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Riordan Manufacturing Benchmarking

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Riordan Manufacturing Benchmarking
University of Phoenix
Human Capital Development
MBA 530
Dr. Alvin H. Steward III
January 31, 2008

Riordan Manufacturing Benchmarking
In order for any company to gain competitive advantage over other companies in the same industry, the management teams need to understand the importance of improving business results through people. Employees are the maker or breaker of any company. Without increased motivation and morale of the employees in a company, the company risks losing valuable employees and will be at a disadvantage in attracting potential top talents. As the economy continues to change and competition continues to increase, businesses have to constantly find ways to satisfy their employees in order to retain the best ones. As Riordan Manufacturing (RM) will strive to meet the competitive needs of the employees within the company and prospective job candidates, they will also need to allure the individuals to the company.
The issue facing Riordan Manufacturing (RM) are; retaining employees, career and training development, human resource philosophy, motivation, and management of restructuring process. Human resources are an integral part of an organization. An organization cannot survive without human resource policies and procedures. “Human resource activities in a company must directly support business strategy and the satisfaction of customer needs” (Walker, 2002, p. 59). For most companies that enter a global market, human resources play a huge role in the companies’ success by updating policies to accommodate the new cultures. This analysis will be a problem solving approach for HR to implement and develop a comprehensive staffing strategy to meet organizational effectiveness and make RM a continued market leader through a solution based selling strategy.

The company has made several strategic changes in the way it manufactures and markets its products and has chosen to adopt a customer relationship management (CRM) system. Unfortunately, as changes have been implemented, employee retention numbers have declined and there has been an overall decrease in job satisfaction, particularly in areas of compensation and benefits. As a global plastics producer, Riordan Manufacturing (RM) employs 550 individuals (Anonymous, 2008). The business has projected annual earnings of $46 million (Anonymous, 2008). The company is a division of Riordan Industries, a Fortune 1000 enterprise. RM has production divided among three plants. Plastic beverage containers are produced in Albany, Georgia. Custom plastic parts are manufactured in Pontiac, Michigan. Parts for plastic fans are produced in Hangzhou, China. Corporate is headquartered in San Jose, California with Research and Development located there as well. Riordan maintains major accounts with the automotive parts industry, aircraft manufacturers, and Department of Defense. Other major customers include beverage makers and bottlers, and appliance manufactures (Anonymous, 2008).
Situation Analysis
The company is now an “industry leader in the field of plastic injection molding” (Riordan, 2008, p. 1). Riordan, a global corporation in the plastics industry was quick enough to acknowledge the issue. However, change without proper planning will have consequences and Riordan is no exception. Main consequences include employee turnover, low moral due to uncertainty, and declining sales. Riordan Manufacturing, Inc. a global corporation in the plastics industry was quick enough to acknowledge the issue. However, change without proper planning will have consequences and Riordan is no exception. Main consequences include employee turnover, low moral due to uncertainty, and declining sales.
Issue Identification
Employee morale is a huge influencer on the businesses productivity. An organization with low turnover and happy employees tend to perform better and contains a workforce full of loyal employees than those companies who have high turnover but unsatisfied employees. Employee motivation, declining morale and work ethics, declining sales, and the restructuring of the sales teams are some of the issues Riordan is currently facing. Employee motivation is currently low at Riordan because the employees are not feeling recognized in their accomplishments, they feel the pay is low, the reward system is not fair to everyone and is not based on individual performance. In addition, Riordan’s current rewards and compensation system is focused on seniority rather than performance (Frederick works, 2008).
The pay process is secretive and many do not know how it works and effective communication is not established. “Communication is also a key ingredient in employee satisfaction and loyalty” (McShane & Von Glinow, 2008, p. 10). Employees are not pleased with the pay portion of their compensation package and to further complicate the employee satisfaction issue, leadership is not in agreement to make any changes. One of the other issues is that some of the members of this leadership team are not very cohesive. In addition, when a problem has been brought forward, the leadership team has differences in opinion. To add to this, organization is losing its employees rapidly and the retention rate of Riordan is starting to become a major issue.

