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5 pages
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  1. Introduction.
  2. Analysis and discussion of the problems facing the company in 1999.
  3. Analysis and discussion of the nature of change for the company.
  4. Analysis and discussion of the barriers to change and how they can be overcome.
  5. Conclusion.
  6. Indicative bibliography.

The name NISSAN Motor Co. appeared for the first time in 1934 from a company called Jidosha-Seizo Kabushiki-Kaisha, a combination of several automotive ventures and the Brand DATSUN. Nissan was the pioneer of the development of new automobile technology in the 1970s. It knew a very fast growth thanks to a global program, and by 1991, Nissan was operating very profitably. Nevertheless, in the 1990s, the situation completely changed. And in 1999 the position of the company was described as a catastrophic one: $22 billion of debts, its market shares keep declining, its losses are recurring, its stock exchange vaporization broke down? Three years later, Nissan has taken up benefit again, and the highest values for its stock options were recorded. How have Nissan managed such a turnaround? What were the problems that the company faced in 1999? How Nissan was saved? Which kind of changes did appear in the company?

[...] And finally, Nissan faced also a lack of Management and cost control systems, and no global security policy was undertaken. Nissan was in a disastrous situation in 1999. The company faced problems in every part of its business. After recording a negative net income of $ 5.6 billion in 1999, a drop in its market shares and a debt of $22 billion, Nissan President and CEO Yoshikazu Hanawa decided to react and found an alliance opportunity with Renault to get out of the crisis. [...]


[...] In addition, Nissan only developed a short-term strategy. It emphasizes short term market share growth, rather than profitability or long-term strategic success. Then, no investment and innovation were realized. Nissan was also the victim of the Japanese business custom of Keiretsu, that is to say as for Nissan a tangle of 1,400 companies (banks, subsidiaries, suppliers, customers ) all linked by cross holdings. The car manufacturer tied up over billion in these stock shares, and this does not really help the company to decrease its purchasing costs. [...]


[...] In 1999 we noticed in Nissan a lack of reactivity due to a slow implementation of decisions taken. Moreover it is said that the company was widely more concerned by regaining market shares instead of focusing also on its margins of unit sold. Then, no real actions were undertaken to decrease the costs of the company. Nevertheless, there is a paradox: Nissan desired to gain market shares, but it did not care of the customers' expectations. Indeed, Nissan's design did not reflect customers' opinions. [...]

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