“A CONCEPTUAL STUDY OF BUSINESS MANAGEMENT AND

ORGANIZATION SYSTEM”

SUBMITTED BY

Kakul trivedi

Under the guidance of

Prof. Gurutej sir

Excel Business Academy

Ullal Main Road

Bangalore

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STUDENT DECLARATION

I hereby declare that the project report entitled “a conceptual study of business

management and organization system – Genearl motors.” has been done by me under

the guidance of Prof. Gurutej , – MBA & PGPM, Excel Business Academy,

Bangalore. This project report has been submitted to Excel Business Academy,

Bangalore as a part of partial fulfillment for the award of the degree of Post Graduate

Program in Management from Excel Business Academy, Bangalore.

I also hereby declare that this project report has not been submitted at any time to any

other institute or university for the award of any degree.

Place: Bangalore

Date: kakul trivedi

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CERTIFICATE BY GUIDE

This is to certify that Kakul Trivedi bearing Reg no. ESB/2010/AUG/MBA/007, a

student of MBA+ PGPM during the academic year 2010-2012 has successfully

completed the project report “a conceptual study of business management and

organization system –GENERAL MOTORS.” Under the guidance of Prof.

GURUTEJ, Excel Business Academy, in partial fulfillment for the award of Post

Graduate Program in Management + mba from Excel Business Academy, Bangalore.

Her character and conduct was good during the study.

Place: Bangalore

Date: Prof. GURUTEJ

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ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task

would be but incomplete without the mention of the people who made it possible,

whose constant guidance and encouragement crowned our efforts with success.

I consider it my privilege to express gratitude and thanks to the Management – Excel

Business Academy, Bangalore for giving me the opportunity to conduct this study.

I thank our Principal Prof. Thejaswi Naviloor, for the encouragement and

intellectual influence during the course of the project work.

I wish to express my heartfelt gratitude to Prof. Gurutej, Head – PGPM & Techno

Management Studies; Prof. Shreya K Rao, Head – MBA & TPD and my Project

Guide for their help and able guidance for the completion of the project successfully.

I am grateful to the Librarian of Excel Business Academy, for his support during my

study.

Last but not the least, I would also like to thank each and everyone especially all my

friends for their cordiality & support during my project.

Date:

Place: Bangalore KAKUL TRIVEDI

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TABLE OF CONTENTS

CHAPTER

NO.

CONTENTS PAGE

NO.

1 1.1 Meaning of Business

1.2 Meaning of Management

1.3 Meaning of Business Administration

1.4 Difference between Business Management & Business

1.5 Difference between Business Management & Business

Administration

1.6 Types of Business

2 Organizational System (General Study)

2.1 Meaning of Organization

2.2 Types of Organization

2.3 Types of Ownership

2.4 Vision, mission & Goals of the company

2.5 Organization Structure & it’s Types

2.6 Functional Patterns – People, policies, systems, problems if

any.

2.7 SWOT Analysis

3 Organizational System GENERAL MOTORS

3.1 Introduction

3.2 Type of Organization

3.3 Type of Ownership

3.4 Vision, Mission & Goals of the company

3.5 Organizational Structure & Type

3.6 Functional Patterns

3.7 SWOT Analysis

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4 Summary of Findings & Conclusion

4.1 Findings

4.2 Suggestion

4.2 Conclusion

5 Bibliography

6 Annexure

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LIST OF TABLES AND CHARTS

TABLE CONTENTS PAGE NO.

1 Meaning of business 9

2 Meaning of management 12

3 Meaning of business administration 14

4 Difference between business management and

business administration

16-18

5 Types of business 21,27,

31-36,38

6 Organizational system (General study) 40,42

7 Types of organization 43-44

8 Types of ownership 45,46,48,

50-52

9 Vision, mission & goals of the company 53-56

10 Swot analysis 71-75

11 Organizational system (gm) 76-77

12 Types of organization 79-80

13 Achievement 85-88

14 Structure of GM 93,95,95,96,98,

100-102-104

15 Functional pattern 116-117

16 Swot of GM 120-123

17 Annexure 130-133

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EXECUTIVE SUMMARY:----

GM is currently facing the most challenging time periods in its entire history.

Nevertheless, there are a few potential avenues of

Among the most promising of these is the Chinese automobile market.

of action which GM could follow

GM’s future operations in China can be summarized by the following three premises:

1. The Chinese car market will continue to grow and remain profitable, eventually

overtaking the US as the largest car market.

2. GM is very well suited to lead the Chinese premium car market as well as to efficiently

compete in the market for trucks.

3. GM will maintain long term leadership by investing in the four P’s: product, price

Processes, and Partnerships. This will ultimately improve GM’s brand, image and

reputation.

.

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MEANING OF BUSINESS:

The term business literally means the state of being busy. All human activities in the

broader sense thus may be termed as business activities. In a technical sense however,

the term business has a different meaning. The human activities may be classified into

(i) Economic activities and (ii) Non-economic activities. The former are concerned

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with production, distribution, consumption, etc. All activities which are aimed at

earning of income and generation of wealth are termed as economic occupations. The

employees performing their jobs in the employing organization, the doctors and

pleaders giving their specialist services to their patients and clients respectively, are

all economic occupations but in technical parlance these cannot be termed as business

activities. Business is an economic activity of distinct nature.

The non-economic activities do not contribute to the process of income and wealth

generation, but are undertaken out of love, affection, social, obligation, religion, etc.

According to F.C. Hooper “Business means the whole complex field of commerce

and industry, the basic industries, processing and manufacturing industries and the

network of ancillary services, distribution, banking, insurance, transport and so on,

which serve and interpenetrate the world of business as a whole”.

According to Prof. Owen defines “a business as an enterprise engaged in the

production and distribution of goods for sale in the market, or rendering of services

for a price”.

Business thus refers to the organized production and exchange of goods and services

undertaken with the object of earning profit. The production and distribution activities

performed by business concerns aim at satisfying the consumers needs and wants

which are numerous, unsuitable and recurrent. The business embraces industry, trade

and other activities like banking, transport, insurance, warehousing, etc.

