Case Study: Nissan’s Successful Turnaround Under Carlos Ghosn

Nissan is a famous automobile manufacturing company which was founded in 1933. After the Second World War, Nissan expanded its operations globally. Nissan was very well known for its advanced engineering and technology, plant productivity and quality management. However, during the previous decade, Nissan management has emphasized on short-term market share growth, instead of profitability or long-term strategic success. Nissan’s designs had not reflected customer opinion. In addition, Nissan managers tended to put retained earnings into keiretsu investing (equity of suppliers), rather than reinvesting in new product designs as other competitors did. These inappropriate strategies combining with the Asian crisis influence on a devaluation of the yen led Nissan to the edge of bankruptcy. Nissan was in need of a strategic partner that could lend both financing and new management ideas to foster a turnaround. Furthermore, Nissan sought to expand into other regions where it had less presence. In order to turn around as soon as possible, Nissan found an opportunity and created a strategic alliance with Renault who was also looking for a partner to reduce its dependence on the European market and enhance its global position.

In 1999 Nissan was incurring losses in seven of the prior eight years, which led to the hiring of a new CEO, Carlos Ghosn, being the first non Japanese CEO, had to face a huge culture clash (French-Japanese) so that he could be able to redefine the company’s structure to ultimately enhance its performance in a maximum period of two years. Although he intensively addressed cultural issues, taking under consideration the specifications about Japanese culture norms, he also incurred few risky decisions that could have worked against the process, risking the employee’s engagement process.… Read the rest

Case Study: Delta Airlines Successful Business Turnaround Strategy

In 1924 Collet Everman Woolman and an associate started the Huff Daland Dusters crop dusting operation, this was the first agricultural airplane made for the purpose of crop dusting for getting rid of boll weevils and insects. The dusting speed was 80-85 mph and the advantage it had was low speed flying, heavy payload capacity and low maintenance cost. This creation was the roots of Delta Air Lines. In 1928 the crop dusting operation broke away from the parent company and became Delta Air Service. The company began getting contracts in delivering airmail and then in 1929 Delta began transporting passengers flying them to Dallas, Jackson and Mississippi. Later other routes were added to Atlanta and Charleston. Delta’s success was growing and began getting popular when the U.S. government awarded it an airmail contract in 1930. It remained in business during a temporary but costly suspension in the airmail contract system in 1934. But by 1941 the company became incorporated and was called Delta Air Corporation and was awarded three more airmail contracts. By World War II Delta is now under the War Department contract and began to devote its time to the troops transporting them. In 1945 Delta returned to normal service and grew more competitive than ever in the airline industry.

On May 1, 1953, Delta merged with Chicago and Southern Airlines and continued to grow as a major regional trunk carrier through the 1960’s. In the summer of 1967 Delta merged with Delaware Airlines and officially was named Delta Air Lines.… Read the rest

Case Study: Intel’s Social Media Strategy

Intel is one of the most foremost American global technology companies and the world’s largest semiconductor chip producer, in term of revenue. It is the inventor of the x86 series of microprocessors where its processors nowadays can be seen in a various computing devices used. The company was founded in 1968, as Integrated Electronics Corporation with home-based in Santa Clara, California, USA. Intel also manufactures motherboard chipsets, integrated circuits, graphic chips, network interface controllers, and other communications and computing utility devices. Robert Noyce and Gordon Moore and widely cooperated with the executive leadership Andrew Grove initially founded the company. The company grew and later started integrating an advanced chip design with a leading capability support manufacturing. The company started its prominent advertising campaign with Intel’s “Intel Inside” in the 1990s and made its Pentium brand names as the home-used processor.

The company is everywhere in the digital social media – blogs, Facebook, Twitter, YouTube, Instagram, Google+, LinkedIn, etc. Intel Free Press is a tech news site from Intel Corporation, covering technology and innovation stories focused on people, technology, events and topics relevant to Intel and the computing industry. Intel’s chosen social media weapon is high-quality content, and its delivery vehicle is its staff. Intel realized that engaged end-users, particularly influential bloggers and hobbyists, rely heavily on technical resources and product information that is not widely available from resellers; consequently, it launched social media campaigns based on promoting subject-matter experts and internal brand advocates.

