GETTING ON THE RIGHT TRACK AT GENERAL MOTORS

1. 1
EMGT 340 Case Study 1
Aileen H. Banaguas
Ph. D. Student
Case Study 4
GETTING ON THE RIGHT TRACK AT GENERAL MOTORS
Presented to
DR. MARILYN M. ESCOBAR
EMGT-340: MANAGEMENT INFORMATION SYSTEM (MIS)
By
AILEEN H. BANAGUAS
Ph. D Student
Cavite State University
September 2, 2013

2. 2
EMGT 340 Case Study 1
Aileen H. Banaguas
Ph. D. Student
CASE STUDY 4
Getting on the Right Track at General Motors
Introduction
The case examines the problems faced by General Motors particularly
Bryan Burkhardt a global director of retail inventory management for GM service
and parts operation. The relationship between sales and services were actually
the problems of Bryan. The major reasons in this problem were the vehicle
owners that don’t have a satisfactory dealership repair experience in which only
half can buy that model car. These problems, coupled with 7,000 North American
dealerships overstock too many of those on hand that are frequently purchased.
To solve these problems, General Motors implemented a new inventory
management system centralized, web-based system that track inventory levels at
real time over 500,000 GM parts from 4,000 different suppliers.
This study develops a better understanding of the Systems Development
used in this case study both efficiency and effectiveness of the system. Systems
development requires a team effort from various support personnel and it starts
with careful planning.
1. The General Motors implement the Plunge System Implementation. In this
method, section discards the old system and immediately uses the new system.
This method is appropriate because this will lead to greater goal achievement
and have a profound and positive impact on the bottom line.

3. 3
EMGT 340 Case Study 1
Aileen H. Banaguas
Ph. D. Student
2. I do believe that General Motors has allowed its 7,000 North America
dealership to choose different dealership management system because GM
wants to investigate new approaches to existing problems. The advantage of
that approach is that it is directed toward solving a problem and appropriate in
General Motors which organization need to go rapid changes. The
disadvantage of this approach is that this may have inconsistency of the
concept of developing an information system and inefficient subsystems that
cannot be linked together.
3. From 67 percent to 96 percent is for me is good because it means that system
used is effective. To justify enhancement of approaches to this problem,
critical analysis must be used.
4. With the aid of Decision Support System managers can react and adapt to the
constant changing environment. Therefore, to succeed we need to have
information systems that can support the diverse information and decision-
making needs of the company and support in making snap decisions.
5. In the top-down initiative, the analyst first identify the objectives of the
organization, then analyst identifies what information will be required to
support management decisions related to the objective, after that systems are
develop on the basis of priorities. In the bottom-up initiative, the initiative
produces an information systethat satisfies transactional processing needs of
the organization.

4. 4
EMGT 340 Case Study 1
Aileen H. Banaguas
Ph. D. Student
1. STATEMENT OF THE PROBLEM
This study focuses on the problems encountered by the General motors.
Specifically, this study seeks to answer the following:
1. What are the reasons behind the General motors’?
2. What organizational changes must GM implement in North America to
earn above average return?
2. ANALYSIS
1. Understanding the reasons behind GM's problems.
a. Vehicle owners that don’t have a satisfactory dealership repair
experience in which only half can buy that model car.
b. 7,000 North American dealerships overstock too many of those
on hand that are frequently purchased.
2. ALTERNATIVE COURSES OF ACTION
1. Restructuring into a decentralized organization in order to put more
emphasis on individual brands rather than regional divisions.
2. Market research, internal and external analysis required in order to
make this alternative successful.
3. Start with decentralization but aim for an overall more coherent
organization through the pursue of a related constrained strategy.

5. 5
EMGT 340 Case Study 1
Aileen H. Banaguas
Ph. D. Student
4. RECOMMENDED SOLUTION AND RATIONALE
1. Implementation of a solution, that requires clearly stated steps to resolve
the problem, timelines for the implementation of parts, as well as a
Resource Allocation Plan. The functions of Planning, Organizing, Leading
and Controlling all come into play during an implementation.
2. Technical personnel need to be aware of the Systems Requirements,
Restrictions and Technical Constraints of the Implementation Plan.
3. Use Decision Support Systems which can provide your company with
many other benefits like speeding up process of decision making like
Increasing organizational control, speeding up problem solving in an
organization, helping automate managerial processes, improving personal
efficiency.
5. IMPLEMENTATION
To implement the recommended solutions she should follow the step-by-
step plan of action.
1. Formulate tactical and strategic decisions to be implemented.
2. Monitor transitional period from old to new organizational structure
3. Provides monitoring system.

6. 6
EMGT 340 Case Study 1
Aileen H. Banaguas
Ph. D. Student
4. Use of computerized Decision Support Systems.
5. Continuous quality control and customer feedback.
Reference:
http://www.targit.com/en/landingpages/decisionsupportsystem/dss#sthash
.V0TIyGs0.dpuf
http://dssresources.com/cases/
http://www.tessella.com/wp-content/uploads/2009/04/case-study-
metronet-bcv-decision-support-system.pdf
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