...Renault-Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan, which together sell more than 10% cars worldwide.[1] The companies, which have been strategic partners since 1999, have nearly 350,000 employees and control six major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia and Lada.[2] The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen for total volume.[3] The strategic partnership between Renault and Nissan is not a merger or an acquisition. The two companies are joined together through a cross-shareholding agreement. The structure was unique in the auto industry during the 1990s consolidation trend and later served as a model for General Motors and PSA Peugeot Citroën,[4] PSA Peugeot Citroën and Mitsubishi, and Volkswagen and Suzuki,[5] though the later combination failed.[6] The Alliance itself has broadened its scope substantially, forming additional partnerships with automakers including Germany's Daimler, China's Dongfeng Motor, and Russia's AvtoVAZ. Corporate Structure and Strategy The Alliance is a strategic partnership based on the rationale that, due to substantial cross-shareholding investments, each company acts in the financial interest of the other—while maintaining individual brand identities and independent corporate cultures. Renault currently has a 44.4 percent stake in Nissan, and...
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...Renault Nissan Alliance Cotina Mills BSA 555 MBA 462 October 21, 2013 Dr. Peter Natale CERTIFICATION OF AUTHORSHIP: By my signature, and to prevent HONOR CODE violations, I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. Through the use of APA format, I have cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student Signature: __________________________________ Cotina Mills Table of Contents Introduction ……………...………………………..………………………………………….. 3 Vision……………………………………………..…......……………………………………..4 Mission…………………………………………………………………………………………4 Issue…………….………….………………..………………………………………………….5 Strategy…..…………………………………..…………………………………………………7 Current Operations……………………………………………………………………………...9 Introduction Renault–Nissan Alliance is a strategic Franco-Japanese partnership between automobile manufacturers Renault, based in Paris, France, and Nissan, based in Yokohama, Japan. Together they sell more than one in 10 cars worldwide. The companies have been strategic partners since 1999 and have nearly 350,000 employees. They control seven major brands: Renault, Nissan, Infiniti, Renault Samsung Motors, Dacia, Datsun and Lada. The car group sold 8.1 million cars worldwide in 2012, behind Toyota, General Motors and Volkswagen. As of July...
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...you think made this alliance successful? Nissan Motors Company, an automobile manufacturer in japan had serious financial debt totaling up to $20 billion and it was losing substantial market share for over 8 years. Until French auto maker Renault entered with a proposed plan to partner both companies in what became known as the Renault-Nissan B.V. (Besloten Vennootschap) strategic alliance. Much had been accomplished in the first three years of the alliance. Nissan and Renault had the opportunity to take advantage of each others core strengths and capabilities. Nissan had market reach in North America, while Renault was extremely successful in Europe. Nissan was known for their engineering, but was a company on the verge of collapse. Where one company lacked the other flourished and this proved to be beneficial to both. Renault-Nissan had created several different functional teams within Nissan to maximize synergy. These teams covered different departments, management levels and regions for both companies and were meant to ensure that the alliance would be managed strategically.Once allied with Renault, Nissan’s once poor financial performance and debt dramatically decreased, and Nissan’s profits totaled 47% of Renault’s profit for 2001. World market share rocketed at more than 9.2%, placing Renault-Nissan in the top five automakers in the world. 2) Based on your study of this case, what would you say about the meaning of an alliance? An alliance is like a marriage...
