The Global Leadership of Carlos Ghosn at Nissan Essays

Nissan functions using these two major components. Service and manufacturing organizations face many similar issues that affect the end result of the operation. For example, both face issues of cost control, and create mission statements and a vision for how the organization will be run and perceived by customers. They however their operations answer different questions and formulate different strategies when it comes to planning and managing the way in which an organization is run. The manufacturing operations at Nissan are in contrast to that of TPS, they leveraged a regional, decentralized supply chain structure, but still imposed a strong central control and coordination in times of global crises. Service wise they maintained a flexible organization by integrating and embracing diversity into their team. These two operations gives value to the customers and meets the organizations overall objective of customer

General Motors (GM) was one of the premier automakers of the world. Firmly planted as the leader of the big three automakers, GM, Ford, and Chrysler, years of success grounded GM as an economic and cultural icon of American business. As the Japanese auto market grew and became more efficient, turning out improved vehicles that the public wanted, GM was becoming a lumbering behemoth of inefficiency and corporate gluttony. Many circumstances contribute to GM’s road to bankruptcy including high legacy costs in union owned contracts, largely poor design, inferior quality, and low productivity.

Greg Aziz is a famous CEO or rather a huge name in the vehicle manufacturing sector and has been on the frontline fighting for the success of whatever he undertakes in life. He is a very big person in the manufacturing industry and happens to be the current president and the CEO of National Steel Car. He also happens to be the company’s chairman and president and has witnessed the company grow to very great heights. National Steel Company is one of the Canadian based companies making a lot of profits and has to work for nothing else but success. Greg James Aziz was born in Ontario in the year 1949.

General Motors, the “mother company” has faced many troubles in the past, and surfaced. A research by the National Research Council in the United States has revealed in 1992 that there had many impacts and future impacts in the automotive industry, indeed; it would affect the jobs and the internal economy. However, General Motors understood the threat potential that this and established strategic plans to revert the trend. Furthermore, whether General Motor Company was able to change the trend, and it saw the internal and external factors, prepared a strategic plan, Holden being the first brand in Australia, with at least just the 10 % of the population compared with the USA, the way to get a plan looks easier. In addition, it is easier to see a trend in countries with low population and good policymakers. In 2008 General Motors faced again the limit to bankruptcy. A fierce plan to develop and a new business association with FIAT made that GM avoid the dissolution. Even do all Europe have had a similar crisis( Boudette & Choudhury,

At the time of this case study, 2002, Timken was involved in company-wide restructuring. They were consolidating current operational segments into global business units to reduce expenses. Their goal was more penetration in global markets due to reduced growth in the US based on the bearing industry’s cyclical nature. Analysts predicted 2-3% industry growth in the US, but 6.5% global growth through 2005. The slow US growth was directly tied to the automotive industry’s cyclical nature, which was declining in 2002. Global penetration would help to achieve economies of scale, whilst hedging the

The 2008 financial crisis was a difficult time for all participants of the automobile industry. Jackson Automotive System’s reluctance to carry debt coupled with a strong working capital position and a conservative financial policy helped bring the company through the financial crisis. After the

New Product Development : the aggressive investment strategy into R&D division led to speed in releasing new products in the market. This gave the company higher ROI returns projections. The faster cycle of innovation led to multiple product availability in the market which led to further increasing the gap between them and the competitions and also the company indulged in manufacturing self brand products rather than Co-branded or Partnerships.

Individual Assignment: leading change for Carlos Ghosn at Renault and Nissan – Core Leadership task

A financial analysis of Ford Motor Company’s (Ford) statements will identify their solvency in today’s automobile market. Elements such as liquidity, leverage, profitability, and activity ratios will demonstrate Ford’s financial health and stability. A further assessment of their technological advantages, global strategies, and benchmarking analysis will indicate the future prognosis of this company.

4. How did Kia, which had gone bankrupt, revitalize the organization in such a short period of time?

Ghosn’s plan to combine, centralize, and globalize Nissan and Renault’s parts procurement would cut costs by 20 percent! Before this change, Ghosn estimated Nissan’s parts procurement costs were around 10 percent higher than Renault’s. To accomplish his goal, Ghosn had to prove that the precious keiretsu system of Japan was promoting

Carlos Ghosn was credited for successful management of Japanese firm Nissan to a profitability which earned him a well known name called "TurnaroundArtist." Even though he was an outsider and lack a clear understanding of the traditional working methods of the Japanese firms, Carlos did a recommendable work which brought the company into sense of urgency in management. According to IBSCDC (2005) when Carlos was the CEO for the Nissan Company, he managed to reduce the firm's debts of about $19 billion to almost zero.

Along with other Japanese manufacturers, Nissan was successfully competing on quality, reliability and fuel efficiency. By 1991, Nissan was operating very profitably, producing four of the top ten cars in the world.Nissan management throughout the 1990s, however, had displayed a tendency to emphasize short term market share growth, rather than profitability or long-term strategic success. Nissan was very well known for its advanced engineering and technology, plant productivity, and quality management. During the previous decade, Nissan’s designs had not reflected customer opinion because they assumed that most customers preferred to buy good quality cars rather than stylish, innovative cars. Instead of reinvesting in new product designs as other competitors did, Nissan managers seemed content to continue to harvest the success of proven designs. They tended to put retained earnings into equity of other companies, often suppliers, and into real-estate investments, as part of the Japanese business custom of keiretsu investing. Through these equity stakes in other companies, Ghosn’s predecessors (and Japanese business leaders in general) believed that loyalty and cooperation were fostered between members of the value chain within their keiretsu.

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.

This paper details each change undertaken by the organization by highlighting the different pressures identifying the problems the organization met and ultimately detailing the solutions that General Motors implemented.