This website uses cookies to ensure you have the best experience. Learn more

General Motors Essay

497 words - 2 pages

This case analysis focuses on the organizational changes GM implemented in the North American market since the announcement of their bankruptcy in 2009.
As you may know, General Motors Corporation is a United States based automobile manufacturer and has dominated the American Automobile industry for the past 77 years as measured by global industry sales. As of today, GM operates in approximately 120 countries, providing remarkable innovations, and they employs around 234,000 people on a worldwide basis (G.M., 2013). GM manufactures cars and trucks through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall, Hummer, Wuling Pontiac, and SAAB (G.M, 2013). Thus, GM has served for decades as an automaker role model to many other ...view middle of the document...

In addition, GM discontinued several brands such as Hummer, and now focuses on the four core brands which include Chevrolet, GMC, Buick, and Cadillac (G.M, 2013). Furthermore, competition is emerging persistently year after year. For this reason, GM really needs to restructure its strategy in order to survive in this slow economy and competitive industry.

One the main internal issue for GM’s bankruptcy crisis is highly due to the imposing high wage costs on employers. According to an article by People's Daily, “Poor management resulted with higher and higher labor costs in the auto plants that spawned the beginning of the end of the American car” (Xinhua, 2009). Thus, GM’s poor management technique was mainly one of the reasons that they had persistent high labor cost that lead to their critical shortage of cash flow. For instance, the total of cash compensation and benefits provided to GM labor hourly wage was approximately $73.25 per hour in 2006 (Xinhua, 2009). In contrast, Toyota’s total labor hourly wage was only $48 dollars per hour. Moreover, health care takes the largest portion of labor cost. GM needs $1,625 dollars on healthcare for workers to make a vehicle while Toyota only pays $215 for their workers (Xinhua, 2009). Furthermore, GM by far utilizes much more cost for workers when compared to their toughest competitor, Toyota.
Thus, GM’s huge wage cost had not only eroded their earnings, but also made their vehicles less competitive to other automobile manufacturers. As of 2012, GM’s hourly wage has dropped to a respectable $56 per hour. However, GM still has the highest labor costs in the automobile industry (Carty, 2009). GM should improve their cost cutting plans to increase sales and profits.

Other assignments on General Motors

Case 34 Essay

335 words - 2 pages General Motors Case Study Case 34 General Motors What are key forces in the general and industry environments that affect the U.S. auto industry, and General Motors? General Motors (GM) has suffered different threats and difficulties that have put in risk the continuity of its production. Before the year 2000, GM has been going through different production, financial, and development problems. Wagoner has tried in different

Pereopoana Essay

5753 words - 24 pages company is worth more than $25 billion (Groom, 2014) – roughly half that of General Motors (GM) and has one of the highest growth rate in U.S. This success of the company is contributed to Elon Musk, the CEO and Product Architect of Tesla (Tesla, 2014), who has a very strong vision of company’s future. 3.0 PESTEL Analysis The PESTEL framework evaluates the external environment variables to identify general opportunities and risks of particular

Leg 500 Bate And Switch

1320 words - 6 pages permitted to allow an employee to purchase an advertised item during non-business hours, especially when there were limited quantities made available to the general public. If an advertiser does not state that there are limited quantities available, they must have a reasonable amount of quantities in stock and available for sale. Since Rally Motors did include in their advertisement, albeit in very small type, “Just one at this price, number

Tesla

2017 words - 9 pages % --.--% 10.95% 27.87% 52.62% 54.08% 39.43% 10.18% --.--% --.--% 2.94% 41.14% 32.98% 93.25% 28 049 217 254 108 979 92 001 72 897 60 424 55 591 54 515 44 674 43 453 42 126 38 691 29 125 25 921 23 396 23 282 20 910 19 307 18 517 16 853 16 641 Worst Growth (Revenue) : General Motors Company Worst Profitability : General Motors Company Worst Situation Fi. : Nissan Motor Co Ltd Worst EPS revision 4m. : General Motors Company Worst Valuation : Maruti

Annual Report

482 words - 2 pages Management 303 SWOT Analysis of General Motors Company Section I – Organizational History General Motors has been in business for over a century and has seen many changes and experienced much upheaval in that time. It was founded in 1908 and celebrated 100 years of business in 2008. They employ over 200,000 people and conduct business in over 150 countries, truly a global company. Unfortunately, in 2009 GM was forced to declare

