The future of the once supreme American automobile industry was poised on the brink of bankruptcy

The future of the once supreme American automobile industry was poised on the brink of bankruptcy

In late 2008 and early 2009, nearly unfathomable problems and challenges were emerging from a crucible of technology, marketing strategy, and politics. The future of the once supreme American automobile industry was poised on the brink of bankruptcy as they pleaded their case for bridge loans before a deeply divided Congress. Bankruptcy would have devastating rippling effects from the halls of Congress to the end of the American Dream. Is the die cast, or is it time for new ? The choices now are congressional oversight or . Which will you choose? What about General Motors? Let’s start with their final exam the proposed restructuring placed before Congress and–ever so much more importantly–the American people.

Automobiles often exhibit deep-seeded emotive qualities without quantitative dimensions. Set aside your psychological emoticons and professionally assess the GM plan using Exhibit 1.2 as a template. What is this plan—Corporate Strategy? Business Strategy? Marketing Strategy? Explain your initial impression.

Using Exhibit 1.6, assess the GM proposal. Which orientation was it (product or marketing orientation? In your opinion, which orientation should have guided their planning? Explain your reasoning.

Even though the situation seemed dire, especially for the American automobile industry, and possibly still does, many believe there is a significant opportunity for the right strategy. Did the plan suggest a compelling analysis of the “4Cs.”? If you disagree, what’s missing?


………………………Answer preview……………………

Like many other enormous corporations, GM has a large and complex multi-level and interconnected corporate portfolio. There are many other portfolio that are nested in the corporate portfolio and they include divisions, of mechanical and cosmetic variations, of models within brands, of market segment, of supply chains, of manufacturing plants…………………………….


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