Business refers to all those activities which lead to the creating of utilities and value

addition in the form of goods and services for satisfaction of human wants in return

for a price. It facilitates smooth for satisfaction of human wants in return for a price. It

facilitates smooth exchange by removing all bottlenecks or obstacles. The obstacles

are in the form of person, place, time, risk, finance, publicity, etc.

All those individuals and institutions which are continuously engaged in the recurrent

acts of buying, selling, procuring, manufacturing, processing, assembling and

distribution of goods and services to the consumers or the users with the object of

earning profit are said to be engaged in business. It is a wealth generating activity

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Characteristics

1. Distinct Ownership : The term ownership refers to the right of an individual

or a group of individuals to acquire legal title to assets or properties for the

purpose of running the business. A business firm may be owned by one

individual or a group of individuals jointly.

2. Lawful Business : Every business enterprise must undertake such business

which is lawful, that is, the business must not involve activities which are

illegal.

3. Separate Status and Management : Every business undertaking is an

independent entity. It has its own assets and liabilities. It has its own way of

functioning. The profits earned or losses incurred by one firm cannot be

accounted for by any other firm.

4. Dealing in goods and services : Every business undertaking is engaged in the

production and/or distribution of goods or services in exchange of money.

5. Continuity of business operations : All business enterprise engage in

operation on a continuous basis. Any unit having just one single operation or

transaction is not a business unit.

6. Risk involvement : Business undertakings are always exposed to risk and

uncertainty. Business is influenced by future conditions which are

unpredictable and uncertain. This makes business decisions risky, thereby

increasing the chances of loss arising out of business.

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MEANING OF MANAGEMENT:

Management is the process of planning, organizing, leading, and controlling the

efforts of organization members and of using all other organizational resources to

achieve stated organizational goals”. Management focuses on the entire organization

from both a short and a long-term perspective. Management aims to increase the

effectiveness of organizations. It's about

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Management in simple terms means the act of getting people together to accomplish

desired goals. Management comprises planning, organizing, resourcing, leading or

directing, and controlling an organization (a group of one or more people or entities)

or effort for the purpose of accomplishing a goal. Resourcing encompasses the

deployment and ...

Management is the art and science of getting things done through others, generallyby

organizing and directing their activities on the job.

In the words of George R Terry – “Management is a distinct process

consisting of planning, organising, actuating and controlling performed to

determine and accomplish the objectives by the use of people and resources”.

According to James L Lundy – “Management is principally the task of

planning, coordinating, motivating and controlling the efforts of others

towards a specific objective”.

In the words of Henry Fayol – “To manage is to forecast and to plan, to

organise, to command, to co-ordinate and to control”.

According to Peter F Drucker – “Management is a multi-purpose organ that

manages a business and manages managers and manages worker and work”.

In the words of Koontz and O’Donnel – “Management is defined as the

creation and maintenance of an internal environment in an enterprise where

individuals working together in groups can perform efficiently and effectively

towards the attainment of group goals”.

In the words of S. George – “Management consists of getting things done

through others. Manager is one who accomplishes the objectives by directing

the efforts of others”.

According to John F M – “Management may be defined as the art of securing

maximum results with a minimum of effort so as to secure maximum results

with a minimum of effort so as to secure maximum prosperity and happiness

for both employer and employee and give the public the best possible service”.

In the words of E.F.L. Brech – “Management is a social process entailing

responsibility for the effective and economical planning and regulation of the

operations of an enterprise, in fulfilment of a given purpose or task, such

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responsibility involving: (a) judgement and decision in determining plans and

in using data to control performance, and progress against plans; and (b) the

guidance, integration, motivation and supervision of the personnel composing

the enterprise and carrying out its operations”.

MEANING OF BUSINESS ADMINISTRATION:

The word “administration” is derived from the Middle English word administracioun,

which is in turn derived from the French administration, itself derived from the Latin

administratio—a compounding of ad ("to") and ministratio ("give service").

“Administration” is a broad concept open to many interpretations. In business,

“administration” typically refers to the performance or management of business

operations, involving the making or implementing of major decisions. Administration

can be defined as the universal process of organizing people and resources efficiently

so as to direct activities toward common goals and objectives

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In business, administration consists of the performance or management of business

operations, involving the making or implementing of major decisions. Administration

can be defined as the universal process of organizing people and resources efficiently

so as to direct activities toward common goals and objectives. Modern business

management theory identifies six key functions of an administrator in an organization:

Planning, organizing, staffing, directing, controlling, and budgeting. Skillful

administration is essential to the success of any business or organization and requires

a wide range of knowledge and skills.

In business administration consists of the performance or management of business

operations and thus the making or implementing of major decisions. Administration can

be defined as the universal process of organizing people and resources efficiently so as

to direct activities toward common goals and objectives.

The word is derived from the middle English word admin is traction, which is in turn

derived from the French admin is traction , itself derived from the Latin administration a

compounding of ad ("to") and ministration ("give service").

Administrator can serve as the title of the general manager or company secret any who

reports to a corporate board of directors. This title is archaic, but, in many enterprises,

this function, together with its associated Finance, personnel and management

information systems services, is what is intended when the term "the administration" is

used. In some organizational analyses management is viewed as a subset of

administration, specifically associated with the technical and mundane elements within

an organization's operation. It stands distinct from executive or strategic work.

In other organizational analyses, administration can refer to the bureaucratic operational

performance of mundane office tasks, usually internally oriented and reactive rather

than proactive.

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DIFFERENCE BETWEEN BUSINESS MANAGEMENT AND BUSINESS

ADMINISTRATION:

business management

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Business administration

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Business Management Business Administration

It puts into action the policies and

plans laid down by the

administration. 

It is an executive function. 

It is concerned about the

determination of objectives and

major policies of an organization.

It is a determinative function

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It takes decisions within the

framework set by the

administration.

It is a middle level activity.

It consists of owners who invest

capital in and receive profits from

an enterprise.

It is used in business enterprises.  

Its decisions are influenced by the

values, opinions, and beliefs of the

managers.

Motivating and controlling

functions are involved in it. 

