Alfred P. Sloan - a Leadership Analysis

SPRING 2016

ORGANIZATIONAL BEHAVIOR

INDIVIDUAL ASSIGNMENT – 21/04/2016

TEACHER: PEDRO NEVES | TA: SANDRA COSTA

ALFRED P. SLOAN AND GENERAL MOTORS’ SUCCESS

A LEADERSHIP ANALYSIS

MARIA JOÃO MARTINS MOREIRA

NUMBER: 12639

TAL 43

LEADERSHIP ANALYSIS

OB SPRING 2016 – INDIVIDUAL ASSIGNMENT

INTRODUCTION

In this assignment I am going to talk about Alfred P. Sloan, long-time president and chairman of General Motors

(GM). He can be seen as a symbol of leadership during his time, not only because of his innovative marketing system, but

also because of his contribution to the concept of corporate management. Sloan became the undisputed leader of the

industry, displacing Henry Ford and, thanks to him; GM was the only American car company to be profitable in the great

depression. The objective here is to understand how Sloan’s leadership style led him to obtain such positive results.

ALFRED P. SLOAN: WHO IS HE?

Sloan was born in 1875 in the USA and he studied electrical engineering, completing his graduation in 1892.

During 1916 and 1918, GM acquired the two companies in which he was a principal, which led to his appointment as VicePresident and then President (1923). In 1937 he became Chairman of the Board, remaining as Chairman until 1956.

GENERAL MOTORS: THE CHALLENGE FOR SLOAN

GM was formed in 1908 by William C. Durant, being the first successful merger in the industry. Durant’s idea was

to buy small auto companies in order to compete with Ford, through the consolidation of facilities, achieving this way a

greater output. But his failure to integrate rationally the properties and to develop corporate capabilities, together with the

economic conditions felt at that time, brought GM into financial difficulties. When Sloan was made VP of GM, the

company was holding higher inventory and uncontrollable amount of debt and with Ford enjoying a market share nearly

five times that of GM.

In order to surpass this, in 1919 Sloan wrote a plan...