Nissan’s Turnaround Story*

            


Details

Case Code : CLBS031
Publication date : 2004
Subject : Business Strategy
Industry : Automobile
Length : 03 Pages
Price : Rs. 50

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Key words:

Merger, technological competence, alliance, cross-functional teams


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet discusses the turnaround of Japanese automobile major Nissan Motors Ltd. It explores the reasons for the decline of Nissan and focuses on the Nissan Revival Plan (NRP) and its implementation. It also explores the various problems faced by Nissan and how those problems were addressed by the NRP.

Issues:

 » How a highly reputed and successful MNC can face threats of survival in a relatively short period of time in its history due to internal weaknesses
 » How communication and involvement of employees both in formulation and implementation of a revival plan can contribute substantially to its eventual success.

Introduction

In 1970s and early 80s Nissan along with another Japanese automobile premier, Toyota forayed into U.S. automobile market. The strength of Nissan was its technological competence. By 1985, the company exported around 8,30,000 vehicles to U.S., thus making it second largest exporter after Toyota.


In late 1980s, things started worsening for Nissan. Growing competition from Toyota and Honda, and appreciation of Yen against U.S. dollar contributed to the downturn of Nissan. The problem got aggravated due to bureaucratic structure of the organization....

Questions for Discussion:

1. Mergers can be of different types. What is the type of merger that took place between Nissan and Renault known as? Discuss the economic rationale of the merger between Nissan and Renault.

2. There can be various motives and reasons for cross-border mergers. What could be the motives and reasons for the merger between Nissan with Renault? Explain in detail?