Case study getting on the right track at general motors

Rarely do we have a chance to pull back the covers and see a culture with some serious dysfunction that still accomplishes amazing work on a global scale in spite of it all.

Case study getting on the right track at general motors

The paper will critically analyze the risks and challenges that a company such as General Motors would face when doing business in China. The research will access such risks and challenges by focusing on the Motor Industry as well as the opportunities that are available for foreign businesses.

Critical evaluation of the benefits, costs and risks associated with doing business in China Before any company achieves success in China market, it is imperative for it to clearly understand its organizational mission and goal, including the function that marketing activities play in the process of achieving such missions and goals Buick, Additionally, the company is also expected to establish its marketing objectives, gather, and access, evaluate and interpret important information about its distinct situation.

Besides, it is worthy to note that foreign businesses are forced to critically access specific potential and growth as far as its product services are concerned in China including the segmentation of foreign market Buick, In addition, any company or business wishing to start its operations in China needs to evaluate the characteristics of potential consumers of their specific products and services Saxon, This is by evaluating who they are and how they are particularly established in China.

Case study getting on the right track at general motors

It is however; very crucial for businesses hoping to trade in China to find out how much such consumers are willing to spend. Such kind of information or data is critical during planning that involves establishing marketing strategies of knowing the exact wants that the business organization will be willing to satisfy.

The GM Culture Crisis: what leaders must learn from this culture case study

In this case, marketing mix joins product, promotion, distribution as well as pricing strategy in a manner that is capable of establishing specific exchanges that seek to satisfy organizational and individual objectives. Foreign business risk encountering political challenges in China considering the fact that China has been under a communist party for many years.

In this respect, the communist party typically exercises absolute power in regards to economic, legislative as well as cultural constitutions Schifferes, It is important to note that such kind of activities are not common in countries such as the United States, whereby the government is tasked with the responsibility of promoting transparency when it comes to engaging in business activities.

Rules and regulations are not usually absolute or transparent in China, meaning that big businesses such as General Motors risk the possibility of succumbing to a variety of bureaucracies and regulations.

A social network referred to as guanxiwang is typically promoted in China, in which case quanxi represents the established relationship between the entities of the network and the individual Schifferes, This means that lack of corruption and transparency leads to avoidance of bureaucracy and red tape by the Western businesses with the help of the communist party and the existing social networks.

The process of establishing relationships is not normally emphasized in countries such as the United States due to strict cultures and laws that seek to promote contractual obligations.

However, in china, small and large businesses are forced to rely on the existing guanxiwang, as it is practically impossible to conduct businesses without the social networks Schifferes, The scenario presents a great challenge to foreign businesses seeking to do business in China as one is forced to fully understand how such social networks function.

Moreover, this process consumes a great deal of time, meaning that it would be prudent to work with the right individuals according to specific guanxiwang.

This will highly enable foreign companies to overcome such problems Schifferes, In addition, foreign companies seeking to conduct businesses in China risk the possibility of facing legal challenges.

This is contrasted in countries such as the United States where strict laws and regulations including patents in economies are normally aimed at protecting both foreign and domestic businesses. The accession of China to WTO has led to the establishment of patent rights amendments and inclusion of international business laws.

Moreover, the copycat culture or Shanzai is usually an integral part of the Chinese society regarding how they conduct their business. This is the reason why virtually every product in the market is copied and then sold in the open markets existing in major cities or towns in China Xi et al.

This type of culture has consequently made China to be the largest producer and promoter of most counterfeit products. These laws include important business practices such as of intellectual property rights and trade laws that are mainly refined, thus resulting in complexities in the process of interpreting them Xi et la.

Furthermore, it is possible that some individuals or organizations may be tempted to manipulate such laws so as to weaken business activities of foreign businesses for the purposes of gaining competitive advantage. This is despite the fact that there are stated laws against the businesses infringing existing Chinese laws.

Typically, in China, specific provincial governments have the power of blocking any such laws, resulting to big challenges for foreign businesses. Moreover, the company was able to choose a viable location where there had established developments of telecommunications as well as internet.

Besides, due to the development of strong financial infrastructure, China was able to receive high levels of foreign direct investment when compared to the rest of the countries Xi et al.

This has led to the renowned multi-national companies to actively engage themselves in investment activities in China. Moreover, General Motors succeeded in introducing other product lines because China was open to engage in foreign trade, including engaging in joint ventures.

Various treaties strengthened this fact and trade agreements with countries such as the United States through Sino-U. However, it is important to note that China is still undergoing major changes as far as the economic infrastructure is concerned.

Such processes of modernizations have further added to more gains and successes in foreign businesses such as General Motors. Such feasibility studies are important as they assists foreign businesses to be aware of the market challenges and hence be able to draw up viable strategies that are more likely to result in business success.

The processes are followed up by a critical evaluation of possible new ventures and their viability in terms of strategies and directions.General Motors faces probably the most complex Systems and Software Product Line Engineering (PLE) challenges ever, in terms of product complexity, richness of variation, size of organization, and an unforgiving requirement to support over a dozen simultaneous development streams all geared towards each new model year.

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Autor: Etzard • November 11, • Case Study • Words (4 Pages) • 1, Views.

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