Business Policy (601)

BBA VIth Semester

Submitted To- Submitted By-

Dean- Vandana Bharti Amisha Pahwa
(BBAN1MG17060)
Strategic Management
Analysis
Table Of Contents

1. Executive Summary
2. Company History/Background
3. Internal Analysis
4. External analysis
5. Macro environmental impact on car [ PESTLE]
6. SWOT Analysis
7. Distinctive Competencies and Competitive Advantage
8. Financial Performance
9. Indian Automobile Market
10. Renault India [ Strategies]
11. Company Performance In Indian Market
12. Renault India’s Losses in FY 2018
13. Challenges in managing international operations
14. Conclusion
15. References
 Executive Summary
Renault is an automotive industry having distinctive competencies on technological knowhow,
customer service and well known engineers. The company’s internal analysis indicates it has
great strength in both the primary and secondary activities for value chain. Although the external
industry analysis shows it is facing a good number of competitors and the industry environment
is very competitive and difficult according to porter’s five forces. The company has been strong
in engineering and brand association and has a decent number of opportunities for future growth.
However, the company is also facing some threats including active competitors and maturity of
the industry with some weaknesses.

So, with the current financial position of the company, we have up with a set of
recommendations with corporate, functional and business level strategies to improve the current
situation. The corporate level strategy includes merging with one of its previous competitors and
producing future energy driven cars. Besides, the company will also focus on its existing
business model to expand globally. The business level and functional level strategies are
considered in such a way that they are consistent with the corporate strategy. The technological
strategies are also considered to improve the situation of the company. Finally, the changes and
adjustments that are needed to maintain in order to implement the strategies are also considered
including the governance structure, control systems, the adaptation of the company culture and
the global strategies.
 History
Renault is a French multinational automobile manufacturer company. The Renault Corporation
was established on December 25, 1898 by Louis Renault and his brother Marcel Renault and
Fernand Renault in Boulogne-Billancourt, France. According to OICA, in 2013 Renault was the
eleventh biggest automaker in the world by production volume. Now Renault-Nissan Alliance is
the fourth-largest automotive group.

Development and Growth of the company overtime

1902-First two-cylinder engine: Renault designed the 1st two-cylinder engine, the basic module
for the four –cylinder engine.
1914-Requisition of 1000 Renault vehicles for the “Taxis of the Marne “effort: The French
minister ordered Renault to contribute to the war. Renault taxis transported 4000 men to the
front.
1946-Launch of the new 4CV: The 4CV was the 1st real-engine which was produced by Renault.
The 4CV consumed very little fuel and could comfortably transport four people. It was
manufactured in Japan and was sold in the USA.
1999-Signature of the Renault-Nissan Alliance: Renault signed an agreement with Nissan to
form cooperation. In here Renault acquired 36.8% share in Nissan and started a joint industrial
work.
2013-Renault sets up business in China: Renault signed a joint venture agreement with the
Chinese carmaker Dongfeng.
 Internal Analysis of Renault: (The Value chain analysis)

1. Primary activities:

 Research & Development:

Renault Group has been quite efficient in identifying the needs of the market and developing
vehicles that adjust to the core values of customers through their research and development.
Historically, it had produced direct drive gear with no drive belt and had been the first serial car
with four wheel disc brake system by Renault 8. Besides, it had been quite effective in producing
lucrative designs cars such as Laguna, Modus, Avantime (Privatization & Alliance Era, Renault,
Wikipedia) and user friendly cars for their customers. They also specialize in developing systems
to upgrade the value of cars for example, creating a real time system for location and weather
report through a device named CARMINANT (Innovations, Renault). The European company
had started establishing research centers in Silicon Valley and India to further strengthen their
innovations.
 Production:
Historically, Renault production system was based on mass production system with its founder
Louis Renault establishing the process. But, nowadays, with Carlos Ghosn in power of the
company, has introduced a lean production system inspired by delegate responsibilities from
Japanese systems to reduce the waste and standardized the vehicles parts to minimize the cost.
 Marketing and sales:
Renault marketing and sales department had been quite effective in communicating the
customers need to the research and development centers. It had announced “Simpson’s family
car” by realizing the popularity of this famous cartoon. Besides, their marketing strategies had
been quite innovative in creating value to the customers by addressing the cars as “French Borat
with heart”. Moreover, the European inventor had been using the upcoming movies in
Hollywood as a medium in promoting their cars.
  Customer service:
The customer service of Renault is to help the customers to get the best use of their purchased
cars and maximize the value of it to create long term relations. If any of the customers are
dissatisfied with the services provided by the dealers, there are motor codes and certificate of
conformity assures the customers to assist in any unpleasant situation.

