Nissan Renault Case Study
(Sources: www.media.renault.com)
Global Strategy of the Renault-Nissan alliance
Subject: Joint analysis on the Renault-Nissan alliance addressed to the CEO of Mitsubishi (group project)
From: Group 22 Michael Sutherland Nicolas Murcia Saebong Cheon Yu Ri Na Jeong To: Professor Jan Jörgensen Due date: November 22, 2006
To M. Takashi Nishioka, Chairman of the Board of Mitsubishi Motors,
Nowadays, Renault-Nissan is the fourth worldwide automaker with sales of 6,129,254 units in 2005, up 5.9% over 2004 (http://www.nissan-global.com/). Considering the traditional position of Mitsubishi in the actual market, the analysis of the Renault-Nissan alliance case would provide you with valuable elements on how to approach the growing and competitive auto manufacturing global market.
As such, the success of Carlos Ghosn is correlated to his extensive vision of synergies between the Renault and Nissan, thus, he believes that the transfer of knowledge between foreign engineering teams would only occur within a framework of equality. The reason he didn’t merge Renault and Nissan rely on the advantage of mutual challenge that push both firms to seek new cost reductions, economies of scale and scope opportunities. Consequently, Renault and Nissan both managed to reach their goal by remaining profitable.
Table of Content:
The advantages and disadvantages of the alliance between Nissan and Renault………………1 Reasons for an alliance instead of a merger and the benefit from synergies…………………...4 Importance of Corporate Culture……………………………………………………………….6 The possibility of GM entering the alliance……………………………………………………8 Evaluation of Nissan before and after the alliance……………………………………………..9 Worldwide Domestic Conditions affecting Nissan-Renault…………………………………..12 The collapse of the Keiretsu helps Nissan to remain globally competitive…………………...13
The advantages and disadvantages of the alliance between Nissan and Renault
The “Alliance” between Renault and Nissan has
Global Strategy of the Renault-Nissan alliance
Subject: Joint analysis on the Renault-Nissan alliance addressed to the CEO of Mitsubishi (group project)
From: Group 22 Michael Sutherland Nicolas Murcia Saebong Cheon Yu Ri Na Jeong To: Professor Jan Jörgensen Due date: November 22, 2006
To M. Takashi Nishioka, Chairman of the Board of Mitsubishi Motors,
Nowadays, Renault-Nissan is the fourth worldwide automaker with sales of 6,129,254 units in 2005, up 5.9% over 2004 (http://www.nissan-global.com/). Considering the traditional position of Mitsubishi in the actual market, the analysis of the Renault-Nissan alliance case would provide you with valuable elements on how to approach the growing and competitive auto manufacturing global market.
As such, the success of Carlos Ghosn is correlated to his extensive vision of synergies between the Renault and Nissan, thus, he believes that the transfer of knowledge between foreign engineering teams would only occur within a framework of equality. The reason he didn’t merge Renault and Nissan rely on the advantage of mutual challenge that push both firms to seek new cost reductions, economies of scale and scope opportunities. Consequently, Renault and Nissan both managed to reach their goal by remaining profitable.
