...Multimethod Approach for Creating New Business Models: The General Motors OnStar Project Vince Barabba General Motors Corporation, Corporate Strategy and Knowledge Development, 400 Renaissance Center, P.O. Box 400, Detroit, Michigan 48265 Chet Huber • Fred Cooke General Motors Corporation, OnStar Headquarters, 1400 Stephenson Highway, Troy, Michigan 48083 Nick Pudar General Motors Corporation, Corporate Strategy and Knowledge Development, 400 Renaissance Center, P.O. Box 400, Detroit, Michigan 48265 Jim Smith General Motors Corporation, OnStar Headquarters, 1400 Stephenson Highway, Troy, Michigan 48083 Mark Paich Decisio, 320 West Cheyenne Road, Colorado Springs, Colorado 80906 vince.barabba@gm.com • chet.huber@onstar.com • fred.cooke@onstar.com • nick.pudar@gm.com • jim.smith@onstar.com • m.paich@att.net We developed a multimethod modeling approach to evaluate strategic alternatives for GM’s OnStar communications system. We used dynamic modeling to address some decisions GM faced in 1997, such as the company’s choice between incremental and aggressive marketing strategies for OnStar. We used an integrated simulation model for analyzing the new telematics industry, consisting of six sectors: customer acquisition, customer choice, alliances, customer service, financial dynamics, and dealer behavior. The modeling effort had important financial, organizational, and societal results. The OnStar business now has two million subscribers, an 80 percent market share of...
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...Effects of Technology Automobile Safety Technology R F GEN/200 April 25, 2011 M G Effects of Technology Automobile Safety Technology Technology and the changes it brings have had an effect on life in America. Through time automotive technology has developed and become more sufficient in present society, and over time new safety features have advanced for safe driving, such as airbags and OnStar systems. The contents of this paper will research these two specific features and illustrate how they have made an impact the way technology has advanced in today’s automobiles. Air bags In 1951 John W. Hetrick of Newport Pennsylvania invented the airbag to help protect his own family using his Naval Engineering technics. Later in 1968 Allen K. Breed invented the ball in tube sensor for crash detection, the world’s first electromechanical automotive system of its kind (Breed, n.d.). Airbags are a type of automotive safety restraint to protect the head from hitting the steering wheel and various parts of the vehicle that can cause severe damage to the body. Airbags are gas-inflated cushions built into various areas inside a vehicle such as the steering wheel, dashboard, doors, and seats. Attached is a crash sensor to trigger a rapid expansion to protect body from the impact of an accident. Although Airbags can save lives there are still some flaws with safety. Statistics shows about...
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...Evaluation of General Motor’s Innovation Strategy STR/581 March 5, 2012 Evaluation of General Motor’s Innovation Strategy Introduction An innovation strategy is an action plan used to advance the technology and service offerings for a product or company. An organization’s innovation strategy is integral to the longevity of the company and integral to creating and maintaining competitive advantage (Goktan & Miles, 2005). General Motors Company is an American based multinational automotive company, headquartered in Detroit, Michigan. General Motors Company is one of the world’s largest automakers and employs over 200,000 people in over 150 countries (General Motors, 2012). The following will describe and examine the innovation strategy of General Motors Company. Design and Technology Chris Borroni-Bird from General Motors is one of the world's leading experts on fuel cells directs GM's Design and Technology Fusion group. “His group's mission and name-Design and Technology Fusion-communicates the importance we attach to thinking about technology through the lens of design. When executed correctly, the two have a symbiotic relationship in that good design promotes technology and vice versa” (Vaz, 2004). GM’s engineers are focused on driving safety, efficiency, and independence through forward thinking of visions that they can share with the world. The company continues to develop an improve technology that allows its vehicles to alert the drivers of potential...
