Use the case study pasted at the bottom: General Motors
Include a clear and concise introduction.
Format your case study assignment paper so that the three questions asked below are clearly defined. Double space your work, cite your work, limit quotes, and edit your work well for spelling, grammar, and punctuation errors. If you use any quotes, you must increase the length of your paper to compensate. Make sure you have two additional references other than the text and use citations.
Name your case study on your title page.
No abstract is required.
Read the case study and answer the following questions in your paper.
1. Assess the effectiveness of your company’s leadership.
2. Discuss the basis of your company’s competitive advantage and the potential challenges to its strategy.
3. What growth strategies might your company pursue?
Submit your paper into the assignment section of the classroom.
Font and Spacing - Use Times New Roman 12 pitch font with double-spaced lines.
Length - Write a 3 to 5 page analysis not including the title page and citation page. No fewer than 1050 words!
Reference Page - Include all sources including your textbook on a Reference page
Utilize the APA Style for documenting sources. You will need to include at least 2 sources in addition to your text. Finally, remember Wikipedia is NOT a scholarly source.
Punctuation, essay format (thesis, supporting paragraphs with transition and topic sentences, and summary) grammar and documentation count toward your grade.
Review the Grading Rubric attached here for detailed information about the essay grading criteria.
Case study: General Motors
On January 9, 2013, Daniel Akerson, the chief executive of General Motors, pointed out that his firm had shown profits on a consistent basis over the past eight quarters (see
Exhibits 1
to
3
). He expected GM to show even better performance in the coming year, largely because it was expecting to launch new models of many of the cars in its lineup. At the same time, Akerson acknowledged that the firm still had a long way to go before it completed its turnaround. “Obviously we still have a lot of work to do in some areas and we’re taking the necessary corrective actions to get the ball over the goal line,” he recently told analysts and reporters.
1
GM was forced into bankruptcy in 2009 by the U.S. government when it received shares in the firm in return for providing $50 million in emergency funding. GM emerged from bankruptcy as a smaller, leaner competitor with fewer brands, fewer employees, and less production capacity. It revamped most of its management team, which was eventually taken over by Akerson. Soon after he took over, GM offered shares in the new company, in one of the nation’s largest initial stock offerings ever, and the federal government sold most of its 60 percent stake after shepherding the firm through bankruptcy.
There were some signs of progress under Akerson after three years. He had made some headway ...
Transparency, Recognition and the role of eSealing - Ildiko Mazar and Koen No...
Use the case study pasted at the bottom General MotorsInclude a c.docx
1. Use the case study pasted at the bottom: General Motors
Include a clear and concise introduction.
Format your case study assignment paper so that the three
questions asked below are clearly defined. Double space your
work, cite your work, limit quotes, and edit your work well for
spelling, grammar, and punctuation errors. If you use any
quotes, you must increase the length of your paper to
compensate. Make sure you have two additional references
other than the text and use citations.
Name your case study on your title page.
No abstract is required.
Read the case study and answer the following questions in your
paper.
1. Assess the effectiveness of your company’s leadership.
2. Discuss the basis of your company’s competitive advantage
and the potential challenges to its strategy.
3. What growth strategies might your company pursue?
Submit your paper into the assignment section of the classroom.
Font and Spacing - Use Times New Roman 12 pitch font with
double-spaced lines.
Length - Write a 3 to 5 page analysis not including the title
page and citation page. No fewer than 1050 words!
Reference Page - Include all sources including your textbook on
a Reference page
Utilize the APA Style for documenting sources. You will need
to include at least 2 sources in addition to your text. Finally,
remember Wikipedia is NOT a scholarly source.
Punctuation, essay format (thesis, supporting paragraphs with
transition and topic sentences, and summary) grammar and
documentation count toward your grade.
Review the Grading Rubric attached here for detailed
information about the essay grading criteria.
2. Case study: General Motors
On January 9, 2013, Daniel Akerson, the chief executive of
General Motors, pointed out that his firm had shown profits on
a consistent basis over the past eight quarters (see
Exhibits 1
to
3
). He expected GM to show even better performance in the
coming year, largely because it was expecting to launch new
models of many of the cars in its lineup. At the same time,
Akerson acknowledged that the firm still had a long way to go
before it completed its turnaround. “Obviously we still have a
lot of work to do in some areas and we’re taking the necessary
corrective actions to get the ball over the goal line,” he recently
told analysts and reporters.
