Premium Essay

Gm Case Study Analysis

In:

Submitted By SrujanaPingili
Words 1862
Pages 8
General Motors: Building a Digital Loyalty network Through Demand and Supply Chain Integration

Main Takeaways

Although GM had experienced record sales in recent years, the stock underperformed the S&P 500 index by 48 percent, which was an indication to Rick Wagoner (CEO) that something needed to be done. Although GM saw incredible cost savings and improved productivity, I feel that they have not retained any sustained competitive advantage with respect to the competition (Honda and Toyota), in fact, one might say that they have just caught up to the competition. I believe GM is on the right path since they now have the infrastructure needed to succeed in such a competitive market but have a long way to go to excel not just at operations but as a product leader.

Value Proposition
Operational Excellence (arguably still not as good as foreign competition)
Product Innovation (very limited to investments in OnStar and XM Satellite Radio)
Customer Intimacy (best of the 3, increase in loyalty and online tools show Customer Intimacy)

More in-depth Summary

American Auto industry problems • GM decides to strengthen and integrate GM’s demand and supply chain systems to build the Digital Loyalty Network (DLN). It addressed 3 components o “digital” for integrating technology o “loyalty” for a focus on customers and increasing their lifetime value to GM o “network” for coordinating and leveraging all supply and distribution chain partners to serve those customers. • Current supply chain for the US auto industry in the early 2000s was extremely complex, with a global network of suppliers, long development cycles, extensive production and assembly processes, and an expansive sales distribution network of independent dealers. Several automakers experimented with additional vehicle inventory and distribution points to

Similar Documents

Premium Essay

General Motors Like a Rock

...Papers Home Page » Business and Management Case of Gm (Non-Market Environment) In: Business and Management Case of Gm (Non-Market Environment) Question 1: Identify and explain the 4l’s based on the case. a. Issues The dispute over the safety of the PICKUP TRUCKS, vehicle safety and defective design Firstly, the root cause is that the GM company has a unreasonable design of their gas tank on the collisions GM C/K pickups, the report shows that this pickups’ gas tank was too close with the bumper, it only 25 centimeters long. This is dangerous because that will cause explosions if there is any strike. A safety design should be place the gas tank on the top of axle or add on a shield between the gas tank and bumper. Further, the report also shows that the gas tank design was used for trucks manufactured between 1979 and 1987, and the fact is GM knows about their design problem but take no measure to fix or recall their cars because that will cause more cost. At the Moseley case happens, there are at least 130 other lawsuits involving the design of the gas tank GM need to faced. So the major issue of this case in this point is that whether the gas tank design and placement were defective and because that explosion case after their pickup was struck on the side by another vehicle. And those assumptions were proved by the GM engineer who is testified that GM company hidden the knowledge of this dangerous safety defect, but GM try to block his testimony because they had known...

Words: 570 - Pages: 3

Premium Essay

Global Mining

...Introduction This paper entails the critical analysis on the Global Mining (GM) case study whereby the human resource (HR) related issues are identified through GM’s problems and a provision of 3 HR strategies targeting at 3 key HR issues. This paper also address the possible implementation challenges that GM may face so as to mitigate them. However, detailed implementation approaches of these strategies are beyond the scope of this paper. HR Strategies There are growing evidence of positive impact HR strategies have on organisational effectiveness and performance (Boselie, Dietz and Boon 2005; Combs et al. 2006; Guest et al. 2003; Huang 2000). Lee, Lee and Wu (2010) quoted Mondy et al. (2002) on the boundary of HR strategies to include five key functions: staffing, human resource development, compensation and benefits, safety and health, and employee and labour relations. Based on Lee, Lee and Wu (2010)’s own study, which extended Mondy et al. (2002)’s HR strategies to include teamwork, HR planning, performance appraisal and employment security, they concluded that HR strategies do attribute to a company’s performances. The espousals of HR strategies are critical in motivating employees’ commitment towards corporate’s strategic objectives (Buller and McEvoy 2012). GM’s HR Director, Susan Maffat, commented on unclear HR strategy offers an indication of GM’s poor or ineffective/inefficient HR strategies. The following problems currently faced by GM are the manifestation of key HR issues...

