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THE G.M. CASE SYNOPSIS SYNOPSIS OF THE CASE 1. HENRY FORD STRATEGY A. LOW - COST B. MASS PRODUCTION C. DEVELOPED MASS MARKET - ONE MODEL “T” D. LIMITED PRODUCT DIFFERENTATION E. MFG. DISTINCTIVE COMPETENCE - STANDARDIZATION OF QUALITY COMPONENT PARTS FOR EASY AND CHEAP ASSEMBLY
Competition: Quality, Cost, And Product Differentiation
Vertical Integration Vs. Outsourcing
Strategy - Structure Link
EDS And Hughes Aircraft
The Oldsmobile division
THE G.M. VISION GM’s vision is to be the world leader in transportation products and related services. We will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people.
G.M. CASE MISSION STATEMENT G.M. is a multinational corporation engaged in socially responsible operations, worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior return on their investment.
Quality - G.M. marginal, competition continues to improve
Styling - G.M. must watch
Product line and segmentation - price and function - G.M. OK
Suppliers - G.M. too vertically integrated
Buyers - sport utility and pick-ups
New entrants - not likely a threat
STRATEGIC CHOICE G.M. has been through some difficult times the past 10 years or so and appears to have learned some hard lessons. Based on these lessons G.M. has begun to adopt a strategy of restoring profitability to its North American operations, by aggressive marketing, redesigned products, decentralized MGT style, and a profit rather than a market share goal.