In the wake of the Japanese economic downturn, and in a land of paramount homogeneity where customs and traditions are the utmost pride, Carlos Ghosn has managed to revolutionalise Nissan by incorporating western approaches, hence restoring Nissan to profit. This article aims at evaluating how Carlos Ghosn has brought out the best (and the worst) of the American and Japanese styles of leadership at Nissan Motor by taking into account management theories and the differing cultures that beleaguer him. It further discusses the relevance of Ouichi?s theory Z to Ghosn?s management style and the competencies he holds as a dynamic leader.
Carlos Ghosn ? his name has been on the tip of every Japanese salaryman?s tongue. Having rescued Japan?s ailing car manufacturer Nissan, he was voted Asia?s Businessman of the year. But this was no ordinary feat. In a country where most people speak nothing other than Japanese, this Brazilian-born former COO of Renault, has successfully lead Nissan out of the red, plus, established English as the common language of the company.
Possible? Very much so.
Nissan is a very regionalised company . In 2000, the Tokyo-based automaker recorded a loss of $5.7billion . Nissan?s plight was awful: losses in seven out of eight years, a domestic market share that drifted to an all time low of 19% in 1999, and a pile of debt totaling ÃÂ¥1.2 trillion in its financing division . Nissan was in such a mess that people were looking for a savior. Under the reign of Carlos Ghosn, who was sent by Renault after its bid to bail out Nissan, Nissan Motor Co. achieved a dramatic turnaround in earnings ? posting a $2.7 billion in profits for the fiscal year ending in March 2002 . Most Japanese doubted Ghosn?s ability to perpetuate reform. But remarkable...