It requires technical activities

It takes major decisions of an

enterprise as a whole

It is a top-level activity.

It is a group of managerial

personnel who use their

specialized knowledge to fulfill

the objectives of an enterprise.

It is popular with government,

military, educational, and

religious organizations.

Its decisions are influenced by

public opinion, government

policies, social, and religious

factors.

Planning and organizing functions

are involved in it.

It needs administrative rather than

technical abilities.

There can be a lot of confusion between the ‘administration’ and ‘management’ of

businesses. In the practical world of business, they are very similar, and generally

have identical functions and responsibilities. Many may think that administration is

more about paper-pushing and clerical work, while management is more about

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authority and decision-making. However, unless clearly defined by a particular

company, business management and administration are generally the same.

Professionals in management are vital to any business or organization. These

managers are relied upon to establish and implement policies, as well as strategies.

Additionally, they are expected to help people involved in the organization, work for

a common goal, in the most effective way possible. These professionals have studied

management degree programs, which have helped them become effective managers.

Management degree programs prepare individuals for planning, managing,

organizing, and running the essential procedures and tasks of organized bodies, such

as companies or firms. Courses also include many aspects that are vital to any

business, such as communications, production, logistics and purchasing, the

quantitative methods of accounting, administrative practices, decision-making,

marketing, information systems, and human resources management, and so forth.

They also handle training of the workforce.

The degree primes any person for entry-level management positions, like supervisor,

assistant manager, group leader, project manager, or office manager. The areas or

fields of work is broad, as one can work in advertising, finance, benefits

administration, insurance, human resources, wholesaling, retailing, communication,

and transportation.

Summary:

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1. Business Administration degrees are normally broader in scope, and management

can be considered as part of its extensive scale.

2. Business administration degrees offer a balanced mix of clerical, operations, and

management skills, while Management degrees, although they have aspects of

clerical and operation subjects, are more about the management of human

resources and personnel operations.

3. In reality, the lines are blurred when it comes to potential jobs and responsibilities,

as both degrees can be for the same positions.

TYPES OF BUSINESS:

Various types of business are:----

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1) Service businesses:--

Service businesses are enterprises that are established and maintained for the purpose

of providing services (rather than or in addition to products) to private and/or

commercial customers. The American Marketing Association defined services as

"activities, benefits, or satisfactions which are offered for sale or are provided in

connection with the sale of goods."

The overall service industry is regarded as an already robust one that should enjoy

considerable healthy growth rates in the future as the United States and other nations

continue to move from manufacturing-based economies to technologically advanced

service economies. "The service sector is a most attractive arena for the aspiring

entrepreneur," confirmed Irving Burstiner in Start & Run Your Own Profitable

Service Business. "Many service enterprises can be launched with far less money than

the amount of capital typically needed to open a manufacturing, wholesale, or retail

business. Many new service operators are able to begin at home, thus avoiding the

expense of renting, buying, or constructing business premises. Moreover, end-of-year

earnings in the service sector compare favorably with the profit margins enjoyed by

most other types of enterprise." In addition, service businesses enjoy several other

advantages over their brethren in other business areas. For one thing, they tend to be

local, and they often do not have to contend with the national or international

corporate giants that roam across the manufacturing, retail, and wholesale industries.

Moreover, they generally do not have to make the same levels of investment in

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inventory, raw materials, finished goods, operations, or production management as do

firms engaged in manufacturing, wholesaling, or retailing.

Of course, initial investment requirements can vary significantly from sector to sector.

While some service businesses, like book-keeping, house painting, child care, lawn

care, housekeeping, and tutoring, can all be launched with a modest investment by

individuals with special skills or knowledge in those areas, other service businesses

require a far greater investment of money. Attorneys, doctors, and other professionals

who make their living by providing their services to clients make heavy up-front

expenditures (tuition), while entrepreneurs interested in launching service businesses

that require extensive investments in facilities and/or equipment (hotels, laundromats,

car rental agencies, nursing care facilities, medical offices, etc.) have to make big up-

front expenditures of their own, albeit in different form.

Factors in Service Industry Growth

Researchers point to a number of factors that have accounted for the surge in service

business startups over the last few decades. Many of these factors reflect fundamental

changes in societal structure and character. W. F. Schoell and J. T. Ivy, authors of

Marketing: Contemporary Concepts and Practices, cited the following as major

reasons for service industry expansion in North America:

1. Increased affluence— As consumers have raised their standard of living, they have

increasingly chosen to purchase services such as lawn maintenance and carpet

cleaning that they previously took care of themselves.

2. Increased leisure time— Some segments of the population have been able to garner

larger chunks of free time; this trend, coupled with increased wealth, has spurred a

higher demand for certain service businesses such as travel agencies and resorts, adult

education courses, guide services, golf courses, health clubs, etc.

3. Changing work force demographics— Over the past few decades, increasing

numbers of women have entered the work force. This has spurred greater demand for

services in such realms as child care, housekeeping, dry cleaning, etc.

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4. Greater life expectancy— Another development that has had a particular impact on

certain service sectors, particularly in the health care industries.

5. Increased complexity of products/technological advancement—High-tech

products have created a corresponding increase in demand for specialists who can fix

and maintain those products (computers, cars, electronic equipment, etc.).

6. Increased complexity of life—Many service sectors have enjoyed tremendous

growth because of their orientation toward helping individuals and businesses stay on

top of the many facets of today's fast-paced society. Tax preparers, psychiatrists and

counselors, and legal advisors are good examples.

7. Increased environmental awareness—General trends toward increased ecological

sensitivity and enlightened natural resource management practices have spurred

growth in environmental service sectors (waste management, recycling,

environmental advocacy).

8. Increased number of available products—Technological advances have spurred

development of service industries in such areas as programming.

