Nissan - It\'s an report PDF

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The goals and objectives of both Nissan and Renault could be specified by the planning and facing the challenges. The first objective for the business between both companies was increasing profitability. As the Nissan was struggling with the financial problem with 11 billion dollars debt and the global financial crisis, they had to aim for the high profitability. The second goals that Ghosn aimed for was the successful competitive strategy. Their threatening competitor, Toyota, which is having a successful business, was the biggest challenge that Ghosn should overcome for the successful business. Thirdly, attract and secure the consumers is the important aim for the company. This goal relates to the challenges of the organization as the business were striving with the securing the consumers caused by the factor of rapidly changing taste of consumers. Also developing the new technology is the important part of the objectives in business as well. Technology innovation could make business successful by reforming the challenges they are facing such as securing the consumers and improving the Nissan’s ageing and outdating technology that leads to the higher quality of the products. Restructuring the internal culture of Nissan is the essential factors to fix the biggest problems in Nissan. The wrong policy of taking responsibilities of the consumer’s claim need to be fixed and improve the customer services. Lastly, Successful alliance between Nissan and Renault is the most important goal of all the others. Achieving for the satisfying merge could lead to the successful partnership and improve the overall business.

There were several challenges that Nissan was facing with the severe crisis. Most of those were critical problems that directly connected to the business. First, the most important challenge that Nissan was facing was the rapid decline in demand. This loss of the company leads to the other challenges of the firm and occurs the crisis to the firm. The financial problem is the representative factors that caused by the loss in demand. Nissan was struggling with the dept of 11 billion dollars. Nissan was also having a hard time with the securing consumers. This problem was caused by two main factors, poor internal structure and strong competitor. Nissan was blamed for poor organizational culture as they have no specific management manual and uncertain structure inside the firm. The company should be in right structure and right leaders with responsibility. However, Nissan’s managers were very irresponsible and busy blaming each other. In this case, there are no one to take responsibilities and the employee’s duties are ambiguous. The company could not run properly with those poor structure inside and this problem was leading the Nissan’s workers to have lack of communication and trust. The second factor that impact the Nissan’s crisis is the Toyota, the powerful competitor. Toyota was manufacturing the high quality of product compares to Nissan. Toyota’s cars were innovative so the product could satisfy the customers changing taste and they made an effort to develop the new technology while Nissan’s technology was maintaining the old technology.

The main factors of those challenges that Nissan obtains above could be separate by few external forces. First, technological in Nissan was evaluated very poorly as they have no improvement at developing the products. Their cars were not progressive and inefficient to product while the other companies were focusing on developing the new

technology. Nissan was not following the market flow and cannot achieve the consumer’s taste by not having the improvement of technology. The economic problem was impacting on Nissan as well. Global financial crisis has impacted the demand of the product and made Nissan to compete intensively with the competitors. The structure of organizational culture in Nissan was very poor so it influenced the firm and leads to the crisis. The organization should have the proper structure to work efficiently. However, Nissan was missing the essential parts from the organizational structure. The leader in each part of the structure was uncertain and the communication between the workers was poor. The employee was blaming the faults and imputing the duties and responsibilities to each other. This leads to the insufficiency of trust and inefficient work environment. With those poor organizational structure, it is very difficult to solve the problems when it occurs.

As the Nissan was having an invalid organizational structure that leads the business to failure, Ghosn should rectify the organizational structure by using a few elements of the organizational design. The work specialization is what exactly Nissan needs to deploy. Separating the work task and specify with the job task would help employees to work efficiently as they perceive their duties and job. This would bring the benefit for both employee and employers as the employee could understand their job clearly and work efficiently with concentrating their own specific tasks. Departmentalisation is one of the core factors that Nissan should improve with. Departmentalisation is that dividing an organization into 5 specific department, functional, product, customer, geographical and process. With the departmentalisation, work processing would improve much efficiently and respond rapidly to the problems when it occurs. Authority and responsibility are the significant factors to leaders in organisation. Chain of command gives leaders the responsibility and made clear place in charge. Authority and responsibility represent the leaders to make clear decision and gives order properly and staff to support and take orders. This would lead the management system to run effectively when it applied to the Nissan. Formalisation is what organisation specify the employee’s role and guide with rules and procedures. Nissan was having a lack of formal roles and what they have needed was the solid rules and procedures. These rules and procedures would become manual to employees in Nissan and help avoiding the confusion and disorder of tasks in charge.

Ghosn have changed the structure and leads the strategic alliance to success. The business has reached the aims of goals and became a powerful company in the world. Ghosn have planned in specific ways and his management was mostly focused on building a strong organizational structure to recover the Nissan. However, there were other elements that help Nissan to overcome the crisis. He had planned both long term goals and short-term goals to revive the Nissan and tried more cooperation with Renault. He also made a successful partnership with other companies to overcome the financial problem and achieve improvement with technology by having a partnership with the motor company. Ghosn was successful leader as he even solved the problems with the tsunami disaster. The factories of Nissan were impacted by the disaster and became non-operating state. Ghosn overcome the critical situation by using a centralization and

vest authorization to the managers of factories. The factories could soon have the production capacity and the company did not had to stand for much damage. Ghosn achieved successful management by using an adequate organizational structure and made Nissan to produce improved product that is profitable. The models from Nissan were profitable and the sales increases so Nissan could become an international company. Nissan’s growth have made by the leader who used organizational structure effectively....