Case Analysis Of General Motors

repeatedly failing in the automobile industry, he founded General Motors in 1908. Since then, the corporation has played a significant role in shaping the American automotive industry. However, General Motors' impact on the American people and economy has not always been positive. The corporation's focus on producing automobiles at the lowest cost has often come at the expense of safety and quality. In 2009, General Motors filed for bankruptcy and underwent a government buyout, leading to a reorganization and a battle to transform the company's corporate culture. Despite these efforts, General Motors was ranked as one of the nine most damaged brands in 2014. The corporation's tarnished reputation can be attributed to a combination of factors, including a scandal-laden culture, mismanagement, and a focus on profit over safety, resulting in massive cover-ups. It is worth noting that William C. Durant, the founder of General Motors, was a successful manufacturer of horse-drawn vehicles before entering the automobile industry.

Department of Justice.

Du Pont, who owned stock, became the President of General Motors and developed his "Organization Study," a document that showed how a highly diversified corporation could give division managers adequate freedom and reward to excel, while top management still had strategic and financial control. The company's philosophy and strategy from 1910 to the late 1920s was "a car for every purse and purpose," and as demands for automobiles increased, General Motors set the pace for innovation, production, and design for others to follow. Despite high profits, General Motors suffered from divided management, and the war interfered with the company's ability to solve the problem. During wartime, General Motors showed its commitment and social responsibility by supplying "12 billion dollars worth of materials, such as trucks, tanks, and airplanes, to support the Allied war effort" (General Motors, 2015). The citizens of America had a profound respect for GM's positive efforts. On the other hand, in 1949, after the purchase of National City Lines of Los Angeles, GM was accused of buying streetcar companies since the 1920s and replacing them with bus systems (Associate Press, 2008). Consequently, in this Los Angeles case, General Motors was convicted of conspiracy, their first major cover-up. After the war, GM executives persuaded DuPont's directors to invest 25 million dollars in GM. DuPont could use their products of plastics, paints, and artificial leather with GM automakers' designs and jointly dominated the market. In addition, DuPont developed an anti-knock gasoline additive, and their Engineering Department helped General Motors build production plants and employee housing. According to Holstein (n.d.), "General Motors controlled 50.7% of the U.S. automotive market in 1962" (p. 5). DuPont and General Motors had a successful business partnership, but unfortunately, the stock interest DuPont held in General Motors violated the Clayton Antitrust Act, according to the Department of Justice.