General Motors Operations Management Plan

General Motors Operations Management Plan

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General Motors Operations Management Plan

Overview and History

General Motors Company specializes in designing, building, and selling trucks, cars, and vehicle parts throughout the world. The company also provides automobile finance services. The services provided by the company include fleet leasing, full service leasing, truck and car extended service contracts, and dealer financing. Currently, the company is the largest in the field of vehicle manufacturing worldwide. In terms of history, General Motors was founded in 1909 by William Durant (Gustin, 2010). The company originally started out as Buick holding company. Over the turn of the twentieth century, General Motors had about 8000 automobiles in the United States. The company was also leading in the manufacture of horse-drawn vehicles. From 1931 to 2007, General Motors was the global leader in terms of vehicle sales.

Company Situation

With leading global sales from 1931 to 2007, the company’s longest-running lead was cut short by the global recession that occurred in 2008. Consequently, its sales were drastically affected. Company sales diminished and its private capital sources dried up. In June 2009, the company filed for bankruptcy. This prompted the US government to offer financial support leading to the birth of a rejuvenated company (Flink and Niemeyer, 2009). With this rejuvenation came new car brands such as the Cadillac, Chevrolet, GMC, and Buick. The company gradually gained stability as more than 70 percent of its sales came beyond the United States.

Currently, General Motors employs 0ver 210,000 people in major world regions and operates in more than 110 countries. After the bankruptcy, the company changed its competitive strategy. As of 2009 and 2010, the company was declared the second largest automaker in terms of global sales. Currently, General Motors no longer enjoys the luxury of leading the automotive industry due to the major competition it is facing. Toyota has in particular become a cause for concern for the company. The decision by Toyota Company to manufacture hybrid technology cars was a crucial influence in ousting General Motors from its mantle (Flink and Niemeyer, 2009). Other companies such as Chrysler and Ford have a significant competitive edge against General Motors.

The legal environment also influences General Motor’s activities. With established locations in 37 countries, the company has to put up with various rules and regulations set by those countries (General Motors Corporation and Princeton Institute for Historic Research, 2011). Factors such as tax and other government legislations determine how the company conducts its activities.

Company Products and Services

General Motors manufactures its products in 37 countries. The main vehicle products include Chevrolet, GMC, Buick, Isuzu, Opel, Vauxhall, Cadillac, and Wuling (Gustin, 2010). The company services include insurance and financing operations, fleet leasing, truck and car extended service contracts, full service leasing, and dealer financing. Primarily, these services are centered on vehicle repair, maintenance, and trade-ins.

Supply Chain

With General Motors’ activities stretching worldwide, the management of the company’s supply chain is executed through the Global Purchase and Supply Chain. This department is responsible for the procurement of the company’s vehicle parts, plant equipment, and services. This department also optimizes the company’s supply chain and material costs thus supporting the growth of global sales. Because General Motors operates in four different global regions, suppliers have an opportunity of doing business in unprecedented volume. The activities of Global Purchase and Supply Chain include all aspects of the company business including manufacturing sales, advertising, marketing, engineering, research and development. The management of the company’s supply chain ensures that daily production schedules are met and implemented successfully.

Reference

Flink, J. J., & Niemeyer, G. A. (2009). The general of General Motors. American Heritage, 24, 5.

General Motors Corporation, & Princeton Institute for Historic Research. (2011). General Motors: The first 75 years of transportation products. Princeton, N.J: Automobile Quarterly Publications.

Gustin, L. R. (2010). Billy Durant: creator of General Motors. Grand Rapids: Eerdmans.