No easy ride at General Motors: Strategic mistakes or the victims of circumstance?

Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the article in context.

Findings

Wagoner and his spokespeople are making some claims that the situation is set to improve. The firm can now put the Fiat fiasco behind it and can learn from failed ventures, uninspiring product lines and the cost of heavy sales incentives. Wagoner is sticking by his ambition to assign $10 to each share, though his timescale is increasing. Analysts, however, remain difficult to convince. The predominant feeling among them, backed by business writers, is that GM is still going through a tough time and any growth in profitability looks highly unlikely. At best, it is hoped that the company can pull back enough to draw even over the next couple of years. It is up to shareholders to decide whether or not they are prepared to stick around long enough to see what happens after that.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Citation

(2006), "No easy ride at General Motors: Strategic mistakes or the victims of circumstance?", Strategic Direction, Vol. 22 No. 7, pp. 24-26. https://doi.org/10.1108/02580540610669062