Words: 2411 - Pages: 10

Premium Essay

Industry

...Headquarters, 1400 Stephenson Highway, Troy, Michigan 48083 Mark Paich Decisio, 320 West Cheyenne Road, Colorado Springs, Colorado 80906 vince.barabba@gm.com • chet.huber@onstar.com • fred.cooke@onstar.com • nick.pudar@gm.com • jim.smith@onstar.com • m.paich@att.net We developed a multimethod modeling approach to evaluate strategic alternatives for GM’s OnStar communications system. We used dynamic modeling to address some decisions GM faced in 1997, such as the company’s choice between incremental and aggressive marketing strategies for OnStar. We used an integrated simulation model for analyzing the new telematics industry, consisting of six sectors: customer acquisition, customer choice, alliances, customer service, financial dynamics, and dealer behavior. The modeling effort had important financial, organizational, and societal results. The OnStar business now has two million subscribers, an 80 percent market share of the emerging telematics market, and has been valued at between $4 and $10 billion. The OnStar project set the stage for a broader GM initiative in service businesses that ultimately could yield billions in incremental earnings. Most important, OnStar has saved many lives that otherwise would have been lost in vehicle accidents. (Industries: communications. Transportation: automotive.) G...

Words: 6641 - Pages: 27

Premium Essay

Gmbg Case Study

...GMBG Case Study Summary/Analysis: The GMBG case study looks at the “Blue Macaw” Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to order system and has all of its suppliers housed at the GMBG plant working together to produce the vehicles. The case study highlights the history of the Brazilian automotive industry, the GMBG plant itself, the production strategy/manufacturing process as well as the distribution strategy of this revolutionary and profitable division of GM South America. I thought that this was a very interesting and informative case study. I personally love the idea that is used at the GMBG plant in Brazil. The system works perfectly for the type of environment GM is selling their car and for the customer they are selling to. This system has a very significant impact on the supply chain. Not only does the customers ability to order directly from the customer affect the broad supply chain between the focal company and its suppliers, but also this system creates a unique internal supply chain at the manufacturing site itself. From a broad prospective, it has eliminated some of the points along the customer side of the supply chain. GMBG CASE STUDY 1. Having suppliers at the GMBG facility allows GM to improve their production...

Words: 1202 - Pages: 5

Premium Essay

Research for the Campus President: Genetically Modified Foods

...Research for the Campus President: Genetically Modified Foods Vicky Warren National University Research for the Campus President: Genetically Modified Foods The President’s Student Advisory Council has been asked to make a recommendation regarding the sale of Genetically Modified (GM) foods on this campus. In order to determine if the university should continue to allow GM food sales on campus, the council has conducted research into both sides of this issue. We have come to a conclusion based on the evidence found that the school should continue to sell GM foods. Our recommendation is based on economic considerations, environmental impact, and most importantly, the health and safety of the students and faculty at this university. While great debate surrounds these issues, we will present the unbiased findings that support this recommendation while addressing the concerns of the opposing views. Upon conducting research on the GM food debate, the council found that many claims regarding the production and sale of GM foods were ideological in nature. Ideological reasoning is based on assumptions linked to core beliefs an values (Facione & Gittens, 2013). Ideological opponents of GM foods assert that changing the genetic makeup of plants and animals is unnatural, and therefore wrong. Humans are not intended to mess with nature. However, others may claim that humans are intended to use their powers of reason to solve problems and improve their lives and the lives...

