HR Restructuring at Nissan

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Case Details:

Case Code: HROB138
Case Length: 16 Pages
Period: 1990-2007
Organization: Nissan Motor Company, Ltd
Pub Date: 2011
Teaching Note: Not Available
Countries: US, Japan
Industry: Automobile

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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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Background Note

Nissan's history can be traced back to 1933, when Aikawa Yoshisuke (Aikawa) (1880-1967) established the automobile manufacturing company Jidosha-Seizo Kabushiki-Kaisha ("Automobile Manufacturing Co., Ltd." in English) by taking over all the operations for manufacturing Datsun cars from the automobile division of Tobata Casting Co., Ltd...

Shock Treatment

Carlos Ghosn gave Nissan the much needed shock treatment. In the aftermath of the alliance, he was the one who took ownership of the Nissan turnaround.

Ghosn set a timetable for Nissan within which the company had to recover from its losses. Otherwise, Ghosn said, he would resign. This created a sense of urgency both in him and in everyone else around and helped Nissan to achieve what had earlier been considered impossible...

Figure Success

Ghosn's efforts not only resulted in increased sales growth (Refer Exhibit 3), asset streamlining, and cost-cutting, but they also helped Nissan achieve an increase in market share from 4.6% globally in 1999 to 5.3% in 2003. Nissan also maintained its second position in the domestic market (Refer Exhibit 4)...

Revival Plan Vs Union

Ghosn was not only known as the Cost Killer. He also earned the less than flattering nickname of Employee Killer for the numerous job cuts he did. Approximately 21,500 workers lost their jobs - 4,000 in the production department, 6,000 in sales management, and 6,500 in sales outlets across the country, while 5,000 workers were relocated due to the sale of some businesses...

Excerpts Contd...>>


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