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In other words, GM want to be the leader of peers in transportation products and related services. GM has set a specific goal: making more than $ 10 billion per year. GM has produced income of about 8 billion in its history. As well, GM has an ambitious goals in the future: raise the profit margin, promote the portion of revenue left after producing expense to 10%. Generally, the goal is relatively a huge jump compared with the current 6% profit margin. From my opinion, it’s a great long term aim to such a large scale company. The vision is very positive and inspiring, as one of first implementation of the U.S. stock and expert group management of large enterprises. However, I am concerned that the current goal of GM should be eliminating all debt. As we know, GM still need to pay off $ 23 billion it borrowed to survive. So for the short time goal, GM should devote itself to being debt-free, lower the cost, get more
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Are these goals attainable? Discuss.
The first smart goals for GM is that to be debt-free in five years. Since GM has afford a big amount of debt and have to pay the interest of debt annually. Especially in Europe, the cost of production and service is high enough. It’s time to reduce the expense now, transfer to the lower-cost countries, since the development of those lower-cost countries is high speed enough to satisfy the demand of the production and providing service. Additionally, try best to reduce the cost of producing expense, focus more on design of production, reducing the auto “platforms”, etc.
The second goal for GM is to be a innovate company in peers. To be more prospectors- create their own opportunities, not wait for them to happen. Let other companies imitate, rather than follow them. We have a good example, Apple. Apple focus most on innovation, which makes it to be one of the most profitable and fastest speed automobile company. Such as try new raw materials instead of old, try invest in emerging market. As we know, China, India, those development countries has getting more power and higher status in the market, looking for new partner for GM as quick as possible is a good way to take the head of peers. Additionally, continuing to expand globally and try to develop new vehicle styles and models, satisfy the people’s new view to …show more content…
Based on the case of GM, GM’s main plan is to cut the cost and make higher profit, GM carry out the plan followed by Mr. Ammann’s words,” setting out to cut billions more in costs while boosting revenue through global sales growth and reduced incentives on some models”. They did and control the direction by comparing the result with the plan, lower the producing cost, cut incentives, and slimmed down the scale. GM also tried to compare the result of the yearly plan and based on the last year plan to make new plan for next
Are these goals attainable? Discuss.
The first smart goals for GM is that to be debt-free in five years. Since GM has afford a big amount of debt and have to pay the interest of debt annually. Especially in Europe, the cost of production and service is high enough. It’s time to reduce the expense now, transfer to the lower-cost countries, since the development of those lower-cost countries is high speed enough to satisfy the demand of the production and providing service. Additionally, try best to reduce the cost of producing expense, focus more on design of production, reducing the auto “platforms”, etc.
The second goal for GM is to be a innovate company in peers. To be more prospectors- create their own opportunities, not wait for them to happen. Let other companies imitate, rather than follow them. We have a good example, Apple. Apple focus most on innovation, which makes it to be one of the most profitable and fastest speed automobile company. Such as try new raw materials instead of old, try invest in emerging market. As we know, China, India, those development countries has getting more power and higher status in the market, looking for new partner for GM as quick as possible is a good way to take the head of peers. Additionally, continuing to expand globally and try to develop new vehicle styles and models, satisfy the people’s new view to …show more content…
Based on the case of GM, GM’s main plan is to cut the cost and make higher profit, GM carry out the plan followed by Mr. Ammann’s words,” setting out to cut billions more in costs while boosting revenue through global sales growth and reduced incentives on some models”. They did and control the direction by comparing the result with the plan, lower the producing cost, cut incentives, and slimmed down the scale. GM also tried to compare the result of the yearly plan and based on the last year plan to make new plan for next