The primary internal and external influence on the General Motors Corporation

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Executive summaryThis report analyzes the primary internal and external influence on the General Motors Corporation and the influence of changing political environment on policy making and response of the corporation. Then the report discusses the changing political environment in and its influence. The influences of political environment on policies and decision making to the corporation are analyzed. The corporation response to the political environment changing is critically evaluated. At last, some improvement suggestion for the corporation in the response of the changing political environment is demonstrated. IntroductionGeneral Motors Corporation is the largest automobile manufactures in the world. The corporation, which is located…show more content…
The Japanese automakers such as Toyota are dangerous competitors for the General Motors Corporation and the have scrambled for quite a large part of market shares if the GM in America and the global markets. The Japanese competitors cut down the cost tremendously by lean production. However, the production cost is still high in the General Motors Corporation. And the inefficiency of production cause the high price of its automobiles and the market share shrinks accordingly. (Coffey, 2005) Especially in face of the financial crisis, the General Motors Corporation has much to learn form lean production to cut down its production prices. The bureaucratic culture is another weakness in the corporation. The General Motors Corporation employs more than 260 millions staff, which composes a huge and complex organization. The General Motors Corporation had taken the lead in organization. For example, the corporation had injected into matrix organization that combined the functional and project patterns of department in the same corporation in early years. The General Motors Corporation also organized with strategic business unit that classified products and product lines in the same independent business department in ahead of other corporations. The decentralization makes each department a profit centre. However, after ages of development the departments and business units concerns more on their own benefits
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