...How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today Brittany M. Mendez North Greenville University Abstract This paper discusses the rise and fall of General Motors during the 21st century and documents many different managerial decisions that led to where the company is today. It also analyzes the enterprise risk management plan that General Motors was famous for. They were known for being a company that successfully implemented an ERM that was linked to its success after many failures. I will examine how an ERM was the framework to coming up with a plan of action to identify and mitigate risks, but ultimately it was up to supervisors to make the managerial decisions that now General Motors must face the consequences for. Keywords: General Motors, Enterprise Risk Management How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today General Motors was once regarded as one of the best managed and most successful firms in the world, but between 1980 and 2009 its share of the U.S. market fell from 62.6% to 19.8%, and in 2009 the firm went bankrupt (Helper & Henderson, 2014). In this paper I will examine the decisions that General Motors made in regards to their Enterprise Risk Management Plan and how management decisions determined the fate of where General Motors is today. We all know General Motors has...
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...| | | Chrysler and General Motors | | Chrysler and GM Chrysler is a car manufacture created by Walter Chrysler during June 6, 1925 when the Maxwell Motor Company was re-organized into the Chrysler Corporation. It happened because in the early 1920s the Maxwell Chalmers Company were having troubled with their operation which made the company to end in 1923 and one year later Chrysler had launched the eponymous automobile which was referred as the 70’s. This vehicle was a 6-cylinder, designed to provide customers with an advanced, which was also a well-engineered vehicle, at a more affordable price than they thought. In the summer of 2009 Chrysler has filled for bankruptcies. In 2011 Chrysler has a 10.5% in the market. It is in the fourth position while GM is first, Ford is Second, and Toyota is third. This company is doing badly because their new products are not to the customer satisfaction. (Chrysler) GM is another car manufacturer which was located at Flint, Michigan. It was created on September 16, 1908 by William C. Durant and the GM's co-founder Charles Stewart Mott but it was originally owned by Buick as a holding company. During 1909, Durant had brought Cadillac, Elmore, Oakland and several others vehicles cooperation. In 1910 Durant had lost control of his company GM to a banker trust because of all the large debt he had due to the collapse of the new vehicles sales. GM in 2009 had filled for Bankruptcies but since their stock has increased and...
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...affair for cars to develop across the nation, and ownership became woven into the fabric of the “American Dream”. The invention of the assembly line in the 1910s made automobiles relatively inexpensive, and by 1929 it is estimated that American car companies were producing 5.3 million cars per year (Miller-Wilson, n.d.). The automotive industry surely had its share of ups and downs during the 1900’s, with two World Wars, the Great Depression, an oil crisis in the 1970’s, amongst many other challenges. Despite such trying events, it wasn’t until late in the twentieth century that signs of trouble began to show within the “Big Three” United States based automakers: General Motors, Chrysler, and Ford Motors. Soon after the turn of the 21st century, it became apparent that two of the automakers, General Motors and Chrysler, were in extreme economic peril. Despite...
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...survived bankruptcy? Corporate Financial Management Bus 607 By Marie Dawes Which Companies Have Survived Bankruptcy? According to Gerald S., bankruptcy is a generalized term for a Federal Court procedure that helps consumers and businesses get rid of their debts and repay their creditors (2014). If anyone can prove that they are entitled to it, the bankruptcy court will protect them during the bankruptcy proceeding. In general, bankruptcies can be categorized into two types: liquidation and reorganization. The U.S. Court of Bankruptcy (2015), states that among the popular proceedings are chapters 7, 11, 12, and 13, which individuals and businesses use to file. Chapter 7 bankruptcies normally fall into the liquidation category. This means that an individual’s own property can be taken away and sold in the process of liquidation in order to pay back the debts. Conversely, chapter 13 bankruptcies fall under the reorganization category, meaning that the individuals will probably be able to keep their property, but they must submit and stick to a plan that will allow the person to repay some or all of their debts within 3 to 5 years. A case filed under chapter 11 of the United States bankruptcy code is frequently referred to as a reorganization bankruptcy. Its bankruptcy proceedings are usually employed by struggling businesses as a way to get their affairs in order and pay off their debts. In addition, some individuals also file for chapter 11 bankruptcy when they...
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...Strategic Report for Ford Motor Company Rhett Dornbach-Bender Bill Slade Joe Thorpe April 20, 2009 Ford Motor Company (NYSE: F) Table of Contents Executive Summary .......................................................................................................................... 3 Company Overview........................................................................................................................... 4 History ............................................................................................................................................... 4 Business Model and Market Overview......................................................................................... 5 Competitive Analysis ........................................................................................................................ 7 Internal Rivalry................................................................................................................................. 7 Supplier Power ................................................................................................................................. 9 Buyer Power ..................................................................................................................................... 9 Entry and Exit................................................................................................................................ 10 Substitutes ....................................