Types of Service Industries

Following is a representative listing of service businesses in a range of commercial

sectors that could conceivably be launched by an enterprising entrepreneur:

Professional services (physicians, pharmacists, dentists, attorneys, architects, civil

engineers)

Business services (advertising, financial planning, mailing services, computer and

data processing, consulting, training, recruiting)

Counseling services (marriage, weight loss, career planning, pastoral,

psychiatric)

Transportation services (trucking, busing, taxicab service, limousine service, car

rental)

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Personal services (pet grooming, health clubs, catering, beauticians, barbers,

hairdressers, tailors and seamstresses, photography studios, realtors, funeral parlors,

wedding planning)

Restaurants and lodging (diners, family restaurants, taverns, hotels, cottages)

Social services (individual and family services, child day care, residential

care)

Maintenance services (landscaping, plumbing and electrical, appliance, equipment,

automobile, bicycle)

In addition, many service-oriented businesses are, by their very nature, slanted toward

meeting the needs of one of two markets: individual consumers or other

businesses/organizations. Of course, some service establishments, like carpet cleaning

companies, can market their services to both client categories. But the majority of

service businesses place their emphasis on meeting the needs of one market segment

or the other. For example, a pet grooming establishment will not waste its advertising

dollars trying to reach other businesses; its primary clients are going to be individual

consumers simply because of the nature of the services they offer. Conversely, the

primary target of a company that provides security personnel is going to be

commercial establishments. Entrepreneurs that hope to market their services primarily

to organizations rather than individuals should note that, on the whole, such

businesses require greater capital investment at the outset.

2. Transportation business:--

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Transportation business concerns the movement of products from a source—such as a

plant, factory, or work-shop—to a destination—such as a warehouse, customer, or

retail store. Transportation may take place via air, water, rail, road, pipeline, or cable

routes, using planes, boats, trains, trucks, and telecommunications equipment as the

means of transportation. The goal for any business owner is to minimize

transportation costs while also meeting demand for products. Transportation costs

generally depend upon the distance between the source and the destination, the means

of transportation chosen, and the size and quantity of the product to be shipped. In

many cases, there are several sources and many destinations for the same product,

which adds a significant level of complexity to the problem of minimizing

transportation costs. Indeed, the United States boasts the world's largest and most

complex transportation system, with four million miles worth of roads, a railroad

network that could circle the earth almost seven times if laid out in a straight line, and

enough oil and gas lines to circle the globe 56 times.

Basic Means of Transportation

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There are five basic means of transporting products utilized by manufacturers and

distributors: air, motor carrier, train, marine, or pipeline. Many distribution networks

consist of a combination of these means of transportation. For example, oil may be

pumped through a pipeline to a waiting ship for transport to a refinery, and from there

transferred to trucks that transport gasoline to retailers or heating oil to consumers. All

of these transportation choices contain advantages and drawbacks.

Air transport:- Air transportation offers the advantage of speed and can be used for

long-distance transport. However, air is also the most expensive means of

transportation, so it is generally used only for smaller items of relatively high value—

such as electronic equipment—and items for which the speed of arrival is important—

such as perishable goods. Another disadvantage associated with air transportation is

its lack of accessibility; since a plane cannot ordinarily be pulled up to a loading dock,

it is necessary to bring products to and from the airport by truck.

According to Transportation and Distribution, air cargo remains a comparatively

small segment of total freight transportation volume when measured by tonnage (12.5

billion domestic ton-miles of freight annually). But L. Clinton Hoch noted in the

magazine that "access to air transportation is expected to become increasingly

important since a growing number of customers (such as hospitals and electronic

manufacturers) depend upon 'just in time' delivery systems as well as the increasing

number of high-tech industries (such as computer manufacturers) adopting the 'build-

to-order' strategy." These trends, coupled with increased pressure on consumer goods

manufacturers to deliver products quickly to 1) meet customer expectations and 2)

reduce inventory and other supply chain costs, are expected to "fuel the demand for

expedited services," wrote Hoch. "Accordingly, competition is heating up among the

major air cargo and express carriers who are building specialized hubs to handle

larger aircraft and major sorting facilities."

Railways. The rail transportation network in the United States included about

120,000 miles of major rail lines in the late 1990s, on which carriers transported an

estimated 1.3 million tons of freight annually. Trains are ideally suited for shipping

bulk products, and can be adapted to meet specific product needs through the use of

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specialized cars—i.e., tankers for liquids, refrigerated cars for perishables, and cars

fitted with ramps for automobiles.

Rail transportation is typically used for long-distance shipping. Less expensive than

air transportation, it offers about the same delivery speed as trucks over long distances

and exceeds transport speeds via marine waterways. In fact, deregulation and the

introduction of freight cars with larger carrying capacities has enabled rail carriers to

make inroads in several areas previously dominated by motor carriers. But access to

the network remains a problem for many businesses.

Motor carriers:- Accessible and ideally suited for transporting goods over short

distances, trucks are the dominant means of shipping in the United States. In fact,

motor carriers account for approximately $120 billion in annual revenue, much of it

due to local shipments (shipments to and from business enterprises in the same

community or local region). This industry sector underwent tremendous change in the

1990s with the introduction of deregulation measures that removed most state and

federal regulations in the areas of pricing and operating authority. "With few

exceptions, motor carriers are now free to operate wherever they wish and to charge

any rates that are agreeable to the shipper and the carrier," wrote Hoch, although he

noted that trucks are still subject to federal laws on vehicle specifications and the

parameters of the sanctioned truck routes of the Surface Transportation Assistance

Act of 1982.

Water transport:- Water transportation is the least expensive and slowest mode of

freight transport. It is generally used to transport heavy products over long distances

when speed is not an issue. Although accessibility is a problem with ships—because

they are necessarily limited to coastal area or major inland waterways—piggybacking

is possible using either trucks or rail cars. However, industry observers note that port

terminal accessibility to land-based modes of transportations is lacking in many

regions. The main advantage of water transportation is that it can move products all

over the world.

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2. Agribusiness:---

Agriculture business is a generic term for the various businesses involved in food

production, including farming and contract farming, seed supply, agrichemicals, farm

machinery, wholesale and distribution, processing, marketing, and retail sales. The

term has two distinctly different connotations depending on context.