1
GM was forced into bankruptcy in 2009 by the U.S. government
when it received shares in the firm in return for providing $50
million in emergency funding. GM emerged from bankruptcy as
a smaller, leaner competitor with fewer brands, fewer
employees, and less production capacity. It revamped most of
its management team, which was eventually taken over by
Akerson. Soon after he took over, GM offered shares in the new
company, in one of the nation’s largest initial stock offerings
ever, and the federal government sold most of its 60 percent
stake after shepherding the firm through bankruptcy.
There were some signs of progress under Akerson after three
years. He had made some headway in dealing with GM’s
notorious internal bureaucracy. The firm had also managed to
cut costs, particularly in its long-term obligations with health
care costs and pensions. GM had successfully introduced new
cars in the U.S., such as the Chevrolet Cruze and the Cadillac
ATS, and was set to unveil a redesign of its Corvette sports car.
Partly as a result of these actions, the firm was also generating
4. Period Ending
3
Dec 30, 2012
Dec 30, 2011
Dec 30, 2010
4
Total Revenue
152,256,000
150,276,000
135,592,000
5
Cost of Revenue
141,881,000
131,229,000
119,038,000
6
Gross Profit
10,375,000
19,047,000
16,554,000
7
Selling General and Administrative
13,593,000
12,105,000
11,446,000
8
Nonrecurring
27,145,000
1,286,000
–
9
Operating Income or Loss
(30,363,000)
5,656,000
5. 5,108,000
10
Income from Continuing Operations
11
Total Other Income/Expenses, Net
595,000
869,000
1,727,000
12
Earnings before Interest and Taxes
(29,518,000)
6,507,000
6,639,000
13
Interest Expense
489,000
540,000
1,098,000
14
Income before Tax
(30,007,000)
5,967,000
5,541,000
15
Income Tax Expense
(34,831,000)
(110,000)
672,000
16
Minority Interest
52,000
(97,000)
(331,000)
6. 17
Net Income from Continuing Ops
6,188,000
9,190,000
6,172,000
18
Net Income
6,188,000
9,190,000
6,172,000
Note: All numbers in thousands.
Source:
finance.yahoo.com
;
GM.
EXHIBIT 2
Balance Sheet
Go to library tab in Connect to access Case Financials.
A
B
C
1
Balance Sheet
2
ASSETS
3
Current Assets
4
7. Cash and cash equivalents
$ 18,422
$ 16,071
5
Marketable securities
8,988
16,148
6
Restricted cash and marketable securities
686
1,005
7
Accoounts and notes receivable (net of allowance of $311 and
$331)
10,395
9,964
8
GM Financial finance receivables, net (including gross
consumer finance receivables transferred to SPEs of $3,444 and
$3,295)
4,044
3,251
9
Inventories
14,714
14,324
10
Equipment on operating leases, net
1,782
2,464
11
Deferred income taxes
9,429
527
12
Other current assets
8. 1,536
1,169
13
Total current assets
69,996
64,923
14
Non-current Assets
15
Restricted cash and marketable securities
682
1,228
16
GM Financial finance receivables, net (including gross
consumer finance receivables transferred to SPEs of $6,458 and
$5,773)
6,954
5,911
17
Equity in net assets of nonconsolidated affiliates
6,883
6,790
18
Property, net
24,196
23,005
19
Goodwill
1,973
29,019
20
Intangible assets, net
6,809
10,014
9. 21
GM Financial equipment on operating leases, net (including
assets transferred to SPEs of $540 and $274)
1,649
785
22
Deferred income taxes
27,922
512
23
Other assets and deferred income taxes
2,358
2,416
24
Total non-current assets
79,426
79,680
25
Total Assets
$ 149,422
$ 144,603
26
LIABILITIES AND EQUITY
27
Current Liabilities
28
Accounts payable (principally trade)
$ 25,166
$ 24,551
29
Short-term debt and current portion of long-term debt
30
10. Automotive (including certain debt at VIEs of $228 and $171)
1,748
1,682
31
GM Financial
3,770
4,118
32
Accrued liabilities (including derivative liabilities at VIEs of $1
8 and $44)
23,308
22,875
33
Total current liabilities
53,992
53,226
34
Non-current Liabilities
35
Long-term debt
36
Automotive (including certain debt at VIEs of $122 and $7)
3,424
3,613
37
GM Financial
7,108
4,420
38
Postretirement benefits other than pensions
7,309
6,836
11. 39
Pensions
27,420
25,075
40
