The Global Leadership of Carlos Ghosn at Nissan

975 WordsJun 10, 20054 Pages
In 1999, the Nissan was suffering under a decade of decline and unprofitability, in fact the company was on the verge of bankruptcy, with continuous loses for the past eight years resulting in debts of approx. $22 billion. Elements impacting Nissan's performance prior to the global alliance with Renault Internal factors: Emphasis on short-term market share growth instead of a long term success strategy; Advanced engineering and technology, plant productivity, quality management. However, less attention was given to design and innovation, on the assumption that consumers were looking for quality and safety. This implies a lack of knowledge of the market, consumer's changing tastes, and showed that Nissan management did not pay too much…show more content…
Ghosn closed plants, laid off workers, broke up long-standing supply networks, and sold off marginal assets to focus on the company's core business. Nissan was now breaking the cultural norms of keiretsu investments. Cutting down costs was just the first step in Nissan's recovery. Actually changes were introduced in every corner of the company, from manufacturing and engineering to marketing and sales: update of Nissan's car and truck lineup; introducing new, dynamic designs; quality improvement. These strategies quickly polished Nissan's image in the marketplace, and re-established the company in the minds of consumers as a leader in innovation and engineering. Eighteen months later, Nissan was back in the black, and within several more years it had become the most profitable large automobile company in the world. Ghosn transformed Nissan once again into a powerful global automotive manufacturer. NRP returned the company to profitability, achieving 7.9% operating margin and cut the net automotive debt to the lowest level in the past 24 years. Next plan, Nissan 180 propelled the Company into a new dimension of profitable growth. In the second year of the Nissan 180 plan the Company was the most profitable among all the global automakers with an 11.1% operating profit margin and more than 21% ROIC . A future customer-focused plan, Quality 3-3-3 is to be implemented as of
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