The document summarizes Nissan's turnaround plan led by Carlos Ghosn after he became CEO in 1999. Key elements of the plan included freezing excessive spending, investing in new production lines to increase capacity and market share, and restoring Nissan's brand image. Through cross-functional teams and cross-company rotations, Ghosn also strengthened the alliance between Nissan and Renault. By 2008, the plan had led to $109 billion in annual sales and a larger global market share, demonstrating the success of Ghosn's leadership in revitalizing Nissan.
2. ? Executive summary
? Answers to case questions
? Conclusion and lessons
4. ? ¡°Freeze¡± agreement on March 16, 1999
? Product development
? Brand image vis-a-vis customers
? Free capital resources from non-strategic, no-
core assets
? Increased investments
5. ? New production lines
? Improvement of manufacturing position
? Increase of capacity utilization
? $109 billion in sales, $4 billion in net profit
6. ? Weak industry players
? Daimler-Chrysler¡¯s failure
7. ? Boundary-spanning leadership
? Company-wide building blocks
? The Nissan Revival Plan
? Building glue between Nissan and Renault
? Communication rituals
? Cross-boundary rotations
8. ? Increase in operating margin
? Restored allure to Nissan tarnished brand
image vis-a vis the customers
? Additional research and development
investment
? Conquered the U.S. market, 1/3 of Nissan sales
9. ? Cultural and corporate differences
? Functional boundaries
10. ? 22 entirely new car models
? Innovative car model produced in Brazil
? Company-wide building blocks
? Cross-functional teams
? Nomination Advisory Committee
? Producing Renault cars in Nissan plants
12. ? LCV leader in Western Europe, 14.4% share of
market
? New vehicles
? International expansion, broader brand portfolio
? Global Supply Chain Organization (GSCO) in
2008
13. ? Global brand image
? Focuses on China and Russia, 5% market share
? New markets in India and Brazil
? Aggressive planning strategy
14. ? Importance of a strong ¡±common glue¡±
? Don not try to be an alliance of equals
? Create the environment of genuine
trust, mutual loyalty, reciprocity, and low-risk