5065HUM Business Report: Nissan and Renault's Cross-Cultural Analysis

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This business report examines the strategic alliance between Nissan and Renault, focusing on the cross-cultural challenges they encountered. The report delves into various aspects, including differences in social nature, power dynamics (ability space), gender factors, uncertainty avoidance, time perception, decision-making styles, and language barriers. It analyzes how these cultural disparities impacted the integration and success of the partnership. The report highlights the importance of understanding and adapting to cultural differences in international business ventures, offering recommendations for Nissan to improve its cross-cultural operations. The analysis covers the evolution of the alliance, from initial partnerships to deeper integration, and explores the impact of key figures like Carlos Ghosn. Furthermore, the report emphasizes the need for both short-term and long-term planning, effective communication, and adaptation to achieve global success.
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Module Code: 5065HUM – MAY2021
Module Title: English Business Communication and Report Writing Skills
Assignment Title: Business Report
Coursework Number: 1
Sabbir Ahmed
student ID: 11320414
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Contents
Introduction…………………………………………………… 1
Analysis ………………………………………………………….2-3
Conclusion……………………………………………………… 3
Recommendations…………………………………………… 3
References………………………………………………………. 4
Reflection………………………………………………………… 5
Report Plan……………………………………………………… 6
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Introduction
In this study l will explain how I will do my work as a consultant of Nissan and how I will
improve the Cross-Cultural Business Awareness properly and what activities to perform as
an independent business consultant of Nissan. Long-term partnerships like Renault and
Nissan in the automobile business have never been seen before. The interesting thing about
the partnership is that without Carlos Ghosn nobody thought that this partnership can lead
to success. Everyone's question was how a Japanese company would work together with a
French company. The partnership between Renault and Nissan was unique in the entire
automobile industry. Nissan is a North American company. An Asian company. Which has a
small operation in Europe. Reynolds, on the other hand, is a European and Latin American,
South American company. In the alliance between Renault and Nissan there was high level
of synergism. In 2009, Reliance and Nissan entered the second step of their partnership. So
that a deeper connection between them is made. Especially at their operating level, the two
companies were being considered for integration. These include Global Marketing Global
Systems and Global engineering. In today's world it is important to focus on the competitive
advantage, every company has to work in such a way that they are not just a Japanese
company or European company or not a South American company, they need to have a
global philosophy and it is important to have a great economic scale. In this way, Renault
and Nissan have been able to bring three global economies to the whole world. Had it not
been for the implementation of this strategic alliance, Nissan would not be known as such a
global company today.
Analysis
The following information shows the cross-cultural challenges that were experienced
between these two companies.
1. Difference social nature: There is a social difference between the two companies where
the Japanese Nissan company is based on the concept of collectivism where Nissan believes
in the strength of the group and considers the group as the most efficient material. In
France, on the other hand, those who belong to Western society have an individualistic
culture. Because of these differences, the two companies have faced cross-cultural
challenges and some social issues.
2. Ability space: Power Distance or Ability Distance often creates differences between
different countries in a management system. We can also call this situation as ability space.
The French Society has a high-power distance. On the other hand, Japanese organizations
also have power distances, but these power distances are usually much less than those of
French organizations. in these two cultures that we understand that managers usually play
a leading role and that managers have to make all the decisions and all kinds of advice to
the employees. However, there are some differences, such as top management and
subordinate communication, which is much easier in French organizations, while in
Japanese organizations it is not so easy to communicate between all management of the
organizations. The reason that Japanese companies are so different is that individual
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initiatives are not valued or anchored in Japan and it takes a long time to reach the top level.
management because there are many long chain intermediaries. One cultural difference
between Renault and Nissan is that in the case of Japan, that is, in the culture, those who
have historically worked for a long time are given more prominence in the organization than
those who have new joined or younger. Nissan had faced some big problems for preferring
older employees. As they have faced many types of high risks. Carlos Ghosn have created a
new system in order to solve this problem. That is double hierarchy system.