2. Secondary activities:

 Materials management:
Renault Group tries to ensure the quality and standards for their products through a guidebook
name “Suppliers Logistics Guidebook” to make sure that the suppliers deliver quality products.
The guide insures the logistic plans and solution with packaging designs and data exchange
ability.
 Human Resources:
Renault group had always focused on having efficient and productive engineers and good
leadership skills are promoted through the board of directors.
 Information System:
Renault has been using a goal seeking software system to ensure the optimization of the mix of
models, critical options and secondary options that can meet sales forecasts within the constraint
the production has. This software helps to ensure the fulfillment of the requirements set by the
company to its workers (Renault Information system: Managing the digital firms).
 Company Infrastructure:
Renault group has a strong leadership under the operation of Carlos Ghosn after Louis Renault
had left. This strong leadership skill helps the top managers of the company to control the
operating system of Renault. The organizational structure of Renault is simple and effective.
Employees can share information and communicate with each other easily which increase the
work flow of manufacturing operations.
EXTERNAL ENVIRONMENT OF RENAULT CAR COMPANY:

To identify and analyze the external environment of Renault Car Company, we mainly focused
on the industry analysis of this company. We also analyzed the macro-environment and
competitor analysis of Renault Car Company which is related to industry also.

 Industry Analysis: A company’s performance largely depends on the characteristics of

the industry in which it belongs and competes. Renault Car Company falls under
automotive industry. Basically Renault is a multinational company but in our project we
only consider the automotive industry of France. The main products of Renault are
passenger car & light commercial vehicle. Porter’s five forces model is a convenient
framework to analyzing industry environment. In our report we follow this model for
industry analysis.
1. The risk of entry barriers (High): To start a new automotive company, a large amount
of capital and equipment needed which is very difficult to arrange for any new company.
That’s why risk of entry barriers is high.
2. The intensity of rivalry among established companies (High): The intensity of rivalry
among established companies within this automotive industry are high. There is a strong
competitive struggle between Peugeot, Citroen and Renault to gain market share from
each other. There have also many minor manufacturers in the automotive industry which
are trying to do well in the market.
3. The bargaining power of buyers (High): For the buyers of automobile industry, they
have lot of choices to purchase car from different company. So the bargaining power of
buyers is high in this industry.
4. The bargaining power of supplier (Low): The bargaining power of supplier is low
because the manufacturers of Car Company are in strong position. Manufacturers are able
to produce material to make car rather than taking those materials from the suppliers.
Manufacturers can use machine in the manufacturing process instead of labor. The
products that suppliers sell have substitutes in the market.
5. Threat from Substitute products (High): Transport services are very well in France.
The Railway services, Marine transport, Air travel and public transport facilities are
 available in France. That is why Threat from Substitute products is high for automotive
industry.
 Industry Life Cycle Analysis: The automotive car industry is in a mature stage. The
market is totally saturated, demand is limited to replacement demand, and growth is low
or zero. One of the reasons for this thing is the population growth rate. Every year it is
decreasing. In present, growth rate is only 0.4%. The amount of new customer is also low
in the market. In this scenario, all manufacturers are trying to minimize production cost
and building brand loyalty to sustain in the market.

Macro environmental impact on car industry (PESTLE):

 Political:
Global restriction is low at the present time and that creates positive impact on automobile
industry. It gives opportunity to expand business in other country as it lowers barriers. But
lowering barriers can put negative impact for business in home country because it increases
competitions among the companies of other countries.
 Economic:
In present, price of fuel is running low and that can put positive impact on car industry. So
customer’s demand to buy car for lowering the price of fuel can be increased. So, selling of car
can be increased and earning profit can be possible.
 Environmental:
At this present time, people of new generation are influenced by new stylish car. Now a days,
people also think about the safety of environment. So electronic vehicle and automobile with
new technologies is getting appreciated very much to new generation and that create very
positive impact on car industry as electronic car is also very popular in car industry.
 Technological:
Technologies are upgrading day by day and these are creating positive impact on car industry.
New technologies are improving structure of car, minimizing cost, attracting consumer and
increasing demand and sales, maximizing profit.
 Legal forces:
Legal forces of a country can put positive impact on car industry of that home country because
companies of other countries face difficulties to enter into that country and competition can be
minimized in that country. This force can put also negative impact on companies of other
countries if government put high tax or tariff and also put negative impact on car industry. Thus
the force can create obstacle for expanding to other countries.
 Socio-cultural:
Social value of people like- giving importance to safety of environment and tendency of avoiding
fuel car for saving environment as well as appreciating car which is substitute of fuel car can put
negative impact on existing car industry. Because of this, sale of fuel cars can be decreased and
existing car companies have to change their strategy and process of production of both new and
existing cars, which is more time consuming and costly.

