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 …show more content…
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 companies. Ford, GM, and Chrysler were all hit hard by the financial crisis that affected us in recent years. To make it through the crisis GM had to restructure and cut plenty of brands of cars such as, Pontiac, Hummer, Saturn, and Saab. On top of that they had to close down or idle 14 of their plants as well as close one thousand car dealers to make it through bankruptcy. Chrysler went through the same problem and they sold themselves to the Italian company Fiat. Ford’s CEO Alan Mulally decided to buy out tens of thousands of hourly workers, closed some plants, and sold Land Rover, and Jaguar to India’s Tata motors. Ford also borrowed more than twenty-three billion dollars from the market. In order to get that money they had to give real estate, factories and also the …show more content…
Over the years, the market shares of each of the Big Three have gone down. Other foreign brands have begun to rise in popularity within the United States, including Toyota, Honda, and Nissan Motors. The Big Three 's sales used to account for two thirds of all car sales in the United States, but now they sell less than half of the sales. The Big Three is losing its popularity to car manufacturers that are producing more fuel efficient and economically viable cars. The Big Three are still in the lead when it comes to market shares and sale counts, but their numbers are slowly decreasing while other brands ' are slowly taking
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 …show more content…
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 companies. Ford, GM, and Chrysler were all hit hard by the financial crisis that affected us in recent years. To make it through the crisis GM had to restructure and cut plenty of brands of cars such as, Pontiac, Hummer, Saturn, and Saab. On top of that they had to close down or idle 14 of their plants as well as close one thousand car dealers to make it through bankruptcy. Chrysler went through the same problem and they sold themselves to the Italian company Fiat. Ford’s CEO Alan Mulally decided to buy out tens of thousands of hourly workers, closed some plants, and sold Land Rover, and Jaguar to India’s Tata motors. Ford also borrowed more than twenty-three billion dollars from the market. In order to get that money they had to give real estate, factories and also the …show more content…
Over the years, the market shares of each of the Big Three have gone down. Other foreign brands have begun to rise in popularity within the United States, including Toyota, Honda, and Nissan Motors. The Big Three 's sales used to account for two thirds of all car sales in the United States, but now they sell less than half of the sales. The Big Three is losing its popularity to car manufacturers that are producing more fuel efficient and economically viable cars. The Big Three are still in the lead when it comes to market shares and sale counts, but their numbers are slowly decreasing while other brands ' are slowly taking