Challenges Faced By General Motors

Challenges Faced By General Motors The United States (U.S) Multi National Enterprise (MNE) General Motors (GM) is one of the worlds largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Golden, Oldsmobile, Pontiac, Saturn, Opel Vauxhall and Saab. In 2006 it sold over 9 million cars and trucks globally in 5 continents with a global market share of 13.5 %. GM has been involved in a range of global ventures aimed at extending their penetration in the carmakers market and has also increased its share of the market as well as sales. GM uses exports, acquisitions, joint ventures and strategic alliances to enter foreign markets based on business considerations. GM has also expanded its capabilities in manufacturing through technological competences. This was achieved by forming subsidiaries, strategic alliances and joint ventures with other automobile companies in different parts of the world. According to (GM Press Release, 2006), the company has been involved in a range of global ventures throughout its history, each of which has aimed at extending its market penetration. Partnering enables GM to rapidly expand its technical fields and brings that knowledge in-house transferring it to multiple levels within the business, even extending it sometimes to corporate issues. Through the various stages of internationalisation, GM was able to enl arge its distribution and provide access to essential materials. Additionally, the company developed and improved its operations, facilities and processes all of which have provided access to new technologies and a rich database of knowledge and new capabilities. The American automobile industry is the biggest in the world in terms of number of cars manufactured and sold. The U.S. automobile market is saturated with the global car manufacturing companies however; the majority of the market share is occupied by domestic and Japanese companies. The outcome of this is a drop in the level of consumption as there are too many entrants competing in the same industry. Because of this decrease in consumption, the automobile industry leaders have been offering attractive incentives and lower prices leading to a loss in profitability. The world-class automakers are gradually expanding into foreign markets, as new emerging markets in China, South East Asia and South America are showing signs of sustainable economic growth. GM overseas operations were a method of diversifying themselves against the risks and uncertainties in their domestic market life cycle, by setting up new operations abroad multinationals can diminish adverse economic downturns. Most MNEs also follow a pattern that has often been laid out in front of them by competitors or similar sized companies that have adopted or mimicked behaviour that has been tested and proven to be success, if the right measures are taken when adopting it. For instance, it has been argued that organizations tend to imitate actions that have been taken by large numbers of organizations, because such practices are legitimized or their success is taken for granted (Fligstein; Haunschild; Haveman; Kraatz; Lewitt). This can also have an adverse affect on an MNE when entering a new market, leaving them less cautious and with a diminished aspiration towards growth, knowing that the chances of that market already being saturated and that the first come first served knowledge is already guaranteed not to be in their possession. This often happens when the specific market they enter does not suit their domain of expertise and experience, resulting in them investing much faster and with a lesser de gree of uncertainty that they would have usually applied. GMs move to internationalise was mainly to reduce costs, attract a larger market and the creation of strategic alliances. The company strategically allied with Fiat in 2000 by acquiring 20 percent of Fiats equity to establish a joint procurement venture. With a split of 50 percent of the capital each, giving them a concentrated purchasing power of about $32 billion per annum, this alliance has the capacity to strengthen their bargaining power as well as reducing the supplier management cost. GM also moved production overseas, as the number of internal competitors grew too high in most of the emerging country home markets. GM needed to find a new incentive to manage a new market while remaining at low cost. GM is a good example of an MNE which underwent internationalization whilst maintaining its position as one of the leading carmakers. It has also followed the theories laid out about internationalisation such as the typical way a company proceeds to penetrate and enter a foreign market. Firstly it will look at the options available and analyse what will be best suited for them considering the high degree of uncertainty and risk associated with entering an unknown market. One such option is licensing but it has to be assessed in a precautious way, due to the fact that they might be risking firm specific advantages by engaging in premature licensing agreements, this is also the least preferred of all three options due to the fact that there is a risk of knowledge dissipation. The only instance when licensing