General Motors in 2005

Case 3 General Motors in 2005 Ana Zivkovic 1) What strategy was substantial by Henry hybridizing to compete in automobile industry? While GM was producing wide variety of overpriced cars for a small market, in 1908, Henry get across proclaimed the development of Model T car which was to be produced by revolutionary method, a plurality production. This strategy was based on moving conveyor belts, the belt brought the car to be assembled by unskilled workers. Ford started using standardized auto split that could be easily fitted together to make assembly easier and slight costly. Creating a mass market for Model T, cost of manufacturing cars plummeted, and Ford becomes an industry leader. And GM struggled to survive. 2) What was the strategy that Alfred Sloan developed to give GM a competitive advantage over Ford, and way was it sure-fire? 3) What structure did Sloan adopt for GM and how did this structure support its strategy? In 1920s Sloan become GMs chief operating officer and searched for a new way to organize and manage Gms diametric car companies to increase their competitive advantage. GM was operating 25 different car companies that produced hundreds of different models and it was very inefficient comparing to Fords one mass production model.

GMs models were competing against one an some other. Sloan saw that Ford strategy to produce one model was ignoring the needs of other market segments such are luxury cars. He aggroup 25 different GMs companies into 5 major self-contained operating divisions: Chevrolet, Pontiac, Oldsmobile, Buick and Cadillac. Each of different division was habituated its own support service, and it should increase operating efficiency and design. Sloans strategy was that GMs divisions would market five lines of cars to customers in five different socioeconomic segments. He hoped that the costumers would move up to the next most expensive cars as they prospered. He insisted that individually division had a unique image so that cars of different divisions would be... If you want to get a full essay, order it on our website: Orderessay

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