Purchase Solution

General Motors Today: Prospects and Challenges

Not what you're looking for?

Ask Custom Question

Giving the current situation with General Motors, our team is recommending that they (GM) reduce their current operations in order to maximize profits.

In 250 words, analyze the effects of government policies, social diversity, and business ethics on this recommendation and explain what would be the impact of this in the future.

Purchase this Solution
Solution Preview

General Motors was and continues to be the icon of American manufacturing. At its peak it employed more than 250000 people and had close to 50% share in the American automobile market. Today that share is down to less than 20%. GM filed for bankruptcy and are hiving off Pontiac, GM Europe, Saturn, Saab, and Hummer. Most economists think that this is the step in the right direction.

What the government has done over this period is pushed GM towards this process. In the words of GM CEO Fritz Henderson gone are the days when GM would hoist 15 cars on the market and hope that 5 of them work! (Source: A Reader Q&A on GM Bankruptcy, NY Times, June 2, 2009.)

Here are the steps that the government has taken so far to save GM (Source: http://www.forbes.com/feeds/reuters/2009/06/01/2009-06-01T095355Z_01_L1492601_RTRIDST_0_GM-BANKRUPTCY-TIMELINE.html):
1.Dec 17, 2008: GM is to receive $13.4 billion from the government in emergency loans
2. Feb. 17, 2009: GM and Chrysler request nearly $22 billion in additional U.S. government loans.
3. March 19, 2009: The ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Recruitment Plans in the Auto industry

    The challenges that Ford Motors is likely to face regarding the realization of its strategic goals relate to quality control, purchasing and information technology.

  • Problems with compensation and benefit system

    Employee Benefits and Executive Compensation. Kluwer Law International. General Motors. (2010). A Brief History of General Motors.

  • Opportunities and trends of General Motors and Toyota

    General Motors and Toyota are competing organizations, so they can adopt 'differentiation strategy' to pose challenges before each other (Boone & Kurtz, 2006). // I am sure that the help offered by me will certainly assist you to improve your learning

  • Asset utilization

    General Motors Corporation is world's largest automaker and has been founded in 1908.

  • General Motors and Innovation

    Through innovation, General Motors invented the electric self starting engine. Gone were the days of hand cranking the engine to travel. The turn of a key started the company's innovative process that is still seed today.

  • General Motors and the Environment

    Our culture of environmental responsibility makes us think creatively, consistently innovate, and be leaner and more efficient". General Motors further laid out these principles (General Motors, 2012): a.

  • Research Three Marketing Opportunities for Three Firms

    General Motors: General Motors (GM) is the U.S based firm and included in the largest car manufacturers in the competitive market.

  • Revised Income Statements & The Contribution Margin Approach

    The name and nature of the organization The name of the organization is General Motors. General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries.

  • Pro-forma Financial Statements and Actual Financial Statements

    For the purpose of this assignment, I will take the case of automobile manufacturer General Motors. For 2014, the company's results beat the expectations due to stronger margins.

  • Company Research/Trend Analysis

    In order to compete in the market General Motors has been upgraded latest technologies and also manufactured low cost and fuel efficient vehicles.The R&D department of General Motors has imagined a vehicle of fossil fuels, means a car which emit only

View More Related Solutions