Case Studies: Saving the Business Without Losing the Company

2496 WordsJan 2, 201310 Pages
Case Studies: Saving the Business without Losing the Company 1.0 Introduction Nissan’s position as a profitable and viable global automaker was in complete default by 1999. The once-strong company had lost money for six of seven consecutive years, beginning in 1992. Its global market share was in decline and the company was losing, on average, US$1,000 per vehicle sold in the United States. Carlos Ghosn knew that regeneration of the company product was imperative, but the product alone would not save the company. Thus, Louis Schweitzer, CEO of Renault, asked Carlos Ghosn to lead turnaround at Nissan. The two companies had agree to a major alliance in which Renault will cover the Nissan’s debt in return for 36.6% equity stake in the…show more content…
Nissan always look the performance when they want to improve the position for any person and they not look at how long the person gives the services for their company. Besides that, Nissan paid and promoted its employees based age and tenure. This problem happen because the senior worker not willing to cooperate with the younger worker as fully as they might. Of course the experience of that someone usually manager can bring the lot of work and give a good leadership to company. Next is new performance-based compensation for Nissan Company. Nissan use revamped to their compensation system to put the focus on the workers performance. A long time ago the compensation system for this company manager was not receive any share options and so hard to any incentives to build the managers pay. This system extends to the upper reaches of management that’s mean if the people want to get high incentives so they must perform the high performance for their task. The last breaking in that company is loose areas of responsibility-position with no responsibility. The managers usually did not have well understanding about the area of responsibility for herself. So at Nissan they eliminated the position and put all their advisers into position with direct operational responsibility. The Renault worker have a line responsibilities and all the staff can see that contribution for the Nissan company and all them take the
Open Document