Selling the land

In 1994, Darlings requested Cridge ltd to carry out a valuation of land occupied by Darling factories and offices. On completion of the valuation, Darlings were interested in selling the piece of land bounded by Ebury Road, Vinery Street and Littledown Street, which measures approximately four acres. However, there were no byer for this piece of land, but now there is one. In addition, the value of the land appreciated considerably since the construction of the Europe Hotel and the Transcontinental Supermarket and now the price, which is offered, is 500,000 pounds per acre.

We know, that our cocoa warehouse no2 is situated there. This warehouse supposed to be temporal, but they still use it. Also, we know that even if darlings work at full capacity, they will need only 3000 tons of cocoa, and they can carry it in the warehouse no1(capacity is 5800 tones).

In my opinion, selling this part of land is bad idea, because it is situated in the busy place. It is better to tear down that warehouse and build a shop or cafeteria for receiving steady income. However, if darlings do not want to build something there, they can rent this land for several years, again, for receiving steady profit. Also, selling the land is bad idea, because its price may appreciate considerably again, and if they sell lend there will be a chance of losing it forever.

4. The art of delegation

Many managers believe that getting work done through others requires a free flow of information and open, productive relationships with staff. Rather than creating a climate of fear or terror, they give clear instructions and realistic deadlines and take care to give only constructive criticism and not harass employees. They work towards creating a positive working environment where employees feel valued and trusted. Some specialists say that it is essential not to criticize, as this rarely motivates (inspires) and often causes stress and loss of confidence among the staff. Mangers who successfully maintain the balance of power will not lose their authority even when certain subordinate members take control of projects. This style of management particularly important during an economic upswing when employees can easily find work with another company.

So, in conclusion I’d like to say, that getting something done is only half the job. Keeping staff happy at the same time is every bit as important.

5. Problems with Nissan.

The management style of leaders varies in different counties. Some cultures prefer participative management type whereas others prefer an individual approach. In an increasingly globalizing world, it is essential to understand cultural differences and be able to adjust your management style to the way of doing business in the country of your business partner. However, it is rather difficult to predict whether or not a particular style of leadership is the right one, when working in a foreign country. A good example of this is Nissan turnaround.

In late 1990s Nissan, the Japanese car manufacturer, was facing serious problems: the company was on the brink of bankruptcy: it had lost money for the sixth consecutive year and the company’s debts had soared. Lois Schweitzer, the CEO of the Renault group, that had a 37 per cent stake in Nissan, decided that a time had come to appoint a new CEO. A suitable candidate for this position was Carlos Ghosn, the tough results-oriented director of Renault’s engineering division.

It was however rather difficult to persuade him to take over the position, and the main reason for this was his direct style of management. Carlos Ghosn had a reputation as a man of action who takes quick decisions and likes to do things his own way, no one new if his more American management style would be compatible with the Japanese style of doing business. Moreover, Carlos Ghosn had no experience of working with the Japanese. Japan is a country with very different business traditions: the Japanese have a strong sense of belonging to the group. They are loyal to their organizations and will usually accept management decisions, which have been made to preserve the profitability of the organization as a whole. Carlos Ghosn understood that he would need to cut costs by eliminating jobs and factories, but was not sure if that would be politically acceptable. His brash and cost-cutting plan could have been disastrous for Nissan. And a failure in this important mission could have damaged his long-term career prospects.

Eventually Louis managed to persuade Carlos to take on the assignment, by offering higher salary, assistance, cultural awareness course and a guarantee of employment in case of failure. And it turned out to be a tremendous success. Right from the word go, Carlos Ghosn made it clear that he wasn’t going to adjust to the Japanese rules. It was clear for many Japanese that he would not be staying for very long if he ignored the culture. However, Carlos establishes a leadership style, which was revolutionary to Japan, but still showed respect to the identity. He succeeded in putting through a cost-cutting plan that no one before him dared to present; he restructured the whole company; eliminated jobs and destroyed long-standing relationships with suppliers. And he became a star of the Japanese business model, because he saved Nissan.

This is a perfect example of the cross-cultural leadership’s complexity. It shows the importance of cultural aspects in business, which can often be a determining factor of success on the overseas market.