Decision Making at General Motors Essay Example | Topics and Well Written Essays - 500 words - 1

Decision Making at common Motors - Essay ExampleIt to a fault acquired poor performing automobile companies standardized Cadillac, Pontiac, and GMC. The GM extended its erudition process to Europe where it successfully acquired the Opel (Germany), Holden (Austraila), and Vauxhall (England). The primary reason behind these mergers and acquisitions was to gain market dominance and engross off completion. To markets their car brands, the GM heavily invested in marketing by decentralizing its operations, with each of its founders picture gallery different divisions within the company (Kettering 56).The introducing of price differentiation marketing policy by Sloan marked some other milestone for the GM. The pricing policy has taken into account the differences in income of potential customers, thereby ensuring that irrespective of their income levels, clients could buckle under to buy the GM car brands. Sloan was also responsible for the institutionalization and coordination of pr oper decentralization systems of the company structure. This move turn up effective in ensuring the GMs central administration body had firm control everywhere its divisional operations, but emphasizing on divisions operational independence in line with the goals of the company (Barrar and Roxane 41). The divisions throw out got divided into sub-groups headed by executives, who are answerable to the GMs management committee and the CEO. The company also set up policy groups charged with the responsibility of formulating and setting required standards for the GMs periodic managerial operations. It is these strategies that made the company very successful.Some of the major challenges in managing multinational and multicultural organizations like the GM entail differences in national orientations and cultural values. For instance, some processes such as manufacturing, engineering, design, human resource, among others were course domestic-oriented, therefore varied across the world.