Opportunity Identification
With the identification of issues comes the chance to turn them into opportunities. Riordan has many opportunities to discover the real cause of the issues and problems. They can initiate the 9-step problem-solving model to identify the right problem, and develop solutions which would benefit everybody in the company leading to company’s overall growth. Installing an effective rewards and recognition program in most cases can be very beneficial to companies.
Riordan has to learn to measure their employees. There should be an effective measurement system for all employees so that this benefit will be non-discriminating and fair for each employee. This provides an opportunity for Riordan and management to motivate their employees by empowering the employees to participate in the decision-making processes and through recognition of their skills and contributions to the organization. Riordan’s President and CEO of the company need to refocus their strategies on motivating and retaining their employees by focusing on the moral of their current employees. The survey done by the consultant will allow the company to analyze and help with job satisfaction, decrease turnover, and increase employee morale. Riordan needs to show their employees they are valued and be given opportunities for professional development that will lead to promotions.
Problem Definition
Additional research will be needed for Riordan to fully develop its HR systems. Riordan will have to change its corporate sales strategy however, this change will not be easy due to the existing program that’ in place for the sales and research and development departments. In order for Riordan to obtain overall job satisfaction for its employees, modifications would have to be made to the rewards, incentive and compensation programs. These challenges will not be easily overcome for Riordan. With conflicts existing amongst upper management, it will be harder to develop a strategy to accommodate the organization as a whole. This mean Riordan Manufacturing must combine transformational and transactional perspective of leadership to achieve success. Attracting employees by implementing “recognition effectiveness can be measured by its impact in producing results and desired performance, such as increased performance and progress against goals and key performance indicators” (Nelson, 2007, p. 7), and “help organizations achieve their current objectives more efficiently, by linking job performance to valued rewards and ensuring that employees have the resources needed to get the job done” (McShane & Von Glinow, 2005, p. 428).
Stakeholder Perspectives/Ethical Dilemmas
When the business is at risk, everyone involved should be concerned about the future of the organization. However, the responsibility falls on the CEO of the organization to solve the current issues. Stakeholder perspectives are something that needs to be considered when a corporation is deciding on change. Each of the stakeholders’ perspectives need to be looked at and analyzed prior to making any decisions.
Michael Riordan, the founder, President, and Chief Executive of Riordan Manufacturing is the primary shareholder with 80% of the company’s stock and is increasingly concerned about the value of his investment as he nears retirement age. His interests are concerned with company performance and maximizing market share via dynamic strategies and employee performance. He is aware that the company is faced with motivation problems and believes he treats his employee’s fairly but his employees are not loyal and needs their support in this financially difficult time. He does not want to increase compensation and benefits because the change would affect the profits he receives as a primary shareholder.
The shareholders assume that senior management will act in the best interest of all involved and maintain a successful running company. Their main interest is a fair return on their investment and a trusting relationship with the management of the company. If a shareholder does not get the return or lose trust in the company, they will take their money and invest in other companies. The shareholders interest is purely profit. If the company does not do well, their stocks go down and the stockholders will lose their interest in the company. The stockholders’ values may either go down or up depending on how the company progresses in the market.
The senior management has to be the decision makers with everyone’s best interest at heart and increase compensation on all levels and aligned reward programs to match new sales tactics. Managers are looking out for their own departments rather than for the company as a whole. They believe that changes in job design and employee development will do more for employee satisfaction in the long run than just giving them more money. However, each manager has differences and interests in what types of strategies need to be in place. The senior leadership team is also concerned with losing some of the key players in the research and development, sales, and information technology departments. They know that if the morale is not improved within the company, valuable employees will leave for better pay and that it will be difficult to find replacements. Their interest lies in the performance of their employees, maximizing company revenues, and leading the employees of the corporation.