3. Gender factors: French culture has always supported both genders, they support men
and women equally, and this can be seen in their organization when both men and women
work, where it is seen that here gender is never considered in French culture, they only
consider that who is the best performer. In Japanese society, men are usually given much
more importance. So, to solve this kind of gender problem in Nissan, Renault has taken
some important steps where they have sent their woman managers to Nissan's organization
as part of their collaboration.
4. Uncertainty avoidance: By Uncertainty avoidance we understand that it is a process
through which a society discusses how to deal with its future uncertainty or any future
problems and what kind of steps to take. Thinking in this direction, we see that Japan is in
the worst condition here because they always face the negative impact of natural disasters.
On the other hand, such uncertainty or unforeseen events are not very noticeable in France.
5. Time perception: Generally considering time, Western societies such as France have
linear perception The Japanese, on the other hand, have a cyclical perception of time. The
difference between Japan and France here is that we know that in general Western
countries like France they think that time is money. On the other hand, Japanese people
don't give much importance to time. In Japanese firms, managers and employees are
generally looking at long-term goals, while in France and Western countries, they are more
focused on short-term goals. This shows that the Renault company has always been very
much on the short-term goals. Nissan, on the other hand, likes to plan very long term and
they review a lot of macro environment factors. Due to these factors, it is seen that Nissan is
not able to earn short term profit.
6. Decision factors: In the decision factors generally, Renault always makes decisions very
quickly and in a short point of time which is effective for them but Nissan always make long-
term decisions which always creates a big barrier for them. They have to try to make
decisions that can be make in a short time. By doing this it will be more and better and
effective for the Nissan company to develop their work ethics. As a matter of a fact the
Renault tries to take the decision in a smart and effective way to make things better and
more efficient.
7. Language factors: As we know that currently it is important for every big organization to
make there business more effective and better and to create the business relation. For this
prospect it is important to use the language in an effective way. As we know that language is
a effective tool to communicate with the customers and to make a more efficient and good
move it is important to improve the English language. Currently English language is used in
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many countries as the second language. And Renault are always using this English language
effectively as they are a European company. On the other hand as a Japanese company
Nissan is not that effective in using English to communicate with there customers which is a
big problem for them.
Conclusion
This study shows that when two very different organization, with different culture merged
together what really can happen. There were many types of cultural differences. And in the
study by analysing the overall prospect we have got ideas that when there is pain there will
be gain. At the very beginning nobody thought that Renault and Nissan can become a
successful merged company, accept it was Carlos Ghosn who knew that this can be a very
successful partnership.
Recommendation
The recommendations to Nissan for future cross-cultural operations based on alliance are
analysed and given below:
To further enrich cross-cultural operations in the future, Nishan needs to take some
steps. Here they need to change some aspects of their culture, such as thinking that
they the old people are better for work and then new younger and new business
graduates. For those who are new, in this case, they have to take care of these
issues and others have more work to do.
Japan's Nissan company always has long-term plans, which means they like to plan
long-term plans, but now they have to try long-term plans as well as short-term
plans. By doing this they will gain short-term profit.
As we know that the Renault company of France always values time, according to
them time is money. So, in this case for Nissan the time should be evaluated in the
same way as time and their work should be done in time and time should be given
more importance.
We know that English is now being used as a second language in almost all countries
and it is through this English that we can see that business relations are developing
with other countries so Japan’s Nissan company needs to develop their English
language which can help them to make more global relationship.
In Renault's management system we can see that they can make decisions very
quickly which is why they are making a lot of success and by making these small
decisions very quickly they can adapt to the whole environment. On the other hand,
we know that Japan’s Nissan takes a long-term decision to make a decision, so they
have to make a short-term decision from now on, and by making a decision very
quickly, they can adapt to the whole environment.
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References
Autocar. (n.d.). The car industry now: the future of the Renault-Nissan-Mitsubishi
Alliance. [online] Available at: https://www.autocar.co.uk/car-news/industry/car-
industry-now-future-renault-nissan-mitsubishi-alliance.
Ewing, J., Alderman, L. and Dooley, B. (2019). Renault and Nissan Need Each Other to
Thrive in Future, 2 Leaders Say. The New York Times. [online] 21 Jul. Available at:
https://www.nytimes.com/2019/07/21/business/renault-nissan-alliance.html
[Accessed 25 Jul. 2021].