will be considered as a viable option is if the revenue generated from the licensee exceeds the cost of policing it. But also, if they do choose go for an early licensing agreement it may be because their firms specific advantage is hard to duplicate or they have a tight control over the licensee, meaning that they would find it very hard and potentially dangerous to resell any kind of sensitive material to any potential competitor or a third party of any kind. The second option is the possibility that the MNE might only be willing to export at first if the demand of the local market is not high enough for them to want to engage in foreign direct investment and set up an overseas subsidiary, or they may also consider this as a possibly a bit longer down the line depending on the potential growth generated from initial sale patterns and the profitability a larger scale operation would yield. The exporting option also depends on the trade agreements, tariff barriers, taxes, transportation costs and quotas between the two countries involved which sub sequentially determine if the operation will be profitable or maybe another option should be considered. There are two strong examples of how this has been reproduced by GM. The first is the case of General Motors do Brasil, which is GMs third largest operation outside of the U.S after being recently overtaken by China. In the beginning, the activities were in the assembly of vehicles imported from the United States. After five years, GMB officially opened its first plant in 1930 in Sà £o Paulo. Here we can see that exporting lead to the full scale creation of a production facility which was so successful a second one was opened 28 years later, thus resulting in Brasil being the main exporter of GM automobiles in the whole of South America. Breaking out of their domestic market and becoming an exporter themselves in a very short space of time and for such a large operation really does provide evidence that internationalisation does not spread from one point outwards with only one epicentre at its core but rather creates and distributes smaller nodes that in time expand themselves and r epeat the process so on, just as how it is described in the network approach. Once the firm has passed the cultural barriers and had its first experience of foreign operations, it is generally willing to conquer one market after another (Carlson, 1966). The second example is when the Cadillac brand was introduced to China in 2004, starting with imports from the U.S, which then lead to the Chevrolet making its first appearance on the Chinese market one year later. They were then able to move production operations to their Shanghai GM plant which opened as a joint venture with SAIC in 1997, initially created for the Buick brand that is especially strong in China. In this case exporting was clearly used as a testing method for foreign products penetrating the Chinese domestic market, market-specific knowledge and general knowledge are important for firms internationalization (Johanson and Vahlne, 1977). Dunnings Eclectic theory which sets out to explain that foreign direct investment as a theory can be unified as long as the firms applying it consider the ownership, location and internalisation of the process that will produce substantial benefits if applied accordingly. This is also the case if the extent, the form and pattern of international production is founded on the juxtaposition of the ownership to specific advantages that a firms posses when contemplating foreign production. This is reflected in GMs move to manufacture most of its China-market vehicles locally, through its Shanghai GM joint venture, GM also plans to create a research facility in Shanghai for $250m to develop hybrid cars and alternative energy vehicles. Therefore GM follows a path suggested by Dunning to gain advantage in terms of competitiveness and cost by ownership in foreign market and aim to expand. The Network Approach emphasises the industry as a system of networks, each firm within network has relationships with customers, suppliers etc†¦ These relations are important competitive advantages which the Network model also suggests the firm needs to take into account and evaluate not only its own position in the market in relation to its customers, but also the environment of that market in relation to others such as competitors, new entrants etc†¦ GM and Fiat formed a strategic alliance, with GM owning a 20% share in Fiat and Fiat SpA receiving 5.1% of GMs shares in exchange. Production and ownership have both been improved when a recent alliance took place under the form of two joint ventures (owned 50% by Fiat and 50% by GM). The first will conduct purchasing activities, while the second will produce engines and gear equipment which is mainly aimed at cutting expenses. Hence GM has followed the network model to some degree as their joint venture come in terms of rela tions with Fiat. By collaborating they have reduced the cost and the innovation has resulted in new production techniques. Which gave both of them some degree of competitiveness as they have gained purchasing power as well as reduced cost in terms of purchasing from the suppliers.