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...พันธมิตรแห่งความสำเร็จ Renault-Nissan ย้อนกลับไป 13 ปีที่แล้ว ก่อนที่ Renault และ Nissan ประกาศความร่วมมือเป็นพันธมิตรกัน ในปี 1999, Nissan ในขณะนั้น แม้จะเป็นผู้ผลิตรถยนต์ขนาดใหญ่เป็นอันดับที่ 2 ในประเทศญี่ปุ่น แต่ก็อยู่ช่วงที่ประสบภาวะตกต่ำอย่างหนัก โดยผลประกอบการขาดทุนมาตลอดตั้งแต่ปี 1992 (ยกเว้นปี 1996) ส่วนแบ่งตลาดในประเทศตกต่ำลงตลอด 26 ปีที่ผ่านมาและไม่มีทีท่าจะสิ้นสุด ภาระหนี้สินที่มีอยู่สูงถึง $20 billion ซึ่งมากกว่า ขนาดธุรกิจของ Nissan อยู่ถึง 4 เท่า ธนาคาที่เคยให้กู้เงินมาตลอด ก็หยุดที่จะปล่อยกู้ให้ พร้อมทั้งกดดันให้ Nissan พยายามหาคู่ธุรกิจเพื่อช่วยลดภาระหนี้สินลง และเพิ่มเงินสดให้ธุรกิจรอดพ้นจากภาวะล้มละลาย สาเหตุที่ทำให้ Nissan ตกต่ำเป็นผลมาจาก โครงสร้างการบริหารงาน ที่ล้าสมัยคล้ายระบบราชการ (Bureaucratic company) มีลำดับขั้นและการตัดสินใจที่ซับซ้อน และรูปแบบการบริหารก็ไม่คำนึงถึงประสิทธิภาพการผลิต มีระบบ Supply Chain ซับซ้อนจากการที่มี ผู้ผลิตชิ้นส่วน (Supplier) มากกว่า 3,000 ราย สำหรับ 25 platforms มีรถเพียง 4 รุ่นเท่านั้นที่กำไรได้ จากทั้งหมด 43 รุ่น ในปี 1992 Yukata Kume, CEO มีความพยายามที่จะแก้ปัญหา โดยออกมาตรการ ‘Plant Closing’ เพื่อที่จะลดความซับซ้อนของระบบ supply chain และเพื่อลดต้นทุนโดยรวม แต่ภาวะตกต่ำก็ยังคงดำเนินต่อไป ในปี 1993, CEO คนใหม่ Yoshifumi Tsuji ยังคงดำเนินการด้วยวิธีคล้ายๆเดิม และในปี 1996 ก็มีการเปลี่ยนตัว CEO อีกครั้งเป็น Yoshikazu Hanawa ซึ่งอยู่ในช่วงที่เงินเยนอ่อนตัวจึงช่วยให้บริษัทสามารถส่งออกรถได้มากขึ้น แต่ก็เป็นเพียงช้วงสั้นๆ จนกระทั่งถึงปี 1998 ที่ภาวะที่เลวร้ายยังไม่สามารถแก้ไขได้ Hanawa จึงเริ่มที่จะมองหาคู่ธุรกิจ...
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...“Renault-Nissan Alliance” Case Report "I pledge on my honor that I have not given or received any unauthorized assistance on this assignment/ examination." 1.What are the strategic reasons for the Renault-Nissan alliance? Strategic alliances are voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services (Rothaermal 244). The most common reasons firms enter into strategic alliances are – * To strengthen competitive position * To enter new markets * To hedge against uncertainty * To access critical complementary assets * To learn new capabilities (Rothaermal 245). The Renault-Nissan alliance was not an exception to the aforementioned reasons. In the late 1990s, Nissan was falling apart, with consistent drop in its auto sales and poor returns. It had been losing market share for 27 years in the Japanese market and by 1999 it had about $20 billion in debts. Analysts attributed Nissan’s bland styling, infrequent model changes, high manufacturing and parts costs, and bureaucratic decision-making to its poor performance. At the time when Nissan was looking for somebody to bail them out of their financials crisis and put the on the profits, Renault came to their rescue. Renault was a maker of small- to medium-size cars with consistent, but slim profit margins. It sold 85% of its automobiles in Western Europe with third of them in France. Renault had...
