Renault Nissan: The Challenge of Sustaining Change Harvard Case Solution & Analysis

The case examines the history of the miraculous turn Nissan after Renault decided to invest in the company. The automotive industry has just started a new wave of consolidation, with many industry leaders believe that the size is critical for survival. This conclusion led to several mergers and acquisitions, which are produced different results. Transactions entered into between Renault and Nissan was great, because it has not been received, or is in the form of acquisition or joint venture. It was structured as a union, emphasizing the fact that the two companies will have their own distinct identity in the market and some of the executive committee that would run its strategy. However, the benefits were to be cross-company collaboration, from design to production and logistics in R & D. The case offers a rich description of the critical competitive elements that characterized the industry at the time the deal was signed. It also provides a good background on the strengths and weaknesses associated with each of the two companies before getting into the details of the creation of the execution plan and its implementation. The study paints a very good idea of ​​the internal problems that Carlos Ghosn, incoming leader of Renault, faced in the implementation of significant changes that were needed. In particular, it emphasizes people-related issues such as performance management, creating a change in the tradition bound culture, the weight of administrative heritage and its impact on performance management and other related issues. Given the global nature of the adjustment, cross-cultural angles for more information about the problems faced by the leaders when given a mandate for change. The case ends with a description of Renault and Nissan, both of which reported poor performance in late 2007. Ghosn was at the helm of both companies for some time already and it was difficult for them to maintain the momentum for change.
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by Kannan Ramaswamy Source: Thunderbird School of Global Management 12 pages. Publication Date: 05 January 2009. Prod. #: TB0047-PDF-ENG

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