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12 Success Lead Change Append 2 Nissan

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Talks about the success of Nishan

Talks about the success of Nishan

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  • 1. Nissan Motor Co., Ltd
  • 2. Share of Sales by the World Car Market 2001
  • 3. Net Sales (1990-2002) (Billions of yen) (Year)
  • 4. Ordinary Income (1990-2002)
  • 5. Introduction
  • 6. Company Name : Nissan Motor Company Highlights Paid in Capital :604.6 (billions of Yen) Employees : 125,099 Establishment : Dec, 1933 Representative : Carlos GHOSN Global Retail Sales : 2,596,530 (units)
  • 7. Financial Highlights (2001) Operating Margin : 7.9% Net Sales $ 51.6b Ordinary Income $3.5 Operating Income $ 3.1 Net Income $3.1 R&D Investments $2.2
  • 8. Capital alliance of Japanese makers GM ( US ) Isuzu 12.0 % Suzuki 20.0 % Fuji Heavy Industries 20.0 % Ford ( US ) Mazda 33.3 % Renault ( FRA ) Nissan Motor 44.4 % DC ( US&GER ) Mitsubishi Motors 37.3 % Opel ( GER ) Fiat ( ITA ) Land Rover ( UK ) Jaguar ( UK ) Volvo ( SWE )
  • 9. Nissan Motor Co. Net sales & ordinary income
  • 10. Net Debt (Automotive Business) (Year)
  • 11. Vision / Mission Vision Mission Nissan : Enriching People’s lives Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders* in alliance with Renault. * Our stakeholders include customers, shareholders, employees, dealers, suppliers, as well as the communities where we work and operate.
  • 12. History
  • 13. Major Events in Nissan’s History -1
    • (1933) Jidosha Seizo Co., Ltd., predecessor of Nissan Motor Co., Ltd., is established in Yokohama.
    • (1935)The first car manufactured by a fully integrated assembly system rolls off the line at the Yokohama Plant.
  • 14. Major Events in Nissan’s History -2
    • (1960)Nissan wins the 10th Annual Deming Prize for excellence in industrial engineering.
    • (1972)Cumulative domestic production surpasses 10 million units.
    • (1980)Cumulative exports surpasses 10 million units.
    • (1980)Nissan Motor Manufacturing Corporation U.S.A. (NMMC) is established.
    • (1984)Nissan Motor Manufacturing (UK) Ltd. is established .
  • 15. Major Events in Nissan’s History -3
    • (1988)Nissan European Technology Centre Ltd. is established in UK.
    • (1990)Cumulative production surpasses 50 million units.
    • (1994)Nissan Middle East FZE is established in Dubai, UAE.
    • (1995)Vehicle production at the Zama Plant ceases.
  • 16. Major Events in Nissan’s History -4
    • (1999)Nissan and Renault signs an agreement for global alliance, including equity participation.
    • (1999)The company announces the Nissan Revival Plan (NRP).
    • (2002)The company announces new three-year business plan NISSAN 180.
  • 17. Renault
  • 18. Renault Financial Highlights (2001) Operating Margin E 473 Revenues (euro million) E 36,351   Operating Income E 704 Renault net Income E 1,051 Investment E 3,314 Total workforce (number of persons) : 140,417
  • 19. Renault’s revenues (1997-2001)
  • 20. Nissan Revival Plan
  • 21. Carlos, GHOSN ・ Born in Brazil (March,9,1954) <Education> ・ Graduated from E´cole Polytechnique ・ Graduated from E´cole des Mines <Experience> ・ (1978) Ghosn is hired Michelin ・ (1985) became COO of Michelin Brazil ・ (1989) became COO of Michelin North America ・ (1996) became Executive Vice President of Renault    ・ (1999) became Chief Operating Officer of Nissan motor ・ (2000) became chairman and COO of Nissan Motor ・ (2001) became chairman and CEO of Nissan Motor
  • 22. Nissan Revival Plan
    • First announced in October of 1999, Nissan Revival Plan (NRP) went into action in April, 2000.
    • When the NRP was first announced, Nissan’s executive committee announced three bold commitments.
    • If any of these were not met, the executive committee members promised to resign.
  • 23. NRP’s Objective
    • The objective is to free resources from non-strategic, non-core assets and investment more in our core business - cars - while at the same significantly reducing Nissan’s debt.
    “ The aim is to grow the company, not shrink it.” said Ghosn.
  • 24. Substance of Nissan Revival Plan Goal of Nissan Revival Plan
    • Return Nissan to profitability for 2002
    • Achieve a consolidated operating profit of 4.5%
    • of sales by 2002
    • Reduce costs by 1 trillion Yen and net debt
    • from 1.4 trillion Yen to less than 700billion Yen
    • by 2002
    As Results Reduce headcount :21,000 (14%) for worldwide Purchase strategy :Appropriate 200billion Yen for Reserve Fund The effect of cost redact :1 trillion Yen
  • 25. Major Contents of NRP Enterprise development : P rofitable growth Purchase strategy : It is 20% of cost reduction in three years.                       suppliers Reduction (1,145⇒600) Production : A chievement of optimal production efficiency / the optimal cost. 30% curtailment of productive capacity Sales, General and : T o be reduced 20%   administrative costs Slimming of a operating network ( Number 20% curtailment of direct management dealers, 10% curtailment of offices, etc. ) financial cost : Strengthening financial management reduction of financial cost. Cancellation of strategic stock possession ( Stock sale of an affiliated company, etc)   R&D : Effective development of R&D capability Organization : The change to the global organization from the organization according to area  
