Decision Making at General Motors Essay Example | Topics and Well Written Essays - 500 words - 1

Decision Making at General Motors - Essay Example It also acquired poor performing automobile companies like Cadillac, Pontiac, and GMC. The GM extended its acquisition process to Europe where it successfully acquired the Opel (Germany), Holden (Austraila), and Vauxhall (England). The primary reason behind these mergers and acquisitions was to gain market dominance and wage off completion. To markets their car brands, the GM heavily invested in marketing by decentralizing its operations, with each of its founders heading different divisions within the company (Kettering 56). The introducing of price differentiation marketing policy by Sloan marked another milestone for the GM. The pricing policy has taken into account the differences in income of potential customers, thereby ensuring that irrespective of their income levels, clients could afford to buy the GM car brands. Sloan was also responsible for the institutionalization and coordination of proper decentralization systems of the company structure. This move proved effective in ensuring the GM’s central administration body had firm control over its divisional operations, but emphasizing on divisions’ operational independence in line with the goals of the company (Barrar and Roxane 41). The divisions further got divided into sub-groups headed by executives, who are answerable to the GM’s management committee and the CEO. The company also set up policy groups charged with the responsibility of formulating and setting required standards for the GM’s day-to-day managerial oper ations. It is these strategies that made the company very successful. Some of the major challenges in managing multinational and multicultural organizations like the GM entail differences in national orientations and cultural values. For instance, some processes such as manufacturing, engineering, design, human resource, among others were naturally domestic-oriented, therefore varied across the world.