General Motors Case

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General
 Motors
 Case
  General
 Motors
 had
 a
 faulty
 management
 strategy
 causing
 the
 firm
 to
 go
 into
  bankruptcy.
 One
 of
 the
 key
 components
 that
 led
 to
 failure
 was
 neglecting
 to
  collaborate
 between
 global
 divisions.
 As
 a
 multinational
 corporation,
 General
  Motors
 operated
 did
 not
 have
 sufficient
 collaboration
 between
 divisions,
 making
 it
  difficult
 to
 achieve
 economies
 of
 scale.
 
 One
 of
 General
 Motors
 existing
 strategies
 has
  been
 to
 cut
 the
 ranks
 of
 management
 and
 thus
 simplify
 the
 communication
 and
  operation
 channels
 and
 bring
 in
 new
 executives
 to
 fill
 top
 management
 positions;
  allowing
 a
 new
 perspective
 to
 enter
 the
 organization.
 
 The
 existing
 strategy
 is
 also
  based
 on
 performance
 criteria.
 General
 Motors
 is
 now
 focusing
 on
 market
 share,
  revenue,
 operating
 profit,
 cash
 flow,
 product
 quality,
 and
 customer
 satisfaction.
  Rather
 than
 having
 numerous
 brands
 that
 competing
 on
 a
 large
 number
 of
 markets,
  General
 Motors
 has
 cut
 four
 of
 it’s
 brands
 to
 focus
 on
 fewer
 key
 customer
 markets.
 
  General
 Motors
 has
 to
 be
 on
 high
 alert
 as
 market
 trends
 are
 continuing
 the
  drift
 toward
 small,
 compact,
 “green”,
 and
 fuel-­‐efficient
 vehicles.
 
 Another
 key
  strategy
 is
 to
 retain
 Opel
 and
 concentrate
 on
 the
 small
 car
 industry
 that
 has
 been
 a
  market
 trend.
 
 
 Toyota
 has
 been
 in
 the
 lead
 with
 its
 Prius
 leading
 the
 way
 to
 greater
  fuel
 efficiency.
 
 The
 market
 is
 likely
 to
 continue
 to
 seek
 high
 fuel
 efficiency,
  especially
 with
 the
 prices
 of
 gasoline
 steadily
 increasing.
 GM
 has
 to
 consider
 that
  sales
 of
 high
 gas
 mileage
 cars
 may
 be
 linked
 to
 the
 spikes
 in
 gas
 prices.
 However,
 the
  market
 may
 not
 continue
 strongly
 shifting
 this
 direction
 since
 the
 resent
 news
 that
  Australia
 discovers
 a
 twenty
 trillion
 oil
 reserve;
 now
 making
 then
 a
 leading
  exporter.
 
 
  To
 identify
 the
 position
 of
 the
 company,
 we
 can
 do
 a
 SWOT
 analysis.
  Strengths
 include
 a
 large
 company
 with
 many
 recourses,
 new
 management,
 skilled
  workers,
 ability
 to
 develop
 new
 products.
 Weaknesses
 are
 the
 weak
 brand
 image
  that
 resulted
 when
 the
 company
 filed
 bankruptcy.
 GM
 may
 also
 have
 a
 difficult
 time
  proving
 its
 credit
 worthiness
 to
 potential
 lenders
 and
 inventors.
 Opportunities
  include
 the
 growing
 interest
 in
 compact
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