are
Consensus Decision-Making and its Relationship to Career Advancement
Addressing Corporate Culture Issues
Carlos Ghosn’s Philosophies of Management
The First Months in Japan and the Cross-Functional Teams
Reforms in Full Swing
Reducing Redundancies
Keiretsu Partnerships
Reorganization
Performance Evaluations and Employee Advancement
The next leader of Nissan was either going to turn Nissan around within two to three years, or the company faced the prospect of going out of business.Understanding the immediacy of the task at hand, Ghosn boldly pledged to step down if Nissan did not show a profit by March 2001, just two years after he assumed duties. But within eighteen months Nissan began to operate profitably under his leadership.
Background of Carlos Ghosn
Carlos Ghosn was borned in Brazil in 1954 to French and Brazilian parents, both of Lebanese heritages; he received his