General Motors Case Study

Looking from different angles , General Motors is clearly having bad unloose outs in their operations as indicated by their GM s carrying out for the few years . Though GM s assets increased from 2002 to 2004 unless their revenues barely increased over the same year and their solve was almost stagnant on the same periodAmidst the different securities industry forces affecting the General Motors such declining market circumstancess caused by soaked market competition , rising cost of fuel , health care and pension costs for their employees , and so forth , GMC is lining enormous financial difficulties causing the company to earn a junk bond status for their investmentsWhat should GM do round its junk-bond status1 ) GM should implement Related Diversification measures by maturation low cost and fuel efficient feel cars in to effectively regain the market share2 .

Liquidation of assets and sell many company assets that are not performing well(p) to amaze a tangible cash worth3 ) Implement Retrenchment by regrouping through cost and asset reduction . The most well performing asset should be given more emphasisWhy has GM lost much of its competitivenessGM lost much of its competitiveness because 1 ) They failed to invest on product development by pursuance to improve their current products and by developing cheaper but quality cars . 2 ) They also failed to developed reinvigorated market for new products . This could have been done by increasing its market share through purchase of portions of stakes of local car makers in...If you necessitate to get a full essay, order it on our website: Ordercustompaper.com

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