Management team decision - Coursework Example

The plan of interest is the modification technique as it provides greater amounts of sustainable and near-term profitability. Currently, General Motors produces over 85 models and the appropriate move is to regulating production of various models. The company will be in a position of reducing the overlapping models and concentrate on the product mixes for purposes of allowing future redevelopment. General Motors should take away the GMC Passenger Van and Cargo Van as their Chevrolet brand offers similar vans with minor variations of the model.

The organization should also include major changes in the current product mixes to achieve a turnaround for the current situation. The firm can achieve its profitability goals through a reduction plan of the overlapping vehicles in various brands since ascertained brands should not drive away customers. The strategies are intended to take the business away from competition. The entity can concentrate on defining several strategic decisions since it takes time to attach justifications behind the removal of each model (Peng 2008).

As the company experiences reduced SUV sales, the corporation has to reduce the Envoy models to three as well as the Yukon models. Pontiac needs to remove the Montana Vans in the product line as the vans are outdated in terms of design as it not profitable. The company’s past strategy was to offer a broad assortment of cars under each brand. General Motors has changed the strategy through limiting the product portfolio and focusing on Cadillac and Chevrolet as marquis brands (Sekhar 2009). The organization has repositioned Hummer, Saab, and Saturn within niche brands.

The approach combines Buick, GMC, and Pontiac into distribution channels that are complementary. Success of the firm appears to embed on taking strategic steps towards the profitability direction through making