GM Case Analysis

Essay by shawnsmetsA+, July 2006

download word file, 2 pages 2.2


After reviewing the facts of the article, it appears to me that the problem at GM is one of unsuccessful strategy and planning at the upper management level.


The first alternative in solving GM's strategic planning would be to ask Wagoner and his executive team to resign.


This alternative puts the blame on the individual whose plan has failed. It sets a precedent that the future CEO and his or her management team will be held accountable for implementing and executing an attainable plan, moving ahead.


This alternative is very risky because bringing in a new CEO may cause more uncertainty regarding the company and its future plans than if he were to continue as CEO.

A second alternative in solving the woes of GM's strategic planning would be to make changes to the company's North American and European automobile marketing teams as well as increasing incentives to this new team.


This alternative should address GM's struggles with new car sales in the US and in Europe. Maybe a fresh hungry team, with innovative strategies, designed to boost sales, is necessary to propel GM as it launches new cars, truck and SUV's in 2005 and 2006.


This alternative may appear to address one area of weakness for GM, but it does not necessarily ensure that new marketing leaders will have the right strategy to propel sales. This alternative could compound the problem rather than solve it.

The third alternative would be to cut production lines and capacity in the US.


This alternative should increase GM's profit margins and highlight the future plans to consolidate its core businesses, in an attempt to increase efficiency.


This alternative can be costly since closing plants means battling with unions and possibly buying out workers. The costs...