It is hard to imagine that General Motors, one of the leading car companies, occupying 15% of the automobile market and that in 2003 alone earned $3.8 billion on record revenue of $185.5 billion, was founded in the small town of Flint, Michigan, by an ingenious salesman and labourer, William Crapo Durants. Over the years, General Motors has come to represent more than a car brand name. It has come to represent a tradition, an American tradition, employing more than 325,000 people worldwide, and ranking third in international sales. From salesman to automobile pioneer, William Crapo Durants' business intuition led him to the successful production of two wheeled horse carriages until 1903, when Durant met a young inventor named David Dunbarr Buick, a Scottish expatriot. In this same year Durant made a quick decision to change from manufacturing carriages to cars. Buick and Durant founded the Buick Company, releasing their first charter on June 17, 1905. And so began the production of the first automobiles, which in 1908 took on the name of General Motors.
[...] Through the agreement with OnStar, General Motors disposes of such an external knowledge as to reduce the costs of intra-organizational training programs, thus enjoying "external economies of learning". Another case in which GM has benefited from the market has been with the joint venture with FIAT in order to share powertrains and components (GM owns a 20% equity). When using the market, it is mostly convenient to perform long term contracts in order to reduce to the minimum transaction costs (emerging from the incompleteness of all contracts), coordination and timing costs, as well as the building of trust and liability (trying to avoid opportunistic behaviours). [...]
[...] The two most important and largest subsidiaries are General Motors Acceptance Corp. and Hughes Electronic Corp. Strategy Boards coordinate the work and the business all over the world, while relationships with stakeholders are considered to be very important and handled with care, attention and kindness; for this purpose GM entered in relations with lots of various organizations, such as: CERES (Coalition of Environmentally Responsible Economies) BSR (Business for Social Responsibility) WBCSD (World Business Council for Sustainable Development) GRI (Global Reporting Initiative) For these reasons, stake-holders are valued in the choices the corporation makes. [...]
[...] Organisational Culture Culture must start from the beginning General Motors seeks individuals with initiative and a willingness to assume a demanding workload in a challenging environment, with a strong academic background and a deep knowledge of finance, economics, accounting, engineering and operations. Successful candidates have demonstrated strong analytical and organizational abilities, as well as effective oral and written communication skills. Equally important, they have excellent interpersonal skills and work well in teams. The JumpStart program creates a great deal of employee enthusiasm by enabling networks and relationships to bloom, this program facilitates GM and automotive industry knowledge, fosters recruitment and retention of new hires, promotes corporate citizenship, provides a venue to create leadership experience, and serves as a ready focus group for GM business interests. [...]
[...] General Motors Financial Services offers automotive financing along with an array of mortgage and insurance products. GM's OnStar technology is one of the industry leaders in vehicle safety, security and information services. GM spent $ 2.5 million on the US campaign Mothers against Drunk Driving to send the message that drivers should never use a vehicle while under the influence of alcohol. To increase seat belt use, GM has joined other automakers, the U.S. National Highway Traffic Safety Administration and other leading agencies as to support the National Safety Council's Air Bag & Seat Belt Safety Campaign. [...]
[...] In 2003, GM raised $13 billion in debt principally to provide sufficient money for its pension funds and sold nearly 8,6 million cars and trucks, about 15 percent of the global market. Though financial difficulties pursue, GM is here to stay. Environment 1. General Environment General Motors has an overall positive general environment due to the multiple forces affecting the firm's business. Political Forces General Motors has been affected in contrasting ways by the political decisions of different western countries where the company is based. In the U.S., President George W. [...]
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