Employees are suffering from low morale; they do not feel appreciated and feel trapped in current position without opportunity for career development. Employees in research and development are disappointed with the current reward systems because they are not based on productivity but rather on seniority. In addition to the pay and reward system, the employees believe that management has not communicated how pay works, how promotions are considered. “Pay plays a vital role in a person’s economic and social well-being” (Milkovich & Newman, 2004, p.10). According to the Employee Satisfaction Survey, job satisfaction, working conditions, personal opportunity, compensation and benefits, communication, and management at Riordan Manufacturing scored very low. Their values are maximizing personal gain, integrity, reliability, loyalty, and fairness.
Riordan needs to have strong customer service base to have a successful company. The customers are not aware of the job dissatisfaction or arguments between leadership on compensation; they are however, aware of the costs of the products they buy. Their perspective is that they do not want to see price increases, so if changes are made to the compensation and reward system, Riordan must work to make sure this increases are not passed on to the customers in price.
Human Resource Department
The last stakeholder addressed is the human resource department. This area is separate due to the importance of human resources in maximizing employee productivity, directly influencing corporate revenues. The human resource department’s interest lies in employee performance and employee morale, which can be measured by promotions and longevity. The rights of the human resource department are accreditation from senior management and resources to provide employees with acceptable levels of motivators. An ethical dilemma in human resources may arise if the cost of benefits and promotions for employees outweigh the value given to the company
Wal-Mart is a major player in today’s global retail environment. Wal-Mart has proven that they are highly successful at attracting their target market with catchy phrases such as �Always Low Prices’ and �Satisfaction Guaranteed.’ Wal-Mart has become the largest retail store in the world. Wal-Mart right now has over 1,100 stores in the United States (Wal-Mart, 2007). Wal-Mart is dedicated to its customers and employers. Wal-Mart’s global expansion has experienced a significant growth in past years. “Wal-Mart International announced that 2007 fiscal year end sales reached $77.1 billion, a 30.2% increase over the prior year” (Wal-Mart, 2007, p. 6). In order for Wal-Mart to achieve such figures, their strategies is to minimize operating costs and maintain low prices for the consumers, while paying relatively low wages and minimal benefits to their employees. Globally their strategy focuses on local cultures and involvement in the local communities. For this reason, Wal-Mart has grown to become the largest company in the world with thousands of stores worldwide.
Current Challenges
Wal-Mart is facing many challenges by minimizing operating costs and maintaining low prices for the consumers, while paying low wages and minimal benefits to employees. By attracting their target market they use catchy phrases such as, �Always Low Prices’ and �Satisfaction Guaranteed’. These phrases have attracted many customers and allowed Wal-Mart to maintain its leadership in the retail industry. To capture a larger market, Wal-Mart has put other competitors out of business by attracting economically minded customer and offering everything a customer could need at low prices. Wal-Mart’s challenge is to locate the cheapest vendors with the best products and lowest price. If Wal-Mart can overcome this challenge, they will not only cut costs and increase revenue, they will also attract customers and gain market shares (Wal-Mart, 2008).
Wal-Mart has created a win-win situation by attracting economically minded customers, so that they could obtain their everyday needs at low prices. By attracting their target market they use catchy phrases such as, �Always Low Prices’ and �Satisfaction Guaranteed’. These phrases have attracted many customers and permitted Wal-Mart to maintain their leadership in the retail industry. In order for Wal-Mart to put other competitors out of business, the company is outsourcing jobs and cutting costs to reduce operating costs and maintain low prices. By cutting costs Wal-Mart pays low wages and provides minimal benefits to their employees. Lee Scott, CEO of Wal-Mart has demonstrated the use of transformational leadership through continued communication with shareholders, associates and the top company leaders for the Wal-Mart Corporation. Wal-Mart targets on the economically minded customer to implement the transformation. Wal-Mart has been able to broaden their approach to customers, make contributions to the community and become a better place to work with the support to all their employees (Wal-Mart, 2008).
