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    Strategic Management for GM: Commitment to environment & Reasons for Environmental Initiatives

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    When working in the area of strategic management, you will often be asked to look at what appears to be a strategic initiative on the part of another company and speculate as to what the strategy behind the initiative really is. In other words, what is the company really trying to do and why? You will find that you have to use your knowledge of business and strategic management to penetrate the rhetoric and determine what is really behind it.

    Explore the GM website: http://www.gm.com/

    1. Characterize GM's commitment to the environment.
    2. Do you think this commitment will offset the environmental issues with fuel economy and greenhouse gas emissions? Provide support for your opinion.
    3. What are GM's real strategic reasons for these environmental initiatives?
    4. Recognize situations that present potential legal and ethical issues.
    5. Develop solutions that present potential legal and ethical issues.

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    Solution Preview

    Commitment to the Environment:

    General Motors commitment to the environment is three fold. First they are committed to ensuring that their manufacturing operations have gone green by making these facilities land fill free, therefore more environmentally friendly. Landfill free implies that all the production waste at these facilities is reused or recycled (Warren, 2008). They are also committed to maintaining wildlife and natural habitats in their properties, design their buildings in environment friendly manner and cleanup and redevelop their Brownfield sites to make them more environment friendly (General Motors, 2011).

    Secondly, they are committed to producing green cars that are fuel efficient by executing and promoting a "blended energy carrier strategy" which incorporates the use of hydrogen, electricity and liquid fuel which will reduces petroleum consumption. It does this through innovative redesigning and development of automotive fuel cell systems that are viable, through the support of electrification of automobiles through electric drive systems, plug in hybrids and hybrid cars and also through advanced development of biomass with E85 and bio-diesel capable propulsion systems (Wheeler, 2009).

    Thirdly General Motors is committed to producing automobiles that produce fewer emissions in the environment. Through various initiatives the company has creatively been able to reduce the ecological footprint that its vehicles leave in the environment. These initiatives include the use of advanced propulsion technologies that minimize emissions and optimize fuel efficiency, the introduction of hydrogen fuel cell technology, E85 flex fuel technology, creating of fuel efficient car models, hybrid vehicles, electric vehicles and the continuation of the Car Heaven program (Own Centre, 2011). In addition, the company has also partnered with the U.S. Environmental Protection Agency (EPA) and other automotive producers to for a Suppliers Partnership for the environment whose main goal and purpose is to encourage new, innovative ideas in effective environmental protection and energy management across the supply chain that makes good business sense and good environment (Lowery, 2004).

    Offset the Environmental :

    GM's commitment to the environment will not offset the environmental issues with fuel economy and greenhouse gas emissions. Though their initiatives in protecting the environment through reduction of waste ...

    Solution Summary

    Various companies have adopted environmental initiatives as strategies in establishing a niche for themselves in the market place. With the evolution of green ideologies, more and more companies are adopting green strategies most of which are bent of ensuring environmental sustainability. Behind these environmental initiatives though are often strategies that a company is trying to achieve. This paper analyses General Motors (GM)'s environmental initiatives and reasons behind them. It also looks at legal and ethical issues that may arise and solutions to these issues. Ten references are listed.