Analysis of two cases: œThe Renault-Nissan Alliance and œNissan’s Electric Vehicle Strategy in 2011: Leading the Way toward Zero-Emission.
This is a take-home exam due by midnight June 26th via e-mail. This is an individual assignment to be prepared with no collaboration.
Scope of the questions is cumulative since the beginning of the term.
All questions are in the context of the two cases mentioned above. Please answer all questions.
The first part and the third part are worth 20 points each, and the
second part is worth 50 points. Evaluation criteria are included below.
Present a comprehensive analysis of the global automobile manufacturing industry in which Nissan and Renault are two major firms. Then, at the end of your response to
this question, share a perspective about œCompetitive Strategies for Dynamic Environments considering this industry and the macro/general domestic and global
environments. (20 points)
Develop a comprehensive response foreach of the following five aspects for the Renault-Nissan Alliance formation and subsequent initiatives and progress based on these
two cases: strategically advancing, financially healthy, operationally efficient, organizationally strong and stable, and social and environmental responsible.(50
What is the meaning of an alliance? And discuss the interdependence between strategy and organization. (20 points)
Evaluation criteria for each question: Coherence and structure of information and analysis provided; effectiveness and creativity in the use of relevant concepts and
frameworks integrated in the discussion as lenses through which you viewed the situation; and insights and perspectives developed.
he Renault-Nissan Alliance
We are not merging, we are creating a binational company.
Louis Schweitzer, chairman and CEO of Renault SA1
We are managing the apparent contradiction between synergy and identity.
-Carlos Ghosn, president and CEO of Nissan Motorsz
On Wednesday, May 29, 2002, the board of directors of Renault-Nissan BV (RNBV) met for the
first time to discuss the state of the alliance between Renault SA and Nissan Motors-two of the
world’s largest automakers. RNBV was a 50/50 joint venture company established in March of that
year to oversee the strategy of the alliance and all activities undertaken jointly by Renault and
Nissan.3 The new company would steer alliance strategy and supervise common activities on a
global level, while respecting the identity and culture of each company and not interfering in
operations/’4 Louis Schweitzer, Renault’s chairman and CEO, held the position of president of the
RNBV board; while Nissan CEO Carlos Ghosn held the position of vice president (see Exhibit 1).
Renault and Nissan would continue to run their operations under their respective management
The creation of RNBV is the next natural step in the evolution of the [a]lliance, declared
Yoshikazu Hanawa, Nissan’s chairman. It demonstrates that a Japanese and a French company,
deeply rooted in their own culture and identity, have been able to cooperate successfully, without
losing their uniqueness/’5
In 1999 Renault had invested $5.4 billion in Nissan-for 36.8% of the company-at a time when
Nissan was a struggling automaker rumored to be days away from bankruptcy. The investment was
a bold bid by Renault to gain additional scale and global reach, and marked the largest ever
investment by foreigners in a Japanese industrial company. Shortly before the RNBV board meeting,
1 David Gauthier-Villars, Car Making: What Makes Carlos Ghosn Tick? Far Eastern Economic Review, September 14, 2000, p.
2 As quoted in Halfway down a long road, The Economist, August 18, 2001.
3 The companies established a foundation in the Netherlands, which would hold options on preferred stock issued by Renault-
Nissan BV. This structure was intended to protect the two companies from potential takeover bids.
4 Source: Renault-Nissan joint press release, October 30, 2001.
Professor Michael Y. Yoshino and Senior Research Associate Perry L. Pagan prepared this case. HBS cases are developed solely as the basis for
class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective
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NISSAN’ S ELECTRIC VEHICLE STRATEGY IN 201 ll
LEADING THE WAY TOWARD ZERO-EMISSION
You can ‘t ignore thatz
The LEAF ‘s retail price was $32,780, and after the $7,500 federal tax credit the price dropped