Organization development - Case Study Example

The Nissan Company was experiencing a number of problems after 17 years of exporting its vehicles known as Datsun cars to USA. The companies become the top selling import in the market of US. Even though the sporty datsun gained popularity due to its reputation as the ultimate thrill machine, there were a number of management missteps that led to long-lasting decline of the company from 1980. First there was the change of brand name from Nissan to Datsun which was not popular. Secondly, there was little infusion of innovative in their popular car Z.

This led to its decline in popularity hence few people went for it. In addition to its already faced problems, there was even more trouble as Nissan was unable to establish flexible relationships with its suppliers. It was also recorded that, their parts were extremely expensive as ranged from 15 to 20% above domestic competitors. This was obviously the decision of management to set prices high but as it was found out it was a wrong strategy as it led to a decline in sales (Covey 28). Nissan also faced competition that was unfavorable from Honda that led to Nissan having an expense of 1000$.

This was a discount offered to consumers who purchased their vehicles. All these challenges forced Nissan to restructure their plans but were not successful since they faced powerful trade unions which were against the layoff of workers. Renault was another company which was facing problems for example in the year 1984; it experienced a loss of $2.4 billion. Among the reasons was how managers or heads of departments turned the separated silos into baronies that made it hard for cross functionality to take place in the company.

The company also had embraced a narrow minded culture whose basis of thinking was one that was at the expense of a view that was larger. Renault was also experiencing a problem of additional unnecessary expenses through the operation of some of its plants.