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GM's Current Mental Model

Talk about GM's current mental model, its limits and powers. Test the relevance of GM's mental model against the changing environment (increasing gas price, higher standards like Euro III) and market, then provide a new mental model, also, develop an integrated portfolio of models.

GM mental model is: They are afraid of change.


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General Motors (GM) has a long history of success. Like many companies that have become the part of the fabric of American culture, they have found and settled into an identity. With this identity came a mental model where change is discouraged - even feared. This identity was shaken by the energy crisis in the 1970s, but GM survived and instead of changing its mental model they fought through the crisis and returned to business as normal when it ended.

US automakers have struggled since 9/11. Now increasing gas prices and higher standards in Europe are guiding customers to look for ...

Solution Summary

This solution of 426 words discusses GM's current mental model and the changes it has undergone the past decade. It talks about important events that have impacted the mental model throughout the years.