Preview

General Motors Failure Analysis

Best Essays
Open Document
Open Document
348 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
General Motors Failure Analysis
Determining the Porter’s five-point theory on competitive structure is important for a company to survive the stock market competition. The project analysis is based on General Motor’s Company, which has seen ups and downs in its illustrious history. The establishment or entry into the automotive market wasn’t a difficult task for GM. The company’s financial situation was hit with severe competition from foreign rivals and its internal regional alliances. The other external factor that resulted in GM’s bankrupt situation is recession period. Applying, generic decision making strategies made the company recover its lost status and currently leading its way in design, build and selling of cars and trucks. Bargaining stakeholders to elevate the production values is one of the strategies of GM to become global …show more content…
(n.d.). Retrieved from General Motors: http://www.gm.com/company/aboutGM/gm_sustainability.html
About GM: Our Company. (n.d.). Retrieved from General Motors: http://www.gm.com/company/aboutGM/our_company.html
Cohan, P. (2009, May 31). After 101 years, why GM failed. Retrieved from daily finance: http://www.dailyfinance.com/2009/05/31/after-101-years-why-gm-failed/
Innovation: Community & Education. (n.d.). Retrieved from General Motors: http://www.gm.com/vision/community_education/corporate_citizenship.html
More, R. (2009, June). HOW GENERAL MOTORS LOST ITS FOCUS – AND ITS WAY. Retrieved from Ivey business journal: http://iveybusinessjournal.com/publication/how-general-motors-lost-its-focus-and-its-way/
Kallstrom, H. (2015, February 15). Welcome to Market Realist. Retrieved December 13, 2015, from http://marketrealist.com/2015/02/suppliers-power-increasing-automobile-industry/
Porter's Five Forces: Assessing the Balance of Power in a Business Situation. (n.d.). Retrieved December 13, 2015, from https://www.mindtools.com/pages/article/newTMC_08.htm
Samuelson, W., & Marks, S. (2012). Managerial economics (7th ed.). Hoboken, N.J.:

You May Also Find These Documents Helpful

  • Powerful Essays

    Gm Motors Case Study

    • 2395 Words
    • 10 Pages

    This report looks the decision making process within General Motors and the constraints faced from the external environment and the internal self created bounded rationality.…

    • 2395 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Reisner, R. (2002), "When a turnaround stalls", Harvard Business Review, Vol. 80 No. 2, p. 45, ISSN 0017-8012.…

    • 1746 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    In 2008, the automotive market in the United States crashed; The United States Government used a portion of the ‘$700 billion bailout fund’ to bail out General Motors and Chrysler. Ford, however, turned down the bailout funds and chose to use a government loan program instead. This decision buried Ford Motor Company under billions of dollars in debt. This paper explores the turmoil that Ford Motor Company faced, and the innovation that has allowed them to overcome their endeavors. This paper will also cover some of the innovation and vision that Ford has developed to create a future of sustainable success.…

    • 3894 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    "Ford: Will Slow and Steady Win the Race?," Business Week, May 10, 2004, p. 43.…

    • 3551 Words
    • 15 Pages
    Powerful Essays
  • Best Essays

    Salancik, G. R., & Pfeffer, J. (1977). Who Gets Power – And How They Hold on to It: A Strategic-Contingency Model of Power. Organizational Dynamics, Winter 1977, 3-21.…

    • 3297 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    E-on Uk Porters 5 Forces

    • 1308 Words
    • 6 Pages

    Porter, M.E The Five Competitive Forces That Shape Strategy: Harvard Business Review, 86 (1) p78-93…

    • 1308 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Student

    • 1983 Words
    • 8 Pages

    Nokia was once a market leader in mobile phone industry which occupied over 70% of worldwide market share. With Apple launching new models and technology of phones, Apple is now perceived as the most welcomed mobile phone brand. General Motor has built a long established reputation as a leading automobile manufacture. Following Japanese brands entered into the global market, General Motor lost its market significantly and eventually become bankrupt during the financial crisis in 2008. Rationale behinds these stories are the failure to adapt successful corporate strategies which generate competitive advantages to them to win against rivalry. Porter emphasises the importance of a unique strategic position in the market while another view focus on the firm’s own resources as its core competence to sustain itself in the market.…

    • 1983 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    general motors decline

    • 2151 Words
    • 9 Pages

    General Motors is a motor vehicle company in the United States that started manufacturing in 1915. The purpose of this report is to examine the decisions that were made within the company, in the lead up to their financial crisis in 1991. In the years preceding this downfall, the CEO Robert Smith made several decisions that contributed to the declining financial status of General Motors. Consequently, when Smith retired, the Black Swan Event of America’s recession left the next leader unable to rectify the situation. Following the analysis of the decisions and issues, the author will make recommendations for changes to the decision making process at General Motors, with the intention to avoid a similar situation reoccurring.…

    • 2151 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    General Motors Analysis

    • 8272 Words
    • 34 Pages

    Rick Wagoner is the CEO of GM. He is from Richmond, VA, 55 years old and he graduated from Harvard Business School. His current salary is $1.5 million a year, not including benefits and bonuses. (maybe not now since he has resigned).…

