UOP ECO/360 - Economic Forecast for General Motors of America. Overview of General Motors and its rapidly shrinking market share and profits.

Essay by shai2728University, Bachelor'sA-, June 2005

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General Motors North America

In this paper our corporate team focused on an overview of General Motors and its rapidly shrinking market share and profits. We reviewed the organizations financial reports and presented indicators that will revise and restructure General Motors into a smaller leaner company with a long running economic plan. The team included a two year forecast of at least fifteen economic indicators based on General Motor's existing economic forecast. As a corporate team we will be using various leading indicators of the economy to assist us in forecasting the future business environment that will form the basis of our predictions about the future success of General Motors. Some of the indicators that were researched were gross domestic product (GDP), manufacturer's shipments, inventories and sales, United States international trade in goods and services, and United States international transaction. Other indicators that were included are personal income and outlays and retail e-commerce.

The team rationalized the forecast based on General Motors four year record-breaking performances set in industry sales and its quarterly financial reports. Although General Motors has had some success, the company is still faced with some of the toughest challenges in its ninety-seven year history. "For example Toyota has twenty-five nameplates therefore spreading marketing dollars across fewer nameplates versus General Motors eighty-nine car nameplates across eight brands in North America." (Businessweek, 2005) An article in Business Week says

perhaps that is why General Motors CEO, Rick Wagner has been desperately trying to

maintain the status quo - jazzing up a model here, closing down a plant there - rather than face

the inevitable need for seismic change. The $193 million giant must commit itself to a risky and

costly transformation if it has any hope of a happy ending. (Businessweek, 2005)

General Motors was founded in...