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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    14

    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