Words: 1485 - Pages: 6

Free Essay

Anmol Bakers Pvt Ltd Research Report

...COMPARATIVE STUDY OF CONSUMER AND TRADE SALES PROMOTIONAL SCHEMES OFFERED BY BISCUIT BRANDS WITH SPECIAL REFERENCE TO ANMOL BISCUITS IN BAREILLY CITY Partial Fulfillment of the Requirements for the Award of Post Graduate Diploma in Management (Recognized by AICTE, Ministry of HRD, Govt. of India) By Mohd Zuvair PG- 120-30 Batch 2012-14 Under the guidance of Prof. Kamal K. Gupta Associate Professor, Department of Marketing Research INMANTEC, Ghaziabad Integrated Academy of Management and Technology Ghaziabad July 24, 2013 COMPARATIVE STUDY OF CONSUMER AND TRADE SALES PROMOTIONAL SCHEMES OFFERED BY BISCUIT BRANDS WITH SPECIAL REFERENCE TO ANMOL BISCUITS IN BAREILLY CITY Summer project submitted In Partial Fulfillment of the Requirements for the Award of Post Graduate Diploma in Management (Recognized by AICTE, Ministry of HRD, Govt. of India) By Mohd Zuvair PG- 120-30 INMANTEC Integrated Academy of Management and Technology Ghaziabad July, 2013 ACKNOWLEDGEMENT I owe a deep gratitude and heartfelt thanks to Dr Kamal K. Gupta, Associate Professor, Department of Marketing Research, INMANTEC B-School, Ghaziabad; who has encouraged and guided me throughout my research work. I also express my heartfelt gratitude to him for his unmitigated support, meticulous reviews, in depth inquiries and advice on work. It has added immense value to the report. I am extremely thankful to Mr. Mritunjay Sharma, General Manager Sales (North India)...

Words: 17773 - Pages: 72

Premium Essay

General Motors Accounting Analysis and Business Solution

...General Motors Accounting Analysis and Business Solution | | Table of Contents Introduction2 Hypothesis and Methodology 3 Analysis of Problems4 Variables5 Primary and Secondary Sources6 Resources6 Sample………………………………………………………………………………………………………7 Test Statistics……………………………………………………………………………………………….8 Final Recommendations…………………………………………………………………………………….9 Conclusion………………………………………………………………………………………………...10 Appendices………………………………………………………………………………………………..11 Survey……………………………………………………………………………………………………..12 References…………………………………………………………………………………………………13 Introduction Every time you pick up a newspaper and read the business section, you hear about a major company having some sort of financial problems. These problems are most likely a result of accounting errors and in some instances because of these errors, companies have had major financial issues they could not recover from. Over the years General Motors has been one of those companies. General Motors Company, commonly known as GM, is an American Multinational Corporation, headquartered in Detroit, Michigan. GM designs, manufactures, markets and distributes vehicles and vehicle parts and as well as sells financial services. General Motors produces vehicles in 120 countries under ten different name brands (General Motors Corp.). Recently, management at General Motors has decided to start tracking the number of errors in the accounting department. The number of errors will be tracked per accountant and...

Words: 2155 - Pages: 9

Premium Essay

10 Reasons Why We Don’t Need Gm Foods

...10 REASONS WHY we don’t need GM foods With the cost of food skyrocketing – hitting not just shoppers but the poor and hungry in the developing world – genetically modified (GM) foods are once again being promoted as the way to feed the world. But this is little short of a confidence trick. Far from needing more GM foods, there are urgent reasons why we need to ban them altogether. 1. GM foods won’t solve the food crisis A 2008 World Bank report concluded that increased biofuel production is the major cause of the increase in food prices.1 GM giant Monsanto has been at the heart of the lobbying for biofuels (crops grown for fuel rather than food) — while profiting enormously from the resulting food crisis and using it as a PR opportunity to promote GM foods! “The climate crisis was used to boost biofuels, helping to create the food crisis; and now the food crisis is being used to revive the fortunes of the GM industry.” — Daniel Howden, Africa correspondent of The Independent2 “The cynic in me thinks that they’re just using the current food crisis and the fuel crisis as a springboard to push GM crops back on to the public agenda. I understand why they’re doing it, but the danger is that if they’re making these claims about GM crops solving the problem of drought or feeding the world, that’s bullshit.” – Prof Denis Murphy, head of biotechnology at the University of Glamorgan in Wales3 commercialization, genetic engineering has failed to significantly increase US crop yields...

