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
The purposes of the loans were to provide operating cash for G.M. and Chrysler, and keep car loans available to buyers. GM earned $23 billion in 2010 and has invested $8.1 billion in thirty four U.S. plants and created or retained more than 23,000 jobs since 2009 (Shepardson, David 2013).
Understanding where the conflict or mistakes within this company began was not easy to identify. GMC was designed to do one thing better than everyone else, which was to build and sell cars and trucks. The Company did this from the beginning of the twentieth century as well or better than any other competitors. It wasn’t until 1990 that anything resembling real trouble presented itself as pause for concern affecting the Company’s bottom line. From the GM website, in 1990 the Company manufactured an all electric car called the E1 that was scrapped and consequently cost the Company 500 million dollars.
According to GM.com (2009) General Motors Corp. (NYSE: GM), is one of the world's largest automakers which was founded in 1908, in Detroit USA. It manufactures cars and trucks in 34 countries. GM employs 252,000 people in every major region of the world, and sells and services vehicles in some 140 countries. It sells cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. Its largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services.
General Motors was founded on September 16, 1908 in Flint, Michigan by William C. Durant. There were less than 8,000 horse-drawn vehicles in America. GM became the world’s largest automaker and has been global industry leader in sales for 76 years. They employee about 284,000 people in about 396 facilities worldwide in 33 countries. The global headquarters is in Detroit, Michigan. General Motors’ mission statement is
General Motors had to restructure the way they did business after being saved by a Government bailout (Bigman, 2013). The company understood that in order to be able to achieve success again, they would have to restructure many things; After 3 years of being bailed out, the company established a goal of $10 billion dollars a year (Kinicki & Williams, 2013), they changed their perspective into focusing on making more margins and profits, instead of focusing on incentives and units sold. In 2012 GM reported net income of $8 billion dollars, but the company plans to be more aggressive in terms of income and profit generated after paying expenses; which was one of the areas where the company had to make adjustments and restructure in order
Businesses are facing a dichotomy between wanting to chalk out an all-time structure and strategy for their organization, and recognizing that their world is in a constant state of flux [3]. For most of the 20th century they were largely focused on the static elements of this dichotomy. However, in the last decade changes have become more frequent and more dramatic, so much so that a whole branch of management is now devoted to the subject of change itself.
I. Brand Overview – Chevrolet a. History Chevrolet is an American made automotive brand that was co-founded in Detroit, Michigan in 1911 by Louis Chevrolet, a Swiss racecar driver and automotive engineer and William “Billy” Durant, the founder of GMC. When Durant was forced from the GMC Corporation and he regrouped with Chevrolet to develop a new car. Durant believed Chevrolets reputation in racecar driving industry was a great marketing strategy to help sell the car; therefore it was named after Chevrolet. The first car created was the Series C Classis Six, selling for around $2,100.
GM was the largest automakers in the world for more than 70 years. It produced more than half vehicles in USA market 50 years ago. But it fell down to less 20% in 2009.it was caused by a series missteps.
However, after General Motors were beginning to see how successful the foreign car companies were being, they began to set their goals and priorities to get back in the game during the oil crisis in the 1970s. They aimed
General Motors Corporation (NYE: GM) is the leading American automaker in the world with its operations spanning in 157 countries. The car manufacturer was established in 1908 in Michigan and today it is headquartered in Detroit, the United States of America. Besides the domestic industry of the United States of America, General Motors manufactures cars and trucks in other 30 countries around the world. Among its brand products are Cadillac, Buick, Chevrolet, GMC, GM Daewoo, Hummer, Holden, Opel, Saab, Pontiac, Vauxhall, and Saturn. Besides these brands that are owned by the automaker, GMC also operates joint ventures in China and Japan. That is, Shanghai GM and SAIC-GM-Wuling
General Motors is an American automobile company incorporated in 1908. Their head office is located at Detroit, Michigan. GM produces vehicles in 37 countries under ten brands, including, Buick, Cadillac, GMC, Chevrolet, Opel, Holden, Vauxhall, Wuling, Baojun, Jie Fang, UzDaewoo. GM has been in the spotlight in recent years due to the Chapter 11 reorganization in 2009. Hummer, Pontiac, and Saturn were closed as a result. The company has reported annual profits since 2010. As fuel efficiency became a high demand in the U.S. markets, GM has responded to market demands by designing small-car programs for the U.S. market. GM has also committed
By many standards, General Motors is an extremely successful company, though an analysis of the corporation today uncovers many troubling issues. GM is and has been the world 's leader in automotive sales since 1931. (GM Website, 2004) By any corporate measurements, the company is a behemoth, operating across the globe with a 15% share of the world 's automobile market. The company also houses one of the world 's leading financial services
General Motors has shifted way its prevailing resources from the midsize and compact cars to the leading SUV Craze. In the
Starting from 1990, GM became industry’s biggest money loser in the U.S. market by tracking out of the road it always had been and forgetting how it became and protected its leadership for over 60 years. Top management moved slowly by taking important decisions, lost control over the divisions and did not stop the production of the dogs on time. GM also lost touch with its customers and dealerships, so, the well-respected brand name became a dog
GM’s failure has been a long time in the making. In an advertisement issued by the company in December of 2008 which was published in