StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

GM - Essay Example

Comments (0) Cite this document
Summary
The multibusiness model that GM was practicing before was 'Unrelated Diversification'. The various divisions were not integrated and were given considerable autonomy and control. Each division was taking care of its own business and therefore the bureaucratic costs were also low…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
GM
Read TextPreview

Extract of sample "GM"

GM Searches for the Right Global Structure GM's Global Multibusiness Model: The multibusiness model that GM was practicing before was 'Unrelated Diversification'. The various divisions were not integrated and were given considerable autonomy and control. Each division was taking care of its own business and therefore the bureaucratic costs were also low. But the autonomy given to the various divisions was resulting in the duplication of resources and increase in costs. Therefore, GM shifted to the multibusiness model 'Related Diversification'. Although the implementation of such a multibusiness model calls for a high integration among the departments but the sharing of resources like the car design and production decisions resulted in benefits. Through this structure the car design process speed up as the decision making of the global engineering and design groups was recentralized.
GM had employed a 'Localization Strategy' in the beginning. With this strategy, although there was local responsiveness and the products were designed according to the demands of the various global divisions but due to this decentralized control in each country it operated, there was a duplication of the various activities like the design, component parts, manufacturing and sales functions in the various divisions which resulted in an increase in the costs of GM and therefore effected GM's revenues and profits. The company later implemented a 'Global Standardization Strategy'. This strategy was based on the product-group structure and aimed at coordinating the activities of home and overseas operations. Through this strategy by sharing expertise, the various divisions work together to design cars which can be sold anywhere across the globe.
GM's Change in Global Structure for Effective Coordination of Activities:
GM has been changing its global structure to allow it to coordinate the production and sale of its products most effectively around the world by the implementation of a "Global Standardization Strategy".
GM has firstly centralized the car design and production decisions. Through this strategy, the company practices to keep costs down by deciding on the global suppliers. The central U.S headquarters of GM decide which global component suppliers to buy from. Through this approach the company is able to cut down around 40% of its costs globally and also able to achieve a centralized control.
Secondly, GM recentralized control of decision making in the global engineering and design groups in order to allow it to coordinate these activities more effectively around the globe. GM must have been making full use of the information technology and internet to leverage knowledge across the various divisions. The various divisions share their expertise and design cars that are accepted worldwide i.e. a standardized model should be built. This has speeded up the development of new car models as GM takes 5 years to design a car against a 3 year for Toyota.
Although the implementation of such a global structure had huge implementation costs of $7 billion but the benefit that outweighed these costs was the centralized control that GM gained over its various divisions. GM has still more to go in order to further establish its new product-group structure. It needs to compete with the Japanese market through bringing in differentiation in its products through the combined expertise of the various divisions. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“GM Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
GM Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1532486-gm
(GM Essay Example | Topics and Well Written Essays - 500 Words)
GM Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1532486-gm.
“GM Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1532486-gm.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF GM

Creating the GM-Toyota

... for the US market. The agreement was signed on 17th February 1983 by the chairmen of Toyota and GM, and triggered one of the biggest and most controversial antitrust investigations in recent history. The vital question was whether it was plausible that the joint venture would actually lead to an increase in domestic small cars that were manufactured more efficiently, with good insights that GM and other firms could use in their plants, or whether it could lead to the regulation of pricing and other conduct between GM and Toyota and merely supplant less-anticompetitive options that GM could have employed in order to realize its objectives. The examination of these question shed light on a number of issues: the changes in behavior that could...
8 Pages(2000 words)Term Paper

GM Research

...yield will be much more than that obtained while cultivating Cambogia with the help of ordinary, non-modified seeds of the plant. This helps the farmers obtain much more profit from the same amount of money spend on seeds. Secondly, the genetically modied Garcinia cambogia is resistant to insects, weeds and other pests. Studies have shown that farmers spend a lot on necessary farm products such as weedicides and pesticides. Most genetically modified crops do not need these harmful chemicals for protection. It was seen in a study that “by 2009, the usage of GM crops had reduced pesticide spraying by 393 million kg of active ingredients, the equivalent of decreasing 17.1% of the global pesticide use (Brookes & Barfoot,2011) While...
6 Pages(1500 words)Essay

How the general Motors Global Manufacturing Systems (GM GMS) are implemented in Poland, in Comparison with the UK

...n means of exposing managers to organisational and market developments relevant to their own and their organisations development opportunities. This discussion will analyze and take all of these factors into consideration, provide a comparison and recommendations. This discussion will focus on the international context of strategic issues in business and provide for a means of developing client-consulting skills. An analytical approach will be used to compare the implementation of GM global manufacturing systems in both Poland and the United Kingdom. The international auto industry is significant to economies across the globe. (Aho and Levinson, 1988) The international auto industry is a paramount industry and both Poland and the...
14 Pages(3500 words)Essay