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...conduct business in over 150 countries, truly a global company. Unfortunately, in 2009 GM was forced to declare bankruptcy due to an economic downturn and continuing quarterly losses. The company had to seek government aid to stay afloat and save millions of jobs. GM is now called the General Motors Company (previously known as the General Motors Corporation) and is referred to as the ‘new GM’. The company is in a much better position financially since the bankruptcy, and has filed paperwork for a proposed initial public offering. GM’s vision is to design, build and sell the world’s best vehicles. Section II – Strengths and Weaknesses I would consider two strengths of GM’s to be technology and their current financial situation. Two of GM’s current weaknesses are the constantly changing leadership and dissatisfied employees. Strength #1 – Technology GM has made great strides in technology and keeping up with the latest social media trends. The greatest example of their advanced technology will be available this year in the Chevrolet Volt. This vehicle will run for up to 40 miles without using a drop of gas, but it does have a fuel tank like a normal vehicle. If you are planning a longer trip you can just fill up with gas like in any other vehicle and do not have any ‘range anxiety’ as associated with purely electric vehicles. Another great technological feature of GM is the OnStar system that is standard on all new vehicles. This system allows you to contact a...
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...General Motors (GM) is one of the world's largest automakers of its kind. The company was founded back in 1908 in Detroit, Michigan. The auto industry was devastated by a weakened US and global economy in 2007. The slowing economy landed GM in substantial financial trouble. Luckily, the US government devised a bailout plan, which allowed GM to continue operating business by avoiding bankruptcy. This financial bailout prompted for a new company structure, and new company leadership as well. The GM Company is massive, with its establishment in 34 countries and employees numbering about 244,500 from all around the world, including sales and services in about 140 countries. According to the statistics in 2008, GM has ranked as the largest automaker in the U.S and the second largest in the world. The General motor Group owns a series of world class car manufacturers which makes GM group indisputably the world’s biggest automobile entity. GM employs over 200,000 people in multiple regions of the world and does business in over 140 countries. (General Motors, 2010) The new proposed mission statement will be as follows: GM will become an industry leader, not a follower. Although GM's market share in the US has dropped it is still very much competitive at 26 percent. GM has a competitive advantage because it possesses and maintains a large global presence. They also have an increasing relationship within the Chinese market. Even with GM's recent decline, they still have the market share...
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...our newest product offerings and how they can bring even more value to business owners! Product Overview: Vans, Cars & Crossovers In this session, we'll be covering what's new with vans, crossovers and cars, including the all-new Chevrolet City Express and Chevrolet Trax. The City Express and Trax represent commercially focused vehicles that expand our portfolio to better meet the needs of our business customers. In this session, you will gain an understanding of the total value these new vehicles have, leave with a better understanding of how you can challenge customers to think differently about their fleet needs and ultimately, how GM can meet those needs. Growing Small Business Sales Do you know how to leverage the intelligence available to you to grow your small business sales? You can find out in this engaging sales session. GM has made huge investments in not only understanding the commercial opportunity in your area, but also ranking the data so that you know exactly who is ready to buy what. With our competition facing some vulnerability, the time to strike is now. Armed with knowing your customers and their needs before making the sales call will help increase your credibility and close...
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...Building a Digital Loyalty network Through Demand and Supply Chain Integration Main Takeaways Although GM had experienced record sales in recent years, the stock underperformed the S&P 500 index by 48 percent, which was an indication to Rick Wagoner (CEO) that something needed to be done. Although GM saw incredible cost savings and improved productivity, I feel that they have not retained any sustained competitive advantage with respect to the competition (Honda and Toyota), in fact, one might say that they have just caught up to the competition. I believe GM is on the right path since they now have the infrastructure needed to succeed in such a competitive market but have a long way to go to excel not just at operations but as a product leader. Value Proposition Operational Excellence (arguably still not as good as foreign competition) Product Innovation (very limited to investments in OnStar and XM Satellite Radio) Customer Intimacy (best of the 3, increase in loyalty and online tools show Customer Intimacy) More in-depth Summary American Auto industry problems • GM decides to strengthen and integrate GM’s demand and supply chain systems to build the Digital Loyalty Network (DLN). It addressed 3 components o “digital” for integrating technology o “loyalty” for a focus on customers and increasing their lifetime value to GM o “network” for coordinating and leveraging all supply and distribution chain partners to serve those...
