Task 1 Case 1 International Operations At General Motors For Years General Motors Dabbled With The Idea Of Becoming 1 (96.35 KiB) Viewed 63 times
Task 1 Case 1 International Operations At General Motors For Years General Motors Dabbled With The Idea Of Becoming 2 (79.91 KiB) Viewed 63 times
) Task 1-Case 1: International operations at General Motors For years, General Motors dabbled with the idea of becoming a truly global business. While the firm exported its cars to several countries for years and had a few plants outside the United States, it reminded predominately a North American enterprise .80% of the firm vehicles were made in North America and cars made elsewhere were often retreads of older GM models, GM older South American plants. All changed dramatically GM made bold and public commitment to become global automaker. New products are being designed and manufactured in other countries, with GM striving aggressively to reach a goal of having 50 percent of its capacity outside of North America. At the centre of this effort is an innovative approach to designing and manufacturing its automobiles in the four corners of the world. GM is essentially emulating its Japanese's rival Toyota. Through a series of partnerships and alliances, GM has gained important insights into the pay-offs .Toyota has achieved through its strategies of plant standardization and lean manufacturing. At Toyota, a change in a car being made in Japan can easily be replicated through out other Toyota plants around the world. Toyota mastered and pioneered the cutting costs by managing parts inventory and other aspects if its logistics more efficiently. In contrast US automakers have traditionally designed each automobile factory as a unique and autonomous facility .While this sometimes makes a given plant especially productive- since it was designed for one specific purpose, it also constraints flexibility and makes it more difficult to transfer new technologies and methods between factories. GM is now using Toyota 's strategy in its newest factories. These factories are located in Argentina, Poland and China.The plants look so much alike that a visiting GM executive might target which country they are located. This strategy allows GM to launch global products, such as a new "world car" more easily. If one factory develops a problem, it might easily be solved by simply calling one of the others. If a manager at one factory discovers a new way of achieving a productivity gain, this information can be easily passed on and implemented in other factories.
GM new factories have been designed with flexibility and efficiency in mind. Each factory can be easily expanded should demand warrant higher production. Each is constructed in a large "U" shape so that suppliers can deliver component parts and accessories directly to the assembly lines, cutting down warehouse costs & improving productivity.But the plants are similar to one another, GM also found it necessary to make adjustments in each to meet unique conditions in each country. In China, for example, managing the plants 'just in time inventory system will present unique challenges, for suppliers will be delivering many parts on carts and bicycles due to that country's poor road system .Despite such minor accommodations to local conditions, GM believes that its standardized plants will cut its production costs substantially and allow it to succeed in the world's emerging markets. QUESTIONS: 1. Discuss five advantages and three disadvantages of General Motors' strategy for green field site investment and plant construction in different locations in the world. (35 marks) 2. Evaluate the current standardization business strategy adopted by General motors and highlight where this business approach might be less appropriate. (30 marks) 3. Critically examine the operational management and implementation issues illustrated in this case. (35 marks)
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