Case Study: Carlos Ghosn
Shannon Stone
Grand Canyon University
LDR 645
January 14, 2015
Case Study: Carlos Ghosn Carlos Ghosn in March of 1999 became the first non-Japanese Chief Operating Officer of the Nissan Motor Company. Nissan was experiencing a very hard financial hardship in total about seven years Nissan was in about 22 billion dollars in financial debt. Nissan have very little capital to use in order to develop new product the future of Nissan was not looking very bright. The last professional cry was help was to recruit Carlos Ghosn. (Millikin, 2005). After Ghosn took over his new position within Nissan in less than 19 months the performs of the company increased. Ghosn created a turnaround of the results of the company. Ghosn had the leader skills to obtain the trust of the employees. Ghosn gained relationships and understanding the emotions of each employee. Ghosn developed cross-functional teams.
Cultural Issues at Nissan When Ghosn entered into Japan many people did not have hope that a non- Japanese leader could really make a difference. Many people did not believe that he could efficiently overcome the Japanese culture and norms. It made Ghosn dig deep into the culture norms and he was able to understand the emotions more effectively. Ghosn knowing the culture and the emotions of the employee lead him to be a successful leader within the company.
National Cultural Issues “Decision making in the Japanese culture, was done at the
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Would you be able to help Mr Cliff Thomason with some legal questions or would you advise me who should I contact to?
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Carlos Ghosn is very strong leader who leading the Renault and Nissan. He made the Company strategic alliance for Nissan with French auto car manufacturer Renault was mutually beneficial for both companies, each of them expanding portfolio and becoming more competitive in the context of globalized mature automobile market.
Ghosn’s philosophy of change leadership was already developed at Michelin based on three principles: “assume nothing (find answers within the company); work fast; and earn trust and respect with strong results.” He diagnosed the complications that Nissan had as internal. His initial analysis was that the “company culture emphasized narrow, functionality based thinking at the expense of a larger strategic view.” Based on this analysis he formed cross functional teams bringing executives from all statuses and geographical locations to brainstorm and recommend solutions within three months. The plan was clear and straightforward: reduce procurement costs; reduce debt; and close plants that weren’t viable and introducing new models. These
This system changed the ways factories are run worldwide, it was famously known as “the Toyota Way”. This method which was perfected by Toyota enabled on eliminating waste, reducing defects and maximizing flow. Hiroshi Okuda taught this system to many other organizations as he wanted to share his method with world to make it more productive and save resources (Frederick 2004).
It was expected from him to change the fortune of Nissan as it was not doing well in those days. He had already turned the fortune of Michelin before. It was forth client he was working for. He spoke 5 languages that demonstrate his capacity for leadership globally.
Carlos Ghosn first determined how deep financial stagnation was and decided to set up cross functional Renault and Nissan management teams in sectors such as engineering, design and sales to solve the problems and set the new realistic but tough performance goals and objectives of the company which were to boost the company's sales. He therefore made it clear to everyone that he will have one stand and that whoever felt it wasn't favorable was at liberty to leave the company because he wasn't ready to tolerate backsliding anymore.