Thesis on "Systems Theory the Auto Industry"
Thesis 3 pages (1149 words) Sources: 4
[EXCERPT] . . . .
Systems TheoryThe Auto Industry
Systems theory: The auto industry
Systems theory: The auto industry
The bankruptcy of General Motors and Chrysler, and the flagging fortunes of the formerly 'big three' dominant American automakers cannot be entirely blamed upon the recent economic downturn and credit crisis. There are profound structural problems all three companies are still trying to resolve to become competitive in the global economy. Although car companies worldwide have been hard-hit by the recession, not every company has suffered GM-sized losses. General Motors has proven uniquely inflexible in its organizational model regarding the demands of the global economy. GM has consistently failed to make critical strategic choices in its pattern of expansion, failed to show innovation and a forward-thinking strategy in its research and development, and has also failed to maximize the value and innovation of its supply chain.
Too big: this has been one of the primary criticisms of American cars' size over the years, particularly in light of rising fuel costs and concerns about global warming. Yet it is also true of the American car industry model. Systems theory emphasizes that "there is an optimum size for a system," and GM and the other major American car companies have over-extended themselves, over the years, producing too many brands, too many models, and allowed dealerships to proliferate to such a degree, profits have become diluted (McNamara 1998).
As a contrary example, the publicly traded, family-controlled company Porsche has shown impressive growth until the recent economic
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In an effort to pare down, in 2009 GM announced a plan to cut 10,000 jobs in its European car unit Opel and to eliminate its Saturn and Pontiac brands (Buckley & Vlasic 2009; BBC 2009). It is selling its Saab line to a company in Sweden and the Hummer brand to a Chinese manufacturer (Buckley & Vlasic 2009). This 'think smaller' campaign is part of a general strategy for a 'new GM,' which will also include a focus on more environmentally-friendly vehicles.
This shift to showing greater concern for the environment could be 'too little, too late.' GM has exhibited a profound lack of creativity in dealing the question of sustainability, forestalling rather than anticipating the future. Using litigation rather than research and development has been its fallback position regarding climate change. Systems theory counsels: "the structure determines the various behaviors, which determine the various events. Too often, we only see and respond to the events. That's why, especially in the early parts of our lives, we can be so short-sighted and reactionary in our lives and in our work. We miss the broader scheme of things" (McNamara 1997). GM's structure has been inflexible in refusing to integrate new… READ MORE
Quoted Instructions for "Systems Theory the Auto Industry" Assignment:
Compile findings on the key ideas in the systems theory and its application to find problems in the auto industry, the issues related to stocking solutions and return on invested capital to find solutions to problems in the auto industry, and state the methods to establish an organizational global presence and overcome resistance to globalization within the auto industry.
List each problem, solutions, resources, and Metrics*****”state the assumptions and evidence from external research that supports your decisions.
How to Reference "Systems Theory the Auto Industry" Thesis in a Bibliography
“Systems Theory the Auto Industry.” A1-TermPaper.com, 2009, https://www.a1-termpaper.com/topics/essay/systems-theory-auto-industry/81085. Accessed 27 Sep 2024.
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