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1.
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Analyze GM by using the value chain and
competitive forces models. Identify the systems and aspects in GM.
General
Motors are trying to develop their industry standards. They find strategies
for developing new market niches for specialized products and services.
They apply value chain extended by Internet technology that connects all
the firms suppliers and customers. Business Competitive Strategies is also
included such as: become the low cost producer. In the value chain, they
apply Workforce Planning System, Computer Design System, Computerized
Ordering System, Sales and Marketing and Equipment Maintenance System.
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2.
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Describe the relationship between GM’s
organization and its information technology infrastructure. What
management, organization, and technology factors influenced this
relationship?
The
management team believed that by intensively weaving Internet technology
into all of its business processes, GM could become a smarter, leaner,
faster company, more in tune with customers. GM could use Internet and
other leading-edge information systems technology to reconstruct its entire
value chain, transforming itself into a customer-focused business that
provides many different electronic services to consumers, as well as cars.
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3.
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Evaluate the current business strategy of
GM in response to its competitive environment. What is the role of
information systems in that strategy? How do they provide value for GM?
GM
were offering online services. GM has also been experimenting with ways to
sell vehicles online, GM is also trying to reduce the costs of inventory
and sales incentives by finding ways to make cars that customers have
actually ordered. They are developing IT strategies. GM’s engineering staff
has been reorganized into a single global team. Starting in 1995, GM began
replacing all of its disparate engineering and design tools with a single
core design and manufacturing system, EDS’s Unigraphics.
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4.
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How successful have GM’s strategy and use
of information systems been in addressing the company’s problems? What kind
of problems can they solve? What are some of the problems that they cannot
address?
·
A
communications and collaboration
system is an information system that enables more effective
communications between workers, partners, customers, and suppliers to
enhance their ability to collaborate.
·
Achieving this goal will require heavy
reliance on information systems integration and extensive organizational
change.
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GM remains burdened with very high fixed
costs for pension and health-care benefits..GM’s pension and health-care
costs are huge—about $24 per hour at GM compared to $12 at foreign
factories. GM’s pension fund was decimated by the stock market decline in
the 1990s and early 2000s, and the company may need to generate more than
$15 billion over the next 5 years to rebuild the value of that fund. In
addition, GM will have to pay an additional $5 billion per year to provide
health-care to current and former workers. In a business with very slim
profit margins, such costs can be decisive. Faced with similar problems, a
company such as Ford would have closed more plants and accepted a smaller
portion of the U.S. market. This is a strategy that GM cannot afford
because then the company would produce and sell fewer vehicles, meaning
less income for those big pension and health-care costs.GM still suffers
from a weak brand image, with many car buyers perceiving the Chevrolet,
Pontiac, and Buick brands as musty and second rate.
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