A merger took place between Nissan and Renault. Renault sent Carlos Goshan to resolve the problems related to it.

1. A CASE STUDY ON
NISSAN & RENAULT MERGER
NAME: DHIRAJ KUMAR SARAF
ROLL NO: 1419MBA45
SUBJECT: BPSA
SPECIALIZATION: HUMAN RESOURSE (HR)

2. NISSAN BEFORE ALLIANCE
• Suffering from $ 22 billion dollar debt.
• There was complacency i.e. (unknown forthcoming danger) in the
company.
• Lack of urgency (laziness) in the culture of the company.
• High degree of bureaucracy in the company.
• Give much emphasis on Engineering culture, rather than managerial
culture and in promotion.

3. RENAULT BEFORE ALLIANCE
• The main source of revenue comes from the sale of small to medium
size cars in Europe.
• Renault has limited product line.
• Normally, product was in branded style but in poor quality.

4. OBJECTIVE OF THE ALLIANCE
RENAULT NISSAN
Respective Objectives
To Improving Quality
To Internationalize
To Reduce Cost
To Reduce Debt/ To get out of Debt Trap
Common Objectives
To generate Economy of scale
To furnish Technological Know-How
To be the leader in the Quality
To produce attractive products

5. INTERNAL ANALYSIS
RENAULT NISSAN
Less Debt Quality Products
Highly Innovative Products High Technological Gentleness
Overall management Practices
Given privileged Relationship with supplier
RENAULT NISSAN
Can’t Able To Compete with the world Lack of Creativity
Only Dominates European Market Poor Management
Mismatch With The Global Strategy
Slow in Adopting New Coming Changes
STRENGTH
WEAKNESS

6. CARLOS GOSHAN’S REVIVAL PLAN
• Established English as common language.
• Formed nine-cross functional teams.
• Adopted seniority system
• Given emphasis on payment and promotion

7. QUESTION & ANSWER
A) Merger can be different types. What is the type of merger that took place between Nissan and Renault
known as? Discuss the economic relational of the merger between Nissan and Renault.
Ans: -
Horizontal Merger took place between Nissan And Renault.
The Economic Rational Behind The Merger: -
a) To get global access
b) To reduce Debt
c) To increase the global presence

8. B) There can be various motives and reasons for cross-boarder merger. What could be the motives
between Nissan and Renault? Explain in detail.
Ans: - The main reason behind the cross-border merger is: -
a) Economic of Scale: When output is increased, the firm receives cost benefit per unit.
b) Financial Resources: When merger took place it bring financial help for both the company.
c) Brings skilled labour: Merger bring out more skilled labour to the organisation.