Compare and Contrast
There are several similarities between Wal-Mart and Riordan Manufacturing. They present the need for new technologies and innovation products to grow sales and market shares. The major difference is the founder’s leadership styles. Lee Scott of Wal-Mart leads by his ability to judge markets and outline exactly what needs to be done to implement the transformation. Lee Scott creates a strategic vision that unifies employees. He also demonstrated the use of transformational leadership through continued communication with employees, shareholders, and executive members to be the top company leader. Michael Riordan does not as much as a leader. He does not provide a clear vision of the tasks at hand and communicate clearly and effectively. Lee Scoot of Wal-Mart is a leader because he is the vision, drive and motivation that make Wal-Mart successful. He has the style the company and the employees must accept (Wal-Mart, 2007).
In 1962, Target’s first store opened in Roseville, Minnesota. Target stores are always clean, attractive and easy to shop. Today Target has 1,500 stores in United States (Target, 2008). Super Target also has grocery in store to satisfy customer needs and more convenient for customers to shop everything at one place. Target not only targeted within United States, Target also wanted to expand their stores worldwide, such as Asia. In 2005, Target began to open the first store in India and it’s growing very fast and successful. Target planned by the year 2009 they will have more Target stores opened in India. Target is a leader in retailing technology, but presents a very different marketing approach than Wal-Mart. By attracting customers Target focused on well dressed, conservative, and clean. This has helped Target become successful in retail industry (Target, 2008).
Current Challenges
Target’s challenge is to compete with Wal-Mart who’s already doing business in other countries for many years and creating a strong and profitable presence in the international market. Target plans are to enter into Japan market. Japan is one of the leaders in technology. Target is a leader in retailing technology. The risk would be very low and would help Target faster with Japan being a leader in the technology world. To be able to benchmark with Wal-Mart, Target’s must understand the Japan culture and economic status to maintain the store. This would be very challenging for Target. Target presents a very different marketing approach that Wal-Mart. The key organizational communication concepts used by Target is emphasizing well dressed, conservative, pleasant people in advertising different departments (Target, 2008).
Target attempts to appeal logically and emotionally to their respective customers. Target presented a shopping environment aimed at making the customers more comfortable and relaxed with purchasing the products. Target tends to aim an upscale customer while Wal-Mart aims on the needs of the economical minded customer, such as �Always Low Prices’ and �Satisfaction Guaranteed’. Target’s key competitors are Wal-Mart which is already doing business in many other countries for many years. Target’s plan is to entrance into many other countries to be able to benchmark with Wal-Mart markets. Target entrances into Japan country will give people more options and make the market more competitive. To be able to benchmark with Wal-Mart, Targets has to attract customer by providing high quality, stylist products at discounted prices. Target’s goal is to attract their customer by stating “Expected more and pay Less” (Target, 2007, p. 1). Target prides themselves in their well organized and well maintained family friendly stores that are clean and inviting to the customers.
Compare and Contrast
Riordan Manufacturing has same methods of maintaining the stage of vision implementation like Target. Target shares a commonality; they are a retail industry that depends on customer satisfaction. If the customer satisfied their services and their products, they would capture quite large markets. Like Riordan Manufacturing to succeed with the implementation its new products, the leadership members need to hire a new HR leadership member to motivate and inspire their employees. Once they can motivate or inspire their employees, their employees would help the company to implement a new product, which will help the company to increase sales and market shares. Without the employees motivation the work quality would decline. As a result, it may be wise for Riordan Manufacturing to explain their new vision clearly to their employees and train them ahead of time before implement a new product within the organization. This would lead the improvement of their end state goals to increase in sales (Target, 2008).
