Comparison and Contrast of General Motors and Toyota Motor Essay

4709 Words Nov 3rd, 2012 19 Pages
General Motor and Toyota Motor


Comparison and Contrast of General Motors and Toyota Motor Thomas Hong, Ph.D. The Impact of Technology on Organization University of Phoenix November 12, 2007

General Motor and Toyota Motor Introduction


This paper seeks to compare core and enabling technologies of two organizations in the automobile industry. General Motors Corporation experienced a crisis that recorded another operating loss of $7,668 million during the fiscal year of 2006, while Toyota Motor Corporation recorded an operating income of approximately $19 billion during the fiscal year of 2006, an increase of 19.2% over 2005. The net profit of Toyota was approximately $13.9 billion in the fiscal year of 2006, an increase of
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Through the technology leadership initiative, set forth in 2006, GM emphasized energy and environmental leadership as a critical element of GM's ongoing turnaround plan and a key part of its business strategy. In order to reduce the world's dependence on oil, as well as meet the growing demand for cars and trucks around the globe, GM is embracing a policy of energy diversity as its core technology that offers vehicles that can be powered with many different sources of energy (Marketline, 2007). GM continues to improve the efficiency of the internal combustion engine, as it has done for decades, and is also redoubling its efforts to displace traditional petroleum-based fuels by building vehicles that run on alternative fuels such as E85 ethanol and electricity (Marketline) GM Core Competencies

GM's theory combined, in one seamless web, assumptions about markets and customers with assumptions about core competencies and organizational structure. Internally, these market assumptions went hand in hand with assumptions about how production should be organized to yield the biggest market share and the highest profit. GM's core competencies are reflected in the long production runs of mass-produced cars with a minimum of changes in each model year, resulting in the largest number of uniform yearly models on the market at the lowest fixed cost per car (Drucker, 1994).

General Motor and Toyota Motor

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