GM Strategy

... a toll on General Motors. Various global changes also took place in the motor industry such as new technological innovations, new marketing strategies that specifically focused on meeting the interests of the customers among other factors. In response, GM invested heavily in its endeavour to keep pace with these global changes. However, the major setback that hampered its efforts was the aspect of bureaucracy resulting from hundreds of divisions within the company which made it difficult to have focused, well coordinated operation systems. During its heydays, GM used to pay very high benefit packages since it was very profitable especially during the mid 1970s when it dominated the US markets. However, due to changing global trends...
12 Pages(3000 words)Essay

Microsoft Restructure to Get Back in Game and GM Forms $100 Million Technology Venture Firm

...In his article Harvey looks at how Microsoft has taken the move to restructure its consumer devices division as it aims to keep up with competitors in the rapidly-growing smartphone market (Harvey, para 1). The president and senior vice president of Microsoft consumer devices division will retire to pave way for a new structure. Given that the company is losing ground fast in the mobile computing sector it was high time that the entertainment and devices division had new leadership. The new structure would have heads of the units in charge of phones and the unit in charge of games report directly to group CEO, Steve Ballmer. The second article by Bunkley tells us how General Motors (G.M.) is embarking on a new strategy to enable...
1 Pages(250 words)Literature review

GM Strategic

... advancement of Flex-Fuel vehicles of the company can be observed in the cars as well as the trucks of the company (General Motors, 2012). Strategic Reasons for Environmental Initiatives There lie several strategic reasons for GM to emphasize upon the environmental factors which comprise the aspect of fuel efficiency and the release of greenhouse gases. One of the imperative reasons is about the deliverance of long-term value of the investments to the shareholders. The company desires to attain the confidence of the shareholders about their decision to invest by developing among the best vehicles of the world and also by performing its business operations with highest integrity level. The other strategic reason is about augmenting its...
2 Pages(500 words)Essay

Proposal GM aquiring Ford

...Proposal GM acquiring Ford With the current level of globalization, the level of competition in the industry has increased as multinational companies are now able to open many branches in different parts of the world. This has resulted from removal of tariffs and liberalization of different markets. Following these changes, the acquisition of this new company will play a great role in boosting our financial capability. This will play a great role in helping our company to be more competitive in the market. In addition, the organization will have adequate funds to open up different branches in various cities in the world. This will reduce the risks and uncertainties that have been facing the organization (Sherman, 2010). Acquisition of Ford...
1 Pages(250 words)Thesis Proposal

GM crops food

...organization can evaluate the effects of these foods on human health (Canavari, 2009). For the biotechnology industry of GM crops food, social media could be a better tool of communication as it will provide information to the public about his product, the services, and the enterprise itself. From this tool, the industry can get back the opinions from other people and try to rectify where critics are experienced. This can help the producers look into the health aspect of the food in a better way (Smith & Zook, 2011). Consumers on the other hand can use direct mails to the organizations whenever they find an issue regarding the product. This aims at making the suppliers to act immediately basing on the feedback from the...
1 Pages(250 words)Essay

GM Research

... to the farmers given that the market demand for the plant is extremely high. Firstly, cultivating Cambogia with the help of genetically engineered seeds would increase the yield. This yield will be much more than that obtained while cultivating Cambogia with the help of ordinary, non-modified seeds of the plant. This helps the farmers obtain much more profit from the same amount of money spend on seeds. Secondly, the genetically modied Garcinia cambogia is resistant to insects, weeds and other pests. Studies have shown that farmers spend a lot on necessary farm products such as weedicides and pesticides. Most genetically modified crops do not need these harmful chemicals for protection. It was seen in a study that “by 2009, the usage of GM...
6 Pages(1500 words)Essay

GM Food

... to reduced food prices Low cost of production results in lower cost of produce Increased profitability provides room for negotiating food prices downwards Minimal expenses to curb agricultural carbon emissions and handling the resultant effects 5. Counterarguments: Mutagenic risks on humans Refutation: Historical use of GM foods indicate no adverse effects Safety risks Refutation: Invalid research inferences; Safety measures by the government 6. Conclusion: With the fears regarding GM foods refuted, governments should make use of the benefits of increased food production and supplies and reduced food prices to promote GM foods in their countries to alleviate hunger. Genetically Modified Foods for Global Food Security Introduction...
6 Pages(1500 words)Essay

GM Food

.... The statistics therein would provide information to validate such criticisms. Winter, C. L. and L. K. Gallegos. “Safety of Genetically Engineered Food.” Agricultural Biotechnology in California, (2013): 1 – 5. Web. 3 Apr. 2014. In this article, the authors argue for safety of GM foods which they refer to as genetically engineered, GE foods. With a background of what GM foods are and their production, the authors appreciate that genetic modification of crops could pose a threat to human health. However, it refutes that the GE foods in distribution are a threat to human health. The article argues against the traditional approaches of examining safety of GM...
1 Pages(250 words)Annotated Bibliography

