If you are like most people in the business world you have closely followed General Motors (GM). GM has many issues that face it today. Some of those issues are; Toyota has outsold Chevy in several previous months, lack of sales has led to increased inventory levels, a very complicated bureaucracy, very low profits, issues in their European market, and most recently a large amount of recalls on the automobiles they did sell. If you look at all of these problems individually, the causes are varied. However, if you look at all of these issues as a whole, you can see that they are all related to a non efficient corporate structure. In correlation to the course text, these issues are a direct result of a few Porter’s 5 Forces. An analysis of these
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As has been noted throughout many different business texts, a high level of bureaucracy leads to very slow decision making. It becomes very laborious and difficult to make changes in regards to company policies, innovation, and overall creation of the company. This company structure has also been reinforced with the use of government oversight. Over the past, General Motors has also been hiring key managers and board members with very little private sector experience and especially little to no automobile experience. Although different corporate structures have led people to collaborate on new procedures and ideas in the past, it is not always the best idea to hire people with no private sector experience in a very powerful …show more content…
Eliminate multiple levels of management
2. Re-write company policy and standard operating procedures to reflect new changes in decision making.
3. Create short term, midterm, and long term teams in engineering and research and development. These teams will meet daily, whether virtual or physically. Managers of the teams will also meet weekly.
4. Decision making will be relegated to the immediate manager. Evaluation of manager’s decision making ability will be evaluated at their yearly evaluation and progress repots.
5. Finish out the current American Auto Workers Union contract and refuse to renew. Then evaluate and rehire or hire employees, current or prospective.
6. Finance new projects and developments through the sale of stock.
7. In order to open up new location in the United States, try to get grants as well as tax breaks for creating American jobs in order to save money.
8. Look into hiring new top management from foreign competitors in order to help shape company culture in a more advanced
As has been noted throughout many different business texts, a high level of bureaucracy leads to very slow decision making. It becomes very laborious and difficult to make changes in regards to company policies, innovation, and overall creation of the company. This company structure has also been reinforced with the use of government oversight. Over the past, General Motors has also been hiring key managers and board members with very little private sector experience and especially little to no automobile experience. Although different corporate structures have led people to collaborate on new procedures and ideas in the past, it is not always the best idea to hire people with no private sector experience in a very powerful …show more content…
Eliminate multiple levels of management
2. Re-write company policy and standard operating procedures to reflect new changes in decision making.
3. Create short term, midterm, and long term teams in engineering and research and development. These teams will meet daily, whether virtual or physically. Managers of the teams will also meet weekly.
4. Decision making will be relegated to the immediate manager. Evaluation of manager’s decision making ability will be evaluated at their yearly evaluation and progress repots.
5. Finish out the current American Auto Workers Union contract and refuse to renew. Then evaluate and rehire or hire employees, current or prospective.
6. Finance new projects and developments through the sale of stock.
7. In order to open up new location in the United States, try to get grants as well as tax breaks for creating American jobs in order to save money.
8. Look into hiring new top management from foreign competitors in order to help shape company culture in a more advanced