Envrionmental Anaylysis Of Nissan And Renault Marketing Essay

Envrionmental Anaylysis Of Nissan And Renault Marketing EssayINTRODUCTIONThe schemes operating in twenty- archetypical century atomic number 18 characterised by volatile, turbulent, and brisk permutes. The rapid pace of switch overs has 2 positive and negative impact on the drilling pattern of employees in the present env urge onment. More all over, leadership, globularisation, potpourri, flexibility and ne dickensrks argon the major drivers and trends of change management. These trends ready opportunities and threats in the organisation which are illustrated as follows.TRENDSISSUESGlobalisationGlobal vs. Local conversionHomogeneous vs. HeterogeneityFlexibilityFlexibility vs. StabilityNet melt downsInterdependence vs. emancipation jibe to Ghosn (2009), Diversity has different angles which bring things together which are untrod in the corporate environment and in physical world. Moreover, diversity plays an primal role in implementing in effect(p) change and to stay b elligerent in the global environment. The world is so complex and changing at an accelerating renovate therefore the agenda should be driven by diversity and globalisation. However, diversity is not something that can be imposed in organisational nuance and beliefs (Anderson, 2008). Moreover, the intention Diversity is fundamentally united dealing with the change. At present, organisations depend on trail service competent team ups to enhance global competitive edge. However, this type of teams cannot cede expected performance (Ancona Caldwell, 1992). In contrast, labeler utilitarian team ingest collaboration between them. Here, to enhance the performance cross functional teams, they rent to understand the concept of diversity.NISSAN RENAULT AT GLANCECompanyParticularsNissanRenaultVisionenrich nations lifeDrive the changeMissionTo offer exclusive and onwards-looking automotive products and services by ensuring high up quality value towards stakeholders in alineme nt with Renault.To light upon success thorough sustainable growth by safeguarding quality in which company ope judge with its partner Nissan.Date ofIncorporation26th, December, 1933.25th, February, 1899.R fifty-fiftyues (FY 2009)3.35 jillion euro.33.71 billion euro.chief operating officerCarlos Ghosn.Carlos Ghosn.HeadquarterJapan.France.Employees1,75,766.1,24,300.Product Range rail motor machines, Outboard Motors, Forklift Trucks.Automobile, Industrial Vehicles and Financing.SubsidiariesInfinity, Nissan Forklift, Nissan Marine, Nismo, Autech.Automobile Dacia, Renault Samsung Motors.OperatingWorldwide118 countries around the world.Renault Nissan Alliance is an inimitable partnership of two companies combined for performance and created a national automobile group of global scale, signed on March 27, 1999. This alliance based on two main founding principlesBy combining two companies strengths and growth severally and every possible synergies throughout to convey a productive c ome near i.e. Win-Win results.Respecting and preserving distributively companys self-sufficiency of their brand uniqueness and own corporate.The revival externalise divulgeed by an international team of 200 Nissan managers. What this global team has d adept is fully understand the root causes of our current capers and develop solutions that acknowledge Nissan to act decisively ( Ghosn).The revival plan come together propose to develop Nissans business and existence of market and it likewise reduce dinero debt from 1.4 trillion Yen to less than 700 billion and also reduce the follow by 1 trillion Yen by FY 2002.The combination of festering and follow reduction will allow Nissan to achieve a amalgamate operating internet of 4.5 percent of sales by FY2002, (Ghosn). The main and the first goal of revival plan are to return Nissan to profitability for FY2000. patch live cutting will be the most dramatic and telescopic(a) part of the revival plan, we cannot save our focu ssing to success (Carlos Ghosn).Revival plan highlights Nissans dedication to become worldwide achieving growing market share, competitive and profit based on desirable products and brands.This revival plan not totally shows Nissan light upon progress and develop into a strong company over again, but, make Renault as the worlds fourth largest car maker.ENVRIONMENTAL ANAYLYSIS OF NISSAN RENAULTPEST AnalysisFactorsNissan Renault policy- makeGovernment policyImpacted positive on automotive welkin so as to Nissan-RenaultPolicy to promote local manufactures and exportersEconomical terminal of inflationary and deflationaryDue to rise in interest rates , there is hike in prices of oil and car, buying source of customers goes on pick which indirectly affect to the Nissan-Renault.Currency EvaluationVolatility and parlous currency rates affects the operating theater and sales of Nissan Renault.Impact on countries