Lewin

300 words - 2 pages TABLE OF CONTENTS I.INTRODUCTION a) Organisational Change –an overview b) Kurt Lewin and his theories of change c) General Motors International 2. APPRAISAL OF KURT LEWIN’S 3- STEP MODEL (Manufacturing change at General Motors as a case study) 3. CRITIQUES OF THE MODEL 4. CONCLUSION INTRODUCTION In a dynamic world of increasing technology, competition, power relations and managerial opportunism, investment in Research

Week 2

1016 words - 5 pages HRM-587: Managing Organization Change Project Proposal Overview of Organizations Shataun Hailey September 14, 2015 In late 2008, Chrysler and General Motors announced to the world they were in danger of folding. At the time, our president, George W. Bush, agreed to a temporary bailout, but handed the auto companies' long-term future over to his successor, President-Elect Barack Obama. President Obama then lead a comprehensive bailout

Gm Ignition Switch Scandal

1074 words - 5 pages GM Ignition Switch Scandal General Motors recalled about 800,000 cars due to faulty ignition switches on February 6, 2014. The problem with the faulty part was that it could shut off the engine while driving, thus preventing the airbags from deploying and inflating. General Motors to recall more of its small cars, which resulted in almost 30 million cars worldwide recalled and them having to compensate for 124 deaths. The faulty part had been

Gm Case Study

691 words - 3 pages Question 1: What was General Motors’ strategy, and why did General Motors acquire EDS in 1984? General Motors (GM) is a multinational, publically traded corporation that specializes in automotive production, distribution, sales and maintenance. The technological boom experienced within the manufacturing industry in the later part of the 20th century created an opportunity to implement various Information Technology Systems and services to

Toyota

499 words - 2 pages with selecting from among competing brands. The bargaining power of the suppliers is considered to be low because they mostly rely on the automakers to stay in business. However, why did Toyota offer to bail out General Motors when they were in trouble? When General Motors filed for bankruptcy, Toyota Motor Company offered to assist with the financial resources required to keep GM in business because they knew that if GM went under, their

Human Resources

295 words - 2 pages Date: April 07,2015 To: General Motors Leadership From: Subject: Ways to avoid discrimination We are pleased to announce that GM has established a new program to promote woman and minorities in management positions. This is an equal opportunity work place and everyone with the right training and experience should have an opportunity to grow in this company. Today GM join as a company to go beyond legal standards for equal

Similar Documents

General Motors Essay

9412 words - 38 pages FIM ASSIGNMENT General Motors Prepared by: CharuSingla, CFM Roll #07 AnkitSrivastava, IM Roll #05 Aniket Singh, CFM Roll #04 RakeshJha, CFM Roll #14 Vishal Suri, CFM Roll #22 AbhishekGoel, CFM Roll #02 General Motors 2013 Acknowledgment The project would not have been possible without the kind support and help of many individuals. We would like to extend my sincere thanks to all of them. We are highly indebted to Mr. D.C.Singhal for

Shanghai General Motors Essay

823 words - 4 pages Shanghai General Motors The Asian market has been an attractive one for global corporations for many years and of late China has been the region’s crowned jewel of multi-national companies looking to drive revenue and earnings. Therefore, it is no surprise that General Motors saw significant importance in the Chinese market in the 1990s and as such made a concerted effort to penetrate the local automobile industry. But there are several

Dethroning Of General Motors Essay

2596 words - 11 pages Dethroning of General Motors Abstract General Motors, GM was unseated from being the world’s top auto manufacture to Toyota. There were many factors involved which resulted in GM losing its position. This paper will explore several of the factors such as union relationships that resulted in payroll differentials between GM and foreign transplants, legacy costs, and the job banks program. Secondly, poor strategic management decisions

Unionized Organization Essay

499 words - 2 pages General Motors as a Unionized Organization This week paper is going to outline several things about General Motors (GM) as one of unionized companies in the United States (US) and United Auto Workers (UAW) as the labor union that represents workers for GM Corporation. This paper will also discuss the effects of the union on the GM Motors such as organization’s benefit by joining a union, the unionization process, the process of Union bargain