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Organizing/Reorganizing at GM

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GM has gone through a great deal of change in reorganization efforts in the past several years. Part of this restructuring was the result of the company's near collapse several years ago, and the bail out. GM's CEO Dan Akerson has continued to expressed concern about the way GM is organized globally.

It is one thing to organize a small or medium size business, but reorganizing a global organization is quite another issue. Please use the Functions of Management (Organizing) as a foundation for your input. Please first read in-depth the Background Materials.

References:

Higgins, T., Green, J., (2012). GM Seen Planning Global Reorganization Against 'Fiefdoms' Bloomberg. Retrieved from: http://origin-www.bloomberg.com/news/2012-08-17/gm-seen-planning-global-reorganization-against-fiefdoms-.html

Vlasic, B., (2013). G.M.'s Profit Rises Despite Weakness in Europe. The New York Times. Business Day. Retrieved from: http://www.nytimes.com/2013/02/15/business/gm-hurt-by-europe-still-increases-profit.html?ref=generalmotorscorporation&_r=0

Higgins, T., (2013). GM Considers Brazil Options With Akerson's Global Reorganization. Bloomberg. Retrieved from: http://www.bloomberg.com/news/2013-01-25/gm-considers-brazil-options-with-akerson-s-global-reorganization.html

Eisenstein, P., ( 2012). GM Readying Another Major Reorganization. The Detroit Bureau. Retrieved from: http://www.thedetroitbureau.com/2012/08/gm-readying-another-major-reorganization/

QUESTION:

What do you think the key challenges are for Akerson with respect to the reorganization that has been proposed?

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Solution Summary

The expert examines organizing reorganizing at GM.

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In the current business environment, companies need to restructure their businesses according to the changes in the market in order to ensure long-term business survival. Restructuring is helpful for companies to attain various benefits in the market, if it is managed effectively. An effective management of reorganization of a global organization is associated with various challenges. The main aim of this tutorial is to discuss the key challenges for Akerson CEO at General Motors (GM) with respect to the reorganization that has been proposed. GM operates its business in the automotive industry. It designs, manufactures and markets cars, trucks and automobile parts throughout the world.

Key Challenges regarding Reorganization

Following are some key challenges for Akerson with respect to the reorganization that has been proposed:
Company Size: The main challenge for the CEO in concern to the reorganization is the size of the company. It is because as the company manages its business operations in different countries and if it proposes any changes in the structure or any organizational process, then it is necessary to implement the changes throughout the organization to ensure the success of the reorganization. Recently, GM has been proposed a realignment of its design operations and decided to focus more on individual brands than specific global regions. Primarily, GM markets its vehicles under different brands such as Opel, Holden, Chevrolet, GMC, Buick, Cadillac, Alpheon, Jiefang, Baojun, Wuling and Vauxhall brand names (Yahoo Finance, 2013). Due to the use of different brands, it will be difficult for the company to make effective realignment of its ...

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