Renault & Nissan Alliance
Renault-Nissan Alliance
By
Po-Chien Chung
Department of International Management
International Business
Dr. Roger Strange
18th March, 2010
2930 Words
1
Introduction
“The Renault-Nissan alliance, currently heralded as one of the most successful in the business, represents the combination of two very different organizations, structurally and culturally”
(Rugman & Collinson, 2004).
Renault-Nissan alliance is based on trust and reciprocal respect. Its organization is transparent to make sure “clear decision-making for speed, accountability and a high level of performance; maximum efficiency by combining the strengths of both companies and developing synergies through common organizations, Cross-Company Teams are shared platforms and components” (Nissan, 2010). However, it will take substantial efforts integrating two distinct organisational cultures, especially the strong cultural gap between
Oriental and Continental sides, remote geographical distance and diverse automaker background factors.
The purpose of this essay is to renew the Renault-Nissan case study and examine if it is a past victory of alliance or not. In this context, Joann Muller also declares that the Renault and
Nissan alliance have controlled 7 years of association productively (2006). To do so we are measuring the Renault-Nissan nature as a collaborator, comparing and contrasting its experiences with the Dailmer-Chrysler and finally we will measure up the financial problems of Nissan which were in a bad phase at the time of alliance have been eased or not.
2
Assessing how Renault and Nissan have worked together as partners, and the difficulties of bringing together two distinct organisational cultures
In the process of alliance, the efforts that many people have engaged in can be seen, in particularlly, the portion of ‘harmony among people’ constantly been focused by Mr
Schweitzer. Early since October 1998, he had a clear view of the
By
Po-Chien Chung
Department of International Management
International Business
Dr. Roger Strange
18th March, 2010
2930 Words
1
Introduction
“The Renault-Nissan alliance, currently heralded as one of the most successful in the business, represents the combination of two very different organizations, structurally and culturally”
(Rugman & Collinson, 2004).
Renault-Nissan alliance is based on trust and reciprocal respect. Its organization is transparent to make sure “clear decision-making for speed, accountability and a high level of performance; maximum efficiency by combining the strengths of both companies and developing synergies through common organizations, Cross-Company Teams are shared platforms and components” (Nissan, 2010). However, it will take substantial efforts integrating two distinct organisational cultures, especially the strong cultural gap between
Oriental and Continental sides, remote geographical distance and diverse automaker background factors.
The purpose of this essay is to renew the Renault-Nissan case study and examine if it is a past victory of alliance or not. In this context, Joann Muller also declares that the Renault and
Nissan alliance have controlled 7 years of association productively (2006). To do so we are measuring the Renault-Nissan nature as a collaborator, comparing and contrasting its experiences with the Dailmer-Chrysler and finally we will measure up the financial problems of Nissan which were in a bad phase at the time of alliance have been eased or not.
2
Assessing how Renault and Nissan have worked together as partners, and the difficulties of bringing together two distinct organisational cultures
In the process of alliance, the efforts that many people have engaged in can be seen, in particularlly, the portion of ‘harmony among people’ constantly been focused by Mr
Schweitzer. Early since October 1998, he had a clear view of the
References: Bartlett, C.A., Ghoshal, S. & Beamish, P.W. (2008). Transnational management: text, cases, and readings in cross-border management Muller, J. (2006) Secrets of a Happy Marriage, Forbes. Vol. 178 (9). Nissan (2010) 2010] Nissan (2010) Principles of the Alliance Nissan (2010) Structure of the Alliance. [online] Yokohama, Nissan Available from: http://www.nissan-global.com/EN/COMPANY/PROFILE/ALLIANCE/RENAULT03/ Renault (2010) Cooperations and Synergies [online] Paris, Renault Available from: http://www.renault.com/en/groupe/l-alliance-renault-nissan/pages/cooperations-etsynergies.aspx [accessed 7th March 2010] Rugman, A. & Collinson, S. (2004) The Regional Nature of the World’s Automotive Sector, European Management Journal, Vol Sven Eppert Website (2003) Compare the two mergers: Daimler-Chrysler and Renault-Nissan.