MGX 9660 - International Business Theory and Practice
Case n°10: The Collapse of General Motors

PHAM Trang
(23283300)

REBOURG Malcolm
(23625678)

YAO Aileen
(20460996)

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Table of Contents
I - Introduction………..………...………………………………………….….….p 3 II - What are the internal and external factors that contributed to GM’s decline and eventual bankruptcy protection application?……………….....….p 4
 Internal Factors...………….……..…………………………...……….……….…p 4  Extenal Factors……….…..…………………………..……….………………….p 5

III - Discuss the latest stage of the new (smaller) GM……………….………...p 6
 What are the characterisics of the new GM?..………………………………...…p 6  Some encouraging signs of recovery………………………………………....….p 9  Threats regarding GM’s trials to regain its golden past………………………….p 11  Summary and Observations……………………………………………………...p 13

IV - With a majority government ownership, what operational and management challenges might GM’s management confront when trying to regain its golden past?…….………………………………….………..p 14
 Operational Challenges..………………………………………………………….p 14  Management Challenges………………………………………………………….p 15  Summary and Observations………………………………………………………p 16

V - Critically Analyse Whether it was GM’s Failure or its Competitors’ enormous success in cost savings and innovation that brought about GM’s demise…………………………..…...….……………………..…….….….p 17
 Cost Savings - a poorly designed cost structure……...………………………….p 17  Innovation Processes…………….…………..…………………………………..p 18  Summary and observations……………………………………………………...p 21

VI - Conclusion……………….……………………………………………….….p 22 VII - References……………………………………………………….……….....p 23
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I - Introduction
General Motors (GM) is an American multinational which was founded by William Durant in 1908. It is known as one of the world’s largest auto manufacturers. GM employs 209,000 people around the world and produces