Under Intel’s global social media strategist, Ekaterina Walter leadership, Intel has seen a good 10% to 12% monthly fan base growth.… Read the rest

Case Study: Dell Social Business Strategy

Dell Inc. is one of world’ largest multinational technology corporation that manufactures sells and supports personal computer and other computer related. Dell was founded as PC’s Limited in 1984 by Michael Dell, with a start-up money totaling $1,000, when he was attending the University of Texas. Michael Dell started his business with a simple concept that selling computer systems directly to customer would be the best way to understand their needs and give them the most computing solutions. The first product of the company is a self-designed computer called Turbo PC which had lower prices than major brands. PC’s Limited was not a first company to do this but was the first to succeed, grossing $73 million in its first year trading. The company changed its name to Dell Computer Corporation in 1988. They tried to sell computer through stores in 1990 but was unsuccessful and they returned to sell directly to customers. Dell was included in Fortune Magazine as one of the world’s 500 largest companies in 1992. Four years later, Dell began to sell computer through its website. In 1999, Dell beat Compaq and became the biggest seller PCs in the US with $25 billion in revenue. In 2003, the company’s name was changed to Dell Inc.

In June of 2005, Jeff Jarvis bought a Dell Lemon and paid a premium for four year in home service plan. He started to face problems with the machine immediately and he contacted Dell for fixing the problems, but there was no proper response from Dell.… Read the rest

Case Study: Google’s Acquisition of Motorola Mobility

Motorola mobility, which was previously known as the mobile devices division of Motorola, until January 2011 when it was separated. The company produces smart phones, set top boxes, end to end video solutions and cable modems. As soon as automobiles were becoming popular, Motorola helped with entertaining the passengers, as it introduced the world’s first commercial portable cell phone. On the other Hand, Google a privately held company, founded by Larry page and Sergey Brin, two Phd students at the university of Stanford, it has been focused on technology innovations to help its users find the information with unprecedented levels of ease, accuracy and relevancy. Google primarily concentrated on the areas of search, advertising, operating systems and platforms, enterprise and hardware products. These programs include AdWords, AdSense, Google Display and Google Mobile, with Android and Google Chrome serve as its operating system and platforms.

Google generate revenues primarily through delivering advertising to promote products and services for businesses. Currently, it moves to new area, except for providing specific features to mobile device users, Google also operates in mobile segment, as it made an acquisition of Motorola Mobility Holdings Inc. (Motorola) on May 22, 2012.

Strategy, Finance and Valuation Behind the Acquisition

Google is considered as one of the top web property in the global market. It provides different organization from all sizes with measurable results. The base of Google is located in Silicon Valley, however they have offices all over the world. In 2011, Google managed to buy Motorola at a share price of $40 per share.… Read the rest

Case Study: IBM’s Turnaround Under Lou Gerstner

“Who Says Elephants Can’t Dance” describes how Louis Gerstner lead the organizational turnaround at IBM when it was at the verge of extinction. Louis Gerstner was the chairman and CEO of IBM from April 1993 to March 2002. Before joining IBM, he had worked on various consulting assignments at McKinsey and led successful organizational changes at American Express and RJR Nabisco.

During the early nineties, IBM was rapidly losing its market share in most of the markets it catered to its competitors. The management was planning to break the organization into individual businesses. Soon after his appointment as CEO, Gerstner identified that the unique competitive advantage of IBM was due to its scale and broad-based capabilities, and therefore advocated that “keeping the company together” will help IBM to utilize this unique advantage by positioning itself as software integrator. Gerstner was instrumental in shifting the mental model of employees from self-centric to customer-centric. He found that most important aspect of organizational change at IBM was its culture – “I came to see, in my time at IBM, that culture isn’t just one aspect of the game—it is the game”. Gerstner handled the severe financial crisis of IBM and kept IBM financial health solvent. In the early ’90s financial position of IBM was precarious. Gerstner repositioned corporate strategy of IBM to keep IBM together and pulled off a successful turnaround for IBM.

Gerstner delivered results for IBM. Many insiders and Industry experts criticized IBM for selecting a CEO with non-technology background. On analyzing performance of IBM during Gerstner’s reign, Gerstner was definitely the right choice for the job.… Read the rest