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General motors case study
General motors case study
General motors case study
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General Motors
Michael Dunham
3/8/2018
MGT111 – Spring 2018
Prof. Robin James
Reviewed By: Deborah Abbott - 847.925.6300
Writing Tutor 3/8/18 7:30 PM – 8:00 PM
General Motors Company Introduction
General Motors Company (GM), formerly known as General Motors Corporation, is an American corporation that is public traded and is the world’s largest motor-vehicle manufacturer for most of the 20th and 21st centuries. GM has assembly plants and distribution centers all over America and is one of the oldest and widely known companies in the world. They are a part of designing, manufacture, and selling cars, trucks, and other automobile parts. First, it is essential to understand the background and history of this company.
General
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He then traded his Chevrolet stock for GM stock until he had controlling interest in both companies. Within five years, he was running GM again and then Chevrolet became a division of GM. After this, General Motors joined the war effort during WW1 and sold nearly 8,500 trucks to the US Army and with this repurposed 90% of the production line for military use. In 1920, Durant retires, and then simply takes a pension. By 1954, General Motors accounted for nearly 54% of the auto market in the United …show more content…
In 2009, GM filed for bankruptcy and it received another 30 billion in government funding to assist with the restructuring of the company. By 2016, the company sold over 10 million vehicles. The company is currently still headquartered in Michigan, however it does have operations all over the world, on six continents.
At this time, it holds about 17.6% of the U.S. automobile market share and it has more than 100 locations in the US, not including dealerships or financing operations. General Motors Company used organization structure to support managerial decisions or a regional divisional organization structure. This regional structure means that GM groups different business activities according to geographical segments or areas of operations. It has over 225,000 employees worldwide and with this, the organization of the business and different areas within the company needs to be structured correctly and appears to do
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
The automaker Chevrolet has experienced much technological change in the past 104 years. Although it, Chevrolet, is a French name, it is an American car company. It was primarily founded by William C, Durant, along with Louis Chevrolet, on November 3, 1911. It wasn’t until six years of existence that it became part of the Automotive Division at General Motors, otherwise known as GM. Durant had previously tried to buy out Ford and failed. This caused him to resort to co-founding Chevrolet. The first car sold by the company commonly called Chevy was the Classic Six, at the price of 2,500 dollars. Chevy started producing these vehicles in 1912-1913. The car’s value may seem like pocket change but that is the common day equivalent of roughly 57,000
Entering the 1950s, no corporation even came close to General Motors in its size, or it's profits. GM was twice as big as the second biggest company in the world, Standard Oil of New Jersey (father of today's Exxon Mobil), and had a vast diversity of businesses ranging from home appliances to providing insurance and building Buicks, Cadillacs, Chevys, GMCs, Oldsmobiles, Pontiacs and trains. It was so big that it made more than half the cars sold in the United States and the U.S. Department of Justice's antitrust division was threatening to break it up(to prevent Monopolies, Like how Standard oil was broken up). In the 21st century, it's almost hard to imagine how powerful GM was in the 50s and 60s. Sports cars from Europe were getting popular, because of servicemen coming back from WWII, and wanted sports cars, but American Automakers didn't make sports cars, so they would either buy foreign, or go without. A man named McLean would still try to make a low priced sports car. But it didn't work. The idea of a car coming from GM that could compete with Jaguar, MG or Triumph was pretty much considered stupid and insane. C1:Generation: Bad but valuable. Just 300 Corvettes were made in 1953. Each of these first-year Corvettes was a white roadster with red interior. The Corvette was made of fiberglass for light weight, but the first cars were made with a really weak, (and kind of pathetic for a “sports car”) 150 horsepower 6-cylinder engine and an automatic transmission. The result was more of a look at me, I’m rich car than a race car. The first generation of the Corvette was introduced late in 1953. It was originally designed as a show car for GM's traveling car show, Motorama, the Corvette was a Show Car for the 1953 Motorama display...
Entering the 1950s, no corporation even came close to General Motors in its size, or it's profits. GM was twice as big as the second biggest company in the world, Standard Oil of New Jersey (father of today's ExxonMobil), and had a vast diversity of businesses ranging from home appliances to providing insurance and building Buicks, Cadillacs, Chevys, GMCs, Oldsmobiles, Pontiacs and trains. It was so big that it made more than half the cars sold in the United States and the U.S. Department of Justice's antitrust division was threatening to break it up(to prevent Monopolies, Like how Standard oil was broken up). In the 21st century, it's almost hard to imagine how powerful GM was in the 50s and 60s.Sports cars from Europe were getting popular, because of servicemen coming back from WWII, and wanted sports cars, but American Automakers didn't make sports cars, so they would either buy foreign, or go without. A man named McLean would still try to make a low priced sports car. But it didn't work. The idea of a car coming from GM that could compete with Jaguar, MG or Triumph was pretty much considered stupid and insane. C1:Generation: Bad but valuable. Just 300 Corvettes were made in 1953. Each of these first-year Corvettes was a white roadster with red interior. The Corvette was made of fiberglass for light weight, but the first cars were made with a really weak, (and kind of pathetic for a “sports car”) 150 horsepower 6-cylinder engine and an automatic transmission. The result was more of a look at me, I’m rich car than a race car. The first generation of the Corvette was introduced late in 1953. It was originally designed as a show car for GM's traveling car show, Motorama, the Corvette was a Show Car for the 1953 Motorama display at...