Within the agriculture industry, agribusiness is widely used simply as a convenient

portmanteau of agriculture and business, referring to the range of activities and

disciplines encompassed by modern food production. There are academic degrees in

and departments of agribusiness, agribusiness trade associations, agribusiness

publications, and so forth, worldwide. Here, the term is only descriptive, and is

synonymous in the broadest sense with food industry.

Among critics of large-scale, industrialized, vertically integrated food production, the

term agribusiness is used negatively, synonymous with corporate farming. As such, it

is often contrasted with smaller family-owned farms. Negative connotations are also

derived from the negative associations of "business" and "corporations" by critics of

capitalism or corporate excess. As concern over global warming intensifies, biofuels

derived from food crops quickly emerged as a practical answer to the energy crisis.

Adding corn ethanol to gasoline or using palm oil for biodiesel makes the fuel burn

more cleanly, stretches oil supplies, and perhaps most attractive to some politicians,

provides a nice boost to big agribusiness. In Europe and in the US, increasing biofuels

was mandated by law. Rising fuel costs are increasingly adding financial burdens on

the day-to-day running of agricultural companies.

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Mining business:---

Mining is the extraction of valuable minerals or other geological materials from the

earth, usually from an ore body, vein or (coal) seam. Materials recovered by mining

include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil

shale, rock salt and potash. Any material that cannot be grown through agricultural

processes, or created artificially in a laboratory or factory, is usually mined. Mining in

a wider sense comprises extraction of any non-renewable resource (e.g., petroleum,

natural gas, or even water).

Mining of stone and metal has been done since pre-historic times. Modern mining

processes involve prospecting for ore bodies, analysis of the profit potential of a

proposed mine, extraction of the desired materials and finally reclamation of the land

to prepare it for other uses once the mine is closed.

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4.Financial business:--

Raising and managing of funds by business organizations. Such activities are usually

the concern of senior managers, who must use financial forecasting to develop a long-

term plan for the firm. Shorter-term budgets are then devised to meet the plan's goals.

When a company plans to expand, it may rely on cash reserves, expected increases in

sales, or bank loans and trade credits extended by suppliers. Managers may also

decide to raise long-term capital in the form of either debt (bonds) or equity (stock).

The value of the company's stock is a constant concern, and managers must decide

whether to reinvest profits or to pay dividends. Other duties of financial managers

include managing accounts receivable and fixing the optimum level of inventories.

When deciding how to deploy corporate assets to increase growth, financial managers

must also consider the benefits of mergers and acquisitions, analyzing economies of

scale and the ability of businesses to complement each other.

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5.Manufacturing business:---

This sector generally takes the output of the primary sector and manufactures finished

goods or where they are suitable for use by other businesses, for export, or sale to

domestic consumers. This sector is often divided into light industry and heavy

industry. Many of these industries consume large quantities of energy and require

factories and machinery to convert the raw materials into goods and products. They

also produce waste materials and waste heat that may pose environmental problems or

cause pollution.

Some economists contrast wealth-producing sectors in an economy such as

manufacturing with the service sector which tends to be wealth-consuming.[1]

Examples of service may include retail, insurance, and government. These economists

contend that an economy begins to decline as its wealth-producing sector shrinks.[2]

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Manufacturing is an important activity to promote economic growth and

development. Nations that export manufactured products tend to generate higher

marginal GDP growth which supports higher incomes and marginal tax revenue

needed to fund the quality of life initiatives such as health care and infrastructure in

the economy. The field is an important source for engineering job opportunities.

Among developed countries, it is an important

6) Real estate business:---

Real estate is a legal term (in some jurisdictions, such as the United Kingdom,

Canada, Australia, USA and The Bahamas) that encompasses land along with

improvements to the land, such as buildings, fences, wells and other site

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improvements that are fixed in location—immovable. Real estate law is the body of

regulations and legal codes which pertain to such matters under a particular

jurisdiction and include things such as commercial and residential real property

transactions. Real estate is often considered synonymous with real property

(sometimes called realty), in contrast with personal property (sometimes called chattel

or personality under chattel law or personal property law).

However, in some situations the term "real estate" refers to the land and fixtures

together, as distinguished from "real property", referring to ownership of land and

appurtenances, including anything of a permanent nature such as structures, trees,

minerals, and the interest, benefits, and inherent rights thereof. Real property is

typically considered to be Immovable property The terms real estate and real property

are used primarily in common law, while civil law jurisdictions refer instead to

immovable property

With the development of private property ownership, real estate has become a major

area of business, commonly referred to as commercial real estate. Purchasing real

estate requires a significant investment, and each parcel of land has unique

characteristics, so the real estate industry has evolved into several distinct fields.

Specialists are often called on to valuate real estate and facilitate transactions. Some

kinds of real estate businesses include:

Appraisal: Professional valuation services

Brokerages: A mediator who charges a fee to facilitate a real estate transaction

between the two parties.

Development: Improving land for use by adding or replacing buildings

Net leasing

Property management: Managing a property for its owner(s)

Real estate marketing: Managing the sales side of the property business

Real estate investing: Managing the investment of real estate

Relocation services: Relocating people or business to a different country

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Corporate Real Estate: Managing the real estate held by a corporation to support its

core business—unlike managing the real estate held by an investor to generate

income

7. Retail business:---

Retailing consists of the sale of goods or merchandise from a fixed location, such as a

department store, boutique or kiosk, or by mail, in small or individual lots for direct

consumption by the purchaser. Retailing may include subordinated services, such as

delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys

goods or products in large quantities from manufacturers or importers, either directly

or through a wholesaler, and then sells smaller quantities to the end-user. Retail

establishments are often called shops or stores. Retailers are at the end of the supply

chain. Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategy. The term "retailer" is also applied where a service

provider services the needs of a large number of individuals, such as a public utility,

like electric power.

ORGANIZATION SYSTEM GENERAL STUDY:-

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ORGANIZATION MEANING::--

An organization is a social arrangement which pursues collective goals, controls its

own performance, and has a boundary separating it from its environment. The word

itself is derived from the Greek word organ on, itself derived from the better-known

word ergo.