Table of Content:
The advantages and disadvantages of the alliance between Nissan and Renault………………1 Reasons for an alliance instead of a merger and the benefit from synergies…………………...4 Importance of Corporate Culture……………………………………………………………….6 The possibility of GM entering the alliance……………………………………………………8 Evaluation of Nissan before and after the alliance……………………………………………..9 Worldwide Domestic Conditions affecting Nissan-Renault…………………………………..12 The collapse of the Keiretsu helps Nissan to remain globally competitive…………………...13
The advantages and disadvantages of the alliance between Nissan and Renault
The “Alliance” between Renault and Nissan has
Bibliography: Key articles: Susini, J.P. (2003). The determinants of Alliance performance: Case study of Renault & Nissan Alliance. Econ. J. of Hokkaido University. Vol. 33. pp.233-262. Article found from http://eprints.lib.hokudai.ac.jp/dspace/bitstream/2115/5398/3/EJHU_v33_p232-262.pdf Nakae, K. (2005). Cultural change: a comparative study of the change efforts of Douglas MacArthur and Carlos Ghosn in Japan. Sloan School of Management. https://dspace.mit.edu/bitstream/1721.1/32114/1/63201635.pdf Segrestin, B. (2003). Organisation productive - relation salariale - financiarisation : les spécificités de l 'industrie automobile. Article retrieved from http://72.14.209.104/search?q=cache:huFYIKQDCwJ:crem.univrennes1.fr/site_francais/actualites/textes_actu_exterieures/ Other articles: Griffin, RW. & Pustay, MW. (2005). International Business. 4th Edition. Pearson-Prentice Hall. Pooley, R. (2005) The Model Alliance of Renault and Nissan, Human Resource Management International. Bradford Vol 13, Iss.2, pp29. Clerc, P. (2000) Managing the Cultural Issue of Merger and Acquisition: The Renault-Nissan Case. Göteborg University. Harney, A. (1999, November 2nd). Restructuring gives Japan’s workers culture shock: […]. Financial Times. London, pp 14. The Renault-Nissan Alliance. (2004). Article retrieved on November 11th, 2006, from http://facweb.furman.edu/~dstanford/ibnotes/39cases04/casequestions.html Nancy DuVergne Smith (2004) Nissan-Renault alliance faces down a few challenges. CTPID Communications Director. Article found from http://web.mit.edu/newsoffice/2004/ghosn.html http://xtra.emeraldinsight.com/Insight/ViewContentServlet?Filename=Published/EmeraldFullTex tArticle/Articles/040170503.html Bungsche, H. & Heyder, T. (2003) After the loss of Japanese autonomy; the merger of Nissan/Renault and Mazda/Ford in comparison. TREIZIEME RENCONTRE INTERNATIONALE DU GERPISA. Ministère de la Recherche Paris, France. Treece, J. (2006, October 2nd). Ghosn to GM : Automotive News Europe. Vol 11. Iss 20. Ghosn, C. (2002). Saving the Business Without Losing the Company. Harvard Business Review. Information for Nissan retrieved November 8th, 2006, from http://www.nissan-global.com Wanda, J. (2005). Driving from Japan, Japanese Cars in America. McFarland & Company. Benjamin, D. (1999). Voluntary Export Restraints on Automobiles. Perc reports. Vol 17, number 4, pp. 400-430. New Rules On Cars Set to Hit Big Names. Retrieved November 4th, 2006, from http://search.ft.com/searchArticle?page=2&queryText=renault+domestic+law&javascriptEnabled =true&id=020110008676 Arun, M. (2005, January 6th). Remaking India (p): One Country, One Destiny Difference. Publications Pvt. Ltd. Okamura, A. (2005). Beyond the Keiretsu. Article retrieved on November 2nd, 2006, from http://www.utofieldguide.com/articles/article_print1.cfm Appendices: Exhibit I: Sales according to the number of vehicles sold Worldwide Sales 2005 Renault Group - Renaul - Renault Samsung Motors - Dacia Nissan Group - Nissan - Infiniti Renault-Nissan Alliance Sales in Japan 2005 Renault Nissan Renault-Nissan Alliance 3,520 866,157 869,677 2004 3,253 826,822 830,075 Change 2005/2004 +8.2% +4.8% +4.8% 2,531,506 2,248,756 119,027 164,406 3,597,748 3,448,637 149,111 6,129,254 2004 2,490,337 2,308,972 85,046 96,319 3,295,830 3,157,002 138,828 5,786,167 Change 2005/2004 +1.7% -2.6% +40% +70.7% +9.2% 9.2% 7.4% +5.9% (Source: http://www.nissan-global.com/EN/NEWS/2006/_STORY/060130-02-e.html) Exhibit II : Important graphics revealing positive performance Consolidated Operating Profit Margins for Nissan since alliance Global Sales Volume (Source: www.nissan-global.com)