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ACCG 890
CORPORATE FINANCIAL FORECASTING
Minor Assignment
(Group Exercise)
Students:
Sorokin Mikhail
Student № 41905059
Sorokina Natalia
Student № 41905040
General Motors is one of the world largest American based automakers which was founded in 1908. GM has operations in every major region of the world directly employing some 204 000 people. The company and its strategic pertners currenly sell and service such brands as Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. During the last decade the company was suffering from severe liquidity crisis which finally led to reorganisation of the corporation, which, however, did not enable the company to overcome the crisis. The reason for this is that there are a number of unpredictable events (black swans) which were not adressed effectively but which have a major impact on a car industry in a whole and on GM in particularly. Respond to these chalenges is a vital part of strategic management as far as it can either help GM to reach a stable position in the market or reduce the company to a whisper. Thus, the aim of this paper is to reveal the main determinants of GM liquidity problem and to critically evaluate possible pathes to overcome the current crisis. In the first part of this report an influence of the Global Financial Crisis on GM is discussed and such solutions as downsizing the workforce, obtaining subsidies from the government and selling some parts of the company are estimated. The second part of the paper is devoted to the influence of oil price fluctuations on the company in terms of decrease in car demand and escalation of competition on the market. In the second part such ways as waiting strategy and technological adjustments are put forward and discussed.
Liquidity crisis
The main problem that General Motors is currently facing is the liquidity problem. The company had been suffering from this issue for almost half of a decade and finally... [continues]
ACCG 890
CORPORATE FINANCIAL FORECASTING
Minor Assignment
(Group Exercise)
Students:
Sorokin Mikhail
Student № 41905059
Sorokina Natalia
Student № 41905040
General Motors is one of the world largest American based automakers which was founded in 1908. GM has operations in every major region of the world directly employing some 204 000 people. The company and its strategic pertners currenly sell and service such brands as Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. During the last decade the company was suffering from severe liquidity crisis which finally led to reorganisation of the corporation, which, however, did not enable the company to overcome the crisis. The reason for this is that there are a number of unpredictable events (black swans) which were not adressed effectively but which have a major impact on a car industry in a whole and on GM in particularly. Respond to these chalenges is a vital part of strategic management as far as it can either help GM to reach a stable position in the market or reduce the company to a whisper. Thus, the aim of this paper is to reveal the main determinants of GM liquidity problem and to critically evaluate possible pathes to overcome the current crisis. In the first part of this report an influence of the Global Financial Crisis on GM is discussed and such solutions as downsizing the workforce, obtaining subsidies from the government and selling some parts of the company are estimated. The second part of the paper is devoted to the influence of oil price fluctuations on the company in terms of decrease in car demand and escalation of competition on the market. In the second part such ways as waiting strategy and technological adjustments are put forward and discussed.
Liquidity crisis
The main problem that General Motors is currently facing is the liquidity problem. The company had been suffering from this issue for almost half of a decade and finally... [continues]
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