rescueAutomobile industry uses plenty of goods such as aluminum, plas tic, rubber, com upchucker chips, vinyl, textiles, rubber, coppers, iron and steel..SocialPersonality statusAs standard of living of rises, people opt for much luxurious car.PopulationIncrease in existence results in more sales of car.Standards and attitudesDifferent values and attitudes are affects on the customer.TechnologicalTechnological changeThe changing in the technology makes spacious impacts on the product life cycle.InternetNissan Renault has very vast luck to advert their product by on website and gains competitive advantage.OpportunitiesAs Nissan Renault is way back in to the hybrid technology so company unavoidably to adapt this technology. However, hybrid technology is not much old so Nissan Renault should initiates to produce hybrid car.Continue to expand mainly in the developing country particularly in the Eastern atomic number 63 and Latin America. bring in new innovative ideas.ThreatsInstability of fuel prices holds the sales of cars.Purchasing power of the consumer is been affected by the global economy.Competitor growth is been increased in this era for the Nissan Renault.Macro factors such as interest rates, inflation, incomes, recession, and unemployment.LEADERSHIP AND mutation There is no question about the leadership vision of Carlos Ghosn. When he evaluated the revival plan by observing the strengths and weakness. He analyzes the situation by prospect some clinicals that were affecting the company from performing at go take aim. He makes the teams to choose the better methods of achieving the targets. Carlos understand the the objective and vision of Nissan and work burnish was indistinguishable. He clears the strategy and vision in its Revival Plan. The culture of Nissan was homogeneous as they were thinking in the same manner. Though the CEO of Nissan opt for the changes, but the work force did not feel the changes was requirement in the culture of organisation. In order to transform Nissan, there was learn for new cu lture to have impact on the culture of organisation (Nakae, 2005). The cross functional teams has to achieve something in order to delivery of revival plan successfully. For this objective the cross functional teams were form with both(prenominal) car manufacturing organisation and the desired outcome was to equilibrium the cultural values. Cross functional teams are managed by executives appointed by Carlos who are open minded, reliable, culturally diversified. The whole transformation of leadership was to improve the performance of the Nissan. The Cross useful teams were not created to share views and ideas of each culture. However, the motto underneath was to split the vertical barriers in the organisational culture. However, enabling the changes in the organisation cannot ease off assurance of success. The aegis of self-esteem of the particular culture and the identification of organisation must be assured. However, he argues that facilitating change with upholding interest of organisation can wobbly equilibrate act (Ghosn, 2002, Harvard Business Review). The leadership of Carlos Ghosn has characteristic of cultural diversity and with the economic aid of his diversified cultural experience, he extract the cultural differences in organisation. In addition to this, when revival plan of Nissan was implemented, this was stage of performing for the cross functional team. However, the factor which considered as detailed and hurdle in the stage was eastern collectivism and homogeneity of Nissan organisational culture. On the early(a) hand, individual sponsorship with both several(a) teams can be helpful to remove certain barriers to diversity of cross functional teams.CHANGE APPROACHESFollowing are the change resistors and change approaches effrontery by Kotter to Schlesinger (1979) which can help Nissan and Renault alliance in order to successfully implement rival plan.Participation Involvement of people in rung GroupsDecision MakingIncrease Commitm entFacilitation Support inIdentifying safeguardConvincing the Commitment to changeAttitude Behaviour to Change necessity or coercionExplicit or ImplicitWarning for doingsWritten notice for termination on FailureNegotiations Agreements toOvercome oppositionUse of Effective Third-party settlementCommunication Learning about the change byInformingEducatingJustifyingResolving disputesAdjustments Co-operationUse of Power to fulfil bring for adjustmentGrouping Threats and Rewards to fulfilmentWhile implementing this change there faculty be resistance to change at different level in the company as suggested by Kotter Schlesinger ( managing innovation change A critical guide for organisations 2nd edition, Nigel King Neil Anderson 2002).Individual levelGroup levelOrganisational levelREASONS FOR ALLAINCEThe main reason of the alliance was to sharing investment, technology, respective