Words: 2312 - Pages: 10

Free Essay

Abhi

...Insect-Resistant GM Rice in Farmers' Fields: Assessing Productivity and Health Effects in China Jikun Huang, et al. Science 308, 688 (2005); DOI: 10.1126/science.1108972 The following resources related to this article are available online at www.sciencemag.org (this information is current as of January 8, 2009 ): Updated information and services, including high-resolution figures, can be found in the online version of this article at: http://www.sciencemag.org/cgi/content/full/308/5722/688 Downloaded from www.sciencemag.org on January 8, 2009 Supporting Online Material can be found at: http://www.sciencemag.org/cgi/content/full/308/5722/688/DC1 A list of selected additional articles on the Science Web sites related to this article can be found at: http://www.sciencemag.org/cgi/content/full/308/5722/688#related-content This article cites 5 articles, 1 of which can be accessed for free: http://www.sciencemag.org/cgi/content/full/308/5722/688#otherarticles This article has been cited by 47 article(s) on the ISI Web of Science. This article has been cited by 9 articles hosted by HighWire Press; see: http://www.sciencemag.org/cgi/content/full/308/5722/688#otherarticles This article appears in the following subject collections: Botany http://www.sciencemag.org/cgi/collection/botany Information about obtaining reprints of this article or about obtaining permission to reproduce this article in whole or in part can be found at: http://www.sciencemag.org/about/permissions.dtl Science...

Words: 4434 - Pages: 18

Premium Essay

Mission

...General Motors’ Strategic Analysis By Cyriac Thomas (cpg07bm025) [pic] Automotive Industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2007, more than million motor vehicles, including cars and commercial vehicles were produced worldwide. In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil and China saw the most rapid growth. In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. The United States is the world’s largest consumer market for light vehicles, passenger cars and light trucks. The United States auto industry is dominated by the Big Three or General Motors, Ford Motors and Daimler/Chrysler. These three account for roughly a little over half of the production of cars and light trucks in the industry. What has currently...

Words: 4459 - Pages: 18

Premium Essay

Gm Gravatai Plant

...MAKE-TO-ORDER AUTOMOBILES AT GM’S GRAVATAI PLANT Case Study Analysis Executive Summary: This case study emphasizes GM’s Gravatai plant and the Brazilian Auto Industry to sell cars that were made-to-order for customers and connect assembly line and the internet-based sales system. Its purpose is to help bring a revolution to the automotive industry and the establishment of a new production model. The GMBG case study looks at the “Blue Macaw” Gravatai Plant in Brazil. This plant has revolutionized the auto industry in Brazil by becoming the first plant to sell cars directly from the customer. The plant uses an online ordering system to facilitate sales directly to consumers at a lower cost than before. The plant utilizes a make to order system and has all of its suppliers housed at the GMBG plant working together to produce the vehicles. The case study highlights the history of the Brazilian automotive industry, the GMBG plant itself, the production strategy/manufacturing process as well as the distribution strategy of this revolutionary and profitable division of GM South America. Introduction: The core notion was: to sell cars made-to-order for final consumer. This project was considered to be a true landmark for the world’s automotive industry. The Gravatai Plant brought about a true revolution in how cars were made, from its concept to the direct-sale model, through its production management system. The lessons learned during the experiment were relevant because...

Words: 750 - Pages: 3

Premium Essay

General Motors Case Study

...General Motors Case Study #3 Problem Summary: One of the most serious problems that GM faces is when the firm announced a $10.6 billion loss, which was their first in 12 years. The auditors for General Motors even thought that the firm’s survival was in substantial doubt even if they received the additional $30 billion they were going to borrow from the federal government. The problems have grown as a result of mistakes by GM’s management over the last 30 years. They built up a bloated bureaucracy that supplied boring, low-quality cars for many years. GM will also lose leadership of the United States market, having already been replaced by Toyota as the world’s largest automaker. GM has been burdened with a high cost structure result of contracts that they signed in order to end a prolonged strike by the United Automobile Workers. They faced the biggest challenge in dealing with health and retirement benefits that GM had. The huge costs made it difficult to cut back on the productions of GM, even if that meant they had to rely on incentives to get the cars of the lots. They were also struggling with the sales of their lineups of passenger cars. Some people think that GM will not be able to move fast enough on their reorganization in order to become competitive again, and that they will fail in the meantime. Analysis: GM faces millions of dollars in losses; due to the government loans they were receiving in order to hopefully accomplish some restructuring play. ...

