Tuesday, September 10, 2019
General Motors Corporation Essay Example | Topics and Well Written Essays - 3500 words
General Motors Corporation - Essay Example GMÃ¢â¬â¢s six main automaking divisions have catered to its manifesto of Ã¢â¬Å"a car for every purse and purposeÃ¢â¬ (Monks & Minow, 2008: 414). Statement of Purpose: This Case Study on the General Motors Corporation is for the purpose of investigating the companyÃ¢â¬â¢s downward spiral into possible bankruptcy. Using appropriate theories and literature, investigation of the What? Why? and How? of the organization will help to determine the reasons for the auto giantÃ¢â¬â¢s decline 0ajjind the implications for the future of the company. The reasons for and the processes by which the United StatesÃ¢â¬â¢ auto giant General Motors Company deteriorated to a position of near-bankruptcy, can be determined by investigating various factors based on relevant theories of corporate collapse (Fig.1). These would include corporate governance, organisational culture, leadership styles, operational risk management and financial risk management pertaining to the functioning of General Motors. The underlying concepts pertaining to risk management, financial markets and products, and global perspectives on risk are important aspects. A widely encompassing approach that associates the causes of bankruptcy to the characteristics of the company and to the financial symptoms of distress, is essential, in examining the companyÃ¢â¬â¢s financial decline (Thornhill & Amit, 2003). Besides the financial situation of the company, other crucial factors include the time dimension of failure, and the influence of key non-financial factors such as managerial error which is found to be one of the main reasons (Balcaen & Ooghe, 2006). Over the decades, from the time of GMÃ¢â¬â¢s inception in 1909, the company has suffered numerous set-backs which destroyed its ability to control the cost of its workforce. Roger Smith as CEO started downsizing the manufacturing units from 1985, with a commitment to revolutionizing the organization.