Gm Case Study

Globales Management und Strategie

Lva.-Nr. 247.304 Mag.a Alma Šehić

Case Study

Camilo Fernandez ......................... 0856569 .........................................SKZ: 180

INTRODUCTION

In the past years General Motors (GM) have been facing and struggling with some difficulties concerning its corporate strategy, and decisions made by its leading executives, although this company has the tools and means to be in a very different position than the one the company is today. Over the years GM have accumulated several kinds of obligations with its employees and other kind of obligations due to the strategic focus this company has had, and now these obligations are becoming an inconvenience for the correct functioning of the company, its profitability, the company competitive level and its position in the market of its industry. In this case study I will analyze and discuss what went wrong and what could be the possible solutions and decisions GM has to make in order to recover the position it has and to create a possible guideline that this particular company should follow in order to survive its competitors and today´s market environment.

GM BACKROUND

The founding of General Motors on September 16, 1908, drew little Attention, because car companies were opening in large numbers due to the resent technologies that were present at that time. There was no guarantee of a place in the market or assurance of any profit. Of the nearly 1,000 companies that tried to build and sell motor vehicles prior to 1927, less than 200 continued in business long enough to even offer a commercially suitable vehicle. Most of the companies that comprised the General Motors Company were weak, and their operations were uncoordinated. Many were in debt. It was not until the 1920s, when a new concept of management was forged and a new concept of product emerged, that GM really began to prosper. General Motors sales for its first full fiscal year ending September 31,

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