In the social sciences, organizations are the object of analysis for a number of

disciplines, such as sociology, economics, political science, psychology,

management, and organizational communication. In more specific contexts,

particularly for sociologists, the term "institution" may be preferred. The broader

analysis of organizations is commonly referred to as organizational studies,

organizational behavior or organization analysis. A number of different theories and

perspectives exist, some of which are compatible, Basically, an organization in its

simplest form is a person or group of people intentionally organized to accomplish

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an overall, common goal or set of goals. Business organizations can range in size

from one person to tens of thousands.

According to Steve Reid, English Department

To me, organization is the arrangement of the larger units of meaning in a paper.

That's one of the things that's going to be very different from one course to the next.

What are the expected patterns of organization? A lab report is very different from a

scientific report, is very different from a poem, is very different from a report in the

newspaper. All of these have their own patterns of organization, all of which are

acceptable in specific disciplines.

According to Kate Kiefer, English Department

Organization typically refers to the large elements of text structure. Sometimes these

elements are formalized in practice, as in the typical lab report, through consistent use

of headings. Sometimes elements of organization are only informally acknowledged -

like the thesis of an academic paper. Most writers across the university would agree,

however, that organization refers to the ordering of ideas.

There are several important aspects to consider about the goal of the business

organization. These features are explicit or implicit. Ideally, these features are

carefully considered and established, usually during the strategic planning process.

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Types of Organization:

Static Organizations

Fixed practices, fixed size. Like static equations, these organizations have no

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variables -- time doesn't change them significantly. They persist until some new

organization occupies their niche.

Dynamic Organizations

Fixed practices, variable size. Like dynamic equations, these organizations vary in

size over time, even though their underlying practices don't change much. They go

through a single life cycle, each growing rapidly as it occupies its niche, then

declining as its competitors implement better practices that steal away its clients.

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Adaptive Organizations

Variable practices, variable size. Like complex adaptive systems, these organizations

vary their practices, seeking the constant improvement that launches life cycle after

life cycle, creating new products, services, and processes that hold on to client’s

generation after generation. They will soon motivate employees to climb adaptation

curves by using ISOPs to fairly share the wealth that each innovation creates. ISOPs

ensure that the innovator, the predecessors, and each shareholder in the corporation

benefits.

They will displace dynamic and static organizations in economic competition, so that

within a generation, most people will have learned to expect continual improvement

in their life experience. The fact that their ancestors once worked at the same job in

the same way for an entire lifetime will seem almost as incredible as the fact that

people used to stay at jobs they didn't thoroughly enjoy.

Types of Ownership:

Franchise

Franchise is one of the newest forms of business ownership. It is very much in vogue

nowadays, especially in the United States of America. In case of a franchise, the

owner gets the right to market and sell the products of another business entity that has

already established itself in the market.

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Private Limited Company

Private limited companies are mainly small or medium sized business enterprises.

They are normally owned by a particular family or by a small group of businessmen

and the ownership rights are divided among these owners. All the business decisions

are subjected to the approval of all these owners or at least the majority of these

owners.

Partnership

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In a Partnership, two or more people share ownership of a single business. Like

proprietorships, the law does not distinguish between the business and its owners. The

partners should have a legal agreement that sets forth how decisions will be made,

profits will be shared, disputes will be resolved, how future partners will be admitted

to the partnership, how partners can be bought out, and what steps will be taken to

dissolve the partnership when needed. Yes, it's hard to think about a breakup when the

business is just getting started, but many partnerships split up at crisis times, and

unless there is a defined process, there will be even greater problems. They also must

decide up-front how much time and capital each will contribute etc.

Advantages of a Partnership:

Partnerships are relatively easy to establish; however time should be invested

in developing the partnership agreement.

With more than one owner, the ability to raise funds may be increased.

The profits from the business flow directly through to the partners' personal tax

returns.

Prospective employees may be attracted to the business if given the incentive to

become a partner.

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The business usually will benefit from partners who have complementary skills.

Disadvantages of a Partnership:

Partners are jointly and individually liable for the actions of the other partners.

Profits must be shared with others.

Since decisions are shared, disagreements can occur.

Some employee benefits are not deductible from business income on tax returns

.

Types of partnership that should be considered

1.  GeneralPartnership

Partners divide responsibility for management and liability as well as the shares of

profit or loss according to their internal agreement. Equal shares are assumed

unless there is a written agreement that states differently.

2. Limited Partnership and Partnership with limited liability

Limited means that most of the partners have limited liability (to the extent of their

investment) as well as limited input regarding management decisions, which

generally encourages investors for short-term projects or for investing in capital

assets. This form of ownership is not often used for operating retail or service

businesses. Forming a limited partnership is more complex and formal than that of a

general partnership.

3. Joint Venture

Acts like a general partnership, but is clearly for a limited period of time or a single

project. If the partners in a joint venture repeat the activity, they will be recognized

as an ongoing partnership and will have to file as such as well as distribute

accumulated partnership assets upon dissolution of the entity.

Corporations

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A corporation chartered by the state in which it is headquartered is considered by law

to be a unique entity,separate and apart from those who own it. A corporation can be

taxed, it can be sued, and it can enter into contractual agreements. The owners of a

corporation are its shareholders. The shareholders elect a board of directors to oversee

the major policies and decisions. The corporation has a life of its own and does not

dissolve when ownership changes .

Advantages of a Corporation:

Shareholders have limited liability for the corporation's debts or judgments against

the corporations.

Generally, shareholders can only be held accountable for their investment in stock

of the company.

Corporations can raise additional funds through the sale of stock.

A corporation may deduct the cost of benefits it provides to officers and

employees.

Can elect S corporation status if certain requirements are met. This election enables

company to be taxed similar to a partnership.

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Disadvantages of a Corporation:

The process of incorporation requires more time and money than other forms of

organization.

Corporations are monitored by federal, state and some local agencies, and as a

result may have more paperwork to comply with regulations.

Incorporating may result in higher overall taxes. Dividends paid to shareholders are

not deductible from business income; thus it can be taxed twice.

Limited Liability Company (LLC)

The LLC is a relatively new type of hybrid business structure that is now permissible

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in most states. It is designed to provide the limited liability features of a corporation

and the tax efficiencies and operational flexibility of a partnership. Formation is

more complex and formal than that of a general partnership.

