Introduction
In 1999, Renault bought equity in the Japanese automaker Nissan. As part of this bailout, Nissan borrowed Carlos Ghosn from Renault to become their first non-Japanese Chief Operating Officer (COO). To turnaround an unprofitable company, Ghosn imposed new management ideas despite deeply anchored Japanese business practices and culture. With his leadership, Ghosn lead and motivated Nissan’s employees, and the company became profitable. However, Renault planned for Ghosn to leave Nissan and return as its Chief Executive Officer (CEO). This leadership void threatens Nissan’s “sustainable pattern of customer focus and profitable growth” (Millikin 9). Nissan needs to continue the momentum and motivation to accomplish growth.
Replacing Ghosn with a new COO by use of a search committee represents the obvious solution to the problem. However, this assumes a replacement could and would be Ghosn’s equal, including leadership and management style, vision, and knowledge. Renault could allow Ghosn to transition the leadership role to a replacement of his choice, with approval of Nissan’s Board of Directors, after a mentoring and trial period. On the other hand, Nissan could negotiate with Renault to extend Ghosn’s stay as COO to ensure the status quo. Alternatively, Nissan could merge with Renault and agree to keep the Nissan brand. This would allow Ghosn to continue his successful leadership and strategies, or run the company as CEO of Renault, while decreasing redundancies and increasing operating efficiencies.
Analysis of the Alternatives
Search committees often replace the traditional hiring of upper management and leadership. The committee must define present conditions and develop a consensus of criteria used ...
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