Wednesday, October 16, 2019
General Motors Case Study Example | Topics and Well Written Essays - 750 words
General Motors - Case Study Example The managers at General Motors failed to cease and take control of the market in African and Asian countries for their products in the sense that the management was ready to manufacture cars that people in these countries could not afford. Survival of the business relies on the Companyââ¬â¢s ability to generate profits and cash flow. Therefore, bad quality management of General Motorââ¬â¢s products is affecting the Companyââ¬â¢s ability to survive since it is unable to maximize profits and cash flows.GM has faced a decrease in liquidity to $14 billion in the fiscal year 2008 from $27.3 billion in 2007. The increased losses are attributed to decrease in working capital and low sales volumes. In addition, research, development, and interaction or relationships with suppliers are negatively influenced by the decreased or reduced liquidity.There are certain activities for GM business in China and India. In China, the business for new autos is amidst a 14% development rate antici pated to reach over $97 billion in 2008. In the meantime in India, the business for new autos developed by 15.5% in 2008 to a dollar estimation of $28 billion. A sign that India will play a much greater is the anticipated increment to 2.5 million units before the end of 201. Steady development rates are anticipated in the following few years. The market's volume is required to climb to 21.5 million units before the end of 2013. The light business vehicles section was the markets biggest in 2008, creating aggregate volumes of 9.8 million units.
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