cultures and sustenance each other.The alliance was particularly made on the eagerness of the Ca rlos Ghosn to prospective successful synergy and keep freedom of the operations and culture amongst both organizations.Renault was keen to proffer a general platform for generate development live in important economics such as forming studies prototyping and validation protocols, get and industrial equipment. Which strategy has also been successful and adoptive by several company such as Daimler-Chrysler in the fall in States and Volkswagen and Skoda in the Eastern europium.They also focused on to the improve coordination and cost reductions for Nissan and Renault to the economic point of view.The major advantage of the alliance was both companies able to steps forward in to the foreign market for the instance Renault builds their car in the Mexico plant and to the other hand Nissan able to use Renaults Brazils plant. And also able to use their distribution channels in to the different countries. chthonic the alliance of the Renault and Nissan had agreed to share their compo nents and their locomotives, for the instance Renault is expert in qualification diesel engines and Nissan is expert in making petrol and manufacturing procedure.Moreover, vision of two foreign companies to achieve mutual respect and peruse a common target we ask every single team not to do anything for the other teams. Pursue your own interests, growth and profitability. Because you are doing this, you will look for synergies (Ghosn, www.extra.emeraldinsight.com). This was the most important aspect to support the alliance of Renault Nissan, not merger.NISSAN RENAULT ALLAINCE social organisationRenault Nissan AllianceObjectivesTo be Ranked Amongst Top Three Companys in the look of CustomerQualityValueProduct functionTechnology leadership excellenceEach Region SegmentSustainabilityHigh Profit gross profit margin GrowthRENAULT50%NISSAN50%RNPO Renault Nissan Purchasing OrganisationRNIS Renault Nissan Information Services15%44.3%Revival Plan Major Areas of Cooperation/ChangeC arlos Ghosn was able to induce both the companies toalignand come to following areas of collaboration,PURCHASINGBoth the companies are agreed to tie up their purchasing activities and try to minimise the purchasing cost of raw material. In the year 2001 during the rival plan both the companies were sharing about 30% of combine buying activities where as at present in the year 2009 the cooperation has increased to 100% which indicates the success of this alliance. inquiry and DevelopmentUnder this regards both Nissan Renault both agreed to following two points.Allocate similar stage and components which are not really visible to customers as open body of automotive products in order to achieve the economies of scale and to reduce purchasing end product cost.The platform integrated their efforts by manufacturing cars like Nissan Qashqai Renault Megane and many others which resulted in combine sales of more than 50% in the year 2008.Switch Over Technology ProductionThe connexion enable both companies to swap their technological expertise to create competitive advantage. The Alliance was successful in creating gearboxes together for their combine products. They expertise of Nissan in making gasoline engine and Renault in making diesel engine resulted into co production of different engines.Both companies are moving forward to align their strategies and advanced mechanism in safety, environment performance. They also aims to develop zero emission technology which enable them to focus on voltaic cars by the end of 2010.Cross Cultural Management/TeamsThe unique alliance between Renault Nissan has been working for more than eight years by setting up collaborations in managing culture at all levels as a continuous process of best practices. It is very difficult for Carlos Ghosn to handle the cross cultural tams of Japan France at the same time but with the effective leadership he was able to create more than 30 teams each year.Apart from the above the allia nce has decided to set production standards in both the companies which resulted into increase in the overall sales of the company. Both firms are using each others manufacturing capacities in order to produce mass production which in turn gave core competence in production condenser to both car manufacturers.HOFSTEDE CULTURAL ANAYLSIS Hofstede model of cultural Dimension(source hofstede, (1991), getable at www.ifets.info/journals/5_3/frank.html)Hofstedes cultural dimension helps us to categorize the key going away between cultures. Thus this model was used to evaluate french, Japanese, and European culture. According to Hofstedes analysis there are three cultural dimensions that varies between cut and Japanese culture power distance, individualism and masculinity (Hofstede, 1983).Because of the differences in masculinity scores it would be accepted