Carlos Ghosn - The Turnaround Specialist
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Case Details:
Case Code : LDEN020
Case Length : 09 Pages
Period : 1978-2002
Pub Date : 2003
Teaching Note : Available
Organization : Nissan
Industry : Automobiles
Countries : Japan
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
First Job
In March 1978, Ghosn received a call from a
manager at Michelin, informing him that the company was looking for
French-educated engineers with ability to speak Portuguese, and work
in its Brazilian factories. Ghosn went ahead and joined Michelin
Group as the company provided him two things: visit to his
birthplace and challenges at work...
The Next Destination - Renault
Around the same time, headhunters from Paris offered Ghosn the top executive
position in the French auto major Renault.3
In October 1996, Ghosn joined Renault as Executive Vice-President reporting
directly to the CEO, Louis Scheweitzer (Scheweitzer).
By the time Ghosn arrived at Renault, the company had reported a loss for the
first time in 10 years, and its sales were declining. In addition, the French
government divested its stake in Renault and the company was listed as a public
limited company...
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Management and Leadership Style
When Ghosn joined Nissan he did not have any pre-disposed opinion of the
company or the prevailing situation. Said Ghosn, "This is extremely
important in management. You must start with a clean sheet of paper because
the worst thing you can have is prefabricated solutions…you have to start
with zero base of thinking, cleaning everything out of your mind"6...
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Man of Action
Immediately after taking charge as COO in Nissan,
Ghosn toured Nissan plants in Japan and worldwide. During his tours, he
enquired about the problems faced by employees and the probable
solutions that they could offer.
Ghosn was a man of action and therefore impatient. For instance, soon
after took over as the COO of Nissan, he handpicked 17 people from
Renault and gave them exactly 48 hours to decide whether they would like
to accompany him to Japan or not. Similarly he gave three months time to
the CFTs at Nissan to suggest solutions for the company's problems... |
Excerpts
Contd... >>
3]
Established in 1898, French Auto major Renault was well known for styling of its
cars. Its product line included cars, taxis and buses.
6] Magee, David, Turnaround: How Carlos Ghosn
Rescued Nissan, Harper Collins Publishers Inc, 2003.
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