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...BAILING OUT A GENERAL [pic] The General Motors bailout was the most important bailout of the free ride that the government issued during these times of economic recession and turmoil. Allowing GM to fail was simply not an option. The reasoning is simple. GM has ties to corporation and employers that are far reaching. The sheer number of Americans that would lose their jobs in the event that GM closed its doors is staggering. One area that is not often thought of by the public is that of parts manufacturers. Companies like Delphi rely on contracts by the automotive industry. It is their bread and butter. They filed for bankruptcy and are receiving their own bailout to the tune of 6.2 billion dollars from The Pension Benefit Guaranty Corp. who took on the pension liabilities from the company. (The bankruptcy Case Number is 05-44481 (RDD) with the Jointly Administered United States Bankruptcy Court, Southern District of New York.) The impact is has also affected several other automotive parts suppliers have recently filed for bankruptcy-court protection Lear Corp., a major auto-seat maker, and American Axle and Manufactruing Holdings Inc. Other companies that rely on General Motors so heavily that a few weeks of no business would force them into bankruptcy. Aside from manufacturers, automotive dealers are tied directly to GM. Many have already been forced to close their doors as they have been handed “pink slips” by the car maker. More than one thousand of these...
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...University | General Motors Report | Joel Adu | | P11260353 | Word Count: 4303 | [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] | Contents Executive Summary – Page 3 Introduction – Page 4 – 5 Critical Literature Review – Page 6 – 7 Methodology – Page 8 – 9 Data Analysis – Page 10 – 11 Conclusion – Page 11 Bibliography – Page 12 Appendices – Page 13 - 13 Executive Summary The aim of this report is to discover whether General Motors have improved since their bankruptcy in June 2009 and how? With the aid of primary research appearing in the form of questionnaires and secondary research deriving from articles and other various published documents which discuss the topic of General Motors and their bankruptcy. The result of the research finds us with the findings that General Motors have not only upheld their infamous reputation which they once possessed but they also have increased it by recording their highest profits in their history three years after filing for bankruptcy. Overall this led to the conclusion that it was the transformation of management which assisted General Motors on their route back to the glory days of the company – ‘As late as the 1990s, it was the leading company in the US light vehicle market’ (Maction, 2013) Introduction General Motors, commonly...
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...Course Project Proposal The ideal of this project proposal is to compare and contrast General Motors and Ford which have undergone fairly substantial change in the recent past; and how they handled the pressure of change. Lapratt04@yahoo.com HRM-587-12043 Managing Organizational Change Professor Joseph Phillips Due September 7, 2014 Abstract Ford and GM experienced serious issues during the pre and post TARP causing them to restructure and change how they do business. Each of them reacted to these pressure differently. Ford Motor Company as one of the greatest automobile manufacturers of all time started under the leadership of Henry Ford in Detroit, Michigan. His first production was in 1903, the Model A, with an under the floor engine selling for $850. In the first season it sold 1,708 cars (HISTORY of Ford Motor Company, 2014). Whereas General Motors was founded in 1902 by William Durant, who saw that the automobile would one day replace the horse-drawn carriage. The company did not really catch on until 1908, and at first, it was just a Buick holding company. At the end of 1908, however, GM had acquired Oldsmobile, and in 1909, they bought Cadillac, Elmore, and Oakland. The early 1900s were a difficult time for auto manufacturers; the market crash of 1907 adversely affected a lot of small companies, which relied on the banks for credit. Durant saw the economic downturn as an opportunity; he bought smaller car makers, as well as companies that built auto accessories...
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...General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world's largest and fastest-growing automotive markets. General Motors, the world's largest auto manufacturer, makes cars and trucks, with brands such as Buick, Cadillac, Chevrolet, and GMC. GM also builds cars through its GM Daewoo, Opel, Vauxhall, and Holden units. Financing and insurance activities are conducted by Ally Financial (formerly known as GMAC), of which GM owns about a 10% stake. Throughout its financial woes, GM has received billions of dollars in loans from the Canadian and US governments, negotiated concessions with labor unions, and jettisoned brands. The auto giant went through a six-week bankruptcy protection in 2009; it issued an initial public offering and returned to the stock market in 2010. General Motors was founded on September 16, 1908, in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant. At the turn of the 20th century there were fewer than 8,000 automobiles in America and Durant had become a leading manufacturer of horse-drawn vehicles in Flint, MI, before making his foray into the automotive industry. GM's co-founder was Charles Stewart Mott, whose carriage company was merged into Buick prior to GM's creation. Over the years Mott became the largest single stockholder in GM and spent his life with his Mott Foundation which has benefited the city of Flint, his adopted home...
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...boom and bust all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. | Recently in the news there has been an alarming fact about General Motors automobile products that have caused a loss of property and more importantly loss of lives, while most admit a simple design flaw could’ve been repaired with a $0.57 switch (foxnews.com, 2014, 1 Apr). This paper will touch on the history of GM dating back to 1899 with a history of a boom and bust cycle all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. The History of General Motors Corporation, the one-time “largest automaker in the world” had its start in 1899. At that time over one thousand companies attempted to improve the “horse drawn carriage” to that of an automobile and failed. William Crapo Durant was in the horse carriage business in Flint Michigan since 1886, selling over 75,000 in 1895. In 1904 Durant bought into the Buick Motor company where many other auto makers had operations in Flint, MI; Chrysler, Buick, Nash to name a few. The economic downturn of 1907 bankrupted many of the smaller auto manufacturers and to protect the company, Durant sought out Henry Ford and Ransom Olds to discuss a possible merger. Both declined due to Durant’s lack of capital (Durant, 2004, p 71-73). Durant, instead of a merger, bought several smaller companies and founded General Motors on 16 September, 1908. By 1910 the company owned 20% of the American...