General Motors (GM) has been a staple of American culture since 1908. GM represents the best of American ingenuity, with brand names such as GMC, Cadillac, and Chevrolet. According to GM, “Our unyielding mission to earn customers for life has led to a healthy balance sheet and world-class products that are wining in the marketplace” (GM, 2015). At GM’s height, the company was the largest employer in the world. In addition, GM has been an integral company during the wartime efforts, and has capitalized on the American spirit. GM is of the longest tenured American brands.
As the automobile industry made its first appearance in the early 1900s, General Motors had already slowly begun its formation. GM was founded in 1908 by William C. Durant, a carriage manufacturer of Flint, Michigan, and today operates manufacturing and assembly plants and distribution centers in many countries, including Canada . Its major products include automobiles and trucks, a wide range of automotive components, engines, and defense and aerospace materiel. General Motors has a long history of business and technological innovation designed to deliver ever-increasing value to their customers and society. GM today has manufacturing operations in more than 30 countries and its vehicles are sold in about 200 countries.
GM should continue to use its technological advantages to create innovative automobiles, but do so cautiously. GM should follow the direction of today’s environmentally conscious consumers who want less expensive, economical automobiles. GM should primarily utilize a cooperative game-theory approach in its sales and marketing strategies in order to stay in sync with the current automotive industry needs.
Currently, the major competitors within the industry are Ford, DaimlerChrylser, General Motors (GM), Honda, Toyota, and Volkswagen. A few United States (US) manufacturers produce 23% of the world’s vehicles while Japan is responsible for 21%. The tendency for the industry is to be a global producer of automobiles; parts can be made throughout the world and assembled in many different places. The trend of consolidation has continued throughout today. Presently, this is evident in the recent acquisition of Chrysler by Daimler-Benz in late 1998, thus forming DaimlerChrylser. These consolidations have proved beneficial to consumers since companies have been able to reduce costs and pass those savings on to the customers. Some of the other major examples of consolidation are Nissan selling off a controlling 37% interest to Renault; General Motor’s 49% ownership of Isuzu; and Ford’s 33% majority of Mazda. Other efforts to become more competitive have translated into the European Union dropping trade barriers and European carmakers employing cost reducing efforts. American manufacturers have seen 2-3% growth over the last few years. Some current trends are the explosion in popularity of the Sport Utility Vehicle (SUV) and big luxury vehicles.
General Motors is one of the world's most dominant automakers from 1931. After 1980s economic recession the main goal for automobile companies was cost reduction. Customers became more price-sensitive. Also Japanese competitors came into market with the new effective system of production. So market was highly competitive and directed toward price reduction. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing was due to purchased components. GM NA hired Lopez in order to find the way from "extraordinary" situation and reduce costs.
When you look at the history of General Motors, you will find a long, rich heritage. General Motors came into existence in 1908 when it was founded by William "Billy" Durant. At that time Buick Motor Company was a member of GM. over the years GM would acquire more than 20 companies, to include Opel, Chevrolet, Cadillac, Pontiac, and Oldsmobile. By the 1960's through 1979 was known as a revolution period for General Motors. Everyone was focusing on environmental concerns, increased prices of gasoline lead to the unprecedented downsizing of vehicles. The smaller cars lead to one the largest re-engineering program ever taken in the industry. By 1973, General Motors was the first to offer an air bag in a production car.
General Motors Company (GM) is an American multinational corporation that manufactures, designs, markets and distributes vehicles and vehicle parts, and sells financial services. GM produces vehicles in 37 countries, selling and servicing them through thirteen brands such as Alpheon, Chevrolet, Cadillac, Holden and Wuling (Our Company, 2014). GM is among the world 's largest automakers by vehicle unit sales. It employs about 212,000 people working in 396 facilities touching six continents and has 21,000 dealers around the world (Our Company, 2014).
General Motors the owner of Chevrolet, has a long past of being one of Americans leading car manufacturers. The company was started by Louis Chevrolet and W.C. Durant in Detroit, Michigan.
and other resources needed to achieve goals. Organizing activities include attracting people to the organization, specifying job responsibilities, grouping job into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success (Bateman & Snell, 2011). When a company is able to successfully organize each portion of their business, they will then be able to maintain a strong foundation. A company that has managed to be successful through its well use of organization is that of General Electric Company. They have what it is called a ‘flat’ structure in which everyone becomes equal (Clawson, 2012). General Electric used to have 29 levels, but today it has only a handful of layers (Bateman & Snell, 2011).
Who could believe that GM Corporation that was inaugurated in 1908 and was the largest automobile manufacturer in the world from 1931 until 2008 filed a formal bankruptcy under Chapter 11 in 2009. GM bankruptcy was the fourth largest bankruptcy reorganization and also one of the shortest bankruptcy reorganizations processes in the history of United States business, with only 40 days. The GM accumulate a loss of 82 million in the period from 2005 to 2008 taking into bankruptcy.
Organizational structure within an organization is a critical component of the day to day operations of a business. An organization benefits from organizational structure as a result of all it encompasses. It is used to define how tasks are divided, grouped and coordinated. Six elements should be addressed during the design of the organization’s structure: work specialization, departmentalization, chain of command, spans of control, centralization and decentralization. These components are a direct reflection of the organization’s culture, power and politics.