Change in General Motors
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Change in General Motors
MGT435 - Organizational Change
Professor Benjamin Zuckerman
10/17/2011
Change In General Motors
Founded in 1902 and producing over 450 million vehicles globally, General Motors Corporation has always been a leader in the automobile industry. Since their inception, GM has enjoyed rapidly escalating sales and revenues and operates in nearly every country in the world. The recent downturn in the market has challenged their ability to capture and uphold their market share while adding to their bottom line. In times of economic crisis, corporations have no choice but to make decision that are significant and enable their corporations to carry on. GM needed to initiate change in all functions of the company, including structure, management style, branding, marketing, wages, and technology.
The automobile industry employs nearly ten percent, or one out of ten, of the nation’s labor force. GM is one of the largest purchasers of U.S. steel, iron, aluminum, copper, plastics, rubber, electronics, and computer chips. So, in essence, the survival of many other American businesses relies on the survival of GM. If GM doesn’t make some essential changes to start realizing profits, many of their suppliers will suffer the same inevitable fate. According to the Auto Interiors Conference, U.S. auto sales for all foreign and domestic manufacturers have declined by more than 30%, which is the largest decline in over 50 years. (Mayne, 2010)
One of today’s top concerns in the business/political environment is the necessity of changing our energy dependencies and become more “green.” GM needed to be more proactive and implement changes in the company that would make them more environmentally friendly. Their ideas were to offer a more streamlined brand that meets the highest fuel efficiency standards without sacrificing any of the quality. Innovation was the key to GM’s successful transition and showed that the company needed to have a vision...
MGT435 - Organizational Change
Professor Benjamin Zuckerman
10/17/2011
Change In General Motors
Founded in 1902 and producing over 450 million vehicles globally, General Motors Corporation has always been a leader in the automobile industry. Since their inception, GM has enjoyed rapidly escalating sales and revenues and operates in nearly every country in the world. The recent downturn in the market has challenged their ability to capture and uphold their market share while adding to their bottom line. In times of economic crisis, corporations have no choice but to make decision that are significant and enable their corporations to carry on. GM needed to initiate change in all functions of the company, including structure, management style, branding, marketing, wages, and technology.
The automobile industry employs nearly ten percent, or one out of ten, of the nation’s labor force. GM is one of the largest purchasers of U.S. steel, iron, aluminum, copper, plastics, rubber, electronics, and computer chips. So, in essence, the survival of many other American businesses relies on the survival of GM. If GM doesn’t make some essential changes to start realizing profits, many of their suppliers will suffer the same inevitable fate. According to the Auto Interiors Conference, U.S. auto sales for all foreign and domestic manufacturers have declined by more than 30%, which is the largest decline in over 50 years. (Mayne, 2010)
One of today’s top concerns in the business/political environment is the necessity of changing our energy dependencies and become more “green.” GM needed to be more proactive and implement changes in the company that would make them more environmentally friendly. Their ideas were to offer a more streamlined brand that meets the highest fuel efficiency standards without sacrificing any of the quality. Innovation was the key to GM’s successful transition and showed that the company needed to have a vision...