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GM has lowered forecasted earnings from its December plan to around 11.5 million U.S. sales annually, "But even those lower sales numbers look optimistic in a year when most analysts predict the U.S. market will struggle to top 10 million units," (Lassa 2009:1). There still are large risks that the company will not meet even minimum projections and fall under. Also risky from outsider's perspectives, is CEO Henderson's move to not alter GM's product planning group, "Yet it has routinely missed major product trends and rarely sets them," (Welch 2009:2). This has serious potential consequences if GM can't get more life into its product planning.
Summary Scorecard
Perspective
Desirability of Alternatives
Financial
Great reduction of production costs with downsizing and outsourcing.
Customer
Gives the customer new models which are more economically feasible as well as lighter material -- meaning more gas efficient as well.
Internal Business Process
Cut production costs means lower unit costs, ensuring a more profitable forecasted revenue stream. Henderson is going to definitely have...
Yet, this ensures the company to last longer and not completely go under, thus keeping jobs for some employees.
References
Lassa, Todd. (2009). GM's survival strategy: divisions, nameplates to disappear, but is it enough? Motor Trend. Retrieved August 11, 2009 at http://www.motortrend.com/features/auto_news/2009/112_0903_gm_survival_strategy/index.html
Leech, Eric. (2009). GM's new strategy: "made in China." Business and Politics. TreeHuger.com. Retrieved August 11, 2009 at http://www.treehugger.com/files/2009/05/gms-new-strategy-made-in-china.php.
Welch, David. (2009). Henderson's strategy to fix GM: with the Obama Administration pressuring for quick results, the CEO's first job is to remake a bureaucracy notoriously resistant to change. Business Week. Retrieved August 11, 2009 at http://www.businessweek.com/magazine/content/09_26/b4137002878880.htm.
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