This 5 page paper offers 3 challenges for GM and how to meet them during their restructuring process. Included are leadership and technology, new and greener vision, and employee transition. This is couched in modern leadership model. Bibliography lists 6 sources.
Name of Research Paper File: JV57_JVleadfail.rtf
Unformatted Sample Text from the Research Paper:
wondering what can be done to change its financial outlook. If left to the old regime, GM could have expected a series of layoffs, and not at the management level,
so Obamas administration put the company under new management to prevent the disruption associated with constant restructuring and reorganizing in exchange for a sweeping overhaul.
While the management layers are being reorganized and the business plans being revamped, and these programs are realizing some preliminary success, there are other stakeholders needs that need
to be addressed, such as employees, to reap the full rewards of restructuring. Background
By late 2008, after celebrating its 100th anniversary, General Motors CFO realized the companys downward spiral couldnt be stopped. Since 2004, they
had taken a $70 billion loss, and were losing more than $1 billion a month in operating costs (McKenzie 2010). Just before the economic crisis, they had planned to regroup
in 2010 with sales from new car offerings and the benefits of the 2004 agreement with the United Auto Workers for $5.2 billion, but their costs were spiraling with the
economic crisis ((McKenzie 2010). While insiders still felt the company would recover as it always had, Obamas overseer, Steven Rattner, reported to
Fortune magazine: "Everyone knew Detroits reputation for insular, slow-moving cultures. Even by that low standard, I was shocked by the stunningly poor management we found, particularly at GM, where we
encountered . . . perhaps the weakest financial operation any of us had ever seen in a major company" (McKenzie 2010). The