The needed massive lay‐offs of 21,000 people and the closing of five factories as defined in the nissan revival plan stood in strong contrast to the employee's loyalty to japanese enterprises and the lifetime employment system - they were only possible because of the person goshn. Ghosn deserves a little bit of a breather in february, he announced that the goals mapped out in the nissan revival plan, the detailed blueprint for the company's comeback, would be met a year. The case focuses on the nissan revival plan (nrp) and its implementation it also explores the various problems faced by nissan and how those problems were addressed by the nrp the case concludes with the results of the nrp and future prospects of nissan.
Menting a revival plan schweitzer, ceo of renault, to send carlos ghosn to nissan to be in charge of all internal administration and operations. Mr ghosn's nissan revival plan involved shedding 20,000 jobs and closing five factories, a drastic move in conservative japan he also abandoned the cosy keiretsu family-of-firms system, a. Maybe when you see our new products, you will get excited, said eiji imai, senior vp and program director of nissan's planning divisionlooks like imai is right nissan and infiniti. Nissan's cross-functional teams the following table lists the nine cross-functional teams that produced the nissan revival plan, showing their composition and the objectives they identified.
In february 2000, just before the nissan revival plan was launched, i met with toshiyuki shiga, who was in charge of corporate planning (he would later become chief operating officer) and told him to start preparing plans to expand into china. Nissan revival plan s, g & a distribution structure streamlining m revamp domestic dealer organization mreducing dealer affiliates by 20% mclosing 10% of the retail outlets mopening longer hours. Under ceo ghosn's nissan revival plan (nrp), the company has rebounded in what many leading economists consider to be one of the most spectacular corporate turnarounds in history, catapulting nissan to record profits and a dramatic revitalization of both its nissan and infiniti model line-ups. Ghosn's nissan revival plan, announced in october 1999, called for a return to profitability in fiscal year 2000, a profit margin in excess of 45% of sales by the end of fiscal year 2002, and a 50% reduction in the current level of debt by the end of fiscal year 2002. Nissan unveils revival plan october 18,1999,tokyo, japan - nissan motor company, ltd today announced a far reaching recovery plan that is designed to achieve lasting and profitable growth for nissan worldwide.
The revival plan included a target of reducing the total number of trading partners by half at first, the number of suppliers decreased but when nissan's fortunes turned the corner after 2000, the number of our business partners actually rose. -invited the press to the first annual meeting to promote its revival plan and gain more attention from the industry - carried out plant closings and reduction of workforce by 21,000 jobs over three years. Saikawa won ghosn's trust as the enforcer who helped break the nissan keiretsu of affiliated suppliers in the early days of the nissan revival plan as the point man on purchasing, saikawa made.
Tokyo - the nissan revival plan (nrp) will conclude at the end of march, one year ahead of schedule, and nissan is launching its next strategic plan a year early, nissan motor co president carlos. Nissan revival plan (nrp) focused on customer how's things should be done : finance, promotion, recruitment, information,etc performance based incentive system new promotion system. Three years ago, when nissan's mere survival was in question, the nissan revival plan provided the resources needed to build this plant nissan plant opens the blueprint ghosn and a team of 200 turnaround managers drafted became known as the nissan revival plan , released in october 1999. The slides i prepared for and presented at the 2nd utc alumni auto conference (jan 2006) the underlying strategic analysis is based on the hbs case 9-303-042.
The nissan revival plan's total impact on cost reduction will be two-pronged: from one side, a noncomputed effect of the business development efforts, especially in terms of new product opportunities. The nissan revival plan was achieved one year ahead of schedule and succeeded in reducing their purchasing costs by 20 % which meant that they approximately reached the level of renault. Nissan has stayed the course set out under the nissan revival plan and has thrown its energy into meeting its original business objectives, which concentrate on fundamentals rather than a sudden flood of new models.
The nissan revival plan produced a range of reactions worldwide some worried that the plan, introduced in late 1999, would lead to the destruction of traditional japanese business relationships. When looking at the results from the nissan revival plan (nrp) it is quite obvious that carlos ghosn's turnaround of nissan worked extremely well the statistics from appendix 1 in the case leaves no doubt about this.