  • 26. Results : Attaining the NRP Goals
    • Purchasing costs : reduced 20 %.
    • Plant capacity utilization : risen from 51%->75%.
    • A revamping of the domestic sales system has reduced sales and administrative costs.
    • Worldwide stuffing has been brought in accordance with needs.
    • Non-core assets have been sold.
    • A rededication to R&D has been matched by 25% increase in efficiency.
  • 27. Essence of NRP 達成方法
  • 28. What is ‘Commitment’ ?
    • ・ A return to net profitability in 2000.
    • ・ A minimum operating income to sales margin of 4.5% by 2002.
    • ・ Consolidated net automotive debt reduced to less than 700 billion ( $58 b) by 2002.
    Nissan announces NRP conclusion one year earlier than planned(2002->2001).
  • 29. CEO (Hanawa chairman) COO (Ghosn President) Executive committee Planning Domestic sales Oversea sales R&D Produc -tion Purchase Admin. Europe Others North America 1. Growth of business ( 50 ) 2.Purchase ( 12 ) 3.Production ( 10 ) 4.R&D ( 13 ) 5.Marketing ( 10 ) 6.General admin. ( 10 ) 7.Finance & cost ( 12 ) 8.Cut of the model ( 13 ) 9.Org. & decision ( 12 ) The name of CFT (members) Structure of Cross Functional Team ○ (1) ○ (1) ◎ (4) ○ (1) ○ (1) ○ (2) ○ (1) ○ (1) ○ (1) ○ (1) ○ (2) ○ (5) ○ (2) ◎ (2) ○ (2) ○ (3) ◎ (4) ○ (3) ○ (1) ○ (1) ◎ (5) ○ (1) ○ (1) ○ (1) ○ (2) ○ (2) ○ (1) ◎ (1) ○ (4) ○ (1) ○ (1) ○ (1) ◎ (9) ○ (1) ○ (1) ◎ (6) ○ (1) ○ (1) ○ (1) ○ (1) ○ (1) ◎ (4) ○ (1) ○ (3) ○ (2) ○ (2) ○ (1) ○ (3) ○ (2) *
  • 30. Investment for the Future
    • With an additional 1,000 engineers being added to Nissan’s technical team.
    • Massive investments in R&D ( to 4.5% of revenues).
    • Investments in capital expenditures ( to 5.5% revenues).
    Building Competitive Advantages
  • 31. New Cars after NRP Japan & Europe SKYLINE Japan & North America Terano Japan, Europe & North America Cefiro Japan & North America FAIRLADY- Z Japan Larel Japan & Europe March 2002, Apr. Japan STAGEA Oct. Japan & North America XVL Mar. Japan & Europe PRIMERA Feb. Japan & North America CIMA 2001, Jan. Sales’ market model Market launching
  • 32. New Strategy (NISSAN180) Nissan will sell one million additional units worldwide by fiscal year 2004. Nissan will realize an eight % operating margin under constant accounting standards. Nissan will achieve Zero net automotive debt by the end of 2004. 1 8 0
  • 33. Renewal <March> $10 $11 Price (in Japanese Market,$000) 1,525 mm 1,425 mm Height 1,660 mm 1,585 mm Width 3,695 mm 3,720 mm Length 1.4 Litter 1.3 Litter Engine Displacement 5-persons 5-persons Seating Capacity Front Front Driving Wheel New-MARCH March
  • 34. Renewal< > $30 $38 Price (in Japanese Market,$000) 1,315 mm 1,255 mm Height 1,815 mm 1,800 mm Width 4,310 mm 4,520 mm Length 3.5 Litter 3.0 Litter Engine Displacement 2-persons 2-persons Seating Capacity Rear Rear Driving Wheel New-Z Z
  • 35. Four Pillars of N 180
    • Generating more revenue.
    • Reducing costs.
    • Increasing both quality and speed.
    • Maximizing the Alliance with Renault.
    NISSAN 180 Ready and Positioned for Growth
  • 36. The NISSAN180 goal
    • One million additional units will be sold by the fiscal year 2004 (October 2004 to September 2005).
    Japan : +300,000 unit US : +300,000 Europe:+300,000 Other markets+300,000 Global Total Market Share Targets: 5.1%
  • 37. Building the Brand
    • 28 all-new products will be launched in all segments, all over the world.
    • Company executives set the goal of placing at least three Nissan cars in Japan’s top-ten monthly best-selling lists.
    • Nissan’s new brand identity : based on the traditions of technology, imagination and passion.
  • 38. Strengthen Designing Power
    • Nissan Design Europe will play a strategically important role in Nissan’s creative network.
    • Nissan Design Europe will be home to around 50 international designers, modellers and support staff.
    • Nissan Design Europe has increased its staff by 25%, a further indication of the importance of the studio to Nissan’s global design operations.
    “ Design is fundamental at Nissan. Most importantly it is a key driver behind NISSAN 180, our global growth plan.” said Carlos Ghosn.
  • 39. Summary Nissan New Business Structure and Model
    • Cross Functional team
    • Restructuring
    • Cut costs + reinvestment
      • New Engineers
      • Massive R & D investment
    • Restructure to permit Quality and Speed
    • Alliance with Renault
  • 40. Summary Nissan New Business Structure and Model
    • The New Model of Nissan….
      • Nissan 180
  • 41. New Strategy (NISSAN180) Nissan will sell one million additional units worldwide by fiscal year 2004. Nissan will realize an eight % operating margin under constant accounting standards. Nissan will achieve Zero net automotive debt by the end of 2004. 1 8 0
  • 42.  
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  • 46. Understanding the degree of change required 1.1b Gerry J Gannon Institute for International Research                                                            
  • 47.                                                        
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