General Motors Essay

I first want to start issue with the bailout in 2009 w here(predicate) the government gave world-wide Motors money ($40 gazillion) to help get them out the situation with their creditors and took over most(prenominal) of the confederation. According to reports on the whole told of the outstanding stock has been sold and now the company is out of the governments feeds. The total issue forth presumptuousness to them was non paid in full and they do not feel homogeneous they submit to repay anymore because they said that there was a risk with taking the stock and that the government would scantily get back what the stock sold for. I recognise that this is true in the stock market, as I incur stocks myself and know the risks that I am taking. I still have a bother with giving them money when one of the other larger automobile companies (Ford Motor Company) took it upon themselves to restructure and is paying aside their own debts little by little and is still moving alo ng to daytime. Along with the sale of completely of the stock came a lift on the freeze of upper management wages and incentives. This is just not right. I would like to lie in on what some of them make, and I am authoritative that I could live precise comfortably. let them come and live on my income and detect what they can do. I in reality have a line of work with breathing out oversea for production and I always will. It is probably my age and all of the trials and tribulations that I have lived through as well as what I have seen others live through. some slew were told that their jobs would be secure and since consequently widely distributed Motors has cut back on jobs here in the unite States.I wonder just how umteen people outside of this field have been given jobs that could have been here at home. I know that numerous companies take production overseas because they study that the costs for labor ar a lotlower. Well, that may be true but has anyone seen the active conditions of those people overseas. Are we really paying them what they should be getting? Lets take into good will all of the recalls that deviceetary Motors has made in the last few years. Way too many in my book. Why is there faulty material being used to manufacture a product that could good take the lives of many people. These products were made mostly overseas, I believe, and could lower wages be part of the problem of not noticing the faulty parts in the first place? By taking away incentives for prospective buyers, I believe, really hurt their business, but then I say, Why give an incentive and not just tame the price of the car in the first place? I know that consumers run across for incentives but I think that they would look just as hard if the price of the cars were lower too. Let us look at the strategy that General Motors is wanting to take. The strategy that I believe that they argon apply is a combination of three strategies.They atomic number 18 a s follows Defensive schema in that General Motors decided to cut back the number of makes of automobiles Cost-Leadership Strategy in that expenses needed to manufacture the cars are unploughed at a lower cost and carry oned at that lower cost and Differentiation Strategy in that they need to make a superior product for a vast number of people at a low cost. According to the plan General Motors is going to start make their automobiles using the same parts in the same set out plants and using the same kind of tools throughout. They are also cutting back on the number of models from 86 to 49. When it came to the cost-leadership strategy, I put the loss of incentives to customers in this category. I still do not understand why there are incentives when they could just reduce the price of the automobile or truck. I think that people would look more if the price were lower. The specialisation strategy they have cut back on the workforce but are still making the superior product for a vast audience. I realize that they need to watch their competitors closely, especially those overseas but they also need to take care of the people right here in the United States. General Motors has a vision to reduce costs and addition revenue through global gross revenue growth to a net profit of 10%. I think that they are asking for a lot out of the economy, as it is today As the plan states, Ford is farther ahead of General Motors and they made more of a profit per vehicle sold than General Motors.This was all done because ofgoing globally. The culture needs to change too and get away from focusing on selling the most cars and take care of the customers that they currently have and possibly will have in the future. Yes, sales are important, but they will come if their customer focus is there first. I think that the 10% increase in profits is a little out the park when you are just restructuring and trying to maintain your status. You will need to take smaller increases in p rofit for a few years and then the profits will increase as the years go by. When looking at SMART goals I find that General Motors set their goal of making more than $10 billion per year. This is a very challenging goal for a company that is just coming back from restructuring. This goal is very unique(predicate) but I do not believe that it is attainable with the economy that we have today. I know that they look at achieving this goal globally but they really need to concentrate right here in the United States. To be results-oriented they needed to decrease the number of types of cars they produce, reduce the number in their global workforce, (which they did), reduce the number of union workers here in the United States (which they did) and close down plants that were not up to par (which they did).Was this the right decision to make? Who knows for sure? The only thing that I can see is that they put a lot of people out of work. In looking at the Planning/ arrest Cycle, I see tha t General Motors followed it by making the plan, carrying out the plan, they looked at the results of the plan and they controlled the direction of the plan by making any corrections as they went along with the plan. Planning is very important in everything that you do. You must always follow through too and watch as the plan is being carried out and always have control of what is going on and make sure that you make any corrections as the plan goes on. If need be, go back to the beginning and start all over once again if the plan goes off track too far or if you have to make too many corrections. According to Mr. Akerson when asked about being back on top and the worlds largest auto maker his response was General Motors needs to focus on profits and margins and not necessarily try to convey numbers on the board. Maybe they need to go back and re-think their plan again and make sure they are staying on track as they proceed. In conclusion, I just want to add that I read two repo rts that just came out on CNN today. One concerned a former theater director for General Motors, Bill McAleer, who was in charge of the Global delivery system from 1988 to 1998 which wasused to access the woodland of cars before they were sent to various dealers.He said that the culture of General Motors was the main problem of the company where if there was a problem and you said anything that you could be fired and then on the other hand if you did not say anything, you still could be fired. What kind of culture is that? It is kind of twisted, if I must say. He said that he had sent a letter to the upper management about all of the defects that he had found and that they just ignored it. He also said that he never received a response in any way about the letter. He mentioned that in 1997 the focus for the company really changed and internally and that there were to be NO problems admitted to. How ridiculous is that. There is never a time during the day that a company does not ha ve some kind of problem. He went on to say Thats what happened with the ignition switch, people knew that there was a problem but problems were not acceptable. They just ignored it. Mr. McAleer was laid off in 2004 and filed suit against the company under the Whistleblower Law but he wooly-minded his suit. And what happened yesterday, June 27, 2014? General Motors recalled another 430,000 2013 and 2014 vehicles for various defects from windshield wiper assemblies on Caprice Police Cars, to transmission software, to refer shock absorbers, and to air bag problems.What is with this company? The article stated that since January, General Motors has recalled more than 20 million vehicles worldwide. If they knew about the ignition switch more than a decade ago and did nothing until this year, why are they still in business? Where are most of these defective parts coming from? I would speculate that you can see why I cannot be happy about this company. I have lived many years and have w orked in various occupations and have seen the defective merchandise come from out of the country and would just sit there and shake my head. Working in retail for over 20 years, I just would not put merchandise on the floor for customers to purchase if I found it to be defective. Did I get into trouble for it? Absolutely not We cared about our customers, why doesnt General Motors. Seems like all they are interested in is the almighty dollar.Ref CNN.comArticle by Patrick Sheridan, June 28, 2014 1224 pm ET Article by Patrick Sheridan, June 27, 2014 6564 pm ET