Renault Nissan: The Challenge of Sustaining Change Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

This is a Thunderbird Case Study. The case discusses the storyline of Nissan's miraculous reversal after Renault decided to put money into the company. The automobile industry had started another wave of consolidation, and many business leaders believed that size was vital for survival. This conclusion led to several mergers and acquisitions that created varying results. The deal concluded between Renault and Nissan was extraordinary because it was not charged or designed as an acquisition or a joint venture. It was structured as an alliance, highlighting the fact that both companies would have their own separate identities in the marketplace and separate executive committees that would run their strategy. On the other hand, the benefits were anticipated to originate in cross-business synergies, ranging from design to logistics and manufacturing to R&D.

It also provides a good background on the strengths and weaknesses related to each of both companies before getting into the details related to creating its execution and the reversion strategy. The study paints an excellent image of the internal challenges that the incoming leader from Renault, Carlos Ghosn, faced in executing the essential changes that were called for. It especially highlights folks-related issues such as performance management, creating change in a tradition-bound culture, the weight of administrative heritage and its impact on performance management, and other related problems. Given the global nature of the setting, the cross cultural angles provide added insights into the challenges leaders face when given a mandate for change. The case ends with a description of Nissan and Renault, both of which reported inferior performance in late 2007. Ghosn was finding it hard to sustain the momentum behind the change, and had been at the helm of both firms for some time already.

Renault Nissan The Challenge of Sustaining Change case study solution

PUBLICATION DATE: January 05, 2009 PRODUCT #: TB0047-PDF-ENG

This is just an excerpt. This case is about STRATEGY & EXECUTION