...General Motors Prepared for: Business Cluster Professors Prepared by: Team 7 Anthony Allio Joseph Allio Lauren Snitcher Nicholai Larroque Gregory Armamdo June 10, 2005 Table OF CONTENTS Introduction 4 Region Analysis 4 North America- GMNA 4 Europe- GME 4 Latin America- GMLAAM 5 Asia/Pacific- GMAP 5 Porters Five Forces 6 Rivalry 6 Barriers to Entry 6 Threat of Substitutes 7 Power of Suppliers 7 Power of Buyers 8 Competitive Advantage 9 Internal Analysis 10 Internal Strengths 10 GMAC’s Continued Earnings Growth 10 Marketing Strategy/Consolidation 10 GM LAAM/ GM Asia Pacific 10 Internal Weaknesses 11 Rising Health Care Costs 11 Weak Product Mix 11 Lack of Flexibility 11 Strategy 12 Retrenchment Strategy: Product Redevelopment 12 Overlapping models 12 Reinvention 13 Appendix 18 Introduction General Motors is a company that has been around for over one century and has been an integral member of the automotive industry since its inception. To understand General Motors one must simply look at their business philosophy which guides them today, and is embodied in the companies’ culture: product excellence and customer focus, act as one company, and move with a sense of urgency. Throughout this analysis of General Motors we have provided an in depth look at these philosophies, while in the end developing a future strategy for General Motors to implement in restructuring...
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...quickest path to becoming the company outcast. Witnessing misconduct or alleged illegal or dishonest activity within an organization and exposing it, e.g. advising your superior, is known as whistleblowing. Even though these employees are usually doing it out of the best interest of their company, they can often face ostracization and retaliation as a result of them exposing the truth. The question is, however, should companies promote whistleblowing? They absolutely should. Furthermore, what should companies do to allow whistleblowing? They should establish concrete programs that facilitate and encourage employees to whistleblow. Why GM Fails at Whistleblowing In a BusinessWeek article, GM Recalls: How General Motors Silenced a Whistle-Blower, a report blames General Motors with a culture of complacency for the more than decade-long delay before the company recalled millions of faulty vehicles. It described employees as passing the buck and committees falling back on the “GM nod” – the gesture given by members of a large, corporate meeting after the meeting ends where all in the room believe that the “other guy” plans to put whatever was discussed and agreed in place. An example of the effects of whistleblowing is described in the article written by Tim Higgins and Nick Summers. Steven...
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...| | | Chrysler and General Motors | | Chrysler and GM Chrysler is a car manufacture created by Walter Chrysler during June 6, 1925 when the Maxwell Motor Company was re-organized into the Chrysler Corporation. It happened because in the early 1920s the Maxwell Chalmers Company were having troubled with their operation which made the company to end in 1923 and one year later Chrysler had launched the eponymous automobile which was referred as the 70’s. This vehicle was a 6-cylinder, designed to provide customers with an advanced, which was also a well-engineered vehicle, at a more affordable price than they thought. In the summer of 2009 Chrysler has filled for bankruptcies. In 2011 Chrysler has a 10.5% in the market. It is in the fourth position while GM is first, Ford is Second, and Toyota is third. This company is doing badly because their new products are not to the customer satisfaction. (Chrysler) GM is another car manufacturer which was located at Flint, Michigan. It was created on September 16, 1908 by William C. Durant and the GM's co-founder Charles Stewart Mott but it was originally owned by Buick as a holding company. During 1909, Durant had brought Cadillac, Elmore, Oakland and several others vehicles cooperation. In 1910 Durant had lost control of his company GM to a banker trust because of all the large debt he had due to the collapse of the new vehicles sales. GM in 2009 had filled for Bankruptcies but since their stock has increased and...
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...portfolio planning model for General Motors. The four categories will allow General Motors to review their vehicle types based on a combination of market growth and market share. Using Figure 1: The BSG Model, we will be able to identify General Motors recent performance in terms of market growth and market share, and determine which models should be held, built upon, harvested in the short-term, and divested. Figure 1: The BSG Model At the year-to-date mark of 2012, “General Motors holds an 18.1% share of the total automotive market, putting total cars at 7.6%, total light trucks at 10.5%” (Wall Street Journal, 2012). Figure 2: General Motors: BSG Model will display General Motors market growth and market share in terms of vehicle type. Figure 2: General Motors: BSG Model Stars (Hold) 1. Sports Cars and Convertibles – The Chevy Camaro and Corvette account for one out of every three sports cars sold in the United States in 2011. Chevrolet accounted for 37 percent of the sports-car segment last year with the Chevy Camero. Chevrolet accounted for 28 percent of the luxury-sports-car segment in 2011 with the Chevy Corvette. 2. Pick-up Trucks - Chevrolet Silverado: 28% market share 2011 growing pickup market. 3. Hybrid/Electrical Sedans – The Chevy Malibu and the Chevy Volt are among the leaders in the Hybrid and Electrical automobile industry (Hyrbidcars.com) Cash Cows (Harvest) 1. Four Door Sedans – General Motors holds 19.4% of the market...