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...Corporate Finance FIN-325 I. General Overview General Motors, also known as (GM), is an American multinational corporation headquartered in Detroit, Michigan. General Motors was founded on September 16th, 1908 in Flint Michigan by William C. Durant as a holding company, or a wholly owned subsidiary for Buick. The company designs, manufactures, and distributes vehicles on all six major continents under 18 brand names. Some of their well-known brand names include Chevrolet, Buick, Cadillac, GMC, Opel, Vauxhall, Wuling, Baojun, and JieFang. GM also operated the brand names of Saturn, Pontiac, and Hummer until 2009. During this time, GM was emerging from chapter 11 bankruptcy as a result of the 2008 financial crisis, and decided to shed those brands for strategic reasons in order to compete with foreign emerging vehicle distributers in the market. In January 1912, the company decided to incorporate themselves under the GM brand name, and were the gold standard in the automobile industry for almost 80 years. From 1931-2007, GM successfully led global sales amongst every car manufacturer in the auto-manufacturing industry. Currently, the automobile industry is one of the most fierce industries in the market. Not only is GM competing with American car manufacturers such as Ford and Dodge, but also foreign companies such as Toyota, Honda, and Hyundai. II. Financial Statements (attached excel sheet) Anthony Brooks For: Professor Goncalves Corporate Finance FIN-325 Final...
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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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...General Motors’ Strategic Analysis By Cyriac Thomas (cpg07bm025) [pic] Automotive Industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2007, more than million motor vehicles, including cars and commercial vehicles were produced worldwide. In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil and China saw the most rapid growth. In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. The United States is the world’s largest consumer market for light vehicles, passenger cars and light trucks. The United States auto industry is dominated by the Big Three or General Motors, Ford Motors and Daimler/Chrysler. These three account for roughly a little over half of the production of cars and light trucks in the industry. What has currently...
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...costs, lost margin opportunities, newer technologies and increased competition from other major car manufacturers led General Motors (GM) to yearn for value creation. Various factors such as change in customer demands, ineffective business strategies , profits erosion contributed to this slow down . These setbacks were addressed by Rick Wagoner, Mark Hogan, Harold Kutner, and Ralph Szygenda . They identified and evaluated the industry challenges, opportunities and growth capabilities by identifying the core-problem areas. Their goal was to strengthen the demand and supply chain systems . They built a system that led to a sustainable, value generating business model through developing efficiency and profitability. Their focus was on improved product quality, design, IT infrastructure challenges and integration issues, customer needs and improving the overall profitability. They built upon each of their expertise while making sure that key to success is to ensure tie-up between customer and supply chain sides, backed by latest technology . Their initiative was to set up the Digital Loyalty Network (DLN) comprising of technology enabling, focus on customer loyalty and leverage supply and distribution chain leads to serve the customers. Owing to the significance of IT integration into business, DLN was a success and positively contributed to the GM business in a...
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...General Motors Company (GM), the American multinational corporation, is one of the world’s largest car and truck manufactures. Founded in Michigan as a holding company for McLaughlin Car Company of Canada Limited and Buick, and then controlled by William C. Durant. GM has been in business since 1908. The company designs, builds, markets, distributes vehicles, vehicle parts, and sells financial services. From 1931 through 2007, it has been the global industry leader in sales. With its international headquarters in Detroit, GM employs about 212,000 people around the world. In 2011, General Motors sold 9.025 million cars and trucks globally with a global market share of 11.9%. Vision of General Motors Company is to be the world leader in vehicle market and related services and a brand that represent quality and innovative design. The company offers a largely range of vehicles, from electric and mini-cars to full-size trucks, monocabs and convertibles. It does business in most countries in the world, about 120 countries and produces vehicles in 37 countries. The other brand that the company owns are thirteen: Alpheon, Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall, HSV, UzDaewoo and Wuling. The largest national market of GM is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. In the United States, the company is very strong and has lasted over a century, representing one of the biggest American multinational...
