Case study: Renault

Résumé du document

Since Carlos Ghosns arrival as the head of Renault in 2005, there were many innovations in the strategies of Renault. These changes are implemented in the 2009 contract. Three directions are given:

Quality (Laguna III in the top 3 in quality of product and services).

Profitability (operating margin of 6 % in 2009)
Growth (800.000 sales of vehicles in 2009).

Currently, Renault has difficulty in selling its products in the European zone and at the same time, it launches new products. We can say it is a period of change.

Created in 1898 by Louis Renault, Renault became in January 1945 a nationalized industry and the company's name was changed to "Regie Nationale des Usines Renault". Since 1990, French State gets only 15 % in Renault parts. Then Renault made an alliance with Nissan in 1999.

Extraits

[...] As the number falls below 1 (which means the company has a negative working capital), we could imagine that if Renault makes liquidity by selling its inventories, it would help the company. Nevertheless we know that it currently is a difficult period for Renault which has difficulties to sell cars in Europe. CR (Current Ratio) = CA (Current Assets ) / CL (Current Liabilities ) b. Long term The Total Debt Ratio gives an indication of the management ability to forecast future dispenses and then to make growth. [...]

[...] A colors code is used; for each part of the report a color is chosen (by instance, financial report is in red!). Thanks to colors, we can find the information that involves us more easily. C / CEO ( photography and speech ) The photography of the Chief Executive Officer is a portrait. We just can see his face. This photography is as small sized as an ID photography. It is placed in the hierarchical tree in which there are whole photographies of overseers. The portrait of Carlos Ghosn shows someone who smiles and who seems very confident in the future. [...]

[...] This Alliance really means for Renault a modernization of its industry tool . Indeed Renault benchmarks Nissan and we can find a lot of Japanese terms and techniques used in firms (Pokka Yoke, Kaizen, etc.). Nissan and Renault, headquartered respectively in Tokyo and Paris, have separate managements and run their individual operations through their respective executive committees. Each is accountable to its shareholders and its board of directors. In March 2002, the Alliance created a linked strategic management company equally owned by Nissan and Renault to define a common strategy and manage all synergies. [...]

[...] As we can see, Renault Group strives to limit every risk. Nevertheless, they can not avoid every problem. And we saw in the October news a problem with the firm of Cleon. A man reproached to Renault to not recognize he was bound. This example allows us to wonder about Human Resources tools. C / Human Resources In the firm belief that ethics and business success are linked. Renault has placed sustainable development at the heart of Renault Commitment 2009. [...]

[...] Then Renault makes an alliance with Nissan in 1999. Renault Corporate is currently the second French automotive industry. For each activity, the turnover shares in this way: of cars sales : There are about 2,4 millions of particular vehicles and traffics sold in 2006 (including 2,1 millions sold with the brand Renault with the brand Dacia and with the brand Renault Samsung) ; for the provision of services: There are provisions for sales financing (buying, allocating; RCI Bank) and associated services (maintenance, guarantee extension, etc.). [...]