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In 2005, General Motors (GM) – the world's largest automotive manufacturer is now stepping to the point, where strategic thinking, planning and breakthrough are necessary. Three consecutive years of global market share declines, high pressure from world-class competitors, health care and retirement burdens, and rapid changes in consumer profile are the reason of that. How GM should minimize such threats and in the same time capture potential opportunities with its strengths is very interesting issue in term of strategic management and policy. This presentation was composed to fulfill the requirement of my masters degree subject. The analysis and solution in this presentation were originated from a business case blended with my knowledge, research and idea. Even though, they may not 100% correct, or not reflect the current situation and solutions of GM, I still hope that this presentation would help those who is interested the situations occurred in 2005
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General Motors
1.
2.
3.
Personal consumption declined
from 4.5 to 2.9%
4.
Productivity decreased in
manufacturing level
5.
Automotive sector has
no space for new entrants
6.
Small demand base
and wide choice
7.
High Fixed cost
and constant R&D
8.
Bargaining Power Of
Suppliers
9.
Automakers design and
assemble, suppliers have little responsibility
10.
Trust has been
scarred by Ford-Firestone problem.
11.
Essentially little power
is given to suppliers
12.
Japanese emphasize trust
in suppliers allowing for collaborative design efforts
13.
14.
Over capacity -
wider choice – zero switching cost
15.
More discerning customers
16.
Dealer Freedom
17.
Better-quality products
18.
19.
They must be
held accountable for both successes and failures
20.
Bureaucratic structure must
change to help decision making process (decentralize decision making process)
21.
Incentivize and
challenge management
22.
Change board to
people who had turned around failing companies
23.
Tech Improvement
24.
No longer can
GM survive being a tech dinosaur
25.
Create a large
centralized and well funded R&D program to catch up and surpass competitors immediately to have products coming out by 1st quarter 2008
26.
Rush hybrid technology
into a vehicle by next model year
27.
Revitalize Brand Image
28.
Build back market
share to over 30% by 2010
29.
Phase out sluggish
brands by 2012.
30.
Pontiac, Oldsmobile, and
Buick .
31.
More focus on
brand specific vehicles.
32.
33.
Realignment of organizational
structure to support core products and meet costs & quality goals.
34.
Example: self
managed creative work teams to figure out how to speed-up product development & improve product development.
35.
Implement common systems
& processes where possible.
36.
Balance needs of
employees and unions with needs of the company.
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