Words: 751 - Pages: 4

Premium Essay

Macr

...General Mills Case Study Solution "Acquisition of Pillsbury" Topics that are covered to solve this case • Benefit of the acquisition • Present value of cost savings • Deal structure • Contingent payment analysis • Acquisition cost • Recommendation Benefits of the Acquisition • Accelerate sales and earnings growth by acquiring Pillsbury > Product Innovation > International Expansion > Channel Expansion > Productivity Gains • Combined product portfolio would be more balanced • Combined firm would rank 5th in size among competitors based on food sales • Cost savings Present Value of Cost Savings • Weighted Average Cost of Capital (WACC) for General Mills > Cost of Equity = 9.6% > Cost of Debt = 9.5% > Tax Rate = 40% > After Tax Cost of Debt = 5.7% > Weight of Debt (D/V) = 10.8% > Weight of Equity (E/V) = 89.2% > WACC = 9.2% • Expected Cost Savings > 2001 = $25m, PV = $23m > 2002 = $220m, PV = $185m >2003 = $400m, PV = $307m >Total PV = $515 Deal Structure • Payment shares • Assumption of Pillsbury's debt > Existing debt = $142m > New borrowing = $5billion • Contingent payment by Diageo to General Mills Contingent Payment Analysis • What is it? > "Claw-back" or "Contingent Value Right" >>Claw-back is previously given monies or benefits that are taken back due to specially arising circumstances...

Words: 618 - Pages: 3

Premium Essay

Essay On Safety Of Food

...have desire characteristics were chosen for breeding new generation. Desired characteristics arose from naturally occurring variations in genes of plants and animals. Hence genetic modification occurs naturally and forms the base of evolution. Techniques used today to modify genes provide new ways to identify special characteristics and transfer them in plants and animals. For example, it is now easy to make copy gene of an organism and insert it another organism for desire characters. The resulting plants and animals has genetically altered material so called genetically modified organisms and food made by these plants and animals are called genetically modified food. Into our food supply the role of GM food is too much discuss for their safety and place in global food production. GM FOOD REGULATION GENERAL FOOD SAFETY The endanger due to any food a community is accepted influence by knowledge that came from community usage of that food from many hundred years. For example, • Rhubarb leaves, green potatoes are dangerous due to their toxic components. • Some foods like cow’s milk and egg cause allergy in some people. To prevent harmful bacteria growth we must careful in preparing food. We develop the method to preserve food from bacterial growth and use for long period of time using techniques like salting, pasteurization cooling and canning etc. Today we increase array of new food and food chemicals that do not have history of use in...

Words: 1588 - Pages: 7

Premium Essay

Gmos: Truth vs. Myth

...GMO MYTHS AND TRUTHS An evidence-based examination of the claims made for the safety and efficacy of genetically modified crops Michael Antoniou Claire Robinson John Fagan June 2012 GMO Myths and Truths An evidence-based examination of the claims made for the safety and efficacy of genetically modified crops Version 1.3 by Michael Antoniou Claire Robinson John Fagan © Earth Open Source www.earthopensource.org 2nd Floor 145–157, St John Street, London EC1V 4PY, United Kingdom Contact email: claire.robinson@earthopensource.org June 2012 Disclaimer The views and opinions expressed in this paper, or otherwise published by EOS, are those of the authors and do not represent the official policy, position, or views of other organizations, universities, companies, or corporations that the authors may be affiliated with. GMO Myths and Truths 2 About the authors Michael Antoniou, PhD is reader in molecular genetics and head, Gene Expression and Therapy Group, King’s Cols: lege London School of Medicine, London, UK. He has 28 years’ experience in the use of genetic engineering technology investigating gene organisation and control, with over 40 peer reviewed publications of original work, and holds inventor status on a number of gene expression biotechnology patents. Dr Antoniou has a large network of collaborators in industry and academia who are making use of his discoveries in gene control mechanisms for the production of research, diagnostic and therapeutic products...

Words: 78055 - Pages: 313