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General motors

I need about 500 words on the following subject:
(Factors affecting General Motors and the Automotive Industry and what GM needs to do)
1. Should General Motors continue, expand, or reduce current operations in order to maximize profits? Explain your reasoning.

2. If your answer is to expand: Should General Motors invest in new plants, equipment, or technologies? Should General Motors consider a merger with another organization? Explain your reasoning and explain global competition implications.

2. If your answer is to reduce: Should the organization/industry reduce production or shutdown their operations? Explain your reasoning

Solution Preview

GM should definitely try to expand. There is no point in terms of reducing the operations or shutting down operations because there are numerous markets around the world that GM can exploit. Similarly, there is no point in continuing the current state of operations as competition is tough from far more efficient and stronger players like Toyota. Thus, the key strategy is to expand in order to sustain in this competitive marketplace and in order to exploit new market opportunities in emerging countries like India and China.

Although GM can think of shutting down operations or reengineering operations in existing plants that are not operating efficiently, such as North American plants that are operating on traditional lines, it can definitely think of building new plants as part of its ...

Solution Summary

Should General Motors continue, expand, or reduce current operations in order to maximize profits?

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