Rehabilitation Of Criminals: A Waste Of Time Or Worth The Effort? :: essays research papers

Rehabilitation of Criminals: A Waste of Time or Worth The Effort?   Ã‚  Ã‚  Ã‚  Ã‚  Since 1960, the number of violent crimes committed per capita in the United States has increased by more than 450%. More than 24,000 murders took place in America in 1991.. With each passing year, rapes, robberies, murder, and other forms of extreme violence has become a way of life for some individuals who fall short of society's norms; however, it is only a small portion of criminals who commit the majority of the crimes. It is no longer rare to be a victim of a violent crime or to know someone who has been affected .   Ã‚  Ã‚  Ã‚  Ã‚  Get tough laws passed by many states have caused a increase in prison spending. Prison populations in the 1980's have more than doubled resulting in more prisons being built every year. Even with all the harsh sentencing guidelines, judges are not sentencing criminals to do necessary time . Prisons have become a revolving door society. Only 25% of those convicted are sent to prison. Judges usually have to let out a inmate before another one can take his place. There are limited cells in prisons, so the majority of crimes are punished by probation or court sanctions. Even when longer sentences are given, they are rarely served. The average murderer spends about six years in prison.   Ã‚  Ã‚  Ã‚  Ã‚  What factors decide the outcome of such individuals? Some experts feel there is no absolute answer, only speculation. There is however, a strong relationship between environment and the outcome of offenders. Low income, poor education,drugs, and family breakdown are some factors that keep repeating in cases of habitual offenders; however, the public sees the problem lies with the availability of guns and lack of morals. Only one factor stands out in both public and professional opinion, drugs.   Ã‚  Ã‚  Ã‚  Ã‚  To deal with crime, we must first go to the root of the problem. The American society is a breeding ground for violent crime. Preventative measures must be implemented to stop such behavior before it starts. Teaching family values in after school programs is a step in the right direction. Programs that teach respect, anger management, and accountability for one's own actions is a must in today's society.   Ã‚  Ã‚  Ã‚  Ã‚  Prison programs for the first time offender to help them become productive members of society can be a step in the right direction.Teaching inmates how to manage anger, drug counseling, people skills, as well as teaching blue collar trade to inmates will ease the transition from prison to the outside world. When the inmate is released, a half way house should be the residence of

Arthur Reed Case Study Essay

This case study involves Arthur Reed who works for Blue Grocery Stores Incorporated as a warehouse supervisor (case study, 2010) and is having a difficult time fulfilling staffing requirements during the summer months he has tried some options that didn’t fulfill the needs of the business. This case study will help Arthur meet these goals. Staffing Issues The summer months were a staffing headache for the warehouse supervisor at Blue Grocery Stores Incorporated (case study, 2010). Everyone wanted to take their accrued vacation then. After all, summer time was the perfect time for family vacations and activities. What made this staffing issue a bigger headache was the fact that a significant number of employees were calling in for sick days during this time of year as well. Replacement workers hadn’t worked in the past so that’s another challenge to overcome. Options for Optimum Staffing The first suggestion would be for the company to pay for the costly steel-toed boots for the replacement workers and waive any union dues for the replacement workers (case study, 2010). If for some reason that didn’t work, the next suggestion in solving this staffing issue would be to hire a summer temporary force using college students. College students can always use extra money for school. I would suggest that the company to pay for the costly steel-toed boots, this would help attract more potential temporary employees for the summer months. The final option would be to adjust the warehouse hours for the summer time. Instead of working a day and afternoon shift, consolidate both teams of employees into one team with two different starting times, two hours apart. That will optimize the staffing, while eliminating the need to hire temporary employees for the summer. If corporations have to rely on temporary employees to fulfill the needs of the business, then they are risking the business objectives. Temporary employees are just that, temporary, and there is a strong possibility that the company performance would slip in relying on them. There could be compromises and arrangements made with the shipping and receiving of supplies so that the business goals are still obtained. This is the best option if successful, not only does it not rely on temporary employees to fulfill the business needs, this keeps the company budget down while maximizing the resources that are available.

