Question

In: Operations Management

General Motor established in 1908. That time the company was the sole carmaker dealer in the...

General Motor established in 1908. That time the company was the sole carmaker dealer in the region, e.g. Michigan, first it was a holding Buick company, till 1920 it was becoming the world largest motor manufacturing company. However, General Motor is a fallen giant. Glory of the past from being a great market leader to bankrupt company General motors has come a long way. In 1980s GM was the top car manufacturer in the USA until the arrival of the Japanese cars. The Japanese sold cheap and better cars. GM failed to realize the change in the industry and technology and constantly lost market share to the Japanese companies.

why is necessary for General Motors to bring change in their management? (250 words)

Solutions

Expert Solution

Every day new firms enter into the market economy and the success is based on how every firm deals with their competitors and  their surrounding competitive environment. Every firm needs to focus on its competitor the same way they focus on themselves.

In the case of General Motors, there is a need for change in their management because they were actually unaware of their upcoming competitor(i.e, Japanese cars). Hence they need to focus their attention on conquering the market economy by overcoming their competitor's challenges. It could be by introducing a particular USP(Unique Selling Proposition)or by introducing a product differentiation that is more efficient than its competitors.

Another reason why change management is essential to General Motors is to get back their fame and gain more customers. Once the fame is gone, then it is difficult for the customers to accept that brand wholeheartedly. By adopting a change in the strategy of producing and selling cars, they could also improve financially and can avoid hard situations like bankruptcy by gaining a higher profit margin.

The internal factors like employee satisfaction and quality work culture need to be considered along with the external factors. Proper change management brings more flexibility to the employee by giving them a better work culture and a comfortable environment to work.

GE could also gain a badge of achieving a successful change record if the change they implemented gives them better results more than their competitors. It also includes increasing the customer experience way better than competitors.

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