Without a shared culture, however, a higher degree of integration may be difficult. Yet, it is the natural next step and is facilitated by Ghosn's promotion.
Recommendation and Implementation
I would recommend that Ghosn maintain the same level of integration between the two companies, but initiate a new set of strategic objectives. The current model of managerial collaboration has been successful thus far, so the structure should be maintained. The strategic focus, then, should be on continued market share and profit improvements. The two companies have demonstrated that the existing structure is powerful enough to transform an established company like Nissan. With strong objectives set that build upon the work that has already been done, the companies can continue along their existing path.
The structure of the company, with the cross-functional teams, is already in place to carry out the recommendations. The most challenging part of the recommendation is the building of motivation among managers who have spent the past five years working hard to restore Nissan to profitability. This element of the strategy will require a further cultural shift, from one that emphasizes cooperation in the name of recovering the business to one that emphasizes pushing the company into a position of global dominance. The first step will be the ascension of Ghosn to Renault CEO. This will serve as the flashpoint for the cultural shift. Ghosn needs to emphasize now the ways in which Nissan can help Renault, in addition to Renault helping Nissan. In addition, Ghosn needs to set new strategic goals, such as becoming the #4 automaker, building share in key markets, or expanding market Nissan into Renault...
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