Severe negative financial position in the market and unprofitable operation with the following causal factors: Product Management: Poor product styling resulting in loss of market share greater than many other car manufacturer’s total production Decentralization:
Too many vehicle platforms that made production inefficient and was further complicated by a plethora of suppliers and decentralized purchasing Communications:
Poor communication practices and an absence of transparency (managers were unaware of production costs) Rigid compartmentalized organization (siloed) structure with minimal cross department interaction Weak channels to market with unhealthy channel conflict.
Customer Wants / Needs:
Lack of customer focus with reactive stance to competitor actions Cultural Constraints:
keiretsu – Culturally rooted business philosophy
Slow, patient, caution, afraid of change culture in Japan with many failed attempts to address well known problems Supplier relationships based on cultural and regional ties restricting global expansion
Question 3: Evaluate Ghosn’s first 100 days. Effective leader and/or manager? Ghosn’s first 100 days proved he is an effective leader,
Per John P. Kotter, Leaders don’t make plans; they don’t solve problems; they don’t even organize people. What leaders really do is prepare organizations for change and help them cope as they struggle through it.