Organizational Change General Motors

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Executive Summary Over the past decades, organizational changes have become recurrent. It then became decisive for managers to perfectly understand this phenomenon in order to lead organizations to efficiency. The main objective of this report is to gain a better understanding of large scale organizational change. The different changes implemented by General Motors company in an attempt to cope with the economical crisis of 2008 is a perfect example of this concept. This paper details each change undertaken by the organization by highlighting the different pressures identifying the problems the organization met and ultimately detailing the solutions that General Motors implemented. For this purpose, different tools and sources from the…show more content…
Others were stopped or sold : Hummer, Pontiac, Saab, Daewoo, and Saturn. From 1908 to 2007 General Motors Corporation was originally founded in 1908 in Michigan, directed by W.C. Durant. At that time General Motors only owned Buick, in 1909 Durant bought more and more brands such as Cadillac or Pontiac. Even though W.C. Durant created G.M, it is under Sloan reign (1923) over the company that, using planned obsolescence and price policy, General Motors became the first automaker in the world. Sloan's objective was "A car for every purse and purpose". (Sloan 1963, p.438) At some point during World War II, G.M became the biggest company in the United States and owned a large number of brands and a financing fund. The car market was growing fast and General Motors began to focus its production on big luxury cars. In the nineties, General Motors's largest profits were made on large trucks and sport vehicles. In 2001, after the September 11 attack, the market declined severely and G.M used sales on cars in order to keep selling, even if it meant lessening profits. In 2004, fuel prices skyrocketed by fifty percent and market needs began to change. At that time, General Motor's board of directors may have failed to read the market. General Motors continued the same strategy and began to sell their shares in different companies. In 2005 they stopped their collaboration with FIAT. November 2005 saw G.M booking a $4 billion loss and about 30,000 employees
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