What Kind Of Planning And Strategic Errors Led By The Downfall Of The Big Three Detroit Carmakers?

807 Words Mar 30th, 2016 4 Pages
1. What kind of planning and strategic errors led to the downfall of the Big Three Detroit carmakers?

The Big Three Detroit carmakers were riddled with problems caused by mismanagement and poor leadership. Using old fashioned styles of management have made it so their vehicles do not appeal to the newer generations. Not changing with the times has caused them to hobble behind their Japanese competition. The production of mediocre, more fuel efficient cars has put them in a bad light. They produce these vehicles to avoid being fined by the United States government. The Corporate Average Fuel Economy standard states that the average fuel efficiency of a carmaker’s fleet must be above a certain level. If this condition is not met, the carmaker faces a hefty fine. The Big Three Detroit carmakers’ primary automobiles are trucks, and SUVs, which generally have poor fuel efficiency. The mass production of these shoddy, fuel efficient cars is to offset the fuel efficiency of their heavier vehicles. However, in producing these shabby vehicles, they have lost the trust of the consumers. This loss of trust is a much heavier toll than what would have been lost should they pay the fines. Trust can take a long time to be regained.

2. What new corporate-, business-, and functional- level strategies did the Big Three adopt to help them better compete in the car market? How successful have they been?

On a daily basis we see cars driving on the road from all sorts of different…

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