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Continuing case report - Research Paper Example

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Course Date Continuing Case Report Part One: The Evolution of Management Thinking Questions 1 The management of GM learned from its past and competitors. The automotive industry was growing, new technology and over reliance on petrol pushed the industry to innovate and invent new ways of making cars…
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Download file to see previous pages The planning function enables management to think strategically and align or re-align its objectives. Hence the emphasis from relying on muscle cars such as Hummer shifted from much fuel efficient, electronic car models such as Chevy Volt. Being proud of its legacy, it was about time that GM reinvented its ways and launched a car that suites its customers and the market. With the big idea of Chevy Volt, the company also invested in smaller innovations that can complement its existing products. Planning ahead for future requires a visionary mind-set something GM was lacking for a long time but recent plans are proving fruitful. The change that GM went through was phenomenal, understanding the needs of the customers and the environment gave them much deserved success. The skills involved in such an Endeavour may range from problem solving skills, forecasting, decision making and inevitable change management skills besides the obvious leadership and managerial skills. The shift from muscle to green fuels was a turnaround from traditional ways, something that helped the company gain increased market share and loyalty from customers. Question 2 The automotive industry, much like many other industries has undergone immense changes. The traditional reliance on carbon based fuels led to the deterioration of environment, besides being a costly fuel that saw increase in the global market. With harsh economic conditions customers started preferring smaller cars with small engine size with cheap maintenance costs. European Union and other advanced regions capped the CO2 emission standards that were not followed by models manufactured by GM. The awareness related to environment enhanced over time and countries started to introduce laws that would restrict car manufacturers from making traditional cars. Most competitors of GM started research and development on the subject matter decades before GM resulting in smaller more fuel efficient cars that became an instant hit in the car market. The society that once preferred cars that are meaner with big engines and power started rethinking its preference and started opting for cheaper cars with fuel efficiency and less carob emissions. GM resisted this change and started making fewer units to attract its niche customers that were still in love with the muscle cars. Although the realization that society and political institutions would not approve of similar cars anymore the management reinvented its approach and after much wait and deliberation the first electronically fuelled car was launched. During this transition GM came close to getting bankrupt and was bailed out by the US government. With its existence at stake the management had no option but to discontinue its traditional muscle models and manufacture a car that would satisfy the needs of society and adhere to regulations posed by political institutions while remaining affordable for the customers. Question 3 GM is a pioneer in the automotive industry; it remained the market leader in the America and had strong shares in other regions for decades. It created a strong brand image fuelled by its inventiveness and uncompromising quality products. It grew rapidly and owning a GM model was seen as prestige among the American citizens and nationalities. Based on its success and huge market share it started manufacturing hoards of cars that would appeal to ...Download file to see next pagesRead More
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