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...The Renault and Nissan alliance Renault, the oldest automaker in France, had been nationalized by Charles de Gaulle in 1945. In the late 1990s, its financial performance had been buoyed by a strong European car market, several popular new models, and extensive cost-cutting. So it was time for Renault to find the partners again since merging with Swedish automaker Volvo had failed due to not match objective; internationalization. In 1997, the Asian financial crisis was like the opportunity for Renault. At that time, Nissan, a Japanese company with a famous bureaucratic management style, was a company on the verge of collapse. It faced with the loss of market share and poor returns. For worse, it was in debt and was under the pressure from the bank. These brought Renault and Nissan to ‘The Renault-Nissan Alliance’ in March 1999. The objectives of Renault are to improve the quality and internationalization. Nissan’s objectives are reduce the cost and the debt. In practice, they formed cross-company teams to study and realize synergies across the major functional areas of both firms since the alliance. They combined two nations together. CCTs had to prepare a report on their progress to the Alliance Coordination Bureau (CB) which functions were providing specialized technical advice, trying to resolve companywide policy issues that went beyond a single CCT, and trying to resolve specific conflicts within the CCTs in a given area. CB must make sure decisions are being taken on time...
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...Renault/Nissan: The Making of a Global Alliance Prepared By: Jason Park & Isaac Hattem Why is Renault seeking a strategic partner? What are Renault’s strengths and weaknesses in seeking a partner? The most successful strategic alliances are between companies with complementary strengths and weaknesses. Renault has been building cars since it was started under the name Socié Renault Frè té res. Louis Renault, his brothers Marcel and Fernand, and his friends Thomas Evert and Julian Wyer founded it in 1899. Since the beginning they have been an industry leader in small car designs, combining functionality with style. In 1998 Renault was the world‟s ninth-largest car manufacturer with 4.3% of the market. During the 90‟s globalization was occurring in all industries including the automobile industry. Major manufactures were seeking strategic alliances and mergers as ways to increase market share, reduce costs, and improve productivity. Renault has been an established French automaker since it started producing cars in 1897. Like many other companies Renault has been looking to expand into the Asia for its large potential market. They felt that the best way to do this was through a strategic alliance. Renault has been looking for another automobile manufacturer to peruse a possible alliance with since the early 90‟s. From February 1990 to December 1993 Renault attempted a merger with Swedish car manufacturer, Volvo. It was expected that the merger would go through, than in December...
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...Nissan Company: Abstract * Nissan is one of the world’s largest automobiles company, * Manufacturing locations in 18 nations and serving in around 160 locations. * In year 2007, Nissan’s Executive Vice President, Tadao Takahashi mentioned its strategy of moving to transnational from multi-domestic so at present Nissan has increased its focus on emerging markets like India and Russia. This presentation aims to evaluate Nissan’s “Go-Global” strategy. In this analysis, we will try to assess the various imperatives that ……… * Company has to operate at multiple locations, * How it chooses among various locations * How it goes about implementing the expansion plan. * Studying Nissan’s global strategy and focusing on its moves specifically in India and Russia. This analysis will conducted by using various analysis tools like porter 5 forces, SWOT analysis, and PESTEL analysis as well value chain and after analysis will suggest the better strategy for betterment of company and for future prospects. Introduction With the increasing trend of globalization and heightened competition, most of the companies at some point of time think of expanding to new locations because of different imperatives ranging from efficiency, growth, competition, knowledge or mix of few. Each company decides its own parameters while making strategic choices of a market or a country NISSAN at a glance: * Nissan is a multinational automaker headquartered in Yokohama,...
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...1. Explain Nissans strategy in EVs including the Alliance? EVs, the electronic vehicle that Nissan brought to the market. This kind of vehicle can use electric energy instead of gas as the power of engine. It is a special new technology which is energy saving. The main strategies include business strategy, global strategy and corporate strategy includeing the alliance. Nissan's business strategy of EVs is differentiation. Because of the feature of Nissan's product is different from most of products in other vehicle company. It's a new technology which is all electric vehicle and zero emission. Unlike several companies, Nissan does not choose to produce hybird vehicles like HEV and PHEV. Instead, Nissan focused on complete electronic vehicle like the model of LEAF. Nissan also has two of its own business models for their EVs. The first one is to sell the car and the battery at one unit, which is same with other auto makers. But the second one is sell the car and leasing the batteries which is unique. In terms of reputation based on social culture, it's all win. Since the LEAF is good for environment and good for public. On the other hand, Nissan does not selling low price as their strategy in order to attract customers. Instead, Nissan focuses more on service. It said that in essence it was selling a car plus...
