"There is no doubt that creativity is the most important human resource of all. Without creativity, there would be no progress, and we would be forever repeating the same patterns." - Edward de Bono The above saying could not be truer, more so in today’s business context. Organizations are trying to find new and inventive ways of first creating and then holding on to their competitive advantage and being creative is one way they can achieve that. Creativity is a very misunderstood term in organizations. It is thought to be the creation of “something out of nothing” whereas it actually is “the radical and effective change of something understood deeply” (Robinson and Hackett 1997). General Motors is certainly trying to appreciate this, and the company is always seeking to bring new products - or improvements to their current products - to market.
General Motors Corporation, also known as GM, is the world's largest automaker and has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 34 countries. In 2008, 8.35 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall. GM has and is supporting two and a half pensioners for every employee. It is the largest health care provider in the world. General Motors, writes a prescription every 1.5 seconds for drugs for their retirees and others — 1.5 seconds, 24 hours a day, seven days a week, 365 days a year — cost approaching $6 billion a year. (GM website)
GM’s vision is to be the world leader in transportation products and related services. ‘We will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people’. – (GM Website) Mission
GM is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that customers will receive superior value while employees and business partners will share in the success and their stock-holders will receive a sustained superior return on their investment.
General Motors has a broad differentiation of products with five divisions which include five market segments. They also mass produce their vehicles and give their customers the option of upgrading from to one GM brand to another. GM's overall sales growth in Europe continues to be held back by other models that are showing their age. GM Europe's approach to the UK market is also criticised by motoring industry experts who bemoan the car maker's lack of commitment to convert some key Saab and Cadillac models to right-hand drive. GM is now trying to take Europe by storm after introducing diesel engines into its luxury models. It is producing Cadillac cars with diesel engines in a move that should make the luxurious American marque more appealing to European drivers. A recent spike in demand for upmarket cars with diesel engines that has made the segment the fastest growing and most profitable in Europe. GM’s success is committed to innovation and technology. GM is exploring a range of innovations and technology such as: -
General Motors is using advanced technology to make vehicles with improved fuel economy and lower emissions than typical internal combustion vehicles. Most importantly, these advanced technologies will give its customers better performing vehicles. GM has invested hundreds of millions of dollars in fuel cell research with the ultimate goal of removing the auto from the environmental equation, because they believe the automobile leads the way to the hydrogen economy and a truly sustainable future. As alternative...
References: • Fleisher, Craig S. & Bensoussan, Babette E., Strategic and Competitive Analysis, published by Pearson Education Inc., 2003
• Womack, J.P. and Jones, D.T. (1998). Lean Thinking: Banish Waste and Create Wealth In Your Corporation .New York: Free Press
• Ulrich, K.T. and Eppinger, S.D. (2003). Product Design and Development. Boston, Mass.; London: Irwin/McGraw-Hill.
• Sutton, R. (2001). The Weird Rules of Creativity. Harvard Business Review, 79(8), pp.96-103.
• Meyer, S.A. (2000). Managing within a Creative Environment. Design Management Journal. pp.10-16z
• GM Posts Huge Loss: http://money.cnn.com/2005/10/17/news/fortune500/gm_loss/
• Farber, David. Sloan Rules: Alfred P. Sloan and the Triumph of General Motors U of Chicago Press 2002
• Maxton, Graeme P. and John Wormald, Time for a Model Change: Re-engineering the Global Automotive Industry (2004)
• General Motors Website: www.gm.com
• Turner, C.E. and Parry, G.C. (2003). Lean thinking – Lean New Product Introduction Game..pp.1-39.
Please join StudyMode to read the full document