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    14 views6 pages

    Tata Case

    Uploaded by

    nesa
    Case study

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    of 6
    CONTRASTING cuLTUR: ND BUSINESS MODELS 183 {7 How usoful are the iceberg and culture onion models as explanations ofthe main characteris: B tcsof culture? { 2, In what vays does culture help to determine a country’ formal and informal institutions? <2, To what extents language a dstingushing feature of culture? = A. ln what ways do monochronic and polychronic time orientations manifest themselves in coun- © tres with these cultural characteristics? “6, Doyou agree that multinational enterprises should adopt an Anglo-Sexon approach in order to be successful in the modern global economy? amor : aio 3. wit reference o 2 parila coun. ivesigte the exert o which langage represen eon ee barvertotnecewopmentot te sorts meron tnt \Chinaor eee 2. Undertake a cultural assessment ofa specific country and investigate the extent to which busi- scinaoe resepracice coespands wb hs carl ene te cet oneres rereisno «3. Choose a specific country that can be categorized under either the Anglo-Saxon, European, or vmpanys _ tstatan model and mesttetheoxenttowtichthemotl nentesraennee coche moa von ofthe count conceres bearing ining any tangent ve secnva nisecns Socom: enmnnerter compe @) case study: The Renault-Nissan Alliance ~a cultural enigma itis the ane Theallnce betwen thefrench armani Renault andi apres counterpart Hn ot ‘ae fomedin 199 Renault italy Doug 368 er cent equity fae n Nan nretumfor se ‘isn 15 percent canon ae in anu Rena ernted is seer Nano ‘44 per cet Teac sin eft jit verte been he wo companies, gene co core of shreoldng beeen en but ota each copany ena epee his mand cuban and are are but the alanei corey ald compary, Rene Nisan eana- 2. company reir urs Dutch an allan give ere smanageent onal of Nein tet, andsnc 205 the to companies hve ad hl chef eeute Cees Grom rin, The remarkable ape ofthe alancefs the very citerent actives theo cmpéie ie Renault had bee sate oan an rng th 980 the company underwent mejores 2 [lower roman tesa waren ‘caning aminortysharehoing Nan onthe ter had had ached hepa of coon rational succes by te ed of he 190 producing Ne specetion ves MEN these Productive, state-of-the-art factories. The main things the two campanies had in common were have theists sel onatonal pre erpedaly theese of enl n teoot Sc vraly | epee atonal cites (continued) Cera ere aS a MRS: ase ae eT: 184 8 1998, however when thealiancewas formed, Renaulthad uecome mare adventuaus, producing imaginative cars and enjoying its ew-found commercial reedamin the private sector, ile Nisan = | stile highiy productive company - ha built up debs 0.000 bilan (then about $15 tbo, legacy offs raiancecn loan capital to fnanceitsdomesticandinternational expareon. The lance gave Renault an opportunity to venture nto Nisans markets shave technology and design skils anc achieve ‘es savings using common supplies. Nisan vs given 2 rescue linea allow to etn to protabilty, Both companies became more significant players inthe global car market with ther jont sales pacing ‘them close bebind the marke leaders Toyota and Volkswager, sales revenue in 2012. Carlos Ghosn was broughtin as chi xecutve of Nisan in 1998 by Ranaut ongestanding chaitman and chief executive, Louis Schweitzer, Schweizer had transformed Renault info a succesful company and Ghose was expected totum Nisan fortunes oureafter the alliance wae formed, Ghosn was emarkably successful in achieving his gol helping to reduce Nissans enormous debt and exces capacity, cut costs, and retuenthe company to praftabity by 2001 He then set about Introducing new models More recent the liane has beanring nits partners clover together sharing techrical expertise, production platforms, logistics, marketing, and information systems as well asthe purchasing of components and other supp, ft has also been using ts management and ‘organizational synergesto form strategic allances wth Daimler of Germany and AvtoVAZ of Russia anc when setting up new production Facile in cuties sucha Brazil Ind, and Morocc The Renault-Nissan aliance represonts a eultural conundrum, Clos Ghosr's own cual background isintigung: he was born in Brazlto Lebanese paren. but educated in France. At Nisan, he gained reputation as Te cost ler, 2 curious amalgam of French and Angle-Saxon cultures, both linguistically anc socio economical, Using an approach mare commonly asracated with the ‘Anglo-Stxon model, Ghosn was ableto bull an the success afa French