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...I-Carlos Ghosn’s Management Style Carlos Ghosn, clearly an extraordinary man with an impressive list of accomplishments already under his belt at a relatively young age. But what is it exactly about his management style that makes him stand-out from other leaders, why is it that so much attention has been showered onto him? In the first part of this report that is exactly what we will try to uncover. Ghosn truly does have a unique management style, one that is perfectly suited to today’s global economic reality. In our view the following management practices are the ones that have been integral to the success of not only Ghosn’s turnaround of Nissan but also in his previous accomplishments at Michelin and Renault: Adaptability What really strikes you as you read and learn more and more about Ghosn is that he truly does not have any preconceptions or stereotypes. Whether he is facing a new and unknown country and culture or a situation within a company, Ghosn’s approach is what he calls “a clean sheet of paper.” What Ghosn has been able to do so well is transcend what Peter M. Senge describes as “Mental Models” in his article The Fifth Discipline: The Art & Practice of the Learning Organization. As we have seen in the Senge’s article whenever you limit yourself to your Mental Models you reduce you ability to react effectively to changes in the environment. Senge uses the example of oil companies unable to effectively deal with changes in market conditions...
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...the following dossier of article extracts and answer the final questions. 1.- “The $10 billion man” Feb 24th 2005, The Economist Having turned round Nissan, Carlos Ghosn is about to run Renault as well It is said that he could add $10 billion to the market value of Ford or General Motors with a stroke of his pen. But Carlos Ghosn is not about to sign up as chief executive of either firm. Instead, in May, he will become the boss of Renault, France 's second-largest carmaker, while continuing to head Nissan, Japan's number two car firm. To ease the transition, this week he named Toshiyuki Shiga as Nissan's chief operating officer. Although Renault and Nissan have cross-shareholdings and a deep alliance, their relationship deliberately stops well short of outright merger. Perhaps that is why it has been so successful, avoiding the integration pain that has marred, for instance, DaimlerBenz's takeover of Chrysler. In his book, “Shift: Inside Nissan's Historic Revival”, published in English last month, Mr Ghosn says that the strength of the alliance “can be found, on the one hand, in its respect for the identities of the two companies, and on the other, in the necessity of developing synergies.” Certainly the benefit has flowed both ways since the Franco -Japanese deal was done in 1999. First, Renault rescued Nissan, buying a stake (now 44%) and installing its Mr Ghosn as chief operating officer (and later chief executive). Mr Ghosn turned huge losses into a $7 billion...
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... and where relevant ethical concerns. Submitted on December 10, 2010 The internationalization of Renault : a strategy of development in emerging countries Nowadays, Renault is the car manufacturer of reference in France, ahead of Peugeot and Citroën of the PSA group. The Renault-Nissan alliance, established in 1999 and based on two independent companies with their own culture and their own brand identity, is the fourth largest automotive group in the world. After experiencing some difficulties in the 80's, Renault has developed an aggressive strategy of international development that makes it today one of the key players in the global automotive market. By focusing on cultural, political, legal and ethical issues, we will first explain the different stages and difficulties in the internationalization of the group. Then, we will study its different implementation strategies in the several new markets and finally, we will discuss the consequences of the internationalization of Renault. The story of Renault started on the 24th of December in 1898. The society Renault Frères grew rapidly and in 1903, Fernand Renault started to develop the commercial network of the company and created the first subsidiaries abroad – England, Belgium, Italy, Germany, Spain and the United States. However, because of collaboration during the 2 nd world war, the state became owner of Renault Frères in 1945. During this period, the internationalization was started but limited : only some european...
