My last college paper " GM changes culture for Survival"

[perfxn]

This is my last college paper, im not an English major, it aviation. so i pre apologize for any errors. Writing this paper of made me realize that this whole economic issue that we have is bigger than me just getting my car or even GM for that matter, it kind brought me back to earth...hope all readers would gain something and anything from the reading of my paper.. thanks









GM changes culture for Survival 1






GM changes culture for Survival
By Emery Frazier

Management 311 Eric Croll
May of 2009















GM changes culture for Survival 2


General Motors is behind the 8 ball in a major way, thus the change for survival. This change does not guarantee them survival, it might just be the sports phrase we hear so often “too little too late”. In these next five pages I will describe to you as to how GM is, and plans to change the way they do business in efforts to combat the drastic effects of the economy and GM’s long history of doing it their way, which has put them exactly where they are today. Which is why GM would still be revamping without the harsh economy but not so drastically, it’s win or go home with the clock running down for GM.

Just like sports teams, most franchises start at the top when major reconstruction is needed. That means the CEO for the General, The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed. This was back in late April. The sad reality in this situation is that, Rick Wagoner who was brought up through the company after years of hard work, many viewed Rick as not the CEO that led GM to their grave; but yet the CEO that smelt the coffee and realized that things needed to change within GM, not just a face lift that would change the perception of Gm to the American car buyers.
Rick tried to start the change that GM needed to be a better functioning more efficient company. But just like with the sports teams, it’s not always the coach’s fault they had a losing season but when you need a change this immense, you clean house!


GM changes culture for Survival 3

When one is as big as GM you have to take a long look in the mirror and perform a reality check, checking to see what your good at, being truthful as possible. Finding where that excess fat and the "dead dog” is in terms of economics. In GM’s case, they have too many brands operating over their means, kind of like Americans with credit cards; it’s all well and good until you can’t afford the monthly payment.

So in efforts to come back to reality and get rid of some of those extra bills, the General will be killing one of his Colonels, Pontiac, that’s right the old and beloved Pontiac brand, the reason Pontiac was chosen is because they haven’t changed and adapted to the times in years, most say it’s been about two decades since Pontiac has been ahead of the game in the car making area.
I say it’s been even longer, I’d say “Smokey and the bandit” was Pontiac’s last hurrah! The brand will be slowly be phased out by 2010. Again a story of too little too late, the Pontiac G8 was the superhero whose impact was felt, but just sadly too late for the greater good and being the only hero that came in the time of need didn’t help much either.



GM changes culture for Survival 4

There is still more fat to shed! With fewer cars to sell the General will no longer need a dealer every 20 blocks in its major cities. In turn GM will slash the number of dealers they work with by 42 percent, from 6,246 in 2008 to 3,605 by the end of 2010. This impact will reach further than just many local dealerships but supply stores and many other companies that depend on the business of those dealerships.
People always say that your death will affect more than just you; in this case it is a sad reality. It will be a gradual domino effect after these dealers close their doors. GM plans to focuses on its four core brands—Chevrolet, Cadillac, Buick and GMC. GM doesn't expect to build more Saabs, Saturns, or Hummers after the end of this year.

Shedding of fat continued, will temporarily close 13 assembly plants in the U.S. and Mexico - some for more than two months - laying off more than 26,000 workers to pare back a bloated inventory. The closures, which will start in May, vary by factory from as short as three weeks to a long as 11, including the normal two-week July shutdown to change from one model year to the next. GM said the shutdowns will help control high dealer inventories and bring manufacturing in line with sales. The company plans to cut production by 190,000 vehicles and reduce inventory from the current 767,000 to 525,000 by the end of July.

GM changes culture for Survival 5

More than 26,000 hourly and salaried employees will be laid off at the affected assembly plants, but there will be thousands more layoffs and temporary factory closures when GM works out its schedules for engine, transmission and parts stamping factories.

GM has 22 assembly plants in North America as well as dozens of other parts and powertrain factories. Laid-off hourly workers will get unemployment benefits and supplemental pay from the company that amounts to most of their base wages. Salaried workers also will get some income.
This may be the saddest part of the whole ordeal, many workers of GM have been with them for years and have only worked for GM, meaning in hind sight, what can they do with all of their skills in manufacturing, and car manufacturing at that. Where can they take their 20 years of experience and be an asset to a company, it’s not like that can go and get hired at Honda or Toyota, who is having major problems of their own.
Ok, so they can’t make cars, but at least they still have a manufacturing back ground, they can make something! Oh, wait we “America” don’t make much anymore! I ask myself, where will these people go so that can put food on their tables and a roof over their family’s head? I don’t and can’t think of a place for these 25,000 plus, men and women to make a living.


Gm changes culture for Survival 6

In conclusion, from the closing of the plants, to the removal of brands and cutting of 26,000 or so jobs is the reality for GM. Like an athlete or any person that wants to get in shape, it takes hard work, dedication and time. This process will be long and grueling it won’t be for the faint hearted. After all this hard work and sacrifice will it be enough, will it be in time, or will it be like Rick Wagoner and the Pontiac G8, too little and too late? Will GM’s efforts be for not, will our children of tomorrow hear of a car like the corvette, and think of it as an automobile of yesterday, a breed that died and was too slowly to adapt with the times.
My final question is one that I do not have an answer for, but yet a hope, will General Motors survive? Would I hold or purchase stock in GM if I had the money, probably. Would I buy a 2010 Camaro SS RS for $35,380 in a recession, on a college grads salary …you bet your stars and stripes!!