Can gm crops add to productivity of UK agriculture

...and Maggioni (2014). Evidently, food in the UK is a vital economy component as it helps both in feeding its residents thus saving money as well as increases its financial capabilities. As evidenced by the figures proved above, the issue of agriculture is pivotal to its growth thus explaining the reason for the continued debate concerning GM technology. Some agree, “GM crops can boost productivity in lean times” (Parul (2011p.34) while others strongly oppose this notion. Those disagreeing argue that GM technology has proved to reduce the harvests. According to Dalla-Corte and Dhein-Dill (2012), it was noted that when GM was used in Brazil, there was a 10% decline in the...
9 Pages(2250 words)Research Proposal

Syngenta and GM crops

...SYNGENTA AND GMO CROPS (An Ethics Essay on Agricultural Technology) ID Number and Number: ofUniversity Estimated Word Count: 1,419 (of text only) Date Submitted: March 30, 2015 LONDON – Syngenta AG, the global Swiss multinational agribusiness corporation, is being sued by farmers groups because of its use of genetically-modified organisms (GMO) technology in the production and distribution of corn seeds. In particular, the United States Department of Agriculture (USDA) had previously approved its use for the production of a type of ethanol (Enogen) only but not for corn production intended for export.1 The result is a rejection by China of U.S. corn exports that cost American farmers upwards of $3.0 billion after the corn... AND GMO CROPS (An ...
4 Pages(1000 words)Article

Evidence of the GM Food Unsafely

...the consumer. Advocates for GM food argue that they will enhance global food security, but this should be taken with caution since a food regulating and testing body should be established first before approving GM foods. Food allergies is a primary concern when it comes to GM food since 6% of children and 2% of children suffer from severe food allergies. GM foods can instigate a more severe allergy since they are reared to resist some conditions (Dona 164-175). Environmental risk is another factor that makes GM foods unacceptable for human consumption. These foods means that foreign genes will be introduced into wild population. It will therefore...
1 Pages(250 words)Essay

Note Taking on the Current issues and the potential future of GM foods

...traits of GM crops include: herbicide tolerance, insect and viral resistance and nutritional enhancements. Summary Genetically modified foods have been applied widely and globally to help improve the sufficiency of food supplies in most regions. The crops majorly include maize, soybean, cotton, canola, sugar beet and alfalfa and whose direct consumption has been limited to certain types only. They have various beneficial traits key among them being their herbicide e, and insect and viral resistance. Additionally, they also have some nutritional enhancements. Self test Column What are the various risks and safety issues related to GM food and feed? The technologies that have propagated these...
4 Pages(1000 words)Essay

Inventory management ratio analysis of Ford and GM

... it takes for a company’s cash to be tied up. The inventory turnover ratio of Ford is 15.9 times while that of GM is 10.0 times. The calculation of the inventory turnovers in both the companies has used the average inventory. The average inventory was preferred to total cost of inventory since both the companies have different levels of inventory on different seasons. The inventory turnover ratio imply that Ford converts its inventories 15.9 times in a given a financial period while GM converts its inventories to cash 10 times in a given financial period. Both the companies have high inventory turnover ratios when evaluated individually but it is convenient for the ratio to be compared with industry standards. Ford has a higher inventory...
4 Pages(1000 words)Essay

Liquidity Ratios for GM and Ford

...component of the quick ratio (Bull 70). GM’s current ratio is 1.27:1 in 2014 and 1.31:1 in 2013. The current ratio in both years shows that the company has the ability to offset its current obligations with all its current assets. This implies that the company’s observes a good a liquidity position in both the years. The current ratio has had a decline in the two-year period despite it maintaining the ratio more than one. This declining trend of the current ratio implies the company’s liquidity position is worsening as years go by. Failure to adjust the ratio back to its previous levels will put the company’s liquidity into question. GM’s quick ratio is 0.84:1in 2014 and 0.85:1 in 2013. This ratio...
4 Pages(1000 words)Essay

Training Program Related with the Safety and Security in the GM Manufacturing Process

...Training Program Introduction Safety and security is one of the most important factors for any automobile organization. Being a global automobile giant, General Motors also requires significant focus towards the safety and security in their manufacturing process. The purpose of this report is to develop a training program related with the safety and security in the GM manufacturing process. This study will help the organization to make its employees more aware about the operational safety. The study will be start by a brief overview of the whole training program. Then the study will describe and analyze the Assessment stage of the training program. Then the designed stage of the training program will be described and analyzed. After...
8 Pages(2000 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic GM for FREE!

Contact Us