the cars were shortened and the production costs decreased. As we can understand from their objective, GM is sensitive to the needs of its customers. However, this is not always true for its internal structure. According to a survey that was done to the GM personnel, top management does not support encouragement for the generation of new ideas and taking risks. Poor channels of communication between managers and employees are another factor that affects company’s organizational culture. (Source: www.fastcompany.com, Insider Trade Section)D.Marketing StrategyAs it was mentioned earlier, GM’s marketing objective is “A car for every purpose, a car for every pocketbook”.During the years 1990-1992, still being the industry leader, GM had severe deficit loosing $29 billion. Its market share for 1992-1994 dropped from 33.9 to 32.9 and this downward trend also continued in 1995. After a new management team was installed in 1993, GM cut the costs drastically and closed twenty-one facilities and plants. 74,000 employees were laid off or retired early and $22.3 billion paid to creditors to clear the financial image of the company and earn good credit ratings.For the U.S. market GM designed 6 car divisions to fit the needs of every customer. Chevrolet is for people who have low or mid-income, providing reliability and dependability. Pontiac‘s sporty-styled cars serve for youthfulness and high spirits. Saturn is designed for foreign car buyers which will stand for a focus on a pleasurable shopping, buying and ownership experience. Oldsmobile is for customers who want to step up from Saturn and have a bigger, average-priced car. It is aimed to compete against import cars like Audi, Acura, entry-level Infiniti and Lexus ES300. Buick’s large, sophisticated, comfortable and well-powered cars are targeted for baby boomers. Cadillac will continue to be GM’s highly technological luxury cars competing against worl...
