gm real share price in 1982 dollars
TRANSCRIPT
![Page 1: GM Real Share Price in 1982 Dollars](https://reader036.vdocuments.site/reader036/viewer/2022062903/58ed866c1a28aba97c8b466b/html5/thumbnails/1.jpg)
1
GM Real Share Price in 1982 Dollars
0
20
40
60
80
100
120
140
160
Year
$
Early 1980s – US is the largest market.
•GM the largest firm by market share >30%.
•High tariffs (import taxes) on foreign cars.
Late 1990s – Stock market bubble.
Today – not profitable.
•Losing market share to Toyota, Nissan and Honda.
![Page 2: GM Real Share Price in 1982 Dollars](https://reader036.vdocuments.site/reader036/viewer/2022062903/58ed866c1a28aba97c8b466b/html5/thumbnails/2.jpg)
2
Environment
1. Introduction: GM2. Environmental Domain3. Environmental Uncertainty4. Consequences for Organisation Structure5. Conclusion
• To be an effective organisation the structure has to fit with the environment.
![Page 3: GM Real Share Price in 1982 Dollars](https://reader036.vdocuments.site/reader036/viewer/2022062903/58ed866c1a28aba97c8b466b/html5/thumbnails/3.jpg)
3
Environmental Domain• Domain: environment chosen by organization• Task environment: organization interacts directly• General environment: indirect influence
Task GeneralIndustry Sector Government SectorRaw Materials Socio-Cultural SectorHuman Resources Economic ConditionsMarket Sector Technology SectorInternational Sector Financial Resources
• Example: Industry Sector for GM – the rise of Toyota.• Example: Government Sector for GM – Tariffs on Imported cars;
Emissions Regulations.• Example: Economic Conditions for GM – US still the main market.
![Page 4: GM Real Share Price in 1982 Dollars](https://reader036.vdocuments.site/reader036/viewer/2022062903/58ed866c1a28aba97c8b466b/html5/thumbnails/4.jpg)
4
Environmental Uncertainty
Two Dimensions
Stable-Unstable
Simple-Complex
![Page 5: GM Real Share Price in 1982 Dollars](https://reader036.vdocuments.site/reader036/viewer/2022062903/58ed866c1a28aba97c8b466b/html5/thumbnails/5.jpg)
5
Consequences for Organisation Structure
• Fashions in cars are changing faster than they used to.
• Lower import barriers has meant more competition.
• Customers have become more demanding.
• Technology changed: Total Quality Management pioneered by Japanese firms (“Toyota Way”)
Source: Economist
![Page 6: GM Real Share Price in 1982 Dollars](https://reader036.vdocuments.site/reader036/viewer/2022062903/58ed866c1a28aba97c8b466b/html5/thumbnails/6.jpg)
6
Consequences for Organisation Structure
• Interorganisational linkages.• Control the environmental domain.
What has GM tried to do?
• Interorganisational linkages: Saab
Daewoo et al.
• Control the domain: Lobbying for higher tariffs (late 1980s)
Source: Economist (8 September 2005)
![Page 7: GM Real Share Price in 1982 Dollars](https://reader036.vdocuments.site/reader036/viewer/2022062903/58ed866c1a28aba97c8b466b/html5/thumbnails/7.jpg)
7
Conclusion
• Summary.
• Managers need to try to anticipate changes in the environment – and change their firms to propser in the new conditions.
• GM’s problems are all down to bad luck - discuss.