Other liabilities and deferred income taxes
13,169
12,442
41
Total non-current liabilities
58,430
52,386
42
Total Liabilities
112,422
105,612
43
Commitments and contingencies
44
Equity
45
Preferred stock, $0.01 par value, 2,000,000,000 shares
authorized: Series A (276,101,695 shares issued and outstanding
(each with a $25.00 liquidation preference) at December 31,
2012 and 2011)
5,536
5,536
46
Series B (99,988,796 and 100,000,000 shares issued and
outstanding (each with a $50.00 liquidation preference) at
December 31, 2012 and 2011)
4,855
12. 4,855
47
Common stock, $0.01 per value (5,000,000,000 shares
authorized and 1,366,373,526 shares and 1,564,727,289 shares
issued and outstanding at December 31, 2012 and 2011)
14
16
48
Capital surplus (principally additional paid-in capital)
23,834
26,391
49
Retained earnings
10,057
7,183
50
Accumulated other comprehensive loss
(8,052)
(5,861)
60
Total Stockholders’ equity
36,244
38,120
66
Noncontrolling interests
756
871
67
Total Equity
37,000
38,991
68
Total Liabilities and Equity
$ 149,422
$ 144,603
13. Source: GM
EXHIBIT 3
Net Income by Operating Regions, 2012
Region
Net Income
North America
6,953
Europe
(1,797)
Asia & Australia
2,191
South America
271
Note: All amounts are in $ millions. Year ending December 31.
Source: GM
EXHIBIT 4
Market Share
U.S.
GLOBAL
2012
17.9
11.5
2011
19.6
11.9
2010
19.1
11.5
2008
21.0
14. 12.5
2006
24.2
13.5
2004
27.2
14.3
2002
28.3
15.0
2000
29.0
15.2
1990
35.0
16.5
Source: GM.
These lingering problems were reflected in a drop in the price
of the firm’s shares, which were trading at around $30,
somewhat below the $33 at which they had been sold when they
had been refloated on the stock market in 2010. GM had also
dropped behind Toyota in worldwide car sales and was being
challenged by a more aggressive Volkswagen. Summing up the
firm’s position, industry analyst Rebecca Lindland said, “It was
a very mediocre year for GM. They are still kind of finding
their way post-bankruptcy.”
2
Pushed into Bankruptcy
For most of GM’s history, the firm had been run as a
collaboration of relatively autonomous geographical divisions
that rarely worked with each other. In 1994, there were 27
different units within GM that were developing their own cars,
making it difficult to achieve economies of scale. After being
15. named president in 1998 and CEO in 2000, Rick Wagoner
worked to tear down the boundaries between the firm’s
divisions. Over the course of nearly a decade, he managed to
restructure the firm’s four different geographical units in order
to get them to collaborate with each other on designing,
manufacturing, and marketing cars.
EXHIBIT 5
Vehicle Sales
Year Ended
December 31,2012
December 31, 2011
United States
Chevrolet
1,851
1,775
GMC
414
398
Buick
180
178
Cadillac
150
152
Canada/Mexico
423
421
Europe
17. Note: All figures are in thousands of units.
Source: GM
Wagoner faced an even bigger challenge in dealing with the
high costs, which made GM’s cars much more expensive to
build than those of its foreign-based competitors. He carried out
three major restructurings, eliminating dozens of plants, cutting
tens of thousands of jobs, and jettisoning hundreds of dealers.
Wagoner even managed to deal with the lavish health and
retirement benefits that GM had accorded to its workers in
response to a prolonged strike by the United Automobile
Workers during 1970. He was finally able to persuade
employees and retirees to pay for part of the firm’s escalating
health care related costs. In 2007 Wagoner negotiated with the
union to create a health-care trust, called a voluntary
employees’ beneficiary association, which would take over the
responsibility for these costs.
In spite of these efforts, GM announced a loss of $30.9 billion
dollars for 2008, amounting to a staggering $50 a share. The
firm had not managed to post a profit since
Reference:
Dess, Gregory, G.T. Lumpkin, Alan Eisner, Gerry McNamara.
Strategic Management: Text and Cases, 7th Edition
. McGraw-Hill Learning
Solution
s, 09/2013. VitalBook file.
