GM Case Study

871 Words2 Pages

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

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