Competitor analysis:
 Immediate competitors: Immediate competitors of Renault are-
1. Citroen- This Company has renovated and moderated its production line and has also
developed sales and service network. The company is well known for biggest mass
production. (French car brands, 2016).
2. Peugeot- This Company focuses on lowest emission of carbon-di-oxide and safety of
environment. Cars of this company are in hybrid model which is eco friendly. (French
car brands, 2016).

These two companies are main competitors of Renault in French. They are doing face to
face competition with Renault.
 Impending competitors: These are the lists of impending competitors of Renault:
1. Bugatti
2. Venturi
3. Exagon engineering
4. PGO automobile

Those car companies are new in France and not popular to French customers. But in near
future, those can be got popularity among the customers with their brand and values.
 Invisible competitors: These are some list of invisible competitors of Renault-
1. De clerq
2. DeLaChapelle

These all car companies are from French, but not very much well known in French and to
French customers. But maybe those have possibility to be well known to customers.
Those car companies are new in France and not popular to French customers. But in near
future, those can be got popularity among the customers with their brand and values.
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Distinctive competencies and competitive advantage:

Renault is very popular for its innovations. They have unique cars with attractive design and
speed. They are also specialized for producing economic cars customized for other segments.
They have successful automated production system which produces both economic and luxury
cars.
Customer Service: Renault is also popular for their qualified Human Resource which ensures
good customer service. The customer relation department gives quick replies within 24 hours.
They also have efficient and effective telephone request which are also done in a very short time.
Technological advancement: A new technology of driving is introduced by Renault which
gives the drivers an ease in driving the car. This technology is called ADAS (Advanced Drivers
Assistance System). It is helpful for drivers as it give extra vision. It also gives electronic driving
function.
Automated driven car: Renault is thinking of inventing a fully specialized car which will be
first automated driven car and named it Circa 2020 and it will be driven automatically. They are
also setting up center where this cars’ fuel will be recharged.
Less polluted car: Renault has designed cars that caused less pollution which is cost effective.
This type of engine is called Twin Turbo engine. It is more powerful and also it takes less fuel
than other traditional cars.
Rechargeable battery: A car that can charge their batteries and supply electricity to it. This type
of cars is once dreamed by people and that dream will be fulfilled by Renault.
Internet in the car: The drivers of the Renault car can now browse internet and make phone
while driving the car which will be 100% safety. While using this technology the wheel of the
car will be safe as well.
Eco-friendly: Renault also invented a technology where there will be reduction of carbon
emission from the car. To make the society more eco friendly the hired experienced engineers to
the most environmental friendly car the world.

Financial Performance for the Last 5 Years

In Million Euros-Stated Otherwise 2015 2016 2017 2018 2019

Worldwide Registrations[1] 2,802 3,183 3,762 3,884 3,754

Group Revenues 45,327 51,243 58,770 57,419 55,537

Group Operating Margin 2,375 3,282 3,854 3,162 2,662

In % of Revenues 5.2% 6.4% 6.6% 6.3% 4.8%

Associated Income from Nissar Motor 1,976 1,741 2,791 1,509 242

Net Income 2,960 3,543 5,210 3,451 19

Net Income, Renault Share 2,823 3,419 5,114 3,302 -141

Net Income per share[in EUR] 10.35 12.57 18.87 12.24 -0.52

Dividend per share [in EUR] [2] 2.40 3.15 3.55 3.55 0.00

Automotive cash flow [3] 3,484 4,362 4,327 4,386 4,144

Automotive tangible & intangible -2,729 -3,047 -3,362 -4,166 -4,846

investments
Automotive net cash position [4] 2,661 2,720 2,928 3,702 1,734

Shareholder’s Equity [4] 28,474 30,895 33,442 33,088[6] 35,331

INCOME STATEMENT
RENAULT GROUP STOCKHOLDER STRUCTURE AT
DECEMBER 31, 2019

Indian Automobile Market

India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent year-on-
year to 3.99 million units. It was the seventh largest manufacturer of commercial vehicles in
2018.