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...Business Strategy (Ford) Competitive Strategy Ford adopted their latest business strategy in 2007. They call it their One Ford Plan. The One Ford plan is an expansion of their four-point business plan for achieving success globally. The four-point business plan first consists of aggressively restructuring to operate profitably at the current demand and changing model mix, and then to accelerate development of new products their customers want and value. The last two points include financing their plan and improving their balance sheet and finally to work together effectively as one team. Being a global company, it is important for Ford to be able to predict the percent of international sales from their total sales. In 2000, 72% of Ford’s total sales came from the U.S. and the other 28% came from Europe, Asia Pacific and Africa. They have predicted in 2020 that only 43 % of their sales will come from the U.S. with 25% from Europe and 32% from the Asia Pacific and Asia. They are not predicting this on the assumption that sales in the U.S. are going to decrease they just believe that the sale in the Asia Pacific and Africa are just going to increase dramatically. Since Ford is a major multinational company, their activities have far reached environmental, social and economic impacts. The first part of their value chain analysis is Product Planning and Design. This is where they decide what products that are going to make, what technology they will develop and implement and...
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...Switch Scandal General Motors recalled about 800,000 cars due to faulty ignition switches on February 6, 2014. The problem with the faulty part was that it could shut off the engine while driving, thus preventing the airbags from deploying and inflating. General Motors to recall more of its small cars, which resulted in almost 30 million cars worldwide recalled and them having to compensate for 124 deaths. The faulty part had been well known to GM for upwards of ten years prior to them declaring the recall. (Smith, 2014) This major issue began in 2001 during pre-production testing of GM’s Saturn Ion. GM engineers experience problems with ignition switches on the Ion. The exact problem was with a mechanism in the car that is supposed to hold the ignition key in place. According to GM’s records, an internal report shows that the problem was resolved when the switch was redesigned and fixed. Not too long after this initial issue in 2004 a GM service technician sees a Saturn Ion stall while being driven stating that "several other keys on the key ring” was the issue. The technician then records within the same report that "the additional weight of the keys had worn out the ignition switch." (Valdes-Dapena, 2014) Another major ethical dilemma occurred in the testing and manufacturing of another GM car, Chevrolet Cobalt. In 2004, A GM engineer bumps into the key in a Chevrolet Cobalt during testing, thus causing it to immediately lose power. In 2005 General Motors receives increasingly...
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...2014 General Motors Recall General Motors Company is an American multinational corporation that designs vehicles and it parts. The Company was founded in 1908, it is based in Detroit, Michigan. It produces vehicle in 37 countries under brand name like Chevrolet, Buick, GMC , Cadillac , Alpheon, Jiefang, Baojun, and Wuling . The company also provides safety and security solutions concerning vehicles. It also provides aumotive financing services and lease products through its dealerships. Cars produced by GM motors after 2004 had defective ignition switch due to which they had to call around 7 million cars in the first quater. According to the US securities regulators the company knew about the this manufacturing default, they delayed in recalling the vehicles due to which there have been about 13 deaths. The engineers knew about this problem a decade ago, around 2.6 million cars have faulty ignition switches. The CEO Mary Barra of GM motors the cost of repairing these vehicles is going to be around $1.3 billion. Cost of repair it going to be around $700 million and cost of recall is going to be around $600 million. The cost of recall had a great impact on the company’s first quarter report, they reported about a $108 million of profits. The company still manged to remain focused on its business despite the recalls. Their shares did showed a drop of 17 percent and it profit dropped about 85 percent. The customers have lost confidence in the vehicles produced by GM motors. As...