Ontological Argument For The Existence Of God - 1083 Words

Throughout this paper I will discuss the argument of Anselms ontological argument for the existence of god. His basis of his argument being an analytical breakdown for the reason fot gods exsistence. While also establishing that Anselms inferences found with his use of deduction and logical means to prove the existence of a higher being are indeed true. In addition I will defend Anselms argument by depicting other people’s objections against his argument. Specifically the argument made by Gaunilo, who disagreed with Anselms argument and tried to use logical reasoning to prove him wrong. Essentially, Gaunilo stated that Anselms use of deduction could be altered and used to prove the existence of any concept by simply using the similar notion that Anselm used to prove the existence of god. My view is that Anselm ontological argument for the existence for God is a sound argument. I believe this to be true because Anselm simply wished to prove the existence of God by using logic and reason instead of imperial evidence. Instead of using physical evidence this argument uses priori proof of Gods existences. Priori proof essentially meaning knowledge gained through deduction without the use of empirical evidence. While using simple deduction he defined God as â€Å"something than which nothing greater can be thought.† Also he believed that everybody regardless if they believe in God or not would agree with the definition (even the fool in the Psalms: 53:1 who claims he doesn’t believeShow MoreRelatedThe Existence Of God : Ontological Argument Essay1696 Words   |  7 PagesThe question of the existence of God has troubled mankind for thousands of years. Many philosophers and theologians have always searched for prove whether God exists. Many of them constructe d valid arguments which support theist believes. The existence of God was once never denied, as His presence, His existence was evident in miracles and the people s faith. But time and the advancement of modern science have called God and His very nature into question. The Perfect Being has become the sourceRead MoreThe Ontological Argument On The Existence Of God1608 Words   |  7 PagesThe ontological argument is one of the most prominent arguments with in philosophy. Ontological comes from the Greek word â€Å"ontos† meaning â€Å"being† or â€Å"what there is†. Ontology credits the existence of God to overall essence of God. The ontology argument questions the nature of being which includes questioning the existence of God. As made apparent in â€Å"Introduction to Philosophy: Classical and Contemporary Readings† many philosophers have different views and theories on the existence of God. AnslemRead MoreThe Ontological Argument For The Existence Of God1509 Words   |  7 PagesDescartes’ ontological argument is an echo of the original ontological argument for the existence of God as proposed by St. Anselm in the 11th century. To illustrate the background of the ontological argument, Anselm’s argument works within a distinct framework of ontology that posits the existence of God as necessity by virtue of its definition. In other words, for the mind to conceive of an infinite, perfect God, ultimately implies that there must indeed be a perfect God that embodies existence, forRead MoreAn Ontological Argument For The Existence Of God1430 Words   |  6 PagesNatural Religion (1779), Hume has the character of Demea present an Ontological Argument for the existence of God. Demea attempts to argue that God’s existence can be proven wholly a priori and logically, rather than through the a posteriori design argument. A priori arguments say that if the reasoning is valid then the conclusion necessarily follows fro m the premises, which Demea argues is the case when it comes to the existence of god. The following essay will discuss Demea s standing, Cleanthes’Read MoreEssay on The Ontological Argument for the Existence of God1545 Words   |  7 PagesThe Ontological Argument for the Existence of God The ontological argument is an a priori argument. The arguments attempt to prove Gods existence from the meaning of the word God. The ontological argument was introduced by Anselm of Canterbury in his book Proslogion. Anselms classical argument was based on two principals and the two most involved in this is St Anselm of Canterbury as previously mentioned and Rene Descartes. The ontological argument argues thatRead MoreOntological Arguments for the Existence of God Essay1603 Words   |  7 Pagespresents his second argument for the existence of God. Descartes holds that existence is perfection and so, it can be a predicate for God. I will first explain what is the ontological argument for the existence of God. Next, I will discuss why Descartes decides to bring God into His method of philosophy. I will then try to argue that existence is a perfection and that as a predicate for God, existence reveal certain true about God. Ontological argument tries to prove the existence of God from a prioriRead MoreDescartes Ontological Argument For The Existence Of God1302 Words   |  6 Pages10/30/2014 Descartes’ Ontological Argument for the Existence of God The Ontological Argument for the existence of God is an a priori argument that aims to demonstrate that God’s real-world existence follows necessarily from the concept of God. In Meditation V of Discourse on Methods and Meditations on First Philosophy, Descartes presents his version of the Ontological Argument for the existence of God. In this essay, I will argue that this argument fails because necessary existence for a concept doesRead MoreAnselm s Ontological Argument On The Existence Of God935 Words   |  4 PagesAnselm’s Ontological argument sets out to not only prove God’s existence, but to show that God’s existence is self-evident. Similar to other ontological arguments, it uses a priori knowledge to argue its validity, meaning that the propositions made are derived from internal reasoning instead of sense experience. The argument begins with Anselm defining the term God as â€Å"that, than which nothing greater can be conceived† (pg.26). Although simple, once this term is accepted Anselm believes he has successfullyRead MoreThe Major Features of the Ontological Argument for the Existence of God1021 Words   |  5 Pagesof the Ontological Argument for the Existence of God The ontological argument for the existence of God was originally set out in eleventh century by St. Anselm in his Proslogian. Anselm was a Benedictine monk, Archbishop of Canterbury, and one of the great medieval theologians. It has received a lot of both support and criticism from leaning philosophers. The argument is appeals to those who already believe in the existence of God than to an atheist. The argument is entirelyRead MoreValidity And Effectiveness Of Anselm s Ontological Argument On The Existence Of God1095 Words   |  5 PagesAnselm s Ontological Argument on the existence of God. I will begin by presenting Anselm’s Ontological Argument from the ground up. This includes the argument, basic idea, initial assumptions, Anselm’s definition of god, and Anselm s distinctions which are needed to completely understand the nature of my argument. Furthermore, I will present concepts of logic and define what makes an argument valid, and circular argument because they are necessary for understanding the validity of this argument. Following