MGT 350 MANAGEMENT OF FINANCIAL RESOURCES Essay

MGT 350 MANAGEMENT OF FINANCIAL RESOURCES - Essay Example The study will be therefore interesting as it will provide us with an intuit understanding of the reasons behind the struggling for survival of one company with the incurrence of such huge losses while the other company which is Toyota Motor Corporation is generating profit profits every year (Carr-Ruffino, & Acheson, 2007). To gain an in-depth understanding of both companies and the reasons behind the success of one and the losses by the other, this study will further make analysis of the contrasting strategies employed by both companies. Various studies on the situation of general motors has come to a conclusion that the problems facing General motors bore more significance that are beyond those directly involved (Saunders, 1989). It must thus be realized that the failure of General Motors will not only have huge psychological, social and economic impact in the United States where it has asserted its place as an iconic automobile manufacturer, but its failure will negatively impact on the United States economy in addition to adversely affecting other economies. Hence, the failure of General Motors would result to repercussions that would be felt worldwide (Drucker, 1994). General Motors Corporation History General Motors (GM) first came into existence in 1908 in Flint, Michigan as a holding company back then for Buick and was then controlled by William C. Durant. The company later acquired Oldsmobile later the same year (Cummings, 1993). Later, Durant brought in Cadillac, Oakland which later came to be known as Pontiac and Elmore amongst many more others. Reliance Motor Truck Company of Owosso, Michigan was acquired in 1909 in addition to the Rapid Motor Vehicle Company of Pontiac, Michigan which served as the predecessor of GMC Truck (Drucker, 1994). In charge of the corporation was Alfred Sloan who led the company to its post-war global dominance. The unprecedented growth of the company lasted through the late 70s into the early 80’s. The internation al expansion of the company continued through the establishment of General Motors Overseas Operation in 1938 which was in charge of all vehicles manufacturing and marketing outside the United States and Canada. This growth continued in the 1990s (Marketline, 2007). The Core Business of General Motors The core business of General Motors Corporation is to engage in the development, production and marketing of trucks, cars and automobile parts in addition to being engaged in insurance and finance operations. The primary operations of the company are centralized in North America and Europe with its headquarters being located in Detroit, Michigan and with a worldwide employee population of 280, 000 (Marketline, 2007). Core Technologies employed by General Motors Each of General Motors automotive divisions target specific market segments despite some having some shared components; the distinguishing factor between each division is the unique styling and technology employed. The strategy o f General Motors for core technology is aimed at sharing components and common corporate management in a bid to create an upgrade path that is orderly (Carr-Ruffino, & Acheson, 2007). The entry level buyer starts with a very practical but which is at the same time economical, Chevrolet, and moving through the offerings of the different divisions until one purchases a Cadillac. Manufacturing