General MotorsGeneral Motors is among the largest motor vehicle manufacturers in the whole world, only challenged by Toyota. With over a quarter a million employees in each key region spread over thirty five nations across the globe, General Motors boast of a wide network in all the continents. The company has business ventures in over one hundred and forty countries. Head offices are located in Renaissance centre in Detroit city of Michigan in the United States of America. It should be noted that the company traces its origin in Michigan at a place known as Flint.
William C. Durant is credited to have come with the idea that gave birth to this noble company that has spread across the world. Currently, the company has major centers in the United States of America, England, Peoples’ Republic of China, Germany, Italy, Canada and Brazil. Models being manufactured include Chevrolet, Buick, Cadillac, GMC, Daewoo, Pontiac, Holden, Wuling, Vauxhall and Opel. Since its inception, General Motors has had twenty one presidents. The company underwent a serious financial crisis between 2006 and 2008 which had far reaching effects to the economy and led to restructuring to realize profits once again.
(Hitt 96) General Motor’s mission is to exceed every expectation set for it. Its financing arm is known as General Motors Acceptance Corporation (GMAC). It can be imperatively noted that General Motors Corporation recorded over eight million sales of cars and trucks. The company has put structures in place to maintain its competitiveness at affordable costs. ORGANIZATION STRUCTURE OF GENERAL MOTORSThe effects of the world economic downturn were felt in all corners and major companies and financial institutions were not an exception.
Among the worst hit companies was General Motors which was already having its own internal financial issues. GM is embedded into the very core of America’s economy. It forms part of the backbone of United States manufacturing sector, plays a pivotal role in extended research and development, and greatly aids various communities across the country. General Motors today remains a key force of the United States economy, taking in a tenth of American employees, and is a great consumer of U. S. iron, steel, copper, plastics, rubber aluminum, and electronic components.
As it is the case with most motor vehicle companies, has continual faced many hurdles due to the ever increasing competition from other players which offer little heath care support and give minimal wages. General Motors on its part has spent over one hundred billion dollars on its employees’ welfare against a biting strain on its revenue and need to cost cut in order to favorably compete in the current volatile market that has been flooded by cheaper alternatives. Given these circumstances, the company faces a heavy challenge to meet its business objectives.
(Hitt 112)It is also important to note that General Motors has a greatly philanthropic corporate responsibility that considers the environment, safety, diversity, community, and partnership. Concerning the environment, the company seeks to adhere to laid down environmental policies at all costs, producing greener vehicles which are economic on fuels and some to use bio-fuels, recycling to give a new lease of life to used vehicles and ensuring sustainable manufacturing for renewable energy, reduced emissions and waste. The company is also keen on ensuring safety in manufactured vehicles thus minimizing all possible risks.
Diversity, community outreach programs and partnership are important pillars that cannot be ignored the General, Motors budget. These responsibilities have cost implications on GM.