General Motors Case Study

751 WordsApr 28, 20124 Pages
General Motors Case Study #3 Problem Summary: One of the most serious problems that GM faces is when the firm announced a $10.6 billion loss, which was their first in 12 years. The auditors for General Motors even thought that the firm’s survival was in substantial doubt even if they received the additional $30 billion they were going to borrow from the federal government. The problems have grown as a result of mistakes by GM’s management over the last 30 years. They built up a bloated bureaucracy that supplied boring, low-quality cars for many years. GM will also lose leadership of the United States market, having already been replaced by Toyota as the world’s largest automaker. GM has been burdened with a high cost structure…show more content…
GM has also been pushed to offer more attractive cars that would generate better reviews and improve profit margins. GM should work to restructure their four different geographic units in order to get them to collaborate with another on designing, manufacturing, and marketing cars. GM believes that the additional loans from the Treasury Department and Energy Department will allow the firm to return to profitability, and they should finally be able to turn things around by 2012. I believe GM should use liquidity ratios in order to determine their financial analysis for their short-term progress. They need to use inbound logistics such as marketing and sales in order to help the business get aimed at selling their products, and to convince customers to buy their products compare to other

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