General Motors

Recommendations and Action Plan to bring about the changes needed at General Motors

INTRODUCTION

This research paper presents some recommendations and a related action plan to address the strategic changes which are deemed crucial to the survival of General Motors (GM). An overview of the contemporary situation at the corporation is provided in this section of the paper, which is then followed by specific recommendations and a strategic plan of action to bring about the changes which are necessary for the company’s survival in these turbulent times.

The recommendations and action plan are framed within the concept that “the strategic management process is based upon the belief that organizations should continually monitor internal and external events and trends so timely changes can be made as needed.

In the first instance an overall justification and rationale for change should be the primary concern which guides any strategic undertaking, hence, the extent of change as to be instituted by General Motors (GM). As Mintzberg et al. (1998) point out, ‘Every strategic change involves some new experience, a step into the unknown, the taking of risk. Therefore no organization can ever be sure in advance whether an established competence will prove to be strength or a weakness.’ (p.34). In this regard, for General Motors (GM) it may be argued that the established competencies at strategic level are few, whilst the need for change is absolute. Hence, this report sets out how effective change could be realized through:

    '   The adoption of a recognizable Relationship Marketing Approach.

    '   The re-configuration of General Motors as a recognizable Learning Organisation with enhanced Employee Involvement practices.

    '   The redress of financial deficits through the more widespread adoption of Total Product System (TPS), and correlative achievement of a shortened cash conversion cycle/stock conversion period.

First, a relationship marketing (RM)...