Case Study:
RENAULT-NISSAN ALLIANCE: WILL FURTHER INTEGRATION CREATE MORE SYNERGIES?
RNA created in 1999 launched four convergence projects in four key functions: R&D, manufacturing, logistics, purchasing and human resources in April 2014. The projects required two independent entities, Renault and Nissan, to increase collaboration and integration to strengthen economies of scale and to reduce costs in order to better compete globally in both developed and emerging markets. However, as the alliance increased the level of integration and considered inviting new partners, it also increased the time and resources needed to reach joint strategic decisions between the two companies. RNA had many difficult decisions to make with respect to moving forward - not least of which involved finding an eventual replacement of the alliance's 61 year old chief officer (CEO) Carlos Ghosn.
As part of the executive management team, you have been tasked to evaluate the continuation of synergies, has the company reached the marginal cost-benefit point in its synergy projects?
Identification:
• Provide a sharply focused diagnosis of strategic issues and key problems that you demonstrate a good grasp of the company's present situation.
• Identify the firm's strategy and pinpoint whatever strategy implementation issues may exist.
• Consider beginning your paper with a overview of the company's situation, its strategy, and the significant problems and issues that confront management.
• State problems as clearly and as precisely as you can.
• Avoid recounting facts and history.