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Driving change in the merger: Renault - Nissan and Carlos Ghosn's leadership

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  1. Introduction
  2. Nissan revival plan
    1. The missions and roles of cross teams
    2. The concept of action and short-term results
    3. Change
  3. External factors
    1. The failure of Yamaichi as an opportunity
    2. The role of the partner Renault
  4. The man of the hour
    1. The multicultural background
    2. The communication strategy
    3. The commitments are based on facts
    4. The mode of selection is based on the personal contribution of each employee
  5. Conclusion

In 1999, the Japanese manufacturer Nissan was on the verge of bankruptcy with, all indicators flashing. The company faced recurring financial losses. Its debts exceeded 22 billion dollars and its stock market value is still plummeting. In addition, the company manufactures expensive cars and its market share is steadily declining due to this. Also, its product has stagnated and the Japanese organization lacks flexibility.

Coincidentally this crisis comes at a time when the French manufacturer Renault is seeking a partner for obvious strategic reasons, particularly with respect to global competition.

[...] Whereas Renault was leading the markets in Europe and particularly in Latin America (including the Brazilian market is very dynamic), Nissan had the second largest market share in Japan and a major presence in North America. The goal of this alliance was to be present on most world markets. In 1998, the merger of two major competitors accelerated the process. Indeed, the German company Daimler-Benz AG and Chrysler Corporation associate emerged as the main competitor of an entire industry. The partnership envisaged by Renault became urgent, and the French manufacturer took the risk of injecting 5 billion stake in Nissan. [...]

[...] In addition, Nissan had some major advantages, namely a presence on several continents, plants at the forefront of technology (developed with major in this field), and a quality recognized by everyone. These advantages seemed compatible with the Renault, and recovery was seen as being possible in collaboration with it. A. The missions and roles of cross teams The Nissan Revival Plan was agreed upon in the general meeting held on July based on the introduction of 9-pin horizontal working model. [...]

[...] Carlos Ghosn said that solutions must come from the company itself and that a Nissan plan that originated would be outside doomed to failure. Carlos Ghosn sought to seek the best employee of Nissan; one who was most able to revive the company by his experience, business knowledge and expertise. Thus cross-trained teams at the beginning of the plan included an executive committee member as a leader and a driver selected from the frames, which was as young as possible, thus mixing general managers and experts. [...]

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