General Motors

Topics: General Motors, Strategic management, Automotive industry Pages: 12 (2063 words) Published: November 20, 2014

"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."

"G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment." "It is awfully important to know what is and what is not your business." —Gertrude Stein I quote this phrase from Gertrude Stein because reading, talking, analyzing and explaining a big company vision and mission makes you understand what this company create not only for their costumers but what they can share with their employees and families. But why is important for a company have a vision and mission? A vibrant Vision of the company clearly and precisely affords an understanding of what your business is all about. Establishing the elementary principles of how you are going to accomplish your Vision defines the Values of the organization. Without Values in place, the company is unable to induce clear and directional decisions based on the long-term prosperity. For the Plan to be successful leaders must be prepared to become walking, talking exemplifications of the company’s Vision and Values. Building on the Values of the organization, a Leader should proceed to composing a Mission Statement. The Mission Statement’s resolve is to provide a directional beacon that shapes and guides business Strategies. Through an efficient definition of the Mission, Leadership is enabled to determine the Unifying Goals which inevitably bring strategic factions together in a comprehensive progressive resolution.

The development of Visions, Values, and Missions, provides the organization with a Strategy compendium from which to create a performance based organization that creates Value for the company, its employees and customers.

How General Motor is organized?
General Motors is a publicly traded company who has had great success but also being in the risk to losing everything, they had to think and act correctly. Choosing the correct way has save them and they are still going to be for a long time. I choose this company who has never gave up, showing everyone that no matters what you must be strong and be together and everything will come out fine. After gaining market share in 1990 and making enormous profits, General Motors stock soared to over $80 a share. From June 1999 to September 2000, the Federal Reserve, in a move to put down potential inflationary pressures created by, among other things, the stock market, made successive interest rate increases, credited in part for "plunging the country into a recession." General Motors' rising retiree health care costs and Other Post Employment Benefit fund deficit prompted the company to enact a broad restructuring plan. GM's benefit funds were performing at higher than expected rates of return. Then, following a $10.6 billion loss in 2005, GM acted quickly to implement its restructuring plan. For the first quarter of 2006 GM earned $400 million, signaling that a turnaround had already begun even though many aspects of the restructuring plan had not yet taken effect. Following the September 11, 2001 attacks, a severe stock market decline caused a pension and benefit fund underfunding crisis. GM began its Keep America Rolling campaign, which boosted sales, and other auto makers were forced to follow suit. The U.S. automakers saw sales increase to leverage costs as gross margins deteriorated. In February 2005, GM successfully bought itself out of a put option with Fiat for $2 billion USD (€1.55 billion). In February 2006, GM slashed its annual dividend from $2.00 to $1.00 per share. The reduction saved...

William Pelfrey (2006) “Billy, Alfred and General Motors” New York, NY. AMACON
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • General Motors Essay
  • General Motors SWOT Analysis Essay
  • General Motors: innovation and design Essay
  • Hrm at General Motors Essay
  • General Motors Essay
  • General Motors Essay
  • Essay about General Motors
  • General Motors Value Chain Research Paper

Become a StudyMode Member

Sign Up - It's Free