Case Analysis: Will GM's Strategic Plan Lead to Future Success?

1273 Words Oct 30th, 2013 6 Pages
Case Analysis: Will GM's Strategic Plan Lead to Future Success?

Introduction
As we know, General Motor (GM) is a famous American manufacture and distributes vehicle. It was founded in 1908 and led the global automotive industry for a long time. Now, you can see a car and commercial vehicles which were produced by General Motor anywhere. GM produce, sell and provide service brands including: Chevrolet, Buick, GMC, Cadillac, Hummer, Holden, etc. At present, GM's full range of models sold in more than 120 countries and regions, including electric cars, micro cars, heavy-duty full-size trucks, compact car and cabriolet. We have to say that GM’s success is attributed to its successful strategy.

Four basic type of strategy GM used to
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As a result, the top managers of GM decide not to provide full incentives again.

Consequently, cutting incentive has become one strategy of GM. The manager of GM hope that it can help saving more of its cost through cutting incentive. They also believe that it is very important to lead their company than just focus on market. According the report of their January sales totals, Ford had a 7.3 % rise, while they had a 6% decline.

From 2008, GM made a big change by slimming down its scale dramatically. Since GM was saddled with a huge burden, the large population of employee. The company has to pay pensions and health care cost for its every employee. It has not only a financial burden, but also has a employee burden. According to the contract, even in the difficult time, the company can not dismiss its employees, or the company has to pay fines. Its 8 brands also have to be maintained. Each one needs new models and continuous improvement, and these also require a huge investment. General Motors announced a new restructuring program in 2008. According to the plan, GM will cut the number of employees in 2008 to 6.2 million reduced to 40,000 be in the United States before the end of next year. The number of dealers will be cut as well.
GM’s vision
GM is targeting to be the best-in-class peers. In other words, GM want to be the leader of peers in transportation products and related services. GM has set a specific

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