The Two Wheelers segment dominates the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.

India is also a prominent auto exporter and has strong export growth expectations for the near
future. Automobile exports grew 14.50 per cent during FY19. It is expected to grow at a CAGR
of 3.05 per cent during 2016-2026. In addition, several initiatives by the Government of India
and the major automobile players in the Indian market are expected to make India a leader in the
two-wheeler and four-wheeler market in the world by 2020.

Market Size
Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19 with
26.27 million vehicles getting sold in FY19. Domestic automobile production increased at 6.96
per cent CAGR between FY13-19 with 30.92 million vehicles manufactured in the country in
FY19.

In FY19, year-on-year growth in domestic sales among all the categories was recorded in
commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-year growth in the
sales of three-wheelers.

Premium motorbike sales in India crossed one million units in FY18. During January-September
2018, BMW registered a growth of 11 per cent year-on-year in its sales in India at 7,915 units.
Mercedes Benz ranked first in sales satisfaction in the luxury vehicles segment according to J D
Power 2018 India sales satisfaction index (luxury).
Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.

Road Ahead
The automobile industry is supported by various factors such as availability of skilled labour at
low cost, robust R&D centres and low cost steel production. The industry also provides great
opportunities for investment and direct and indirect employment to skilled and unskilled labour.

Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-

18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent
in 2018.

Latest Update-

Renault in
India
  Expansion Strategy
When a company has to decide strategy for expanding its operations beyond its home country, it
can have two options – global and multinational. (Wild, Wild and Han, 2010, pp. 335-336)
Global strategy – it means making same product or service available for all national markets. In
this approach, company can use scale of economy to manufacture products on large scale thus
reducing cost and marketing.
Multinational strategy - company has to adopt its products & services according to each potential
market. Here company can analyze individual local markets and respond quickly for any
emergency. Renault used this strategy for expansion in Indian market.

 Mode of Entry

Entry mode selection depends on various factors like risk, resources, control, market potential,
trade barriers etc. Within investment entry options, joint venture as one of the most preferred
ways opted by automotive multinationals in developing countries since automotive industry is
capital intensive business. There are several advantages of JV such as:
o Less capital investment and reduced risk
o Easy access to local distribution network
o Domestic market and competition knowledge from local partner
Renault chose JV as preferred mode of entry since many foreign companies had done successful
joint ventures in India with public and private companies like -
o Suzuki Motors, Japan and government of India for compact car
o Honda Motors, Japan and Hero Motor corp. for two-wheelers
o Starbucks Corp, USA and Tata Beverages to open coffee outlets

In 2005, Renault did JV with Mahindra & Mahindra (M&M), an established Indian auto
company. While Renault found M&M as an established & cost-effective brand in Indian market,
M&M also saw it as an opportunity to get expertise in vehicle designs and experience in
worldwide sales from Renault. It was announced that within JV, M&M share would be 51% &
Renault share would be 49%. JV was named as Mahindra-Renault.

Initially Mahindra-Renault decided to concentrate on Renault’s entry level mid-size sedan car
built in Romania called ‘Logan’. In 2007, the new company launched its first Logan, a car
specifically conditioned for right-hand driving in Indian market. It used M&M’s existing plant to
produce Logan cars. Due to some problems, M&M and Renault decided to end the venture. Then
Renault decided to venture in Indian market on its own.

In 2010, Renault switched to new entry mode - wholly owned subsidiary. Wholly owned
subsidiary means a single company owns and controls plant or facility for its business activities.
Advantage of this mode is complete control of operations in target market for managers. Renault
built new manufacturing plant in Chennai with an investment of $990 million and with capacity
to produce around 400,000 cars per year. This plant is now used not just to manufacture cars but
also to export them to various countries in Europe, Africa etc.
Company Performance in Indian Market

Renault’s choice of Mahindra & Mahindra as partner in joint venture backfired. JVs of Mahindra
had failed before. Its partnership with Ford ended in 2005 after 10 years. Similarly Renault had
unsuccessful partnership with Volvo in early 1990. This venture ended in 1994 due differences
between partners over plant location and jobs.
Mahindra-Renault’s first car – Logan couldn’t do well in the market with sales much below its
target. Due to imported engines from France, its price was higher than competitors in same
category. Similarly it failed to excite consumers due to its old-fashioned look. Dimensions of the
car were also a factor in higher taxes. This resulted huge losses for the company.

