Although some external players, such as potential new executives, may prefer this plan, there is little evidence that the major stakeholders have interest in major culture change.
The third alternative is to place emphasis on operational issues first and foremost. Under terms of its new deal with the UAW, GM will be closing plants and shedding workers, and it is trying to sell off some of its underperforming units (Hummer, Opel, Saab, Saturn and Vauxhall). This alternative thus places less emphasis on market and corporate transformation and more on making the company truly leaner but reducing supply chain inefficiencies. This will also allow them to focus marketing efforts on their core brands, which will help them recapture some of the market share they have lost in recent years. This option assumes that dealing with legacy issues was just the first step to improving the company's finances, that culture change is not going to be as effective as operational changes and that a switch to a more market-driven product line cannot genuinely occur if the company does not have greater control over its supply chain. The company's dealer and supplier networks likely prefer this option. The supply chain, many constituents of which have struggled, will be more engaged in GM's future and the dealers will see the benefit of increased focus on core brands.
Works Cited:
Shepardson, David & Aguilar, Louis. (2009). UAW Health Care Trust will own 17.5% of GM. Detroit News. Retrieved July 21, 2009 http://www.detnews.com/article/20090526/AUTO01/905260409
Moore, Heidi. (2009). Meet GM's new CEO: Fritz Henderson. Wall Street Journal. Retrieved July 21, 2009 from http://blogs.wsj.com/deals/2009/03/30/meet-gms-new-ceo-fritz-henderson/
No author/Associated Press. (2009). A Leander GM Zooms out of Bankruptcy. MSNBC. Retrieved July 21, 2009 from http://www.msnbc.msn.com/id/31826205/ns/business-autos/
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