    • 8272 Words
    • 34 Pages
    Powerful Essays
  • Powerful Essays

    Introduction. In this assignment I am going to explain the following concepts, generic strategies, alternative directions and alternative methods. Indeed, I would like to support these concepts by referring my work to the automobile sector (as a continuing line provided with the Morgan´s example in class). I am going to use the example of General Motors and Ford, they are well known and also provide us a long struggling and interesting history. The first part of my assignment gives a theoretical view of different concepts (using several examples) that are used in my assignment and, of course, in the real management world. Afterwards, I am going to explain different aspects of the US automobile industry. Finally, I would like to give some advises to each company. Theoretical assumptions. Once I have explained the structure of my assignment, I would like to emphasise the fact that the Strategic Choice is the core of strategy management in a company, because is concerned with decisions about its future and the way that it is going to respond to the pressures and influences from its rivals. Each company has to know how to develop its own strategy; therefore, it has to answer the following questions: • What basis? • Which direction? • How? As an exhibit that we can see in the Johnson and Scholes book, we can explain Development Strategies as: Bases of choice − Corporate purpose and aspirations − SBU generic competitive strategies − The role of the corporate parent Alternative directions − Protect and build − Market penetration − Product development − Market development − Diversification: related or unrelated Alternative methods − Internal development − Acquisition − Joint development / alliances…

    • 2095 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    In this assignment, the company taken into study is REVA Electric Car Company which is established in India. The company would be analyzed on its competitiveness by doing an industry analysis based on Porter 's Five Forces; a situation analysis is done using SWOT and is followed up with McKinsey Business System to analyze the value chain in REVA. Based on this…

    • 4469 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    Porter, M. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), pp.78-93.…

    • 6236 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Porter's Five Forces

    • 894 Words
    • 4 Pages

    In talking strategy for any company, Porter’s Five Forces Model is likely to come up. It has served as a strategic planning guideline for years. If a company is just starting out, they would have to analyze the model and apply it to themselves from every aspect. If a company is well established, the model can serve as points that need to constantly be revisited. In going global, the tool becomes invaluable. It still only serves as a guideline, but it delivers significant points that have to be examined in a different culture of diverse laws and governmental controls. The following paragraphs will describe Porter’s Five Forces Model, describe how it can assist in going global, and examine possible limitations to the model.…

    • 894 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Ford Motor Company was faced with several tough choices in order to save the company. They needed to find a way to not just make the company profitable but save the company from going out of business. Not only did Ford need to improve its car line, but they also needed improve the company and the way the conducted business. The car building industry is a true form of an open system. While they design and develop the cars they get the parts or raw materials to build the cars from outside suppliers. Along with that they get financial puts as well, like in the case of Ford which secured large loans. These loans were put to good use to get the company positioned to make changes. The problems that Ford faced were in the subsystems and to some degree in the product outputs. The company had been spread thin over several different name plates as Ford had acquired other car companies. In doing this Ford was not able to concentrate on its own car brand. Quality of the cars declined, the design of the cars began to suffer and the overall performance deteriorated. The company began to lose it fit with the environment and Ford needed to find ways to correct that in order to remain in business. Many of the changes that Ford made were in the subsystems of the company and how they conducted business. First off the CEO of the company stepped down and they hired a new CEO. One of the ideas that he brought with him was the One Ford plan. It was a way to get everyone in the company on the same page. Basically it was a mission statement or vision statement that gave the employees at Ford an idea of where the company was going. Ford also began to lose many of the other car manufactures that is carried which in turn allowed the company to focus on its core brands. This gave Ford the opportunity to look at its Internal Subsystem Effectiveness and begin to find ways to improve its efficiency within the company turning input into outputs. Ford not only began to increase…

    • 655 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Bayerische Motoren Werke AG (BMW) is a German manufacturer of passenger cars, motorcycles and engines, as well as a provider of financial services. The company was founded in 1916 under the name of Bayerische Flugzeugwerke AG (BFW) with the purpose of manufacturing airplanes, but later changed its business focus towards car production. BMW’s stock is listed on the Frankfurt Stock Exchange and has been included in the German blue chip stock market index DAX since its first composition in 1988. Today, BMW counts 96,230 employees worldwide. While its revenues amounted to EUR 50.68 billion in 2009, its net income reached EUR 210 million. Appendices 1 and 2 provide further details about the company’s financial situation. BMW is one of the ten biggest car manufacturers on global scale. Its brands BMW, Mini and Rolls Royce are found among the strongest premium brands in the automotive industry. Car models range from small-sized cars up to high-end luxurious limousines. In 2009, BMW sold more than one million passenger cars worldwide. In total, 16 manufacturing plants have been established in Germany, Austria, United Kingdom, South Africa, USA and China. These are rounded up by assembling plants in Russia, Egypt, India, Thailand and Indonesia. Only 47% of automobile sales can be attributed to Europe, USA and Japan, demonstrating BMW’s worldwide strong presence.…

    • 4994 Words
    • 16 Pages
    Powerful Essays