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...French-Lebanese-Brazilian businessman born in Porto Velho, Brazil, who is currently the Chairman and CEO of France-based Renault, a European leading carmaker, and Chairman and CEO of Japan-based Nissan, a Japanese leading Carmaker, and Chairman of Russia-based automobile manufacturer AvtoVAZ. He completed his secondary school studies in Lebanon, at the Jesuit school College Notre-Dame de Jamhour. He then completed his preparatory classes in Paris, at the “College Stanislas” and the “Lycée Saint-Louis”. Carlos Ghosn earned two engineering degrees in Paris, the first from the “École Polytechnique” in 1974, and the second from the “École des Mines de Paris” in 1978. He joined Michelin in 1978 as a management trainee and soon he became a manager of the “Le Puy” plant in France. Then, he became Chief Operating Officer of Michelin’s South American activities based in Brazil before being appointed Chairman and Chief Executive Officer of Michelin North America in 1989. He joined Renault as Executive Vice President in 1996. In addition to supervising Renault activities in Mercosur, he was responsible for research, automobile engineering and development, manufacturing, powertrain operations, and purchasing. Carlos Ghosn joined Nissan Motor as Chief Operating Officer in June 1999 and was named Chief Executive Officer in June 2001 and became a president in May 2005. He was appointed President and CEO of Renault in May, 2009, and reappointed in 2013; the year where he was also elected chairman of AvtoVAZ, Russia’s...
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...Globaloganization of Renault Development Strategy By Said Cherkaoui Executive Briefing: This article presents the drive of Renault from the edge of bankruptcy to the rise of its model Logan to international preeminence, fame and success. At the same time, Renault concentrated its production in countries that have been considered by the major car manufacturers as solely a marketplace and not the location of their production. For Renault, the first half of the 1980s were “the crossing of the desert” when the French automaker reached the edges of bankruptcy, while Volkswagen continued to expand in terms of production and market reach. Volkswagen developed its international base through the acquisitions in 1991 of Skoda, the automobile manufacturer in the Czech Republic and SEAT, the Sociedad Española de Automóviles de Turismo. After the withdrawal of Fiat in 1981, the Volkswagen Group subsidiary Audi AG signed a cooperation agreement with SEAT, becoming the major shareholder in 1986, and 100% owner of the company. In 1990, SEAT expanded its operations in China and Latin America. In comparison, Renault put the brakes on its international drive and concentrated its efforts on solving internal dissensions in the aftermath of the terrorist slaying of its CEO. Renault also focused on renewing its relationship with the new French Government, smoothing the resistance of left-wing Unions, finding acceptable solutions to its large and aging North-African immigrant ...
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...INTRODUCTION | 2 | Nissan motors history | 3 | Engineering business function definition | 4 | Nissan organization performance | 4 | Departments in Nissan organization | 5 | Departments of Nissan | 5-13 | Examples of interdependence departments | 13 | Conclusion | 15 | Recommendations | 16 | Financial planning process | 17 | References | 19 | Introduction In this assignment research we will cover some specific business analyses from the Engineering side , Engineering and business are attached to each other’s because Engineering solutions may also include business solutions and the Engineer should have a brief background about the business management and the marketing strategies Therefore, and in depth understanding of business management is required in order for the engineering organization to thrive. Nissan Motor Company will be used as an example to help us grasp the concepts of business functions, how departments relate to one another and the process of decision making in an organization. Brief History of Nissan Motor Company Nissan is a Japanese multinational automaker located in Nishi-ku, Yokohama in Japan. ,they were not always known as Nissan. They actually started out as Kwaishinsha Motor car works in 1911 then changed its name to Kwaishinsha Motorcar co. around 1918. It did not actually start using the name Nissan until the 1930′s. The...
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