General Motors

General Motors was number one in this year's Global 500 with $178 billion in revenues (Taylor 1). However, when it comes to the competition, GM lags behind the other two U.S. auto-makers in most categories considered significant. Aside from its underperformance where the competition is concerned, GM has also faces severe internal woes, from its constant battles with labor (strikes costs the manufacturer $1.2 billion in profits in 1997) to its lack of ability to perform basic functions like launching new models on time (Taylor 1). International trends do not make the picture any rosier. Chrysler has formed with Daimler-Benz adding another tough competitor in an already competitive global market. The market is struggling in Europe, a former stronghold for GM, and the economic woes in Asia have disrupted GM's plans for success there. The company is often criticized for its mossy, sluggish and inward-looking policies. Even though earnings levels are record-breaking this year, there are many indicators that the competition is greatly outperforming General Motors, "GM eked out a record $6.7 billion in earnings last year, but that produced a net margin of just 3.9%, disturbingly low in what was a strong year for auto sales. It failed to match Ford's $6.9 billion in profits even though Ford had $25 billion less in revenues. GM's stock, not surprisingly, has performed dismally. Since Smith took over the company, the company's return to

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countability for management are key aspects of this restructuring, two areas where GM is seen as deficient, "Intense competition, diverse global markets and the speed with which the world is changing politically, economically and technologically call for a faster and leader General Motors. We are moving swiftly to a delayered and simplified automotive structure-one that clearly identifies leadership and accountability for performance" (GM Streamlines 1). To this end, General Motors has created a single, unified global automotive organization which they believe will help the company respond quickly and decisively to local opportunities around the globe by taking advantage of the corporation's vast global capabilities. Consolidation and globalization have been one of Smith's main goals for GM since coming on board. However, before the consolidation could occur, the company had to develop a series of common processes between its North American Operations and its International Operations. Therefore, the company created common business processes and systems in addition to common car platforms and components. The consolidation was seen as a way of linking the two diverse components of the company so that goals and objectives we

Category: Business - G