NISSAN’S U-Turn

Dina Eldrina Liang Liang

Tovanny Panjaitan Vadim Neumann
Amritha Mendonca Pavan Bagade
 Overview

Consolidatio
Start Up Activation
n

FY 1999 - Innovation
Charismatic Enhancing
and
FY 2000 Leadership
Marketing
Brand

FY 2001 – Nissan is Zero Debt

Awareness
FY 2002 Back Environment
 Start Up

• Charismatic leader
• Identifies problem

• Sets the goals and objectives

• Provide resources
– Handpicked executives

• Change in organizational culture

 Activation
• Innovation and Marketing
– R&D
– Brand Re-enhancement
• Cut Cost
– Suppliers
– Globalization
– Shut down plants
• Increase efficiency
– Optimize machine utilization
 Activation
• Improve communication
– Bottom-up Approach
– Use of Emails
– Clear and constant communication
– Internal Agreements
• Delegation
– Accountability and responsibility
• Other changes in culture
– Transparency
– Language
– One rule
 Consolidation

• Turn profit around by 2001

• Enhancing brand
 A Framework for Taking Charge

Enabling tools
• Visited plants
• Set clear goals

Avoiding the traps Creating Momentum

•He interacts with • For Employees Meeting
people  Bottom up approach Challenges
• Identifies the • For Stake holders • Involvement of
problems  Turn profit around stakeholder
• Listening to others • For Public
• Hand picked  Transparency
executives • No Choice

Managing oneself
• Strong leader style
• Clear understanding
 Start Up 2001
• Urgency awareness
• Promotions
– Product
– Employee
• For Shareholders
– Dividend payment
• For Employees
– Stock options, salary increase
• Gender equality
• Increase in stock price
 Activation

• Product Innovation
– Flashy new vehicle

• Brand Campaigns
– Tokyo motor show

• Meeting market needs

• Debt reduced to half

• “Nissan is back”
 Consolidation

• Zero debt environment

• Plan 180

• New 3 year supplier cost reduction

How to keep the Momentum Going?

• Keep the underdog spirit

• Continuous improvement

• Set new goals

 Recommendations

• Improve relationship with stakeholders

• Customer satisfaction

• Expanding overseas market

• Incentives to keep the momentum going

• Employee satisfaction
Ghosn Leadership Skills

• Self awareness
• Self regulation

• Motivation
• Empathy

• Social Skill