This Case is about ORGANIZATIONAL CULTURE
PUBLICATION DATE: January 05, 2009 PRODUCT #: TB0047-PDF-ENG
This is a Thunderbird Case Study. The case discusses the narrative of Nissan’s amazing reversal after Renault determined to put money into the business. The automobile industry had started another wave of consolidation, and many business leaders considered that size was critical for survival. This decision led to several mergers and acquisitions that created varying results. The deal concluded between Nissan and Renault was extraordinary because it designed or was not charged as a joint venture or an acquisition.
It was structured as a coalition, highlighting the fact that both firms would have their own individual identities in individual executive committees that would run their strategy and the market. On the other hand, the gains were anticipated to originate in cross-business synergies, ranging from design to R&D to manufacturing and logistics.
In addition, it provides an excellent history on the strengths and weaknesses related to each of both businesses before getting into the details related to creating its execution and the reversion strategy. The study paints an excellent image of the internal challenges that the incoming leader from Renault, Carlos Ghosn, faced in executing the major changes that were called for. The case ends with a description of Nissan and Renault, both of which reported inferior performance in late 2007. Ghosn was finding it hard to keep up the impetus behind the change, and had been at the helm of both companies for some time already.