critical thinking #1
1) Which of the four basic strategy types were used by GM? Explain your rationale. GM is a defender. Even though they slimmed down dramatically they still managed to regain their title from Toyota. They are experts at what they make and I am sure they would use the slogan “We're sticking with the basics.” GM wants to down size the number of platforms they use so they can make the most out of the fewer platforms.
2) Based on the case, what is GM's vision? Do you think it is realistic? Explain. GM's vision is to make fewer platforms but use the same basic parts. “One goal is fewer auto “platforms.” GM aims to build vehicles all over the world that are made from the same basic parts and assembled in plants that use the same tooling- thus wringing savings out of its massive engineering budget.”(150) Although they saw it is a goal I think you could consider it their vision because they are taking action on it. I think it is realistic because they already have all of the resources they just have to learn how to use all the parts to make the different platforms. Another thing they run into is opening them in different country’s and how much they will have to pay for labor and making sure that even in another country the product is still made well enough to have the GM stamp on it.
3) State two SMART goals for GM based on the case. Are these goals attainable? Discuss One SMART goal is “R”. Result-Oriented. “It aims over the next several years to raise its profit margin- the portion of revenue left after paying expenses- to 10%, Daniel Ammann, chief financial officer, said in an interview.”(Page 150) I also saw “R” in another place “It aims to reduce this total to 24 by 2014 and to 14 by 2018. . .”(Page 150) Another SMART goal I saw was “S.” Specific. In the analysis GM was very specific in how they wanted to change and how they wanted to accomplish that task. “One goal is fewer auto “platforms.” GM aims to build vehicles all over the world that are made from the
2) Based on the case, what is GM's vision? Do you think it is realistic? Explain. GM's vision is to make fewer platforms but use the same basic parts. “One goal is fewer auto “platforms.” GM aims to build vehicles all over the world that are made from the same basic parts and assembled in plants that use the same tooling- thus wringing savings out of its massive engineering budget.”(150) Although they saw it is a goal I think you could consider it their vision because they are taking action on it. I think it is realistic because they already have all of the resources they just have to learn how to use all the parts to make the different platforms. Another thing they run into is opening them in different country’s and how much they will have to pay for labor and making sure that even in another country the product is still made well enough to have the GM stamp on it.
3) State two SMART goals for GM based on the case. Are these goals attainable? Discuss One SMART goal is “R”. Result-Oriented. “It aims over the next several years to raise its profit margin- the portion of revenue left after paying expenses- to 10%, Daniel Ammann, chief financial officer, said in an interview.”(Page 150) I also saw “R” in another place “It aims to reduce this total to 24 by 2014 and to 14 by 2018. . .”(Page 150) Another SMART goal I saw was “S.” Specific. In the analysis GM was very specific in how they wanted to change and how they wanted to accomplish that task. “One goal is fewer auto “platforms.” GM aims to build vehicles all over the world that are made from the
Citations: Kinicki, Angelo, and Brian K. Williams. "Management in Action."Management: A Practical Introduction. 6th ed. New York: McGraw-Hill/Irwin, NY. 150-51. Print.