GM Case Analysis

PROBLEM After reviewing the facts of the article, it appears to me that the problem at GM is one of unsuccessful strategy and planning at the upper management level. ALTERNATIVES The first alternative in solving GM's strategic planning would be to ask Wagoner and his executive team to resign. Advantages This alternative puts the blame on the individual whose plan has failed. It sets a precedent that the future CEO and his or her management …

…and a further decline in automobile profits. RECOMMENDATION From the choice of alternative solutions available, I would choose the third alternative, which would be a plan to cut production lines and capacity to increase profit margins. This plan will consolidate GM's capacity, boost net income and focus GM's productions to more profitable business segments, for the future. Cut the plants that aren't producing results and move the resources to areas that are showing positive results.