Wal-Mart and Target Key Course Concepts
All the above mentioned companies are successful because of their strategies and the leadership members in a collaborative effort toward super ordinate goals rather than personal goals. To add value to its customers by creating a culture of continuous improvement and high customer services, Wal-Mart and Target uses “the most well thought-out business strategy will be executed effectively only when people are committed to achieving your organization’s goals and when they posses the right set of skills demanded by the ever-changing marketplace” (Dreher & Dougherty, 2007, p. 3). They also have to use “HRM Practices Survey as a guide in gathering information about real operating companies or recalling experiences you have had in previous positions. Also, use the survey as an-other way to define the 19 dimensions of our HRM domain statement” (Dreher & Dougherty, 2007, p. 67).

Motorola founded September 25th 1928, is a broadband and a wireless company that provides Enterprise Mobility Solutions, Home and Network Mobility and Mobile device services. Motorola is a company that is listed as one of the fortune 100 companies and has a global presence and impact, Motorola showed sales numbers in order of US$36.6 billion in 2007 (Motorola, 2008). Motorola has its operations spread worldwide and maintains administrative, sales and manufacturing facilities in dozens of locations. Its global headquarters is in Schaumburg, Illinois (Motorola, 2007). According to the Motorola web site Motorola has received many awards to name a few; Employer of Choice for Women, Australian Government’s Equal Opportunity for Women in the Workplace Agency, 2007, Best Places to Work: Motorola in France and Motorola in Mexico, Great Place to Work Institute, 2007, Best Places to Work for GLBT, Human Rights Campaign, 2007 and 2006, Best Places to Work: No. 27, Great Places to Work Institute, Denmark, 2006 among other awards (Motorola, 2007). Motorola University also provides Six Sigma education and certification and provides consulting services for companies interested in using Six Sigma quality initiatives (Motorola University, 2008).
Current Challenges
Motorola employees needed to make a few important decisions regarding their financial situation about their retirement savings and achieving their financial goals “a general lack of understanding by some employees about their benefit options made it difficult for them to take control of their financial situation” (PricewaterhouseCoopers, 2006, p. 1). Employees were looking for specific education workshops in increasing usage benefits; increase in productivity, retain the most important employee talent, and increase employee goodwill by providing tools to achieve a sound financial bases, in 23 locations around the US (PricewaterhouseCoopers, 2006). Motorola turned to PricewaterhouseCoopers their human resources advisor for some advice. PricewaterhouseCoopers gladly took up the challenge “Being their preferred adviser for several HR issues, including their international equity plan, we already had a strong understanding of Motorola, including its culture and benefits” (PricewaterhouseCoopers, 2006, p. 1).
PricewaterhouseCoopers team looked for requirements about Motorola’s existing education benefits and programs by having couple of rounds of discussions with Motorola employees. They then prioritized future training and agreed on the key messages that were later conveyed to Motorola employees. PricewaterhouseCoopers then designed a program called �Take charge of your financial future’. The program consisted of workshops, a telephone counseling service and a financial plan generator as a web based tool called PwC eAdvisor. PricewaterhouseCoopers provided various tools and services to match the diverse needs of all its employees “to gain buy in and trust from both Motorola management and employees, we held initial training sessions with PwC telephone counselors, workshop presenters, and a pilot workshop” (PricewaterhouseCoopers, 2006, p. 1). According to PricewaterhouseCoopers, PwC eAdvisor worked well for all Motorola employees, within three months the program provided workshops for over 1,500 employees; 96% of attendees provides positive feedback and were satisfied that they could now make a positive difference in their financial future, hits on the Web-based tool, PwC eAdvisor, exceeded 300,000 and there have been 700 requests from employees through the PwC financial counseling service (PricewaterhouseCoopers, 2006).

