What Did Carlos Ghosn and Nissan Do in Order to Manage Global Financial Risk and Why?

BUS401 - International Business

Module 3

Case Study

Global Financial Management

Dr. Pollard

By

Michael DeLaGarza

BUS401 International Business

Module 3 Case Study

What did Carlos Ghosn and Nissan do in order to Manage Global Financial Risk and Why?

What did Carlos Ghosn and Nissan do in order to Manage Global Financial Risk and Why? By changing the way the company did business. Nissan pulled away from the culturally accepted Japanese business ways and followed an aggressive American cost cutting approach and increasing productivity.

Ghosn made it clear he would tolerate no backsliding: "If you disagree with the plan," he writes, "you've got to leave the company."   Ghosn set up cross-functional Renault and Nissan management teams in engineering, design, and sales to uncover every problem and set new, realistic-but-tough performance goals. He had to slash purchasing costs by 20%, reduce capacity by 30%, close five plants, and displace 20,000-odd workers through layoffs and attrition.   Ghosn took daring steps to rejuvenate the Nissan brand by reviving the Z-series sports-coupe line with the Nissan 350Z. (BusinessWeek)

In the United States Ghosn launched a new SUV the Murano and a new Mini Van on its own platform. Formerly Nissan shared its van platform with the Ford-Mercury Divisions. Ghosn targeted the American family as its customer with Family type vehicles and Sports Cars 350Z. Nissan had brought back the 350Z as a way to reinvigorate Nissan’s nostalgia.

Ghosn did not follow the traditional eight-step rule for Global Financial risk management but he did follow the traditions of it. Though he did change the way Nissans Mid Management and Corporate Leaders thought and carried out their respective responsibilities. They did this by venturing into new markets and with Nissans new cost cutting measures. He became a legend in Japan and the World with his management style and Successes at Nissan and Renault.

Carlos Ghosn...