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Presentation Of The Merge Between Renault Coorporation And Nissan Moto
Paper Topic: Presentation of the successful merge of RENAULT corporation and NISSAN motors!
Term Paper due on April 26th, 2001
In 1999, RENAULT, a French midsize automaker company decided to create an alliance with Japans NISSAN Motors. This operation has transformed the company into a global player, inside the very competitive market of worldwide vehicular distribution. By taking over 36.8% of Nissan's capital, Renault decided to send Carlos Ghosn, as new manager from Nissan, in order for him to install a Nissan Revival Plan (NRP). Actually, this plan has been made in order for both corporations to restore profitability, and acquire and increase market shares in Japan. My paper presents and describes the different aspects of this successful merging operation between two cultural opposites way of managing and running business. In other words, it shows the differences and changes that have been brought by Renault Corporation. First, it presents the major leadership role played by Carlos Ghosn in successfully restoring Nissans health. Secondly, it introduces the Nissans Japanese way of running an organization, and the main changes made by Renault organization, a western European firm: showing the huge different gap between the two ways of managing businesses.
Carlos Ghosn has been charged to revive Nissan Motor Corporation. After working in turn-around situations at Renault in France and at Michelins U.S. operations, 46-year-old Brazilian-born Ghosn moved to Nissan Japan in 1999, and has vowed to quit if the auto maker isnt profitable by March, showing his characters determination. His leadership has been one of the main factors of the working of Nissan Revival. The question is what really makes him a leader? Actually, understanding the different characteristics of his personality really explains why this alliance has been successful, as Carlos Ghosn has been one of the principal actors of the merge between Renault and Nissan. Kenji Watanuki, director of Foreign Investment in Japan Development Corporation (FIND) describes him as the complete opposite of traditional Japanese managers: he has energy, charisma, and simplicity. He is saying what he is doing, and doing what he is saying. Moreover, the public opinion has been praising the personality of the new Nissan leader: A gaijin (foreigner) that comes to save Nissan, speaks frankly and has the reputation to work from 7 to 23 seems to appeal Japanese people curiosity.... Nicknamed Icebreaker, his skill at ignoring local business practices that stand in the way of making money has really shown Nissan organization his leadership. His behavior defies Japanese business habits and etiquette. For example, his way of managing has appeared to go against the very respectful relation that is supposed to exist between employees and managers inside Asiatic organization: no intermingling between workers at different levels of the company. Seeing him, a president coming down from the fifteen floors in order to shake hands and greet employees, or congratulate a future mother, has really surprised most of other Japanese top managers.
When Carlos Ghosn and his team arrived in Tokyo, aberrations are blindingly obvious. The company has been falling down in the last twenty-six years in the domestic market, and in the last ten years in the global market. The company has one of the biggest debts of the automobile industry, and hasnt realized any profits through the last decade. By identifying Nissan emergencies and dramatizing the companys position, Renault policy was to present an electric and dramatic situation to public opinion, in order to make the stockholders accept their propositions. On one hand, this second part introduces and talks about the different aspects of Nissan before the arrival of Renault, and on the other hand, shows what are the changes brought by Renault Corporation, a west-European organization.
The three main problems of Nissan Motors organization are a lack of leadership, no long-term vision and a need to centralize some of its aspects. First, Nissan organization was the caricature of a Japanese bureaucratic organization where power sits nowhere. Sawako Takeuchi, professor at the University of Tokyo, describes that individuals dont express themselves, and the force is in the group. There is inexistence of leadership! Secondly, the company hasnt been elaborating any long-term vision for their own guideline. Toshiyuki Shiga, today senior ... more
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Many new and exciting business and purchasing opportunities are becoming available due to the phenomenal growth of the Internet and peoples interest to save time and money by purchasing goods via the web. If you think about all the companies that you know that dont use computers for their everyday business than you either are stumped or just thought of one that will soon be forced to evolve or will soon go out of business. There are very few successful companies that do not use computers in their everyday business activities. There are also few companies do not use some form of e-commerce. Just as an example to hit home this point, the effect of the Internet is so widespread in todays business communities, one online article stated that more than 100000 companies have Internet addresses, and 20000 companies have home pages on the Internet as of February 1999. (DataQuest, 1999). Since the beginning of the 1990s these numbers have quadrupled. Now you might be thinking, Just what exactly is e-commerce? To most casual Internet surfers, e-commerce means online shopping or simply purchasing Christmas presents via your personal computer and any Internet browser. As we will soon find out this is not exactly the definition of e-commerce but rather on entity of its capabilities.
In Laymans terms, e-commerce is the exchange of business information between two or more organizations. An example of this would be buying and selling products or services over the Internet. After e-commerce proved to be an efficient means to conduct long distance transactions it became very accepted. This paper shall discuss some of the advantages and disadvantages of e-commerce, as well as predicting its potential for the future of business.
Electronic commerce, or e-commerce has developed exponentially in the last few years and has left some in the cold. The majority of people think e-commerce is just about buying and selling things over the Internet like through auctioning sites such as E-Bay and U-Bid. However, E-commerce is a broad term describing the electronic exchange of business data between two or more organizations' computers. Some examples might be the electronic job applications, on-line services like America online, and on-line billing that automatically pays specified bills each month so you dont have to mail a check. E-commerce also includes buying and selling any item over the Internet, electronic banking so you can transfer funds between accounts or stocks, smart cards, and all other methods of conducting business over digital networks. The primary technological goal of e-commerce is to integrate businesses, government agencies, and contractors into a single community with the ability to communicate with one another across any computer platform.(Edwards, 1998)
Electronic commerce started 130 plus years ago by telegraph technology. This is similar to wiring money though an electronic agency for a small fee. The advent of credit cards as a payment system began the revolution of the automated process of commerce that we are so familiar to today. The introduction of the ATM card in the mid 80s was one of the most recent improvements to electronic commerce and its capabilities. In 1969 when the Department of Defense began funding the research of computer networking and the idea Internet was conceived. By the 80s the Internet was still in its youth and very few households had access to the Internet, but at very grueling speeds. The Internet, as a means for commerce, did not become reality until the 1990s. Before this time, it was mainly a tool for the army, and a research device for some American universities. When faster more readily available and relatively cheep means of accessing the Internet were introduced, it was only then did people start to realize how they could capitalize on a greater market and also use the Internet for a fast and efficient means to conduct long distance transactions, as well as an effective way to distribute information
Clearly, E-commerce will change the face of business forever. Companies that were one thought too far away to conduct business, can complete business transactions in a matter of seconds as well as exchange information. Dell Computers sells more than $14 million worth of computer equipment a day from ... more
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Presentation Of The Merge Between Renault Coorporation And Nissan Moto Paper Topic: Presentation of the successful merge of RENAULT corporation and NISSAN motors! Term Paper due on April 26th, 2001 In 1999, RENAULT, a French midsize automaker company decided to create an alliance with Japans NISSAN Motors. This operation has transformed the company into a global player, inside the very competitive market of worldwide vehicular distribution. By taking over 36.8% of Nissan\'s capital, Renault d...
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