Compare and Contrast
Riordan and Motorola have quite a few similarities; both the companies are interested in providing some kind of education or benefit to their employees. Motorola has won various awards in the employment field including the “Best Places to Work: Motorola in France and Motorola in Mexico, Great Place to Work Institute, 2007” (Motorola, 2007, p. 1). In order for Riordan to keep human talent, the human resource department must look for ways to encourage employee commitment to the corporation “To bind talent, you might think about finding out why talented people leave, offering incentives to keep talented employees, and offering non-financial rewards to stay” (Ulrich & Brockbank, p. 22). Riordan could make use of the skills and services available at PricewaterhouseCoopers to provide human capital development services “Our multi-disciplinary approach allows us to advice on all aspects of people management, helping our clients to create value for their businesses through people” (PricewaterhouseCoopers, 2007, p. 1). According to Randy Boldt, Director, global rewards, Motorola “The employee financial education program that PwC ran is clearly superior to that of its predecessor” (PricewaterhouseCoopers, 2006, p. 1).
Microsoft Corporation
Microsoft as a company has a mission to enable people and businesses throughout the world to realize their full potential. Microsoft Corporation reported fiscal year 2007 revenues in order of $51 billion (Fontana, 2007). Around the globe in 102 countries Microsoft employs around 76,000 employees (Mobiform Software, Inc, 2007). Microsoft develops, manufactures, licenses and supports a wide range of software products for computing devices. According to Microsoft with its products dominates the world with more than 700 million personal computers using its products (Microsoft, 2007). Its company logo is reputed to be the second most recognized after Coca Cola. According to Richard S. Conway Jr., a Seattle economist whom Microsoft hired to study its impact on Washington State “While the exact number is not known, it is reasonable to assume that there were approximately 10,000 Microsoft millionaires created by the year 2000” (Bick, 2005, p. 1).
Current Challenges
Microsoft is constantly challenged with by its high performing, employee motivation issues. Do pay raises keep current employee talent loyal to the company? This issue might not be unique to Microsoft, but the situations how this arises are. Microsoft caters to the needs of their employees by recognizing and facilitating their high performing employees. Microsoft provides a challenging work environment and growth employees find rewarding. Money does plan a role but it is no the only factor that keeps employees happy. Ergonomic work environment great people to work with and basic necessities like workspace, light and heat, a computer and a telephone are all essentials for employees to work effortlessly, according to Frederick Herzberg, “a fair salary is considered a �hygiene’ factor - something people need as an incentive to do the jobs they are hired to do” (, 2008, p. 1), “Having all of these items, however, will enable employees to do their jobs but will do nothing to help them do the best job possible. Getting people to do their best work is more a function of what Herzberg call �motivators’. These include praise and recognition, challenging work, and growth and development opportunities” (, 2008, p. 1).
Microsoft provides many benefits for its employees and can be categorized under perks, training and development, compensation, healthcare, and investment programs. As perks Microsoft provides free beverages including sodas and Starbucks coffee, starting first year, employees have 15 paid vacation days, 10 paid sick-leave days, eight paid U.S. holidays, and two paid discretionary personal holidays (Microsoft, 2007). Under training and employee development Microsoft provides tuition and textbook reimbursement for approved work-related courses, Career development planning in consultation with your manager, IT learning site, Microsoft Training and Certification programs. Under healthcare Microsoft provides unlimited lifetime maximum health coverage, the most unique aspect being 100% coverage, 100% prescriptions drugs, and zero deductible (Microsoft, 2007). This is more than many other companies offer, one annual eye exam and reimbursement for one pair of glasses or contacts per calendar year. Under Investment programs Microsoft allows one to defer their pre-tax income up to 50% of your eligible compensation, within the IRS maximum. Microsoft matches 50 cents on every dollar one defers pre-tax up to a pre-tax contribution rate of 6%, excluding catch-up contributions, for a maximum matching contribution of 3% of your eligible compensation (Microsoft, 2007). You can also contribute up to 7% of your eligible compensation on an after-tax basis (Microsoft, 2007).