Since 2011, Renault has introduced many new models in Indian auto market like - sedan cars
‘Fluence’ & ‘Scala’, multi-purpose ‘Lodgy’, luxury car ‘Koleos’, compact car ‘Pulse’, SUV
‘Duster’ and most recently new compact car ‘Kwid’ in 2015. Kwid has received positive
response from customers. (‘Renault Kwid crosses 50,000 customer orders’, 2015) It is also
intended to be exported to Latin American as well as African markets.
 Renault India’s losses in FY18 grow over Rs 850 Crore

The company, which aims to gain at least 5% share in the Indian market, has constantly seen its
performance crumble, owing to deficient brand image, product gaps and vigorous competition in
every segment from players including Maruti Suzuki and Hyundai. “These losses incurred by the
company are towards establishing the business strategy and creating a market position in India”.
Renault India said.

Failing to gain a strong foothold in the domestic market, the Indian unit of French carmaker
Renault reported an over twofold increase in its losses to Rs 850 crore for the fiscal ending
March 2018, owing to stiff competition and subdued demand for its existing product pipeline.
The company’s net loss during the fiscal 2016-17 was Rs 360 crore.

Notwithstanding the modest success of its compact SUV Duster, Renault India’s revenue from
operations during the year slumped 10.59% to Rs 6,904.3 crore against Rs 7,722.1 crore in the
year-ago fiscal, documents sourced from the corporate affairs ministry showed.
In FY18, when the passenger vehicle market grew by around 8% year-on-year, Renault India’s
domestic sales fell around 25% y-o-y to 102,222 units. Production also declined 22% y-o-y
during FY18, data from Society of India Automobiles (Siam) showed.
Even during the April-November 2018 period, the company’s production and domestic sales
declined 26% y-o-y.

When contacted, a Renault India spokesperson told FE, “Renault is still investing in India for the
future and targets to be profitable but not before 2020”.
Renault India, which plans to make India an export hub for emerging markets, also saw a hit on
exports with negligible growth during the previous fiscal.

With little success so far, the company’s management plans to launch new models with hopes of
a turnaround in the years to come. “The company has plans to launch new models over the next
few years and consequently believes that this may have a significant potential to generate
additional revenues in future,” Renault India said.

Though the carmaker reported a loss of Rs 360 crore in 2016-17, it performed better from 2015-
16 when it had reported a net loss of Rs 963.8 crore, documents from business intelligence
platform Tofler showed.

Sales of its popular vehicle Kwid have weakened because of an overall decline in the sales of
mini or small cars. Demand for the models such as Captur and Lodgy also remained subdued
during the year. Compact SUV Duster did taste success, but overall volumes remained under
pressure owing to poor performance of other products.
Challenges in Managing International Operations
If a company wants to manage its business in an unknown market away from its home country, it
can face many known & unknown problems. These problems can be in terms of culture,
recruitment, language, partner in case of joint ventures, labour policies etc. Here is review of
some of the challenges Renault faced while managing India operations –

 Potential Problems due to Cross-Cultural Environment

Appointing right person to look after company’s interest abroad is also a daunting task. There are
four staffing policies that a multinational can adopt for international operations away from home.
Ethnocentric, Polycentric, Regiocentric and Geocentric. (Ball et al., 2008, pp. 543-547) Renault
had initially adopted ethnocentric policy but then decided to switch to polycentric approach by
promoting local executive director to manage operations in India. It was essential since there are
many differences in working styles of French & Indian and perhaps most significant is cultural.
Culture can be defined as knowledge acquired by people that they use to interpret social
behavior. It is learned & shared by experience among groups.
According to Geert Hofstede’s model, culture of a potential market can be judged using five
dimensions of national culture. It is useful in understanding differences between host and target
societies –
Power distance
Higher power distance means authority of superiors is to be respected. Within the business, this
factor also indicates that manager directs & expects the subordinates to follow the instructions.
India’s score 77 clearly indicates importance of hierarchy in the organizations and power is
centralized within top layers of management. France also has power distance of 68 so it follows
similar trend where superiors have powers and they may not be easily accessible.

