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General Motors - Research Paper Example

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The demise of General Motors (GM) and its root cause GM rose out of the shadows of Ford Motor Company from the mid-1920s by focusing on what the consumer wanted and being hawk-eyed over their competition. The company executives came up with a daring strategy that changed the organizational structure and culture to one that would support a vertically integrated, multi-product enterprise…
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General Motors
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General Motors

Management isolation slowed down GM’s ability to recognize and to adapt to a rapidly changing environment. The company failed to recognize the following: (1) that their American consumers’ wallets were getting tighter and that probably they needed smaller and more fuel-efficient vehicles like Toyotas; (2) they forgot to keep a close eye on their competition (Toyota beating them on economical cars and BMW beating them on luxury and coolness); (3) that their structure and culture was impeding them to compete effectively (Staff 14). The US Government’s bailout Joseph Bower, Harvard’s Baker Foundation Professor of Business Administration, like many wondered whether it was right for the US government to support one competitor (GM) against a group of healthy rivals (Staff 16). Of course fears of government intervention have been justified through lessons from history demonstrating governments’ poor stewardship of industry. However, this time round Mr. ... Read More
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