Compare and Contrast
Riordan recently conducted an annual employee survey, which showed a decrease in overall job satisfaction, particularly in the areas of compensation and benefits. Riordan has hired an external consultant to review their current benefits package and suggest a few more. Riordan could look at benchmarked company Microsoft and find a few similar benefits that have helped Microsoft attract and keep employee talent. Like Microsoft Riordan needs to align its new corporate strategy with human resources “Deliver the right rewards to the right people to align employees with your strategic goals” (Rosalie, 2005, p. 28), rewarding and recognizing employees would motivate Riordan employees and hence increase companies ROI.
Motorola and Microsoft Key Course Concepts
Both Motorola and Microsoft have been successful companies because they take their employee relations seriously. Motorola and Microsoft have understood Frederick Herzberg �Hygiene and Motivational’ theories. “The pay policy decision can have a major impact on the quality of a company’s workforce—and therefore on company performance” (Dreher & Dougherty, 2001, p. 79), Microsoft and Motorola provide extremely good benefits for their employees and hence show signs as a company. Riordan has a multicultural workforce, which includes administrative staff to professionals, new workers to seasoned workers and there is a large amount of differences in the employees. However, the current rewards systems being used for motivation does not reflect these differences. “A major limitation of contemporary pay systems is the degree to which individual needs and preferences are ignored” (Milkovich & Newman, 2004, p. 41). Motivators can vary depending on age, race, education and a number of other factors (Milkovich & Newman, 2004). Riordan needs to understand the motivators for all the employees and establish programs to increase productivity and loyalty. This provides an opportunity for Riordan to evaluate the motivators and realign human resource benefits to the corporate strategy and employee needs. The cost of high employee turnover to a corporation is prohibitive. “To bind talent, you might think about finding out why talented people leave, offering incentives to keep talented employees, and offering non-financial rewards to stay” (Ulrich & Brockbank, 2005, p. 22). In order for Riordan to keep human talent, the human resource department must look for ways to encourage employee commitment to the corporation.

Nissan Automobile Company is a Japan's number two auto manufacturers after Toyota, and just got ahead of Honda. Nissan's has several models such as Maxima, Altima, Infiniti upscale sedans, Sentra, Frontier pickups, the 350Z sports car, Xterra and Pathfinder SUVs. Nissan Automobile was established on 1933 in Japan. Later, the company name was changed to Nissan Motor Co., Ltd. Nissan than partnered with the U.K, Austin Motor Company. In 1960, Nissan merged with Prince Motor Company, and manufactured more luxury cars. By the end of the 1960, Datsun had exported more than 1 million vehicles to the United States (Nissan, 2008). During that period, Datsun was the most popularity sports car. By the time of the 1970s the Datsun model exports over 10 million (, 2008).
Current Challenges
Nissan current challenges are that in the 1990s, the sales was declined, and they were in debt around $12.6 billion (Nissan, 2008). Both DaimlerChrysler and Ford had learned the big mistake from Nissan Company and had a vision for a back off plan. In 1999, french automaker Renault alliance with Nissan based on the intelligence CEO, Carlos Ghosn. He has a nicknamed called �Le Cost Killer’ because based on his talent he would possibility to turn red ink black. When Carlos took over as a CEO in 1999, Nissan was on the verge of bankruptcy (, 2007). He came up with set of clear goals in a well lead-out plan, called �Nissan Revival Plan’ (NRP). The goal is to increase in profits, revenues, market shares, and increase operating margins to 4.5%, cutting the company's debt by half, and reducing costs by 20% (, 2008).

The Nissan Revival Plan clearly outlined the company's vision is to achieve the manufacturing efficiency and global cost competitiveness by connecting to its employees. With the help of NRP, Carlos established a very simple vision for the company destination and shared it at all levels of the company. He also shared the strategy, action plans, and made sure they were deployed at every level of the company, everybody knew what each employee has to contribute to the company. The employees felt the commitment both personal and team commitment coming from the top management. (, 2005). With a detailed plan, and strong commitment from all levels of the company, Nissan would be able to accomplish their goals. As a result, “the all-new Altima won the North American Car of the Year Award in January 2002” (, 2008,


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