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Poletown Dilemma

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The Poletown Dilemma Contents Introduction 1 Who are the stakeholders involved in the new site selection decision? 1 What are the factors that you would consider to choose the new site? 2 What is your recommendation to General Motors regarding the site choice? Why? 4 How would you implement your recommendations? 4 Exhibit 1 Comparison of costs of setting up plants in Detroit and Mid-West 5 Exhibit 2 Linkages with the society across the value chain 5 Exhibit 3 – Categorization of Social Issues faced by GM 6 Introduction General Motors is faced with a dilemma. In the face of economic depression, competition from foreign players was driving down profits and the market’s preference was changing to efficient cars due to …show more content…

Schedule GM wanted the site to be available for construction by mid of 81, so that the plant is operational by September 1982 PoletownAlthough demolition was involved, quick take law will help avoid delaysQWL program built cooperation with union, and union was in support will help quicker time to hire/relocate workers. Detroit was where the GM headquarters were. Having new plant closer to headquarters would make management much simplerVendor ecosystem is already established | Mid-Western StateMuch faster with ease and support from state (given in case fact)New relations would have to be established with labor unionsManagement overheads are higher for new plant when away from headquarters | 3. Political environment and support for the business would be a third factor Poletown 1. Mayor Young has high ratings and is connected to the president 2. Head of PNC is administrative aid of state Senator 3. 6150 jobs created | Midwest1. Mayor Young will be against this option – and it could have an impact on other plants and HQ of GM?2. Other state supporting the new plant | 4. Social Impact Exhibit 2 describes GM’s linkages with the society across its value chain. There are inside out linkages such as generating employment, developing infrastructure and environmental hazards as well as outside-in linkages such as availability of labor, infrastructure and social and political goodwill The social issues faced by GM are 1. Loss of jobs

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