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General Motors
BUS 599 Mod # 3 TD
Nadler-Tushman Congruence Model: General Motors
Environmental factors
When General Motors began experiencing financial problems, it was dealing with a number of external circumstances beyond its immediate control. The economy had lapsed into a recession and available credit for consumers was particularly tight. Given that most consumers buy cars on credit, the already-weakened American automotive companies were dealt nearly fatal blows. However, GM was also helped in its recovery by a number of external factors, such as the increased demand for SUVs in China, a type of vehicle which General Motors has traditionally excelled in building. General Motors has established a strong presence in China, stronger than most of its major competitors. "GM's global sales figure for 2010 was a dramatic 12% increase from 2009, a year in which it closed factories and was forced to take aid from the U.S. government to survive" and its sales in China were up "29% as an expanding middle class gained wealth, making it the world's largest car market" (Krisher & Kageyama 2011).
Resources
GM's scope and breadth as a company gives it many internal resources other firms might lack. It has devoted considerable resources to the creation...
It has also closed underperforming plants and discontinued brands which sell poorly or have overlap with its existing products. During the government restructuring, "GM proposed a painful downsizing that would eliminate 21,000 workers, 2,600 dealers, $44 billion in debt and four brands" (Puzzanghera & Bensinger 2009). As painful as this was, GM emerged from this imposed change better able to meet the current challenges of the global marketplace.
Organizational history
One of the most famous cliches in American business is that 'as GM goes, so goes the nation.' Although this is not necessarily defensible today, the government bailout of GM was undertaken in part likely because of the great symbolic status of the company as well as the feared economic impact of it being allowed to fail. However, even the federal government subjected GM to a great deal of scrutiny in its assessment of its corporate culture when it was contemplating 'bailing out' the firm. Rather than attempting to create new forms of fuel-efficient cars like Toyota, for many years GM resisted more stringent government regulations on the environment. An excessively insular corporate culture characterized by a chiasmic divide between unionized workers and managers gave GM a tone-deaf ear to what was…
References
Chao, Larry. (2009). How 'culture' crippled General Motors. The Nation. Retrieved at:
http://www.nationmultimedia.com/2009/02/02/business/business_30094757.php
GM stock good for drive to $25 with room to improve in India. (2012). Forbes. Retrieved:
http://www.forbes.com/sites/greatspeculations/2012/09/11/gm-stock-good-for-drive-to-25-with-room-to-improve-in-india/
http://www.insideline.com/features/chinese-lessons-what-gm-has-learned-in-china.html
The Huffington Post. Retrieved at: http://www.huffingtonpost.com/2011/01/24/gm-sales-china_n_812934.html
http://articles.latimes.com/2009/apr/28/business/fi-gm28
General Motors Company, commonly called as GM is one of the largest automobile manufacturers in the world. It is an American multinational corporation headquartered in Detroit, Michigan. It has business operations in more than 157 countries around the Globe. It was founded in 1908 as General Motors Corporation; and renamed as General Motors in 2009. The top brands of the company include Chevrolet, Isuzu, GMC, Jie Fang, Cadillac, Vauxhall, Baojun,
The company's $291 billion in debt has recently been downgraded to below investment grade and it has about $16.5 billion of debt coming due this year (Snide). GM and General Motors Acceptance Corp (GMAC)., the carmaker's finance unit, each have about $23 billion of cash available. In addition, the company had about $50 billion in unused credit facilities at the end of last year. The company must carefully watch
The second decision was implemented and the same treatment would be applied to both Opel and Vauxhall. The first alternative would not have been extremely viable for the simple reason that both German and British manufacturers are subjected to the same environmental features and this means that there is no logic reason as to why they should be treated separately; they both fall under regulations of the European Community,
" Conclusion Overall GM is currently confronting some of the most difficult obstacles that it has ever had to overcome. Government intervention is no guarantee that the company will be able to overcome these obstacles. Billions of dollars have been given to the company in an effort to save it from further demise. However, capital alone will not save the company, there must be a strategic effort of the management to properly
The crisis affects all aspects of life, but among the most prominent victims of the difficulties was the automobile industry. Once the largest employer of the country, the automobile makers are now closing their plants and sending the workers into unemployment. The aim of this paper was to look at General Motors' microenvironment in light of the crisis and establish if the media coverage of the crisis within the
Although some external players, such as potential new executives, may prefer this plan, there is little evidence that the major stakeholders have interest in major culture change. The third alternative is to place emphasis on operational issues first and foremost. Under terms of its new deal with the UAW, GM will be closing plants and shedding workers, and it is trying to sell off some of its underperforming units (Hummer,