The owners are members, and the duration of the LLC is usually determined when

the organization papers are filed. The time limit can be continued, if desired, by a

vote of the members at the time of expiration. LLCs must not have more than two of

the four characteristics that define corporations: Limited liability to the extent of

assets, continuity of life, centralization of management, and free transferability of

ownership interests.

Public Limited Company

The public limited companies are a type of business ownership that has very little

amount of liability. These companies have a lot of shareholders. In the United

Kingdom the term public limited company means any company that has share capital

of more than fifty thousand pounds.

Sole prorietorship

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A sole proprietorship also known as a sole trader, or simply proprietorship is a

type of business entity which is owned and run by one individual and where there

is no legal distinction between the owner and the business. All profits and all losses

accrue to the owner (subject to taxation specific to the business). All assets of the

business are owned by the proprietor and all debts of the business are the

proprietors'. This means that the owner has no lesser liability than if they were acting

as individual instead of a business. It is a "sole" proprietorship in contrast with

partnerships.

A sole proprietor may do business with a trade name other than his or her legal

name. Sometimes a sole proprietor is required to file a doing business as statement

with a local government even if it is the same as his actual name for certain types of

businesses or as a requirement to open a business banking account.

Cooperative Business Ownerships

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The cooperative business ownerships work by following a cooperative business

model. These companies have limited liabilities. The common goal of the members,

as in the case with partnerships, is making profits. All the members have the right to

play a significant role while taking business decisions.

Vision, mission & goals of the company:

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Vision:--

Members of the organization often have some image in their minds about how the

organization should be working, how it should appear when things are going well.

Corporate vision is a short, succinct, and inspiring statement of what the organization

intends to become and to achieve at some point in the future, often stated in

competitive terms. Vision refers to the category of intentions that are broad, all-

inclusive and forward-thinking.  It is the image that a business must have of its goals

before it sets out to reach them. It describes aspirations for the future, without

specifying the means that will be used to achieve those desired ends.

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Warren Bennis, a noted (No. 12 spring 1999) writer on leadership, says: "To choose

a direction, an executive must have developed a mental image of the possible and

desirable future state of the organization. This image, which we call a vision, may be

as vague as a dream or as precise as a goal or a mission statement."

Mission:--

An organization operates according to an overall purpose, or mission. A mission

statement is an organization's vision translated into written form. It makes concrete

the leader's view of the direction and purpose of the organization. For many

corporate leaders it is a vital element in any attempt to motivate employees and to

give them a sense of priorities.

A mission statement should be a short and concise statement of goals and priorities.

In turn, goals are specific objectives that relate to specific time periods and are stated

in terms of facts. The primary goal of any business is to increase stakeholder value.

The most important stakeholders are shareholders who own the business, employees

who work for the business, and clients or customers who purchase products and/or

services from the business.

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Goals:---

The major outcome of strategic road-mapping and strategic planning, after gathering

all necessary information, is the setting of goals for the organization based on its

vision and mission statement. A goal is a long-range aim for a specific period. It

must be specific and realistic. Long-range goals set through strategic planning are

translated into activities that will ensure reaching the goal through operational

planning.

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Organizational structure :

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An organizational structure is a mainly hierarchical concept of subordination of

entities that collaborate and contribute to serve one common aim.

Organizational structure depends on the product to be developed. Wheelwright and

Clark define a continuum of organizational structures between two extremes,

functional organizations and project organizations. Functional organizations are

organized according to technological disciplines. Senior functional managers are

responsible for allocating resources. The responsibility for the total product is not

allocated to a single person. Coordination occurs through rules and procedures,

detailed specifications, shared traditions among engineers and meetings (ad hoc and

structured). Products that need a high level of specialized knowledge require a

functionally organized structure.

Organizational structure allows the expressed allocation of responsibilities for

different functions and processes to different entities such as the branch, department,

workgroup and individual. Individuals in an organizational structure are normally

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hired under time-limited work contracts or work orders, or under permanent

employment contracts or program orders.

The set organizational structure may not coincide with facts, evolving in operational

action. Such divergence decreases performance, when growing. E.g. a wrong

organizational structure may hamper cooperation and thus hinder the completion of

orders in due time and within limits of resources and budgets. Organizational

structures shall be adaptive to process requirements, aiming to optimize the ratio of

effort and input to output.

Main types of organizational structures are:-

(1) Formal organisational Structure:---

Formal organisational Structure Organization charts are useful for showing the

formal organizational structure and who is responsible for certain tasks. In reality,

though, the organization chart cannot begin to capture the interpersonal that make up

the informal organizational structure.

(2) Informal organisational Structure:----

Herbert A. Simon has described this as “the in interpersonal relationships in the

organization that affect decisions within it but either are omitted from the formal

scheme or are not consistent with it. For example, during a busy period, one

employee may turn to another for help rather than going through a manager. Or an

employee in sales may establish a working relationship with an employee in

production, who can provide information about product availability faster than the

formal reporting system. And anyone who has worked in an organization knows the

importance of secretaries and executive assistants, which never shows on an

organization chart. One of the first scholars to recognize the importance of informal

structures was Chester Barnard.

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3. Functional structures

Early organizational design divided enterprises into relatively simple parts, splitting

them into defined activities such as production, marketing or personnel. functional

organizations have the advantage of being simple to understand with clear lines of

command, specified tasks and responsibilities. Staff can specialize in a particular

business area such as production or marketing and follow well-defined career paths.

This is equally true of human resource specialists who can develop expertise in

specific areas such as employee relations or reward management.

4.Divisional organizations

Split into self-contained units, able to react to environmental changes as quickly as

small companies, they are also described as multidivisional or 'M-form' organizations.

(...) Divisions encourage team spirit and identification with a product or region.

Managers can develop broad skills as they have control of all basic functions. (...)

Each division is likely to have a devolved human resource function. But there is a risk

of duplicating activities between head office and divisional human resource

departments and of conflict between staff in successful and unsuccessful divisions.