company to transform a _uintessently japanese company. Surprisingly he encountered as much praise as resistance om Japanese citizens when losing Nisan plans in Japan and making workers recundant, something ‘normally alien tojapans collective corporate culture Atte very last, the Japanese were tating tore-evalcate their conventional ides Japan had by thistime already experienced adecade of economic stagnation and fling corporate profitability and thete wa a growing realization that Aificuitnimes eoquired date measures ® Case study questions Why cl Nisan alongwith other Japanese companies. gtinto eficutios during the 19905? Inyehat wayshave both Nissan and Renault benefited from alliance synergies since 19997 \Why do you think Renault and Nissan have decided to kep the wo companies separate, despite thoi joint cverll management? 4, Bilan the differences and similarities between Japanese and Fench cultures in main dimensions of culture 5, Towhat exentare Japanese companies in generally to follow Nissans example in leaving some ‘ofthe country’s conventional business practices behing? 6. Why do you think Carlos Ghosn decided to adopt elements ofan Anglo-Saxon approach to the transformation of Nisan? ation tothe 7. Does the experience of tuming around Nisa fortune suggest hat all companies should adopt an Anglo-Saxon approach if they want to be successful i the modem international business £8 In thelight of the Roraut-Nissan lance, towhat extent iit sti posible to speak ofan East Asian ‘or Buropean socio-economic medel? a) a co rae ae com- vy but vould nson outs? ned plas- luced nent. ‘cent other nthe sand ‘pure olves quire buta value ches. ction insor ment edas rand ity of pon: ollow BUSINESS ETHICS AND CORPORATE RESPONSIBILITY 43, Ctcally evaluate the idea ofa social contract as a way of establishing accepted standards of behaviour within a particular group or society. 4, ‘Bvenif one accepts thata company has a responsibility towards all its stakeholders its primary responsibilty mus still be towards its shareholders’ Discuss. 5, Towhat extent does the ethical principle of pluralism provide a useful guide to employers seek ing to regulate the conduct or dress of thelr employees? 6, Given the need to protect the natural environment, compare and contrast the relative mer- its of regulatory, market-based, and voluntary approaches to the solution of environmental problems. Suggested assignment topics 1. Choose a specific multinational company. identify differences in wages, hours of work, and ‘other working conditions in the differant countries in which it operates. Evaluate the extent to which these differences represent acceptable ethical variations between countries or whether Universal ethical norms should be applied, 2, Identfy an organization which publishes a CSR reporton its activities. Examine a recentrepor, determine the extent to which its CSR activities are measurable, and evaluate the potential Impact of these activites on the company and its stakeholders, 3, The globalization of business activity has inevitably led to an increase in international air and sea transport. This has led to calls for organizations and individuals to reduce their ‘carbon footprint’by limiting air travel, Buying goods produced in their domestic economy, and partici- pating in carbon offset schemes. Investigate the costs and benefits of these ideas from business and environmental perspectives. ©) case study: Conus and the Tata Group 11 1999, Brits Steel ad Keninklije Hoogovens, «Dutch stl compariy merged to form Cons ‘within two years, te nen formed steel company hail responded to dificult word trading ‘conditions by makinga numberof cu init operations. Te company’s most controversial action was the announcement of 6000 job losses in February 2001. Corus justified the fb losses onthe grounds thatit had to reduce costs ane improve afeney inorder to return to profitabity when facing a high steting exchange ate and a competitive word market. “The company’ decklon was companied by protest rom te stehverkers ade union, the Iron and Steel Trades Confederation, and policians, notably members of the Walsh National Assembly. “There were also cals forthe UK government to provide fnandal suppor for Corus given the company's importance as the main ational supple of ste! an the scale ofthe job losses in some ofthe countrys already depressed regions The British government might azo have been considered tohavesome ‘esiualresponsbilty forte company, given ts former ownership ofthe British Steel Corporation

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