General Motors : Gm North America

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2.0 General Motors William Crapo Durant established largest automobile manufacturer in the world, General Motors, in 1908 to produce "Buick automobiles". In the first year of the company, GM had satisfying sales rates and in the advancing years the company merged with other companies, such as Cadillac, Pontiac, Oldsmobile and AC Sparks Plugs. Amalgamation with other companies increased its sales and GM continued to merge with Chevrolet, Vauxhall Motors of Great Britain, Hummer, Isuzu, GMC, Holden and Opel (Flesher et al., 2014). General Motors is a manufacturing company specialising in cars, trucks, automobile parts. GM has more than 205,000 employees in 157 countries and is headquartered in Detroit, the USA. It has five different…show more content…
It refers that organisations need to satisfy its stakeholders ' needs and create a value for them. Organisation should maximise its stakeholders profit but above all, it should improve itself and consider all surroundings. Stakeholders aim to have high profit but profit is not only the one aim to reach for them. 3.1 Stakeholder Analysis In this section, I will focus on stakeholder analysis of General Motors ignition switch scandal. General Motors cars caused more than 124 deaths because of Defective ignition switches. After this scandal, the company called 2.6 million vehicles back and faced tens of lawsuits (Titcomb, 2014). If ignition switch shuts off whilst driving the vehicle, it can cause "disabling the airbag, power steering and power breaks" and pose the risk for driver and passengers. The most important fact is that General Motors recognised the problem before the scandal appeared. (Isidore & Perez, 2015). The stakeholders of General Motors who influenced by ignition switch scandal are: - Board of directors: The CEO of General Motors, Mary Barra, was under pressure since the scandal appeared. She admits that the company couldn 't keep its promises to its consumers and couldn 't provide high safety (Muller, 2015). Depositions started on May 6 for GM executives, including Mary Barra and she fired 15 employees who are responsible for the problem in 2014 (Fletcher, 2014). - The business: The company has to pay 900 million
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