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...significant relationship with the demand for automobiles in each of the markets. An interesting finding of the research is that the factors apparently driving demand are different in the two markets suggesting the structure of automobile demand in South Korea differs significantly from the demand for that country’s vehicles in the United States. A major challenge facing the South Korean automobile industry is how to utilize its capacity when confronted with slowing growth in sales in both the domestic and United States markets. Key words: Economics of Korea; Automobile Industry; United States Markets; Domestic Markets The Republic of South Korea (RSK) produced 23,000 motor vehicles in 1971, which was 0.06 percent of world output. In 2005, South Korea produced nearly 3.7 million motor vehicles or 5.6 percent of the world output...
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...Business-Level and Corporate Level Strategies General Motors (GM) is a public company based in the United States that is headquartered in Detroit, Michigan. In the year 2011, the company was able to acquire the title of the largest automaker in the world by achieving the highest number of vehicle unit sales since inception (General Motors, 2012). General Motors led global automobile unit sales for 77 consecutive years from 1931 through 2007; however, the company lost its position to Toyota, which has continued to dominate the market with GM standing at second. The core competencies of a corporate corporation are focused on ensuring that the business entity is able to satisfy the needs and preferences of their customers. This stands as the main determinant in realizing above average returns especially in a highly competitive business environment. This is achieved through business level strategies, which are strategies that outline the various actions to be taken in order to ensure that the company is able to provide value to its customers in addition to gaining the critical competitive advantage by utilizing its core competencies in specific, service markets or individual products. Business level strategy therefore pertains to the corporation’s firm position in its operating industry compared to its main competitors and the five forces of competition. One of the fundamental business level strategies that General Motors has employed is cost leadership. The company has been...
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...Mr. Carrington: Please accept the attached resume for consideration for any future opportunities within management at General Motors Corporation. Andre’ Moore current job title is that of a locomotive engineer at Severstal North America. In his educational and extracurricular activities at University of Phoenix, he learned time management, organization, and communication skills while working with individuals, teams, and internal and external professors. Please let me know when we could meet at your convenience to further discuss my experience and interest in this opportunity. Sincerely, Andre’ G. Moore Andre’ G. Moore Andre G. Moore 10841 Oak Park Blvd, Oak Park, MI 48237 248-259-9895 Amoore11031969@gmail.com Objective | To obtain a challenging position within General Motors where my experience and work ethics will contribute to the continuing growth and success of General Motors | Education | * * 1/11- Present University of Phoenix * Southfield, MI Campus * Program: Bachelor of Science in Business/ Concentration in Management * Expected Graduation Date: June 2015 * * 9/84 – 5/88 St. Martin DePorres High, Detroit, MI * | Experience | 6/02 – Present Severstal North America Dearborn, MIRailroad Department, Locomotive Engineer 7/10- Present * General Switching – consists of transporting raw materials throughout Rouge Complex * Movement of rail cars, coil cars, coke hopper...
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...Remember the Ford Pinto‚ the egg-shaped economy ride that sometimes exploded when struck from behind? Mark Robinson Does. He also remembers the look on the faces of the jurors who awarded $127 million to his client 13-year-old burn victim Richard Grimshaw‚ in 1978‚ based on a design flaw that led to the deaths of 27 people from fuel-tank fires in Pintos. The jurors were outraged to learn that the Ford Motor Co. became aware of the risks of passenger deaths in 1971 yet waited until 1976 to move the Pinto’s gas tank from behind the rear axle to a safer spot above the center of the axle. "Ford made a decision to place-money ahead of human lives‚" Robinson says‚ waving an Aug. 26‚ 1971‚ fuel system integrity memorandum. That damning piece of evidence advised Ford executives not to recall or re-design the Pinto "until required by law." Thirty years later‚ Robinson charges‚ little has changed. The automobile industry continues to place profits ahead of people‚ he says. In recent years‚ they’ve added a new weapon to their arsenal‚ according to the plaintiffs’ bar: protective orders granted by courts and genuflecting judges that keep corporate transgressions out of the public eye. Recently‚ aided by lawmakers‚ consumer groups and the media‚ plaintiffs’ lawyers have begun firing back‚ asking courts to let the sunshine in to cleanse dirty little secrets like those behind the Ford Pinto. The Colonel’s Secret Recipe and the formula for Coca Cola—the trade secrets on which corporate...
