Problem in GM arose in 1930 when GM’s legendary CEO Alfred P.Sloan published his landmark memoir, My years with General Motors in 1963,the title page bored the name of his collaborator, a Fortune editor named John McDonald.
GM’s survival was in question because it’s past CEO’s were distracted by corporate debt and legacy costs, work rules and franchise laws. Board chairman Ed whitacre felt the need to generate more revenue and more profit.
GM also had to struggle since 1960’s because they couldn’t build small cars like the foreign brands. The need for GM cars was diminishing. GM’s greatest challenge from then was to change it’s way of thinking. To survive in the competitive market GM felt the need to hear from it’s competitors. Competitor of GM Alan Mulally had a clear vision of the future and created a no-excuse culture. These innovative ideas were very beneficial for GM. Talents from outside the company and ideas that are innovative could help GM to survive. To survive GM needs to know how to mobilize all it’s ingredients. Success of the GM depends much on this.
GM’s survival was also in question when GoFast started in 2000 by Rick Wagoner. It’s intention was to minimize meetings. GoFast meetings took place so that everyone in the company can sit together and take decisions in a shorter time.GM was wrong. It increased more meetings and the cost for these meetings to take place increased as well. The whole premise of GoFast became going slow. The survival of GM was in question because it faced al lot of challenge.
GM also felt the need to take more risks at the time when they were launching their new products such as-Buick Lacrosse at a slower rate than it’s competitors. According to a survey by Merrill, they found out that GM will be replacing an average of only 11% of it’s product line between 2010 and 2013 which is very low compared to Toyota and Ford. Toyota planned to replace 17% of it’s product line...