General Motors Case

General Motors Case General Motors had a faulty management strategy causing the firm to go into bankruptcy. One of the key components that led to failure was neglecting to collaborate between global divisions. As a multinational corporation, General Motors operated did not have sufficient collaboration between divisions, making it difficult to achieve economies of scale. One of General Motors existing strategies has been to cut the ranks of management and thus simplify the communication and operation channels and bring in new executives to fill top management positions; allowing a new perspective to enter the organization. The existing strategy is also based on performance criteria. General Motors is now focusing on market share, revenue, operating profit, cash flow, product quality, and customer satisfaction. Rather than having numerous brands that competing on a large number of markets, General Motors has cut four of it’s brands to focus on fewer key customer markets. General Motors has to be on high alert as market trends are continuing the drift toward small, compact, “green”, and fuel-­‐efficient vehicles. Another key strategy is to retain Opel and concentrate on the small car industry that