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NISSAN Restructuring Plan

NISSAN Restructuring Plan

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Published by: Abdelrazaq Al-Jazazi on May 08, 2011
Copyright:Attribution Non-commercial

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SBS TBS903 Intake A- 2011Managing People in Organisation
³Nissan Corp. Ltd. Successful OrganisationalManagement Change´
Submitted by: Abdel Razzaq A.AbuShahoutStudent number: 3954808March 8
th,
2011Word Count: 3154
Sydney Business School
University of Wollongong
 
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Table of Content
1
 
Abstract.................................................................................................page 32
 
Introduction..........................................................................................page 33
 
Nissan during Globalisation................................................................page 44
 
Nissan transformation year.................................................................page 55
 
Challenges within Nissan.....................................................................page 66
 
Nissan Revival Plan (NRP)..................................................................page 8
6.1-
 Plants capacity Reduction
........................................................
.
 page 9
 6.2-
 Personnel Reduction
...............................................................
.
 page 9
 6.3-
 Reducing Procurements Costs
.
..................................................
.
 page 10
 6.4-
 D
isposing of Non-core Assets
....................................................
.
 page 10
 6.5-
 E 
stablishing Cross-Functional Teams (CFT¶s)
.............................
 .
 page 11
 
7
 
Conclusion............................................................................................page 118
 
Appendix..............................................................................................page 12
Figure 8.1 (Manufacturing capacity 1999/2002)
.........................................
 page 12
 
Figure 8.2 (NRP Workforce Reduction)
.......................................................
 page 12
 
Figure 8.3 (NRP Purchasing Cost reduction)
..............................................
 page 13
 
9
 
References list......................................................................................page 14
 
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Abstract
This report clarifying the way that Nissan Japanese management adapted during thetransformational year. While implementing Nissan revivals plan (NRP) in 1999, by CarlosGhosn after the alliance with Renault to save the company from brink of declaring bankruptcy. Said Ghosn debts reached to be estimated of 22 billion dollars (Emerson 2000, p.4), which has shaken the investors and shareholders confidence about the organisation well- being. In addition, the highly rivalry market surrounding Nissan threatened by the first car manufacturer worldwide (GM) Toyota, Honda, Mitsubishi and Ford Motor company.
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Introduction
This report has been conducted to shed the light on an organisation that hasredesigned its overall organisational structure, during either a tough times or to seize newopportunities exposed in the market. This organisation has been chosen to be Nissan thesecond largest car manufacturer in Japan, founded in 1933 by Yoshisuke Aikawa. Nissan for years was able to expand the company stake in the car manufacturing market and has amassive base of loyal customers. Company revenues managed well as they handled by theJapanese Investment system
keiretsu.
According to Murakami the vice chancellor of µ
The Ritsumeikan Trust 
¶ the Japanese manufacturing industry was ranked No.1 in their competitiveness until the globalization era in 1990¶s and now No. 27 in 2010 (Murakami2011). However, the global economic burst in the 90¶s supposed to be considered as anopportunity to the organisations around the globe to expand. Whereas, specifically in Japanmany businesses had been affected by the globalisation, the term refers to appreciation of communication and interdependency between countries (Scholte 2007). Even though, the

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