Individual vs. Collective

Individualist culture gives stress on personal or self and its family life while collective culture
emphasize on members to act in the well-being of the group rather than individual. Indian culture
scores 48 is a mix of both characteristics. In contrast, French are highly individual society with
score of 71. So in France, management and subordinates play equal part in the business.

Masculine vs. Feminine

In masculine cultures, success and competition is more important rather than quality of life. India
is masculine society since its score is 56 because reputation within society and showing
achievement is always essential in India. France has feminine culture i.e. quality of life is
important than status in the society. They usually prefer relaxed atmosphere rather than
competition.

Uncertainty avoidance
Indian score of 40 indicates that Indians are usually prepared for sudden schedule changes. They
are ready to follow them without questioning or hesitation. So in the business context, employees
can work out solutions for unexpected situations. Compared to this, French people are highly
planned and structured. They don’t like surprises and like to follow guidelines & rules.

Short-term vs. Long-term

Since India is developing country, people prefer to plan long-term goals rather than short-term.
Due to high score of 51, culture is pragmatic and doesn’t give more importance to time
compared to western societies. It inherently means that managing time commitments with
Indians is difficult. France also has high score of 63 meaning it is also pragmatic.
Apart from this, Luthans & Doh also points out many challenges for an outsider to manage
Indian employees –
o French is not commonly spoken or understood language in India. It is either English for
corporate & managerial staff and native language for workers. So manager must have
working knowledge of English to manage.
o Most Indians prefer vegetarian spicy food that can a big challenge for westerners during
official lunch or dinner. Use of left hand is often forbidden in Indian context
o French Managers insist on following strict guidelines & structures which employees may
not be comfortable due to low uncertainty avoidance.
o Collective nature of Indian workers will create groups within company as compared to
individualist French
o Due to more pragmatic nature of Indians, managing time commitments will be a tough
task
o Greeting styles are also different in both cultures

 Communication Differences
There are two broad categories of communication in each culture – low context and high context.
Low context cultures use exact words to convey the message while in high context cultures,
people use fewer words in communication and most of the meaning is implicit. French people
being individualistic, tends to be low context by using precise words. But Indians represent high
context culture which has many implicit meanings that can cause potential problems for French.

 Managing Diversity
As per Hofstede model, India is highly collective society. So it is essential for a manager to
know importance of cultural diversity among the employees. Cultural diversity can have good or
bad impact on organization groups. It can bring people with different beliefs & perception
together that can result in creativity and there can be knowledge exchange among them which
can contribute towards decision making.
On the other hand, it can encourage people to form subgroups within existing cultural groups.
Because of this, members can be more loyal towards their subgroups rather than group as a
whole. Any difference of opinions among these subgroups can be negative for the management
because it affects decision making due to communication boundaries.
In Indian context, there are chances that employees tend to form lot of subgroups based on
cultural parameters like language, religion, geographic location, food preferences etc.

 Labor Issues
Relations matters more than expertise in Indian business. So there is lot of favoritism at almost
all levels of management. This can become primary cause of friction between management and
employee since management may choose promotions based on influence rather than worthiness.
This is opposite to Western philosophy of promoting people based on merit.
There is another challenge for managers in India that employees expect seniors in the
organization to make decisions. It is common that employees will always tend to take opinions
from managers and follow them due to influence of hierarchy. So management is India is often
autocratic driven from top-to-bottom unlike European or American which is more participative
in nature.
It seems that company has to evaluate its India strategy again since sales are not up to
expectations. Recently it has downsized manpower at its car factory by around 3000.
Conclusion

Despite average performance, there is lot of potential for Renault in India for further growth
since automobile market is still expected to grow. India has become most preferred destination
for investment. Plus many international auto brands have settled and established themselves
successfully. Also recently World Bank has raised India’s ranking for investment. So these
positive points can be beneficial for the company to establish itself as a trusted brand outside
Europe.
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https://en.wikipedia.org/wiki/Renault#Marketing_and_branding

Renault Nissan to scale india research facility . (n.d.). Retrieved from Nasscom:
http://www.nasscom.in/Renault-Nissan-to-scale-up-India-research-facility-55494?
id=55494