GM Case Study

871 Words2 Pages
bulb-icon

Recommended: Strategic planning

The case study, `Will GM 's Strategic Plan Lead to Success,` is about how the company General Motors Co. Plans to overcome financial deficits, ensure growth within the company, and remain competitive in the automotive industry. To help with overcoming financial deficits, GM was apart of the bailout, which assisted GM in relieving themselves of almost $40 billion dollars of debt. This restructuring gave GM an advantage over other automakers. Most other automotive businesses, that did not participate in the bailout, still have billions of dollars of debt they must repay in addition to competing with its adversaries.(Kinicki & Williams, 2013). GM made many cutbacks to ensure growth within the company. The reduced the amount models that are in production. They have recognized that some changes need to be implemented with global production in order to remain ahead. …show more content…

They have set the goal of reaching $10 billion in profits. They have made the proper changes to ensure that their goals are met. They made cuts in production by reducing the number of models being produced from 86 to 48. They have also set goals with their global ventures. They are tackling the expensive economy of Europe by decreasing production but not totally eliminating it. They are also looking for country that provides cheaper labor than that of Europe and the US. The other SMART goal that GM is using is making measurable goals for the company to meet. The company gave specific percentages that they would meet in order gain a clearer picture of what needs to be done. An example of that is giving percentage gains in comparison to other automakers. (Kinicki & Williams, 2013). These are measurable gains that the company can go back and look at and compare to see how much more or less they need to do in order to stay on track to meet their goals. Although these are good practices for GM to keep, whether or these goals are attainable is yet to be

Show More
Related

  • The U.S. Automobile Industry

    2538 Words  | 6 Pages

    If GM or other U.S. auto manufacturers fail, there will be greater opportunity for new entrants into the U.S. automotive sales industry. For these reasons, all manufacturers including GM that sell autos in the U.S. should continue to use a cooperative game theory strategy to ensure the industry recovers.

    Read More

  • GM Financial Overview

    1486 Words  | 3 Pages

    Standard & Poor’s. General Motors (GM). (1999) Standard Corporation Descriptions. (pp. 6000 – 6003) New York, NY: McGraw-Hill.

    Read More

  • GMFC Company Case Study

    1557 Words  | 4 Pages

    GMFC Company has many divisions and more than 50,000 employees. Initially, the company health care proposal had a lifetime advantage of $2 million per enclosed employee or dependent. However, the company only extends coverage to dependents enrolled to a degree program. Subsequently, the coverage benefits individuals up to the age of 22 years. However, PPACA required GMFC to alter its coverage to house new advantages and age limit demands. According to GMFC, changing the current plan coverage to accommodate age limit requirements and new benefit will lead to additional cost. Therefore, the company is considering abandoning health care coverage and subscribing to federal penalties. If GMFC adopts such an action, employees will purchase insurance

    Read More

  • Case Analysis Of General Motors

    967 Words  | 2 Pages

    General Motors is a long established corporation, which has had a profound affect on the American people and the American economy. The corporation has prided themselves on producing automobiles at the lowest cost, while remaining a style leader of the industry. Bankruptcy with a government buy out in 2009 caused reorganization, a battle to transform, reinventing a new GM corporate culture. In 2014, Generals Motors topped the list as one of the nine most damaged brands. What caused General Motors to get such a tarnished reputation, was it a scandal-laden culture and mismanagement, putting profit over safety with massive cover-ups, or a combination of both?

    Read More

  • The Government Bailout Saved the Automobile Industry

    2492 Words  | 5 Pages

    In the latter part of 2008, the United States’ economy was rapidly plummeting - the stock market crashed, the housing bubble burst and gas prices skyrocketed. The majority of U.S. based firms faced the reality that they would not be able to survive during such desperate economic times. The U.S. automobile industry, in particular, began to buckle under the depressed economy. The government stepped in proposing a multi-billion dollar bailout to stimulate the economy and restore economic balance. The possibility of this unprecedented government intervention was condemned by many economists. If the government helped the ailing automotive industry, this industry would have to tighten their expenditures and plan for the future to prove to critics of the bailout that they would use the government funding to add value to the economy once again.

    Read More

  • Achieving World Class Business Performance

    864 Words  | 2 Pages

    Achieving world class business performance is a major challenge in today’s society. Manufacturing companies continue to face increased competition and globalization from its competitors. (1, p. 148). The automotive industry is one of the most volatile manufacturing industries that we have, which was evident in the 2008 – 2010 automotive industry crisis. (2) This global financial downturn served notice to the American automotive manufactures to raise the bar, in order to achieve word class business performance. General Motors, one of the country’s largest automotive manufactures, had to receive a government bailout to survive. During this time many with the corporation asked themselves, if we were a world class business, would we be facing this pending crisis. The answer was a resounding “NO”. General Motors has come out of bankruptcy and is focused on being a world-class business organization.

    Read More

  • General Motors Case Study

    876 Words  | 2 Pages

    There is an emphasis on supplier diversity at GM. GM hopes having a diverse supply base will promote competition and good business practices that will allow many suppliers a chance to work together with GM to design and build parts for vehicles. The formal Supplier Diversity Program was established in 1968. Since then, the program has received numerous rewards. The program has created a Supplier Diversity Council which allows GM information and supplier concerns to be shared.