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...Review this Quick Reference Guide for an overview of some important features in your Chevrolet Camaro. More detailed information can be found in your Owner Manual. Some optional equipment described in this guide may not be included in your vehicle. For easy reference, keep this guide with your Owner Manual in your glove box. F denotes optional equipment www.chevy.com INSTRUMENT PANEL Turn Signal Lever/Driver Information Center Controls Driver Information Center Windshield Wipers Lever Audio Steering Wheel ControlsF Exterior/Interior Lamps Control Cruise Control Hood Release Tilt/Telescopic Buttons Lever Steering Wheel Lever Safety Belt Reminder Check Engine Low Tire Pressure Brake System Warning Antilock Brake System Warning 2 Charging System Oil Pressure Airbag Readiness Security Fog Lamps Cruise Control Set Traction Control Off StabiliTrak/Traction Control Off StabiliTrak/Traction Control Warning Lights On Climate Controls/ Heated Seat ButtonsF Audio System Hazard Warning Flashers Button/ Power Door Locks Button Auxiliary GaugesF StabiliTrak Button Accessory Power Outlet* * The accessory power outlet does not operate once the key is removed from the ignition and the driver’s door is opened. Note: Refer to your Owner Manual to learn about the information being relayed by the lights, gauges and indicators of the instrument cluster, as well as what to do to ensure safety and prevent damage. See Instruments and Controls in your Owner...
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...General Motors General Motors (GM) has been in business for nearly a century, and in the last four decades, there business has undergone tremendous structural change. In 1962 they had 605,000 employees around the world but now in 2005 they only have 335,000 employees world-wide. Over those 43 years, new technologies and downsizing resulted in a much leaner GM, producing more vehicles with far fewer employees. GM lost $10.6 billion in 2005 and its executives have not announced when the company will become profitable. GM announced plans to cease 12 U.S. plants by 2008, and reduce their workforce by 30,000 positions. They also announced that they will cap the company’s contribution to salaried retiree health-care cost at the end of 2005, which will reduce their obligation by almost $5 billion. In 2005, GM laid out and began to aggressively implement a four point turnaround plan aimed at strengthening their competitive position and achieving strong business results for the years to come. The four elements for the plan are: • Keep raising the bar in the execution of great cars and trucks. • Revitalize their sales and marketing strategy. • Significantly improve their cost competitiveness. • Address there health-care and pension legacy burden. General Motors is offering hourly workers as much as $140,000 each to leave the troubled automaker as it extends to push to cut labor costs and put an end to billions of dollars on losses. GM came to an agreement with...
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...2014 Principles of Finance Final Project General Motors Company vs Ford Motor Company Lauren Grippo GENERAL MOTORS CORPORATION (COMPANY) General Motors Corporation (General Motors or GM) was incorporated on August 11, 2009. Also known as GM, the company designs, builds and sells cars, trucks and automobiles parts globally and headquartered in Detroit, Michigan. The company also provides automotive financing services through General Motors Financial Company, Inc. (GM Financial). The company designs, manufactures and markets vehicles under the brands of Buick, Cadillac, Chevrolet and GMC. Along with our strategic partners, we produce cars and trucks, and sell and service our vehicles, through the following brands: Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling (GM.com). In addition to the products the company also sells to its dealers for consumer retail sales, to fleet customers, including daily rental car companies, commercial and leasing companies and governments. As of December 31, 2012, the Company offered 21 FlexFuel vehicles in the United States and offered 12 hybrid models and continues to develop plug-in hybrid electric vehicle technology. They are also subsidiary owners of the OnStar, LLC servicing the United States and Canada. OnStar is a provider of connected safety, security and mobility solutions and advanced information technology. FORD MOTOR COMPANY The Ford Motor Company (also known as Ford) is an American multinational...
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