Download - Enriching People’s Lives
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ENRICHING PEOPLES LIVES
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PRESENTATION ON
NISSAN MOTOR CO. 2002
PRESENTED BY-
GAGAN
MAMTA
SHOAIB
POOJA
PRAVEEN
NAMRATA
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ROADMAP
Change in management.
Employee involvement.
Innovation.
Internal communication.
Investment.
Leadership.
Lifetime time employment.
Motivation
Organisational crises.
Organisational culture.
Well workforceManagement.
Employee relationship.
Cost Cutting.
The case is about an Automobile sector. This case deals with how Ghosn turned thecompany around., which focused on these factors :
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ORGANISATIONAL
DETAILS Nissan Founded in 1933.
One of the first Japanese companies to manufacture automobiles.
In March 1999 Renault CEO Louis Schweitzer recruited Carlos Ghosn.
Well experienced leader ghosn.
Nissan turned around in 1987 as demand for cars, luxury cars was suddenlyincreased.
Management Launched expansion paln to achieve 1.5 million sales unit inJapan.
Money was readily available as Japans leading banks were willing to supplythe needed funds.
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ISSUES IN NISSAN
Ghosn observed it was always someones else fault.
Managers lack of - well defined responsibility andaccountability.
In shareholder meeting following decision were taken-
No. of Director were reduced to 9 from 43.
Ghosn became new COO of Nissan.
18 senior executive resigned
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ISSUES IN THE CASE
Culture of blame.
Debts
In 1999 70% of Nissan dealers in Japan were reportedly came across huge
losses.
Highly bureaucratic organization and a divisive culture beset by company
politics.
Nissans financial condition deteriorated.
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ISSUES IN CASE CONTD
Closed major plants.
5,000 employees through attrition.
Nissan had more than $1.3 billion in debt. Which was literally a do-or-die
situation.
Focus
High Cost.
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CROSS FUNCTIONAL TEAMS
D1 D2 D3 D4 D5
D5
D4
D3D1
D2
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ANALYSIS OF ISSUES
Optimize R&D capacity
Cross functional teams
Moved towards global integrated organization.
Launched Nissan 3-3-3 program
Cutting purchasing Cost.(targeted 20% in 3 yrs)
Focus on core technologies
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ANALYSIS OF ISSUES CONTD
Close coordination with the groups.
Started burning entrepreneurial spirit among the dealers.
Unveiled the Nissan Revival Plan (NRP) on October 18.
More focus On Customers.
Direct Communication with Workers unions stake holders.
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ANALYSIS OF ISSUES CONTD
Introduced new models.
Nissans new global approach-
which reflected banking relationships.
Promotion and pay were linked
to performance.
Communicated the goals directly
in a personal letter.
New Product Development-
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CHALLENGES AHEAD
Nissan purchasing cost is still higher thanRenault.
Brand did not command market as Toyota andHonda.
Customer satisfaction did not match the rivals.
Intense competition in United states
The greatest challenge is to achieve the target setby Mr. Ghosn
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IMPACTS AND LEARNINGS
Positive approach towards goal.
Being a leader first rather than from specific cultural background.
Being punctual in timing.
Clarity of vision and ability to communicate throughout the organization.
Being straightforward, direct, and simple.
opportunity to communicate vision.
Directly interacting with all levels of organization.(lower-Upper)
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LEADERSHIP TRAITS
Consistent
Clarity of Vision
Data Driven
Demanding but Respectful
Listening but Deciding
Set example by his own behavior
Insists on Time factor
Communicate clearly
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REFRENCES
http://www.nissan-global.com/EN/index.ht
http://www.nissan-global.com/EN/OURBRA
http://en.wikipedia.org/wiki/Nissan_Motors
http://www.nissancidef.cl/sp/web/homepag
http://www.nissan-global.com/EN/index.htmlhttp://www.nissan-global.com/EN/OURBRANDS/http://en.wikipedia.org/wiki/Nissan_Motorshttp://www.nissancidef.cl/sp/web/homepage/index.htmhttp://www.nissancidef.cl/sp/web/homepage/index.htmhttp://en.wikipedia.org/wiki/Nissan_Motorshttp://www.nissan-global.com/EN/OURBRANDS/http://www.nissan-global.com/EN/index.html