Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 02/2024
Revision date: 6-Apr-2016
Length: 24 pages
Data source: Published sources
Topics:
Automobiles; Cars; Alliance; Transformation and turnaround; Restructuring, change and revival; Fair process and credibility; Cultural differences; Strategy; Vision and leadership; Cost cutting and plant closures; Empowerment; Product development and productivity; Cross-functional teams; Design and purchasing; Trust; Growth
Abstract
This case is a condensed version of the case series 'Redesigning Nissan (A) & (B)'. When Renault sent Carlos Ghosn to turnaround its alliance partner Nissan, observers were sceptical of his chances. After soliciting recommendations from the employees, he unveiled a three-year plan involving plant closures, job cuts, and a refocus on design. Within two years, the company had achieved a dramatic recovery, posting record profits and proposing a dazzling array of new models. Case (A) covers the dynamics of taking charge and case (B) the process of leading change. The combined and condensed version is for instructors wishing to cover the material in a single session. The cases raise a number of themes to do with how an incoming leader establishes credibility, builds a case for painful change, gathers support, provides constant and consistent communication, sells growth as well as cuts, enforces accountability, measures progress, and sustains momentum for change.
Time period
The events covered by this case took place in 1999-2001.Geographical setting
Region:
World/global
Countries:
Japan; France
Featured companies
Nissan
Industry:
Automobile sector
Renault
Industry:
Automobile sector
Featured protagonist
- Carlos Ghosn (male), Chief Operating Officer for Nissan
About
Abstract
This case is a condensed version of the case series 'Redesigning Nissan (A) & (B)'. When Renault sent Carlos Ghosn to turnaround its alliance partner Nissan, observers were sceptical of his chances. After soliciting recommendations from the employees, he unveiled a three-year plan involving plant closures, job cuts, and a refocus on design. Within two years, the company had achieved a dramatic recovery, posting record profits and proposing a dazzling array of new models. Case (A) covers the dynamics of taking charge and case (B) the process of leading change. The combined and condensed version is for instructors wishing to cover the material in a single session. The cases raise a number of themes to do with how an incoming leader establishes credibility, builds a case for painful change, gathers support, provides constant and consistent communication, sells growth as well as cuts, enforces accountability, measures progress, and sustains momentum for change.
Settings
Time period
The events covered by this case took place in 1999-2001.Geographical setting
Region:
World/global
Countries:
Japan; France
Featured companies
Nissan
Industry:
Automobile sector
Renault
Industry:
Automobile sector
Featured protagonist
- Carlos Ghosn (male), Chief Operating Officer for Nissan