of the company. 1) Which of the four basic strategy types were used by GM? Explain your rational. It appears that General Motors presented the personas of being both prospectors and reactors. Prospectors are identified for producing their own opportunities and being gallant and working after an opportunity‚ not sitting idly by and waiting for something to occur. After taking the bailout from the federal government‚ GM aspired to make an extraordinary income of $10 billion dollars a year. Prospectors
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Ford‚ GM‚ and Chrysler also known as the “big three” American car manufactures lost their foothold on the automobile market right when the gas crisis of 1973 occurred. The VRA only dug the American automotive industry into a deeper hole. Although the bailouts received harsh criticism‚ it is somewhat apparent that without them our economy would have been in a lot worse shape. GM and Chrysler together are so big that if they collapsed they would have taken the U.S economy down with them. In the
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second largest U.S.-based automaker‚ second only to General Motors (GM). It is also fifth largest in the world. Over the last decade‚ it has brought itself back from the brink of bankruptcy to winning back consumers and investors. The U.S. auto industry took a heavy beating in the years leading up to the financial crisis of 2008 and 2009. Ford stood out from its two main rivals‚ GM and Chrysler‚ by not taking government bailout money to sustain its operations. This was a bold move given the fact
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sales. In China alone‚ GM has 11 joint ventures and two wholly owned foreign enterprises with more than 35‚000 employees. In 2011‚ these firms produced 2.5 million vehicles and generated some $1.5 billion in profits for GM in the U.S (Politifact.com‚ 2012). GM’s success in China signals a brighter economic future for the company. The increased global profits have allowed GM to gain some control of the company after turning it over to the Government five years ago. However‚ GM is faced with issues concerning
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able to survive. How did GM‚ as the number one auto manufacturer and seller‚ go from being at the top to almost ceasing to exist? This kind of financial mess usually takes years of poor decisions and does not happen to a large company overnight. To come to my conclusion I analyzed four books written by people with inside knowledge of the company‚ as well as magazine articles and a couple of online websites. As a result of my research‚ I believe that the problems that GM faced stemmed from poor risk
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aims to explore the cultural barriers that GM encounters while doing business in China especially in terms of language and Asian mind difference. As a matter of fact‚ we cannot examine all the cultural barriers due to the scope of the paper. On the other hand‚ some differences emerging from different thinking behavior between US and China are exemplified in the second part of the paper. In the first part‚ the company information and the SWOT analysis of GM are given before going further with the Asian
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difficult task for GM. The company’s financial situation was hit with severe competition from foreign rivals and its internal regional alliances. The other external factor that resulted in GM’s bankrupt situation is recession period. Applying‚ generic decision making strategies made the company recover its lost status and currently leading its way in design‚ build and selling of cars and trucks. Bargaining stakeholders to elevate the production values is one of the strategies of GM to become global
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Ford Motor Company SWOT Analysis Strengths • Timely acquisition of capital makes Ford more financially sound than the other Big Three carmakers. • Product line is respected by industry experts and is qualitatively seen to be a step above many of its competitors. Recent surveys place Ford in a tie with Toyota for greatest customer satisfaction‚ a significant improvement from five years ago. • Have a global market presence‚ with worldwide brand recognition and a particularly strong presence in
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1. Reviewing GM’s financial information in GM Exhibit 1 and its stock price in GM Exhibit 2‚ when do you first see signs of GM’s impending financial distress? The sign of GM’s impending financial distress is first seen in 2005. GM reported a net loss of more than $10 billion and has continued to post annual losses since that time with losses reaching almost $31 billion in 2008. GM’s cash flow from operations in 2005 was a negative $16.8 billion. Reviewing GM’s stock price‚ we can see that the stock
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Economic Crisis Impact on Auto Industry’s Costs and Sales B.W. Strayer University Abstract The 2008 economic crisis negatively impacted the U.S. domestic automobile industry. GM‚ Chrysler and Ford reported annual operating costs and sales revenues that mimicked the movement of the overall economy from 2005-2010. Until 2009‚ all three companies displayed a downward trend in operating costs and sales revenues. These two aspects of automobile manufacturers are directly
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