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...THE CHANGE PROCESS IN GENERAL MOTORS AND FORD This brief analysis reflects on the change management processes employed by the two motor companies; Ford and General Motors. The references discussed in this paper were a source of information that provided knowledge into the 2 major corporations and the transformational changes that they underwent in an effort to ensure their profitability and viability. Both GM and Ford underwent major decline and loss in stock some few years back and even as one filed for bankruptcy (GM) the other hard not to, and succeeded. Both companies needed to make some changes in an effort to recover. In an article by Terry Corbell, as he points out the 7 lessons that other businesses could learn from the Ford motor Company, he infers that If a business is performing in a mediocre fashion, chances are the company needs an overhaul. A culture change, if you will. And for a positive case study in change-management, Ford Motor Company qualifies (Corbell, 2013). Ford has had similar endorsements; ever since after being hired, CEO Mr. Mulally managed to notably install a competitive, sustainable business model that pulled Ford from the brink. Durbin and Krisher seem to agree with this assessment even as they also voice some doubts. Mulally has transformed the company into a simpler, nimbler organization that's ready to react to change more quickly, but experts are not so sure the change will last. Management experts say it's easy to talk about a willingness...
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...RESEARCH PAPER ON GM Introduction "General Motors has no bad years, only good years and better years" (Sloan, 1972). This mantra established in 1950 by former GM president Harlow H. Curtice may have been true at one point, but is called into question today by many, including Wall Street. General Motors Corporation, also known, as GM or GMC is the world’s 2nd largest auto company in sales revenue behind Toyota which took the lead in 2006. General Motors reigned as the global leader in the automobile industry for the last 76 years, which was longer than any other automaker. Today, Richard Wagoner, Jr., GM Chairman and CEO currently runs GM, which was founded in 1908. GM today employs approximately 324,000 people around the world, with their global headquarters in Detroit Michigan. Their European headquarters is based in Zurich, Switzerland. In 2006, 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM, Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, and Vauxhall. General Motors has a superb relationship with international connection. GM takes pride in fostering global partnerships and consumer relationships. GM is majority shareholder in GM Daewoo auto & Technology Co. of South Korea and has had collaborative ventures in technology and manufacturing with several other automakers. It also has ventures with Shanghai Automotive Industry Corporation of China. GM’s largest national market is the United...
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...Introduction The automotive manufacturing industry began in the late 1800’s and has undoubtedly changed mankind forever. General Motors Corporation is one of the leading automotive manufacturers in the world. GM is a corporation that designs, builds, and sells cars and trucks. GM owns 18 brands some of which include Chevrolet, GMC, Cadillac, and Buick. The company operates in 160 countries, employs roughly 207,000 people, and is one of the world’s largest vehicle manufacturers (IBIS World, 2015). The automotive industry in the United States is worth $123 billion and has $5.2 billion in annual profit (IBIS World, 2015). It is spread across 3 main competitors. Toyota Motor Corporation, which holds 17.5% of the market share, General Motors Corporation, which holds 16.3% and Ford Motor Company, holds 11.3% of the market share in this industry (Mergent Online, 2015). Over the last 5 to 10 years the automotive industry in the United States has continuously fluctuated. As a result of the economic downturn, GM filed for Chapter 11 bankruptcy in June of 2009 and was bailed out by the U.S. government. During the Chapter 11 bankruptcy, GM eliminated about one-third of its plant assets and workforce and reduced its debt from nearly $95 billion to $17 billion. GM has bounced back tremendously, by releasing brands such as Saturn and Hummer in an effort to cut costs, and in 2014 the company made $152 billion in revenue (Mergent Online). Other automotive companies have struggled...
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...First Name Last Name Professor Marc Hamilton MGMT 5603032 Management Policies and Practices 1 June 2014 General Motors SWOT Analysis Founded in 1910, General Motors is one of the largest and highly valued cars, trucks and automobile manufactures in the United States with a vision to design, build, and sell the world’s best vehicles. General Motors is a company that has significant impact on our U.S. economy. As I do a SWOT analysis on General Motors I will evaluate the company’s strengths, weaknesses, opportunities, and threats, to gain perspective on GM and there future as a company. STRENGTHS: Product Branding. First and foremost, General Motors has produced and branded a variety of automobiles both international and region specific such as Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling which for some have become household names. From electric and mini-cars to heavy-duty full-size trucks, monocabs, and convertibles, General Motor’s dynamic brands offer a comprehensive range of vehicles in more than 120 countries around the world (About GM). Global Presence. Another strength GM shares, is their global presence, with factories in Brazil, Russia, India, and China (collectively BRIC) along with having assembly, manufacturing, distribution, office, and warehousing operations in 55 other countries. Of those BRIC factories, GM has the strongest presence in China due to their emerging economy that continues to grow gradually...
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