MotorTrend. (2020). With Ex-CEO Ghosn Out, Does Nissan Have a Future? [online]
Available at: https://www.motortrend.com/features/carlos-ghosn-nissan-future-
opinion/ [Accessed 25 Jul. 2021].
UKEssays.com. (2010). Nissan Change Implementation. [online] Available at:
https://www.ukessays.com/essays/commerce/implementation-of-change-in-the-
nissan-motor-company-commerce-essay.php.
Bernard, J. (n.d.). Renault-Nissan Strategic Partnership: A Multicultural Analysis
Summary: The context of the Strategic alliance. www.academia.edu. [online]
Available at:
https://www.academia.edu/9481293/Renault_Nissan_Strategic_Partnership_A_Mul
ticultural_Analysis_Summary_The_context_of_the_Strategic_alliance_3?
auto=download [Accessed 25 Jul. 2021].
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Reflection
In this study my teacher helped me to understand about the overall report here I
have collected all the secondary data and also, I have used a case study as an
information guide for this report. In my class my teacher has provided me with some
unique information on cultural difference. In this study I got information which are
related to the Company which is called Reliance and Nissan. Here my teacher has
taught me how about the cross-cultural effect on a company and what are the
problems when two companies come together and what are their benefits. For that I
will always thank my teacher for the constrictive discussion to carry out this study.
Overall, this study gave me knowledge about the importance of culture. And how the
cultures can affect the overall business. Here I have understood that no matter what
it is going through business decisions are really important for implementing the
success. As a matter of a fact, it is important to understand the business procedure
of the nation. And whenever one company is merged to another company, they
must adjust with each other’s culture as soon as they can to get success.
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Report Plan
1.0 Introduction
This study shows information on two company which are Renault and Nissan. Here we find
out how these two companies have merged each other, where the author has tried to
analyse a case study about these two companies which headlines “no pain no gain.”
2.0 Analyses
This section analyses information that shows the cross-cultural challenges that were
experienced between these two companies. Which includes the following:
2.1 Difference social nature
2.2 Ability space
2.3 Gender factors
2.4 Uncertainty avoidance
2.5 Time perception
2.6 Decision factors
2.7 Language factors
3.0 Conclusion
In summary this study shows different information on Renault and Nissan. About how this
company have merged together and what cultural issues they faced in the long run.
4.0 Recommendations
4.1 Opportunity to the young employs
4.2 Establishing short term plans
4.3 Valuing time
4.4 Establishing English language for better communication
4.5 Taking quick decisions
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5.0 References
Autocar. (n.d.). The car industry now: the future of the Renault-Nissan-Mitsubishi Alliance.
[online] Available at: https://www.autocar.co.uk/car-news/industry/car-industry-now-
future-renault-nissan-mitsubishi-alliance.
Ewing, J., Alderman, L. and Dooley, B. (2019). Renault and Nissan Need Each Other to Thrive
in Future, 2 Leaders Say. The New York Times. [online] 21 Jul. Available at:
https://www.nytimes.com/2019/07/21/business/renault-nissan-alliance.html [Accessed 25
Jul. 2021].
MotorTrend. (2020). With Ex-CEO Ghosn Out, Does Nissan Have a Future? [online] Available
at: https://www.motortrend.com/features/carlos-ghosn-nissan-future-opinion/ [Accessed
25 Jul. 2021].
UKEssays.com. (2010). Nissan Change Implementation. [online] Available at:
https://www.ukessays.com/essays/commerce/implementation-of-change-in-the-nissan-
motor-company-commerce-essay.php.
Bernard, J. (n.d.). Renault-Nissan Strategic Partnership: A Multicultural Analysis Summary:
The context of the Strategic alliance. www.academia.edu. [online] Available at:
https://www.academia.edu/9481293/Renault_Nissan_Strategic_Partnership_A_Multicultur
al_Analysis_Summary_The_context_of_the_Strategic_alliance_3?auto=download [Accessed
25 Jul. 2021].
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