THE UTILIZATION OF CORPORATE DIPLOMACY TOWARDS JAPANESE AUTOMOTIVE INDUSTRY TO COUNTER THE EFFECT OF FINANCIAL CRISIS: THE CASE OF NISSAN REVIVAL PLAN (1999-2004)

Abstract

In the late 20th Century, Japan began to experience a slowdown on the Financial framework. Financial firms including banks started to experience a decrease of values in assets and the currency started to experience depreciation. This also causes several major companies to experience shutdown, especially the automotive industry. Being one of the leading products of Japan, the automotive industry is known of their efficiency and lean production and manufacturing. However, such advantages of the automotive industry began to wear down as many factories began to experience shutdowns. One of the automotive companies that were the victims of the incident was Nissan. With the financial framework were unable to sustain at the time, the company began to suffer due to los of profit and primitive company and financial framework. However, in 1999, through the utilization of Corporate Diplomacy, Carlos Ghosn began to step in on the directives of Nissan and began to create the Nissan Revival Plan that brings changes towards the obsolete company system and bringing in an entirely new system with a partnership with Renault.