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General Motors (GM), a multinational American automotive company must explore several avenues and make decisions in regards to pricing and production in order to maximize profits in the short and long-term. Generally speaking, if a business such as GM is unable to cover production costs through revenue generation, they will be operating at a loss and will not be able to provide earnings to the shareholders in the short-run. If one were to sit on GM’s board of directors, they would likely have to weigh risk factors and decide which business ventures would promote company growth and yield profit. In regards to pricing, GM would benefit by finding creative ways to cut costs, which will influence the pricing of the products and services offered. For example, outsourcing a particular part in instead of creating it in-house may be a less expensive alternative. However, last minute decisions to cut costs may put additional strain on the employees, thus affecting the company’s culture (Deans & Watanabe, 2005). GM will also need to make decisions in production, which could exist in lowering the cost of production or exploring the production of new and innovative products. GM has worked on several alternative energy vehicles over the years, including ethanol, hybrid, and electric vehicles, which have steadily increased in popularity over the last decade. However, the decision to increase the production of electric vehicles could prove extremely lucrative for GM in the future. Lastly, GM could also make decisions in production that align with the economic and environmental status of their consumers. Due to the coronavirus pandemic, GM has helped to lessen the critical shortage of face masks across the world by producing up to 50,000 face masks per day or 15 million per month (GM, 2020). Although, this may not be largely profitable at the time, this will build public and shareholder confidence in the company and keep workers gainfully employed during a national crisis. Such actions will inevitably bolster corporate social responsibility, leading to profits in the long-run.

Answer 1

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Here are my thoughts on the discussion of general motors a multinational American automotive company. Baby internal research it is noted that the general motor is currently facing some losses in the organisation due to its an ability to cover up the cost with its revenue generation. Which is not a good sign for a company to get into losses and not generating properly when you that covers the cost of the company. There are several everything start general motors can opt for to overcome this problem in the long run and short run. it is very important for the company to build its reputation and goodwill and give the trust and faith of the customers and the shareholders along with stakeholders so that even in the down shareholder, stakeholder and customer tends to trust general motors and be loyal to it. The scheme of producing face masks at the time of this pandemic of coronavirus is a very nice initiative to give the trust and the the faith of the customer, shareholders and stakeholders.