Mail 9:30 PM Sun Mar 20 ubmoodle.ub.edu.bs ptl Case #1 Continuing Case General Motors Part One: Introduction to Management General Motors Celebrates 100 Years of Change and Innovation Of the many important dates in automotive history, September 16, 2008, marks both the end of an era and a bold new beginning. On that historic Tuesday, eager crowds packed the Renaissance Center in Detroit, Michigan, to celebrate a once-in-a-lifetime event: the 100-year anniversary of General Motors (GM). Following months of centennial-themed pageantry and parades, the American automaker's towering headquarters had taken on a museumlike aura. On the ground floor sat immaculate showroom classics from the company's fabled past: an orange 1963 Corvette Sting Ray, a pistachio 1952 Saab, a shiny black 1955 Chevrolet Bel Air coupe, an apple-green 1973 Opel GT. Auto enthusiasts, reporters, and GM employees alike gazed nostalgically on the rows of vintage cars as the clock turned back to a glorious, bygone era in America's history. Despite the irresistible charm projected by these solid-steel visitors from GM's legendary past, it was a concept vehicle from the company's future that had the crowd's engines revving on the main floor. For years, management at GM had talked of introducing alternative-energy models that excite consumers and protect the environment. Now, at this momentous cel- ebration, the talk was over, and GM pulled back the curtain on what it says is the future of the auto indus- try: the Chevy Volt. With its aerodynamic design and 40 miles of emissions-free driving on a single electric charge, GM's first-ever plug-in electric vehicle is a far cry from the gas-guzzling trucks and SUVs that delivered the company's greatest financial successes in recent decades. Indeed, the Volt represents a sea change for the world's largest auto manufacturer. Unlike hybrids that use electric power to improve the mile- age of their gasoline engines, the Volt uses a gasoline generator to assist the range of its battery-powered electric drive unit. According to GM, driving the Volt will save owners $1,500 annually in energy costs. It's no wonder company officials cite the concept as proof of GM's intention to lead the reinvention of the automobile. But the arrival of the Volt comes at a pivotal moment in GM's history. Ripple effects from an international mortgage crisis in 2008 triggered the industry's worst sales slump since 9/11. Soaring energy prices in the same period forced management to abandon Hummer and other super-sized models that once represented hope for a financial recovery. But the list goes on. GM also faces slumping shares, stupefying quarterly losses, ballooning debt, steep competition from Toyota, pre- carious dealings with labor unions, and almost insur- mountable fuel-efficiency regulations from the federal government. If history is any indication, GM will tackle these challenges head on, displaying the same innova- tive spirit that gave the business its first 100 years of manufacturing excellence. Since its founding in 1908, the automaker has repeatedly demonstrated its strong capacity for innovation and change. From speedom- eters (1901 Oldsmobile) and electric headlights (1909 Cadillac) to automatic transmissions (1940 Oldsmo- bile) and mass-produced V-8 engines (1914 Cadillac), GM teams have given the world hundreds of innova- tive firsts. Whether it's big-idea concepts that reshape the future or smaller innovations that improve existing products, CEO Rick Wagoner and his management teams are developing the strategies that will guide the company successfully for the next 100 years. In his speech introducing the Volt's historic unveiling, Wagoner underscored the remarkable times in which we are living. "GM's centennial comes at an incred- ible time in our industry. The entire world is watching, hoping for a breakthrough in personal transportation that will address the very real energy and environmen- tal challenges facing the globe." The stakes have never been higher. If GM is to avoid becoming a museum of America's great auto- mobile manufacturing past, management must deliver breakthrough ideas that once again stoke consum- es passions. With the Chevy Volt in production and a large cache of renowned brands including Cadillac, Chevrolet, Pontiac, and Satum, there is every reason to believe GM will succeed. Questions 1. Which management functions and skills enabled GM's leaders to create a bold vision for reinvent- ing the automobile around green technology? 2. Identify social, political, and economic forces that affect the auto industry and the practice of man- agement at GM. 3. Which historical management perspective fueled GM's transformation into a manufacturing power- house in the early twentieth century? 100%