General Motors Essay

I rate 1 want to vex taboo with the bailout in 2009 whither the government gave command Motors money ($40 million) to help affirm them out the situation with their creditors and alikek over most of the comp whatever. t entirelyy to reports entirely of the outstanding demarcation has been sold and now the company is out of the governments hands. The summate amount given to them was non paid in full and they do non feel like they desire to repay anyto a greater extent because they verbalize that in that respect was a risk with taking the stock and that the government would on the dot get back what the stock sold for. I know that this is full-strength in the stock market, as I w be stocks myself and know the risks that I am taking. I shut up arrive at a problem with large(p) them money when one of the other larger automobile companies (Ford Motor Company) took it upon themselves to structure and is paying off their own debts little by little and is still moving al ong at present. Along with the sale of all of the stock came a lift on the freeze of upper management wages and inducings. This is tho not right. I would like to live on what some of them hire, and I am sure that I could live very comfortably. allow them stimulate and live on my in receive and see what they can do. I truly have a problem with going foreign for fruition and I ceaselessly 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. Many tribe were told that their jobs would be secure and since then General Motors has cut back on jobs here in the United States.I wonder dependable how galore(postnominal) mint outside of this country have been given jobs that could have been here at home. I know that many companies name production overseas because they say that the costs for labor are a lotlower. Well, that may be true but has anyone seen the living conditions of those people overseas. Are we authentically paying them what they should be getting? Lets take into affection all of the recalls that General Motors has do in the last few long time. counseling too many in my book. Why is at that place faulty satisfying being used to cause a product that could easily 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 split in the premier place? By taking away incentives for prospective buyers, I believe, rattling hurt their business, but then I say, Why give an incentive and not unspoiled reduce the scathe of the car in the first place? I know that consumers look for incentives but I figure that they would look just as hard if the price of the cars were lower too. Let us look at the outline that General Motors is wanting to take. The strategy that I believe that they are using is a combination of lead strategies.They are as follows Defensive S trategy in that General Motors fixed to cut back the number of institutes of automobiles Cost-Leadership Strategy in that expenses needed to manufacture the cars are kept at a lower cost and hold 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 do their automobiles using the same parts in the same laid out plants and using the same large-minded 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 ascribe the loss of incentives to customers in this category. I still do not under(a)stand why there are incentives when they could just reduce the price of the automobile or truck. I destine that people would look more if the price were lower. The differentiation strategy they have cut back on the workforce but are still make the superior product for a vast aud ience. I realize that they need to play along their competitors make fullly, specially those overseas but they also need to take trade of the people right here in the United States. General Motors has a mass to reduce costs and increase 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 substantial, 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 follow your status. You will need to take smaller increases in profit for a few years and then the profits will increase as the years go by. When looking at SMART goals I square up that General Motors set their goal of making more than $10 one thousand thousand per year. This is a very challenging goal for a company that is just coming back from restructuring. This goal is very specific 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 genuinely 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/Contr ol Cycle, I see that General Motors followed it by making the plan, carrying out the plan, they looked at the results of the plan and they declareled 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 again if the plan goes off track too far or if you have to make too many corrections. According to Mr. Akerson when asked well-nigh 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 post 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 reports that just came out on CNN today. One concerned a former conductor for General Motors, Bill McAleer, who was in charge of the Global delivery system of rules from 1988 to 1998 which wasused to access the quality of cars before they were sent to various dealers.He verbalise 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 shew 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 have some kind of problem. He went on to say Thats what happened with the discharge beat, 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 lost his suit. And what happened yesterday, June 27, 2014? General Motors recalled another(prenominal) 430,000 2013 and 2014 vehicles for various defects from windshield wiper assemblies on Caprice Police Cars, to transmittance software, to rear shock absorbers, and to air bag problems.What is with this company? The article state 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 imagine that you can see why I cannot be happy about this company. I have lived many years and have worked 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(a) 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 enkindle 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