General Motors Case
General
Motors, the venerable U.S. icon, has recently lost its position
as the biggest automaker in the world to rival Toyota. The Japanese company has usurped
the top spot because of a number of missteps at GM. The case details a number
of these missteps such as failing to be innovative, failing to keep abreast of
buyer preferences, and the failure to develop good labor relations.
There are a
variety of different essays that can be derived from the reading, our
discussion, your research and the case at the end of the chapter.
However, each essay should begin with a thesis statement couched in the first
paragraph, and should employ your answers to the questions at the end of the
case to support the original thesis in the succeeding paragraphs. The
final paragraph of the essay should incorporate your general argument to
restate the thesis.
It is assumed that at this time all students are now comfortable in their
ability to create an effective thesis statement.
Some of the possible responses to the questions at the end of the case are:
Case Question 1: What are the
internal and external forces calling for change at GM?
The biggest
impetus for change at GM is its declining market performance. GM’s estimated
2006 production is 8.8 million cars versus the 9 million estimated for Toyota. The company reported a $8.6
billion loss in 2005. However, GM’s stakeholders all seem to resist change for
specific reasons. For example, Shareholders resist change because of the
proposed dividend cut. Employees resist it for fear of declining compensation.
Case Question 2: What are the
reasons that each of the various stakeholders are resistant to change?
The reasons
are specific to each stakeholder. Customers are reluctant to switch from
imported brands to GM’s cars because of the latter’s poor styling and
performance. Workers fear job elimination and decreased pay and benefits.
Dealers fear closing of dealerships and loss of income. Shareholders are
resistant because GM recommends a 50 percent cut in dividends.
Case Question 3: In your opinion,
what should GM leaders do to overcome stakeholders’ resistance to change?
The chapter
identifies several ways to reduce resistance to change. The key for GM is to
educate and communicate with its stakeholders and help them understand the need
for change. GM should use force-field analysis to identify the resistors to
change and work to remove them.
If you would like to learn more about the essay format
please visit the "Guide to Grammar and Writing" on the "Links"
page of this site.
