CHANGE MANAGEMENT

British Airways and Nissan

British Airways and Nissan

Change Management and its Significance in an Organization

Leaders or the managers are usually familiar with word "Change Management" if they are working within a large corporation or organization. Change management has been around for a while but this term has become very common among organizations and corporations that it initiates changes to processes including both tasks and organizational culture. A change management is a set of processes that are employed to make sure that changes have been implemented in ordered, controlled and systematic way.

Nissan

Reasons for Change

In 1999 because of the Asian crisis and the fall of the Tokyo Stock Exchange, the French brand of cars Renault signed an alliance with Japanese Nissan, acquiring a 44.4% stake in Nissan (voting) and in turn Nissan acquired a 15% stake in Renault (non-voting). This is why Renault and Nissan are now “The Alliance” but which is distinguished from other unions among automotive companies is that both brands are committed to maintain their independence. Although there are several models of cars that are sold as Renault Nissan in some countries, this is the example of Renault Logan in Mexico is sold as Nissan Aprio, or the Nissan Almera in Colombia is sold as the Renault Scala. Moreover in 1999 the situation is catastrophic for Nissan, company had a debt of $ 22 billion, its market share has steadily declined recurring losses, and the company's stock value collapses. These all factors really required management to go for a revival plan.

Change Management Process and Success

All auto companies reduced their production in Japan between 1990 and 1998, but some might draw a little better the internal crisis, while others suffered large contractions as Nissan Diesel (subsidiary of Nissan Motor Co.), who reduced their production by more 50 percent. With respect to Toyota, it underwent shrinkage of 24.8 percent, while Nissan did in a 35.8 percent. Honda and Mitsubishi had fewer reductions, the first with 10.1 percent and 18.9 percent in the second. Japanese companies have made joint ventures are precisely in the area of ??the ones that have lost market share in Japan and abroad, as would be Nissan, Mazda and Isuzu.

In the case of Nissan, 1998 was the sixth consecutive year of losses in its global sales. His problems began in the mid-eighties, when in Japan the engineers of this company simply lost touch with what consumers wanted. Receiving earnings were repatriated from the U.S. market to offset domestic losses, while Toyota and Honda reinvested profits. Nissan sales in the U.S. increased in 1998 but this has not been sufficient to raise the percentage of the U.S. market once dominated by this company. In 1998, Nissan's market share in the U.S. was 3.6 percent, while in 1995 was 5.2 percent. Meanwhile, Toyota and American Honda Motor Co. in 1998 retained the 8.3 and 6.2 percent respective U.S. auto market.

Nissan does not reveal many details about its financial condition, but the debt figure often quoted is 21 billion, ...