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General Motors case EXECUTIVE SUMMARY General Motors is primarily engaged in automotive production and marketing and financing and insurance operations. GM designs,
gm General Motors, an American-based automotive manufacturer with a large global presence, has long held a large share of the worldwide automotive market. Despite
General Motors, Poletown, MI and The Executive Compass In 1980, General Motors' executives were faced with a dilemma regarding new plant construction in Detroit,
General Motors General Motors Introduction General Motors Corporation, hereafter referred to as GM, has an impressive history spanning over 100 years. According
General Motors and Avto Vaz General Motors and AVTO VAZ of Russia To: GM Board of Directors From: David Herman, President General Motors-Russia Date: February 6,
Submitted by valrossi46 on July 3, 2008
Category: Business
Words: 6044 | Pages: 25
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EXECUTIVE SUMMARY
General Motors is primarily engaged in automotive production and marketing and financing and insurance operations. GM designs, manufactures, and markets vehicles worldwide, have its largest operating presence in North America. The core competence of General Motors is innovation. This is the driving force behind its $190 above turnover. General Motors has been utilizing innovation in service ad technology to secure itself a dominant position in the automobile industry, since 1908.
The main problems faced by General motors are declining U.S. automobile market share, high pension costs, rising fuel prices, lack of differentiated products, inability to generate revenues from its core activity (manufacture of cars), over dependence on its financing division and its
inefficient use of assets. General Motors can adopt several strategies and tactics to overcome internal weaknesses and external threats. Some of these are:
1. Introducing self managed creative work teams to improve and speed- up product development of new technologies in emerging markets such as China and Europe.
2. Reduce dependence on GMC and focus resources on core products i.e. cars and SUVs to generate revenues.
3. Cut costs by dropping unsuccessful product lines and introducing cars that accommodate the needs of the car-buying public.
4. Shift major operations to lucrative European and Asian markets in order to avoid high operating costs, including the high healthcare costs imposed by UAW
5. Reduce threat of lower priced products by introducing a flexible product line and trimming the inefficient ones.
The changes that are needed to make General Motors more competitive are to change the organizational structure with the Chairman and CEO positions segregated and the elimination of vice chairman positions. GM should redirect development and marketing costs from gas fueled vehicles to alternative...
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