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    Turnaround by Carlos Ghosn

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    Carlos Ghosn is an engineer who helped turn around Nissan Motor Company. He joined Renault in 1996 and was later appointed CEO of Nissan in 2001. Ghosn introduced the Nissan Revival Plan (NRP) in 1999, a bold three-year plan to reduce debt, cut costs, streamline operations, and return Nissan to profitability. The NRP committed to specific financial and operational targets by 2002 and said executives would resign if not met. Through restructuring, new products, technology investments and cultural changes, Ghosn was able to achieve the NRP goals and revive Nissan's performance.

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    Turnaround by Carlos Ghosn

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    paulo
    13 views10 pages
    Carlos Ghosn is an engineer who helped turn around Nissan Motor Company. He joined Renault in 1996 and was later appointed CEO of Nissan in 2001. Ghosn introduced the Nissan Revival Plan (NRP) in 1999, a bold three-year plan to reduce debt, cut costs, streamline operations, and return Nissan to profitability. The NRP committed to specific financial and operational targets by 2002 and said executives would resign if not met. Through restructuring, new products, technology investments and cultural changes, Ghosn was able to achieve the NRP goals and revive Nissan's performance.

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    Carlos Ghosn is an engineer who helped turn around Nissan Motor Company. He joined Renault in 1996 and was later appointed CEO of Nissan in 2001. Ghosn introduced the Nissan Revival Plan (NRP) in 1999, a bold three-year plan to reduce debt, cut costs, streamline operations, and return Nissan to profitability. The NRP committed to specific financial and operational targets by 2002 and said executives would resign if not met. Through restructuring, new products, technology investments and cultural changes, Ghosn was able to achieve the NRP goals and revive Nissan's performance.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    13 views10 pages

    Turnaround by Carlos Ghosn

    Uploaded by

    paulo
    Carlos Ghosn is an engineer who helped turn around Nissan Motor Company. He joined Renault in 1996 and was later appointed CEO of Nissan in 2001. Ghosn introduced the Nissan Revival Plan (NRP) in 1999, a bold three-year plan to reduce debt, cut costs, streamline operations, and return Nissan to profitability. The NRP committed to specific financial and operational targets by 2002 and said executives would resign if not met. Through restructuring, new products, technology investments and cultural changes, Ghosn was able to achieve the NRP goals and revive Nissan's performance.

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    Turnaround by Carlos Ghosn

    Who is Carlos Ghosn?!

    • Born in Brazil
    • Lebanese parents
    • Studied in Engineering in France
    • Spent 18 years in Michelin in Brazil
    and North America
    • Joined Renault in 1996 as EVP of
    Advanced R&D, Manufacturing and
    Purchasing
    • Appointed as COO of Renault in
    1998
    • Appointed as COO of Nissan in June
    1999 and as CEO in June 2001
    Carlos Ghosn

    What Makes him Unique:


    • Wide cultural awareness
    • Charisma
    • Intelligence
    • Self-confidence
    • Determination
    • Integrity

    “It’s easier to improve a company in trouble than a company


    with an average performance”
    Nissan Revival Plan (NRP)

    • On October 18, 1999, Nissan


    introduced a three-year plan to
    revive the company.

    • The Nissan Revival Plan (NRP)


    is a bold, sweeping program
    with a goal of nothing less than
    recreating the organization.

    • NRP sets the stage for the


    creation of lasting, profitable
    growth.
    Nissan Revival Plan (NRP)

    1. Nissan will return to net


    profitability in fiscal year 2000

    2. Nissan will achieve a minimum


    operating income to sales
    margin of 4.5 percent by fiscal
    year 2002

    3. Nissan will reduce consolidated


    net automotive debt to less than
    ¥700 billion by fiscal year 2002

    4. If any of these are not met, the


    executive committee has
    promised to resign.
    NRP: Meeting the Revival Commitments
    № Main goals Results , 1998 Planned results, 2002
    (according to NRP)
    1 Net income Loss of ¥ 28 billion Return to profit (in 2000)

    2 Minimum operating income 1.7 % 4.5%


    to sales margin
    3 Net consolidated automotive ¥ 2 041 billion less than ¥ 700 billion
    debt
    4 Suppliers and purchasing Too many suppliers- Cut the purchasing costs
    costs 3000 and very high by 20%, reduce the
    purchasing cost number of its suppliers

    5 Platforms and assembly 24 platforms spread 15 platforms spread


    plants between 7 plants between 4 plants
    NRP: Meeting the Revival Commitments

    № Main goals Results , 1998 Planned results, 2002


    (according to NRP)

    6 New products 4 out 43 models are Introduce 22 new


    profitable vehicles with high
    potential demand

    7 New technologies Some of models have Vehicles are more


    not attractive design enjoyable, safer and
    and are more than 5 ecologically friendly
    years in the market

    8 Investments in R&D 3,7 % of sales 5% of sales

    9 Number of employees 131 000 Reduce to 127 000


    NRP: Meeting the Revival Commitments
    NRP: Meeting the Revival Commitments
    Measures Taken by Carlos Ghosn

    Business Technical
    Process Process

    Corporate
    Culture

    Nissan Revival Plan

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