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...General Motor bankruptcy Introduction General Motors Company, one of the world’s largest automakers, estimated in 1908. With its global headquarters in Detroit, Michigan, USA.GM employs 209,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. (Elizabeth, GM, 2009). GM was the largest automaker for 77 consecutive years from 1931 through 2007. It is longer than any other company in the world. In 2008, it was surpassed by Toyota (Elizabeth, GM, 2009). 2009 was a very important year in the 103 years history of GM. General Motors filed for Chapter 11 bankruptcy protection on June 8, 2009, after racking up losses of $81bn (£50bn) over four years, as part of the Obama administration’s plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government. GM sold its good assets to a new, government-owned company. Federal government took a 60 percent ownership stake in the new GM. The Canadian government took 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. (Isidore, 2009) There is a serious of issues existing such as demand shift and uncertain energy policy, high financial burden incurs from legacy cost,...
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...General Motors and the Auto Industry: A Strategic Analysis Drexel University Management 450 5/21/2009 Helena Boe, Diane Ketler, Nicole O’Keefe, Andrew Rubenstein, James Siverio Table of Contents Executive Summary 3 A Snapshot of General Motors Today 4 The Strategic Issue Facing GM: Avoiding Bankruptcy 5 The Economy Today 6 History of the recession 6 Economic Climate 7 Stimulus Package 7 Gross Domestic product 8 Inflation Rate 8 Unemployment Rate 8 The Auto Industry Today 9 GM’s Strategy 11 Threats Affecting GM 12 Threat of Rivalry 12 Threat of suppliers 14 Economic Threats 16 Threat of Substitutes 17 Threat of Buyers 18 Threat of Entry 20 Weakness of Internal Cost Structures 21 Government Intervention and the Restructuring of GM 22 GM’s Outlook/Recommendations 23 Works Cited 25 Executive Summary General Motors (GM) is one of the big three auto makers of the world (GM, Ford, and Chrysler) and has historically been the largest and most successful. They have built some of the most famous and classic vehicles on the road which have portrayed messages of both modesty and display of class for a market of consumers who range from working class to music superstar; as Alfred P. Sloan, CEO of the 1920s put it, GM makes “a car for every purse and purpose.” In recent years however, GM has taken an unexpected turn for the worse due to the changing economic climate that is affecting the world. Many economists argue that the US has been pushed into a...
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...GENERAL MOTORS COMPANY (GM) History of the Company In 1900 New York held an Auto Show where there was a surprise turnout and it showed just how much interest the United States citizens had with automobiles. This enticed many different companies into entering the automobile history to try and meet the growing demand. On September 16, 1908, William “Billy” Durant founded General Motors Company (GM) who at one time was a leading manufacturer of horse-drawn vehicles in Flint, Michigan. Initially, GM consisted of only the Buick Motor Company but took only a number of years to acquire more than twenty different companies. Some of these companies include Oldsmobile, Cadillac, and Pontiac. Opel, a brand that was recognized worldwide, became General Motor’s first international acquisition (http://www.gm.com). The major recession that came about in 2008 dried up private sources of capital and had the United Sates Treasury give GM a bridge loan to aide in the restructuring of its operations. Furthermore, it is evident that sales of motor vehicles have increased since the rescue of the auto industry each year since 2009 (http://www.treasury.gov/resource-center/). The economy is finally recovering and we will soon see if GM is in a place to again thrive. In the 80’s and 90’s GM encountered its largest single production expansion outside of North America in Spain. Furthermore, since GM had joint ventures in both China and India, they were able to provide a variety of automobiles...
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... | | | | | | | |Submitted to | |Prof. A Srinivasa Rao | | | Contents INTRODUCTION 2 DOWNSIZING 3 RESTRUCTURING 4 PRIMARY ISSUES 5 How to Downsize Effectively 5 COMPANY BACKGROUND 8 PRIMARY ISSUES - II 9 GENERAL MOTORS: RESTRUCTURING 10 RECOMMENDATIONS 14 CONCLUSION 15 REFERENCES 16 INTRODUCTION Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate mergers, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of...
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...|Organizational Re-Structure of General Motors | |Behavior in Organizations | Outline I. Introduction II. Definition a. Downsizing b. Restructuring III. Primary Issues (Part One) a. How to Downsize Effectively IV. Company Background V. Primary Issues (Part Two) a. General Motors: Restructuring VI. Conclusion VII. References Introduction Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate merger, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure that led to the downsizing of the company, General Motors. In the midst of economic...
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