My prayers go out to all those affected by the survival efforts of General Motors, may the lord make a way..

[nards444]

Alot of good points. But somethings to add and maybe disagree. First off its not only GM its all auto makers even foreign. I sense sympathy in this which is good but at the same time I dont think its GM's fault entirely. But I do think GM with the rest were content on what they had and didnt invest in better fuel consuming vehicles through out the last decade, which is their fault. Even though gas at the time was good an they were selling cars, even if they could not predict the future they should have took the iniative built better engines and cars. With that said I dont really blame GM. They were building good cars that people were buying. They could not predict the gas crisis nor did they contribute to it. And the gas prices hurt more than car companies anyways. Even if GM made all chevy aveos, people dont want those nor would buy them. But alot of problems with our economy was due to a lack of oversight in the economy not just GM, but banks. Economy is like a dog specially in capitolism, you put a whole bag of food out most dogs will eat themselves to death, only a few will eat what they need. So no innovation was was promoted or forced. The only thing that happened was companies filling their pockets. And you know its hurt our country, and I think we have learned a lesson and so has GM. Spending a little money now will help you later vs waiting till the last moment and having to spend a lot of money and face bankruptcy.

[perfxn]

i agree with your point, i was going to add that in my paper but to tell the truth i got a little of that senior sickness and just wanted to get her done. but i do totally agree with that point of view, thanks

[PQ]

Meh...... there are alot of facts left out. Not sure exactly what the instructor was looking for but there is a whole other side to the story. A lot of opinion in there. Manufacturing is as much of a guessing game as it is market research. You just never know. The entire industry was hit hard with the current economic stress. Who said the G8 was too little too late. Maybe it was but it's speculation. I would guess there are those at GM who would disagree.

I think GM was spread too thin. Solstice/Sky, Silverado/GMC, and other things that can be argued were kind of competing against yourself.

Anyway. Hope you get a good grade. Maybe proof read a few more times. lol

[nards444]

thats what i said, people blame GM for not speculating, but at the sametime you have to do that to sruvive in a business. Its just like having a house, just because you like it how it is, doesnt mean you dont keep updating it. GMC has a lot of following but i can see what you mean. But theres a lot of people who like GMC and wouldnt buy chevy and vice versa. Eventhough the cars are 98% identical minus a few different interior options a and grill they even roll of same line. Ford has been the best selling quarter ton for ever. But with silverado and sierra combined blow it out of the water, which many people dont know.

[StoutFiles]

The G8 was a good car, just marketed horribly. On TV they were trying to compare it to a BMW and saying it was better because it got one more MPG. Just awful, awful marketing.

[nards444]

thats another thing GM's marketing DIV needs to be fired. Because they didnt market their cars well at all. They were making nice afforadable cars but failed to mention MPG till just recently.

[PQ]

All valid points. I'm not an expert, which I guess is my point. We can't say as well as the GM bigs or certainly any better than them, that we could have made decisions that would have made the difference. A paper written on the subject can only be assumption.

[nards444]

your right but hind sight is 20/20. But at the sametime you make the big bucks its your job to make the decision. I am officer in the military and mistakes arent tolerated, and we get paid a lot less than these Big wigs get, and our decisions ruin lives and lose wars, theirs losses business.

[PQ]

Sure, but there are wars and conflicts where that hindsight would have come in handy at the time. Nobody is perfect. Now, I DO beleive in accountability. It happened on your watch. You own up and move forward. Adapt and overcome. I get it, but GM had an atom bomb dropped on thier battlefeild and now it's survival mode. Some prepared better. But now they have a chance to learn from their mistakes and prepare for the future. They are being held accountable and that's all we can ask for.

[niko_lanzi]

I just turned in a paper yesterday for my business class on GM.

[nards444]

Originally Posted by irpq11

Sure, but there are wars and conflicts where that hindsight would have come in handy at the time. Nobody is perfect. Now, I DO beleive in accountability. It happened on your watch. You own up and move forward. Adapt and overcome. I get it, but GM had an atom bomb dropped on thier battlefeild and now it's survival mode. Some prepared better. But now they have a chance to learn from their mistakes and prepare for the future. They are being held accountable and that's all we can ask for.

I think we are on the same page. I dont think GM is to totally blame, do they share blame YES, whats the percentage I dont know I wouldnt say its anymore then 50/50. I would say 30-40% lays in GM's court. But some of the people probably need to own up and be let go, its just the way it is.

[perfxn]

i wasnt trying to place blame, but my focus was on gm and it didnt matter that all the other car companies were in trouble and in the same place as gm. the way i was raised you dont make excuses and you dont worry about what every well else is doing, you just handle yours..... and thats kinda my approach to this paper.

[kdoske]

This has to be the smallest college paper ever written. You are lucky...