    Read More

  • Bankruptcy Of General Motors Case

    704 Words  | 2 Pages

    In my research paper I would like to explore how different the markets, as well as union greed and board member mismanagement contributed to the failure of General Motors in 2009. I will take a close look at the collapses of the American Housing market in 2007 as well as the how the price of gasoline nearly doubled in 2008 and what roll those played within GM’s bankruptcy. While exploring these different markets, greed and mismanagement I intend to illustrate how they factored into what could be called the “perfect storm” toppling the Automotive Giant and leading to its

    Read More

  • General Motors Case Study

    882 Words  | 2 Pages

    Entering the 1950s, no corporation even came close to General Motors in its size, or it's profits. GM was twice as big as the second biggest company in the world, Standard Oil of New Jersey (father of today's ExxonMobil), and had a vast diversity of businesses ranging from home appliances to providing insurance and building Buicks, Cadillacs, Chevys, GMCs, Oldsmobiles, Pontiacs and trains. It was so big that it made more than half the cars sold in the United States and the U.S. Department of Justice's antitrust division was threatening to break it up(to prevent Monopolies, Like how Standard oil was broken up). In the 21st century, it's almost hard to imagine how powerful GM was in the 50s and 60s.Sports cars from Europe were getting popular, because of servicemen coming back from WWII, and wanted sports cars, but American Automakers didn't make sports cars, so they would either buy foreign, or go without. A man named McLean would still try to make a low priced sports car. But it didn't work. The idea of a car coming from GM that could compete with Jaguar, MG or Triumph was pretty much considered stupid and insane. C1:Generation: Bad but valuable. Just 300 Corvettes were made in 1953. Each of these first-year Corvettes was a white roadster with red interior. The Corvette was made of fiberglass for light weight, but the first cars were made with a really weak, (and kind of pathetic for a “sports car”) 150 horsepower 6-cylinder engine and an automatic transmission. The result was more of a look at me, I’m rich car than a race car. The first generation of the Corvette was introduced late in 1953. It was originally designed as a show car for GM's traveling car show, Motorama, the Corvette was a Show Car for the 1953 Motorama display at...

    Read More

  • Mcdonald's Case Study

    1423 Words  | 3 Pages

    McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).

    Read More

  • BMW

    1885 Words  | 4 Pages

    Through Dupont analysis, we have been able to see the specific strengths and weaknesses of BMW and Audi’s management. BMW’s lower profit margin and asset turnover indicate less efficient cost management and asset management. Their debt multiplier indicates that they’re taking advantage of debt, but the benefit of this isn’t realized because of their problems with cost and asset management. Due to Audi’s more efficient use of their assets, and better cost efficiency, it can be said that their management has performed better than BMW’s over the past year.

    Read More

  • The History Of General Motors

    909 Words  | 2 Pages

    With the positive attitude the public has on green vehicles, this is a huge opportunity for General motors' to produce Hybrid and Electric cars that emit less Carbon Dioxide. also with the increasing fuel prices General Motors is capitalizing on this new but ever more expanding market.

    Read More

  • Levels Of Planning

    1709 Words  | 4 Pages

    Many economic factors exist that impact the development of Ford Motor Company's strategic plan and it’s no small task to project how some of these factors might change as the strategy is being realized. Consider the prospect of expansion into a new market like China or Mexico. Economic changes like currency devaluation will make Ford’s product more expensive to their target market potentially reducing overall sales revenue. Oil prices as we’ve seen in the U.S. economy can also play a big factor as large vehicles become less desirable and more fuel efficient compact cars gain market share.

    Read More

  • General Motors Recovery

    1939 Words  | 4 Pages

    General motors in on the of the biggest auto makers in the United States. It holds about one percent of the United States employment. The company which sold over 219,000 vehicles in November of last year only was able to sell 155,000 cars and truck to the American Public declining 41 percent compared to last year. GM car sales of 58,786 were off 44 percent and truck sales of 96,091 were down 39 percent. The steep decline in vehicle sales was largely due to a significant drop in the market’s retail demand compared with last year, and continuing economic uncertainty that has affected consumer confidence. The market shares for General Motors have always been low, but recently it has plunged to a 20 percent starting from 1980. I have included a graph which shows the decline in all of auto industry.

    Read More

  • The "One Ford" Mission

    929 Words  | 2 Pages

    During the year 2005, Ford Motor Company brought in Alan Mulally, once a leader at the company Boeing. Mulally decided to implement a strategy called ‘One Ford’; this plan would ultimately lead to the employees becoming one team, using one plan, and looking towards one goal. Because this plan was going to execute a complete overhaul on the company, an aggressive training program needed to be put into place for the company to implement the plan correctly. By following this plan, the company would eventually meet their “One Goal”, which was profitable growth for all. By creating a strong product and producing customer loyalty, Alan Mulally knew the company would begin to see positive results and profitable growth. According to Alex Ta...

    Read More

More about GM Case Study

Open Document