Topic: Evolution of a fortune 500 company & link the concept covered in theme 1 & 2 with the management evolution of the selected company Fortune 500 Rank 15 - General Motors
“A car for every purse and purpose" – Alfred P Sloan Jr, Former President & CEO General Motors. General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. Company History:
General Motors was founded on Wednesday, September 16, 1908, in Flint, Michigan, as a holding company for Buick by William C. Durant. Durant started acquiring many companies like Oldsmobile, Cadillac, Cartercar, Elmore, Ewing, Pontiac etc. Durant lost control of GM in 1910 to a bankers trust, due to the large amount of debt (around $1 million) taken on in its acquisitions. Durant left the firm and co-founded the Chevrolet Motor Company in 1911 with Louis Chevrolet. After a brilliant stock buy back campaign, he returned to head GM in 1916.
GM surpassed Ford Motor Company in sales in the late 1920s thanks to the leadership of Alfred P. Sloan. Sloan was inventing new ways of managing a complex worldwide organization, while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model; they wanted style, power, and prestige, which GM offered them. During the 1920s and 1930s, General Motors assumed control of the Yellow Coach bus company, and helped create Greyhound bus lines. They replaced intercity train transport with buses.
GM needs a sense of urgency regarding revising a strategic plan that incorporates the next generation of vehicles. In today’s global economy and highly competitive auto industry GM has no time to procrastinate. As stated, GM has just too much at risk in not becoming an industry leader in alternative fuel technology. Fuel-economy legislation is sparking the race. This is a critical time in auto industry with many threats, but opportunities as well. The next several years will redefine GM. Vision Statement
The GM vision is as follows: GM’s vision is to be the world leader in transportation products and related services. GM will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people. The proposed new vision for GM is as follows: For GM to become the automotive industry leader in alternative fueled vehicles and providing superior quality products that global consumers call to mind when they think of quality and innovation. My vision for GM is to be the industry leader in innovation, and where all other industry competition strives to imitate. Mission Statement
The current GM mission statements are as follows: Drive improvements in market share, revenue, brands, people, responsiveness, and cost effectiveness through the implementation of global common metrics and best practice sharing. The new proposed mission statement will be as follows: GM will become an industry leader, not a follower. To regain lost market share that was lost to foreign competition, and once again be the auto industry leader in sales and market share in today’s global market. Values Statement
The auto industry just like the global economy is going through tremendous change, due to rising fuel prices, and environmental worries, such as global warming. GM must use these threats as opportunities, and take advantage of changing consumer buying habits. GM needs to change consumer perception of the company, from a dull, poor quality, vehicles to...
Please join StudyMode to read the full document