GM

I - Introduction………..………...………………………………………….….….p 3 II - What are the internal and external factors that contributed to GM’s decline and eventual bankruptcy protection application?……………….....….p 4

Founded By William Durant in Flint, Michigan, GM began by acquiring the Buick Motor Company. In 1920, GM added Chevrolet, Vauxhall, and Opel to its lineup in order to provide its customers with, “a car for every purse and purpose” (GM.com). At one point, GM carried over twenty brands. During the Fordist period, GM expanded internationally by taking on projects including manufacturing, sales, and service in all parts of the world (Townsend, Cavusgil, and Baba, 2010). In the 1970s, during the emergence of Neoliberal Globalization, GM found competition from the global automotive market. In response, GM expanded its market to China, India, Brazil and Europe. Due to a variety of causes including bad financial policies, uncompetitive vehicles, ignoring competition, and failure to innovate, GM found itself in trouble during the 2008 financial crisis. Eventually GM filed for

Yet now, some say that the past is what troubles the automotive giant. In an interview with a former General Motors executive, GM 's sheer size as well as the sense of complacency developed after years of success was cited as the chief challenges GM would have to overcome (Interview, 2004). In a sense GM has been derailed, the strengths that once made it successful are the same forces that have led to its current flaws. (McCall, 1998) Thus, Wagoner is proposing to go against GM 's years of tradition and "Challenge the process." This is not the only step in the CIEME model that Wagoner has acted on. (Kouzes & Posner, 1995) He has already "Modeled the way" by cutting GM inefficiencies so that the company now competes directly against the streamlined Japanese automotives. Part of this streamlining includes Enabling the correct management to act. Furthermore, our interviewee attested to the fact that all GM employees were Inspired to share a number of Wagoner 's visions for the company. The remaining question is whether or not Wagoner will be able to Encourage the heart of General Motors.

Both Ford Motor Company and General Motors Corporation are in the midst of restructuring. The American auto industry is beginning to

Between 2008 and 2009, the American automotive industry incurred a major crisis, on the heels of the housing market collapse occurring in 2007 (Klier & Ribenstein, 2013). General Motors was already in a financial vulnerable situation at this time, having already filed a $10.6 billion dollar loss three years earlier (United States Securities and Exchange Commission, 2005). In 2007, General Motors losses for the year were $38.7 billion and its sales had dropped a full forty five percent from the year before (Weardenm, 2009; Usborne, 2008). By the end of 2008, the company was in such bad shape that analyst predicted that the company would have the liquidate or discontinue operations without any assistance from the government (Bosco & Plante,

Achieving world class business performance is a major challenge in today’s society. Manufacturing companies continue to face increased competition and globalization from its competitors. (1, p. 148). The automotive industry is one of the most volatile manufacturing industries that we have, which was evident in the 2008 – 2010 automotive industry crisis. (2) This global financial downturn served notice to the American automotive manufactures to raise the bar, in order to achieve word class business performance. General Motors, one of the country’s largest automotive manufactures, had to receive a government bailout to survive. During this time many with the corporation asked themselves, if we were a world class business, would we be facing

The aim of this paper is to assess the extent to which market maturity influenced the restructuring phase that Caterpillar underwent after it was nearly put out of business in the 1980s. It will be argued that surely market maturity played a central role in the company’s restructuring, as the increase of competition and the need for product innovation brought up the need to develop an effective action plan. However, it was also the over-managed organization of the company itself that contributed to this degenerating stage and that therefore drove the

The general environment for Ford and the automotive industry in general can best be characterized by weakened economy and emerging social and political trends that are demanding higher efficiency vehicles. Although the economy has substantial stabilized since the Great Recession of 2008, it is by no means made its way back to a full recovery. Ford was also in the strongest financial position of the big three American automobile manufacturers and was able to post massive increases in sales and profits in as early as 2010 after broad sweeping restructuring efforts (Hirsch, 2010). The company also provided it could be profitable within a low volume sales environment which indicates its resilience in a new automotive market.

Toyota by itself did not have a significant impact on GM by its self but It play a pivotal in the demise of general motors as being the killing blow to a company that was already breaking down due to a number of factors Toyotas impact was multiplied with external and internal factors that were effecting the automotive giant. Within this essay it has broken down into 5 main segments that brought about General motors downfall and explain why Toyota impact was heightened. The first segment is quality management focusing on Deming’s profound knowledge and his 7 deadly diseases and 14 points on quality management (Berry, B 2011. P.1) highlighting where GM failed and Toyota succeeded and took advantage. The next segment that

This research paper presents some recommendations and a related action plan to address the strategic changes which are deemed crucial to the survival of General Motors (GM). An overview of the contemporary situation at the corporation is provided in this section of the paper, which is then followed by specific recommendations and a strategic plan of action to bring about the changes which are necessary for the company’s survival in these turbulent times.

Calamites such as botched mergers of BMW and Rover, or Ford’s buy of Land Rover and Jaguar, or Daimler and Chrysler from a few years prior. The current proposed merger of General Motors and Chrysler was brought up due to the economic conditions, as both companies were suffering tremendously despite governmental intervention by the Federal Reserve. Prior to the planned merger, General Motors had been in constant state of restructuring dating back to 1993 [1]. These past 15 years for General Motors consisted of constant buyouts, write-downs, streamlining, plant closures, dealer write-offs, and other restructuring efforts. Real sizeable profits came during the late 90s to early 2000s when gas prices were cheap (owing to the line of trucks and SUVs cranked out by General Motors) and housing prices were over inflated. There were very few car companies that did not earn decent profits during this timeframe, but any other cyclical downturn of the economy sent General Motors into a tailspin financially. In fact, General Motors was often termed the car company that was too big to fail, where the ultimate size of the corporation seemingly was the only factor keeping it alive.

This extended essay will be focused on answering the research question “What will be the future business impacts on GM Holden LTD. resulting from its decision to close its manufacturing operations in Australia?” Holden is one of the first Australian founded and owned vehicle producer in the country, it produces an extensive variety of motor vehicles in Australia and its position in the market started to fluctuate in the past couple of decades due to an increase in competition, Toyota being the strongest competitor. They both have been struggling to achieve the most market share and become the market leader but, Holden still remains to be Australia’s top vehicle seller and is represented by more than 250 dealerships (Holden, n.d., para. 1) nationally whereas Toyota has around 306 (Toyota, 2013, para 3). Holden was the only Australian car manufacturer in the past for a while which is the reason that they have always been successful due to there being little to no competition as they started the

Toyota reveals that the average age of the owner of a Toyota car is 48. Even though the company is trying to attract the young adult the average keeps the target consumer group of an older age. In this part paper will be discussed a group that Toyota wants to attract and that group is young adults. According to Tilin it is reported that that Toyota Scion has been proven to be a very cost effective car for the groups that fall under this category (Tilin, 2003).

In the 1950’s and 1960’s GM dominated the American market, in 1965 the company had half the U.S market and was as good as its rivals, while losing $31 billion in 2008 made vast improvements in productivity

A thorough analysis of the external forces that shaped the global automotive industry in 2009 reveals how the rivalry between established car makers set the stage for some to successfully survive the global recession while others were forced to seek Chapter 11 bankruptcy. A closer consideration of the impact of consolidation, demand and supply, fixed costs, product differentiation, and exit barriers on rivalry within the industry reveals how new entrants and weaker competitors were able to take advantage of environmental opportunities during the recession and gain profit shares. These considerations illustrate the critical importance of analyzing the forces that shape competition in an industry and how such an analysis serves as the