Student Board Room
Principles of Management
Case: GM’s structuring for comeback?
CEO: Nishaant Dalmia CEO’s Decision:
We decided that GM should structure itself in a product organization grouping manner. CEO’s Rationale:
A departmentation by product would be the way for GM to structure itself for a comeback in the latest markets. One of the big reasons for this organization structure is that it allows for growth and diversity of products and services. This is very important in GM’s case as it already has a set of established brand names such as Cadillac, Corvette and GMC and with increased growth for all these products, the company would be more capable of innovating new improvements to these products. These new innovations would then add to the profitability of GM. This departmentation would also allow for good training grounds for new general managers who can rise within the ranks of GM so that the company can keep running even in the future. Another reason why this departmentation would be beneficial as GM is already established with proper capital and knowledge of the industry so this organization structure could further utilize the departmentation to the best of its abilities. Your key questions:
Can a mixture of department structures prove to be useful for GM? Can GM make a successful comeback?
Your key answers:
A mixture of department structures may indeed prove useful for GM as we think that a mixture of product with territorial departmentation would counteract the negatives of each departmentation type and allow for an even more flourishing company. GM can indeed make a successful comeback as depicted in the text which stated that GM made a record profit in 2011. As long as the innovation and constant product improvement keeps occurring, GM can sustainably gain profit in the long run.
Key observations about being the CEO or group member :
After interacting with the me members for more then a month,now we all...
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