Nissan Case - Turnaround of Nissan

University Name

Turnaround of Nissan

Case study Analysis

Contents

1. Introduction 2

2. Impact of Leadership Change on organization’s Performance 2

3. Theoretical Framework of Changes brought in Nissan 3

4. Traits and skills of successful Ghosn strategic leadership 5

5. Ghosn as a Transformational Leader 8

6. Cross-Cultural Considerations during Change Management 10

7. Conclusion 12

Reference 13

1. Introduction

Turnaround of an organization is one of the most challenging tasks for the top management. This report addressed the main challenges and issues faced by a transformational leader and change agent Carlos Ghosn at Nissan. This case study is an excellent example of strategic turnaround and revival of Nissan, an underperforming organization before the transformational changes brought by Ghosn. This case study analysis presents impacts of leadership, theoretical framework, traits and skills, and type of leadership of Ghosn. Also, cultural considerations during change management are included in this report.

2. Impact of Leadership Change on organization’s Performance

On Carlos Ghosn appointment as the new chief operational officer at Nissan in 1999, he implemented a rooted process formulated to force employees to finds cost-effective solutions. Ghosn radically turned around Nissan’s performance over a span of 24 months using the following instruments; formation of cross-functional team; Identifying the root cause of Firm’s problems; developing an economical production cost; and investing in the product design. With these instruments, Ghosn formulated a turnaround strategy which had the primary concerns of producing fast and lasting results. But first he travelled to all Nissan’s factories, quested the core employee groups of the company to determine the company’s strengths and weaknesses and different aspect of Nissan’s operations.

After gathering essential information that gave birth to a solution oriented plan, Ghosn formed nine cross-functional teams that were given a 90 day challenged to identify economical solutions to the financial and managerial problems that faced Nissan. These teams were formed in such structure was simple: Each team consists of employees from different disciplines