General Motors Case
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 vehicles at a minimum of 50% of overall cost. General Motors should offer a
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 vehicles at a minimum of 50% of overall cost. General Motors should offer a