Question

What are Mary Berra (CEO of General Motors) five key strategic decisions? How does she implement each one?

Answer 1

Mary Berra’s (CEO of General Motors) five key strategic decisions are-

1. Mary Berra has sold off GM’s Opel-Vauxhall to the French automaker PSA Group for about €1.2 billion. Her alliance with PSA group has resulted in many benefits for both PSA group and GM.

2. European Operations of GM Financial was sold for €1 billion dollars. These two strategies of selling out part of the GM’s operations are said to be beneficial for both parties and GM is able to improve its financial health through these two strategies.

3. Mary Berra’s another important strategy for GM is to stop production in Australia. The last vehicle that was manufactured in Holden manufacturing, Australia was in October 2017.

4. In India and Africa, the Chevrolet brand was phased out and India would be the production hub to export to other international markets. This strategy was implemented by ceasing the sales of Chevrolet brand in India.

5. GM was has also exited from South Africa as a strategy to restructure international operations for GM. In South Africa, Chevrolet was manufactured and sold however these operations would be ceased to adhere to their regulatory requirements of the domestic market. However, Isuzu in South Africa would acquire manufacturing segment of the light commercial vehicle from GM.

Mary Berra’s above strategies is to make GM financial stronger and focus on the business units, capital and resources that would help them to have higher returns than their existing or previous performance.

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