General Motors Value Chain
INTRODUCTION
According to GM.com (2009) General Motors Corp. (NYSE: GM), is one of the world's largest automakers which was founded in 1908, in Detroit USA. It manufactures cars and trucks in 34 countries. GM employs 252,000 people in every major region of the world, and sells and services vehicles in some 140 countries. It sells cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. Its largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.
LOGISTICAL AND VALUE CHAIN STRATEGIES
To better understand the logistical and value chain through which a firm/company develops a competitive advantage and create shareholders value chain, it is useful to classify the business system into a series of value generating activities known as value-chain. According to his book, (1985), Michael porter introduces a generic value chain model that comprises series steps of activities found to be common to a wide range of firms. Porter identified primary and support activities as shown in the below diagram;
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Source; netmba.com. (http://www.netmba.com/strategy/value-chain/).
INBOUND LOGISTICS- Inbound logistics covers activities associated with the receiving, storing, and transporting of raw materials. Management decisions involve freight consolidation, mode and carrier selection, materials handling, warehousing, and backhaul management. (netmba, 2010).
INBOUND LOGISTIC OF GENERAL MOTORS IN UNITED STATE (USA), shipment consolidation increases vehicles efficiency, which is regarded as organization responsibilities. Full vehicle loads of goods save money because the same transport overhead is shared by more units of goods. However, general Motors logistics managers used to consider trade-offs
According to GM.com (2009) General Motors Corp. (NYSE: GM), is one of the world's largest automakers which was founded in 1908, in Detroit USA. It manufactures cars and trucks in 34 countries. GM employs 252,000 people in every major region of the world, and sells and services vehicles in some 140 countries. It sells cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. Its largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.
LOGISTICAL AND VALUE CHAIN STRATEGIES
To better understand the logistical and value chain through which a firm/company develops a competitive advantage and create shareholders value chain, it is useful to classify the business system into a series of value generating activities known as value-chain. According to his book, (1985), Michael porter introduces a generic value chain model that comprises series steps of activities found to be common to a wide range of firms. Porter identified primary and support activities as shown in the below diagram;
► ► ► ► ►
Source; netmba.com. (http://www.netmba.com/strategy/value-chain/).
INBOUND LOGISTICS- Inbound logistics covers activities associated with the receiving, storing, and transporting of raw materials. Management decisions involve freight consolidation, mode and carrier selection, materials handling, warehousing, and backhaul management. (netmba, 2010).
INBOUND LOGISTIC OF GENERAL MOTORS IN UNITED STATE (USA), shipment consolidation increases vehicles efficiency, which is regarded as organization responsibilities. Full vehicle loads of goods save money because the same transport overhead is shared by more units of goods. However, general Motors logistics managers used to consider trade-offs