Renault - Nissan
Renault - Nissan
Issue Identified in the Scenario
The issue is how two companies with different cultures can come together to form a cohesive partnership that creates a win-win situation for both.
How the company responded to the issue
"Nissan and Renault have managed to make their seven-year-old partnership succeed. In so doing they offer lessons in global partnerships that might be copied by other industries. Not a merger or a joint venture, their model is something totally different: an intimate relationship that allows each company to remain independent." (Muller, 2006)
According to the article "Secrets of a Happy Marriage" (Muller, 2006) the partnership has been successful because they have adapted the following business practices:
Don't force it
Don't fix it if you don't have to
Avoid too many cooks
Everybody wins, or nobody plays
Talk, talk, talk
DON'T FORCE IT
The easiest way to kill an alliance is to force people to work together
DON'T FIX IT IF YOU DON'T HAVE TO
Sometimes, eliminating complexity just isn't worth the trouble.
AVOID TOO MANY COOKS
Collaboration has its limitations when you want to invent something new. Better to agree on common specs, then let one company design the part
EVERYBODY WINS, OR NOBODY PLAYS
Friction between the two companies isn't unknown, but Ghosn vows that no decision will be made that benefits one partner at the expense of the other.
TALK, TALK, TALK
Renault and Nissan try to keep their exchanges informal and flexible. But without some structure, chaos would ensue. Committees meet regularly to dig for joint savings and make sure the companies aren't duplicating efforts.
If one side of the Renault-Nissan amalgam doesn't like a particular plan to cooperate, it can just say no ...
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