that Japanese workforce have a different outset of gender in compare to their European and french counterparts. Possibly this c ould direct to tension or pressure between feminine European workforce and Nissan employees. Japanese gender differentiation could also create legal problems due to the anti discrimination legislation in the EuropeA high Power Distance score is directly linked to an autocratic management style. The variation between Japan and France points out that French managers have a more centralised, less counselling approach than their Japanese age group it is also states that average power distance of Europe is low as compared to France and Japan signifying that autocratic style of management in these countries would be strange throughout Europe both the countries have high scores in terms of power distance the Japanese put a high emphasis on the workforce age,( Deller and Flunkert) 1996 state that even capable junior staff will not be stipulation preference over older colleagues. So employees.The significance of superiority is committed with the Japanese principle of lifelong possession wi th many of the employees commit to one firm which they toil for the whole of their life. In comparison the French organise chain of command is based on the upbringingal backdrop of the person. The education system of France is so vastly controlled with the most brilliant student creation conventional to elite schools. Approval to this school is a status mark that prevails through the existence of person with the French perception of accomplishment being judged by a persons family background, educational level and financial rather than by direct accomplishment (Newson -Balle and Gottschalk, 1996). This could lead to disagreement if Japanese disrespect their French counterparts and the French shows lack of respect to their uneducated Nissan associatesA countrys individual signifies the level to which culture underpin person over communal success. However it states that workers work better independently who has high level of individualism in comparison with those low scoresFrance h as the highest level of individualism score compared to Japan i.e. France with 71 whereas Japan with 46. Therefore Nissan in its European operations must give an opportunity for its employees to gain accomplishment. Moreover if it is put into practice in Nissan operation it can escort performance and motivationThe long period of heed signifies a level that the long term goals greater than the short term goals becomes the centre of attraction for the members of society. However it is vital to understand that managers at Nissan should design the strategies by arriving at a logical assurance while working with the RenaultENABLERS AND BARRIERS FOR REVIVAL PLANThe alliance leader of Nissan Renault imposed incremental change through Nissan Revival Plan 01/2. The key driver for the change was to provide Nissan with sufficient market oriented strategies to compete in the market with other larger manufacturers with heterogeneity in their Japanese organisational culture. However, high risk in the alliance was to deal with cross culture value and beliefs of organisation. Nissan was facing problem of product recalling which was damaging its brand image and the other is the lack of diesel technology in comparison with their key competitors. The focus of Nissan was on profitability, cost reduction, innovation in Europe to continue its growth and brand reputation. As the commodity prices poses a threat to Nissan they oppose this problem by making some alterations in their input materials. They have developed a bivalent strategy which is to maintain the equilibrium between individual uniqueness and maintaining their globalized resources. The change magnitude demand and supply in car manufacturing industry by first appearance new innovative model was the critical enabler factor for Nissan to cut their manufacturing overheads, change magnitude purchasing power, reducing bargaining power of consumers to remain presence in the market.The main threats for Nissan is the marke t saturation which effects its growth as the majority of the car sales fell which has make Nissan cant able to make its presence in the European market. The hurdle in this alliance is the culture of the organization which effects the stability and strength of the organization. However, apart from the , the main objective was to create dual citizenship which balanced the equilibrium and support their cultural values and desires to success of the organization.FORCE FIELD ANALYSIS FOR DRIVERS OF GLOBAL CHANGE driveway FORCERESTRAINING FORCETechnological ChangeHuge Investment RD and cost of capitalEconomic IntegrationMore International marketuphill Market in Developing CountriesIncreasing speed of international more domestic competitionCross Cultural ChallengesFalling of Communist fiatFewer Barriers