5.Federations

One variant of the divisional form which has a particular relevance because of its

human resource implications is the 'federation', a loosely connected arrangement of

businesses with a single holding company or separate firms in alliance. (...) This form

of organization has attracted criticism from stock market analysts who find difficulty

in comprehending its subtle informality

6. Matrix structure

The matrix structure groups employees by both function and product. This structure

can combine the best of both separate structures. A matrix organization frequently

uses teams of employees to accomplish work, in order to take advantage of the

strengths, as well as make up for the weaknesses, of functional and decentralized

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forms. An example would be a company that produces two products, "product a" and

"product b". Using the matrix structure, this company would organize functions

within the company as follows: "product a" sales department, "product a" customer

service department, "product a" accounting, "product b" sales department, "product b"

customer service department, "product b" accounting department. Matrix structure is

amongst the purest of organizational structures, a simple lattice emulating order and

regularity demonstrated in nature.

Weak/Functional Matrix: A project manager with only limited authority is assigned

to oversee the cross- functional aspects of the project. The functional managers

maintain control over their resources and project areas.

Balanced/Functional Matrix: A project manager is assigned to oversee the project.

Power is shared equally between the project manager and the functional managers. It

brings the best aspects of functional and projectized organizations. However, this is

the most difficult system to maintain as the sharing power is delicate proposition.

Strong/Project Matrix: A project manager is primarily responsible for the project.

Functional managers provide technical expertise and assign resources as needed.

7.Pre-bureaucratic structures

Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This

structure is most common in smaller organizations and is best used to solve simple

tasks. The structure is totally centralized. The strategic leader makes all key decisions

and most communication is done by one on one conversations. It is particularly useful

for new (entrepreneurial) business as it enables the founder to control growth and

development.

They are usually based on traditional domination or charismatic domination in the

sense of Max Weber's tripartite classification of authority.

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8.Bureaucratic structures

Bureaucratic structures have a certain degree of standardization. They are better suited

for more complex or larger scale organizations. They usually adopt a tall structure.

Then tension between bureaucratic structures and non-bureaucratic is echoed in Burns

and Stalker[1] distinction between mechanistic and organic structures. It is not the

entire thing about bureaucratic structure. It is very much complex and useful for

hierarchical structures organization, mostly in tall organizations.

9. Post-bureaucratic

The term of post bureaucratic is used in two senses in the organizational literature:

one generic and one much more specific [2]. In the generic sense the term post

bureaucratic is often used to describe a range of ideas developed since the 1980s that

specifically contrast themselves with Weber's ideal type bureaucracy. This may

include total quality management, culture management and matrix management,

amongst others. None of these however has left behind the core tenets of

Bureaucracy. Hierarchies still exist, authority is still Weber's rational, legal type, and

the organization is still rule bound. Heckscher, arguing along these lines, describes

them as cleaned up bureaucracies [3], rather than a fundamental shift away from

bureaucracy. Gideon Kunda, in his classic study of culture management at 'Tech'

argued that 'the essence of bureaucratic control - the formalization, codification and

enforcement of rules and regulations - does not change in principle.....it shifts focus

from organizational structure to the organization's culture'.

Organizational Structure Corporate Theory

The first step is determining what type of organizational structure you would like to

design and implement. Some examples of structures would be, functional and

hierarchical. Next, you should develop a strategy to start organizing your business,

company, or group. How do you want it to run? From the top down, or by a matrix of

different people, such as a management department is a big decision. Once you have a

few options picked out, you can decide which option will be optimal to produce the

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results you desire.

On this site, you can find assistance on the topics above. Available to you are designs,

models, alternative ideas, and strategy examples for setting up the structure of your

business. Also available are different theories and opinions surrounding some

strategies discussed. As for smaller organizations, we can offer some public resources

to help you in your specific area. Additionally, simple versions of structures can be

found.

If you choose the options that best fit your organization then you're more likely to

succeed in your market. By having the right people in the right place, it can lead to

better networking opportunities, higher sales, increased interest in your organization,

and overall success.

Functional Patterns – people, policies, systems and problems if any :

People:- People is the most important asset for any organization . the importance of

people for any organization can be determined by following:--

Specialization - Organizational structure is a network of relationships in which the

work is divided into units and departments. This division of work is helping in

bringing specialization in various activities of concern.

Well defined jobs - Organizational structure helps in putting right men on right job

which can be done by selecting people for various departments according to their

qualifications, skill and experience. This is helping in defining the jobs properly

which clarifies the role of every person.

Clarifies authority - Organizational structure helps in clarifying the role positions to

every manager (status quo). This can be done by clarifying the powers to every

manager and the way he has to exercise those powers should be clarified so that

misuse of powers do not take place. Well defined jobs and responsibilities attached

helps in bringing efficiency into managers working. This helps in increasing

productivity.

Co-ordination - Organization is a means of creating co- ordination among different

departments of the enterprise. It creates clear cut relationships among positions and

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ensure mutual co- operation among individuals. Harmony of work is brought by

higher level managers exercising their authority over interconnected activities of

lower level manager.

Authority responsibility relationships can be fruitful only when there is a formal

relationship between the two. For smooth running of an organization, the co-

ordination between authority- responsibility is very important. There should be co-

ordination between different relationships. Clarity should be made for having an

ultimate responsibility attached to every authority. There is a saying, “Authority

without responsibility leads to ineffective behaviour and responsibility without

authority makes person ineffective.” Therefore, co- ordination of authority-

responsibility is very important.

Effective administration – The organization structure is helpful in defining the jobs

positions. The roles to be performed by different managers are clarified.

Specialization is achieved through division of work. This all leads to efficient and

effective administration.

Growth and diversification - A company’s growth is totally dependent on how

efficiently and smoothly a concern works. Efficiency can be brought about by

clarifying the role positions to the managers, co-ordination between authority and

responsibility and concentrating on specialization. In addition to this, a company can

diversify if its potential grow. This is possible only when the organization structure is

well- defined. This is possible through a set of formal structure.

Sense of security - Organizational structure clarifies the job positions. The roles

assigned to every manager is clear. Co- ordination is possible. Therefore, clarity of

powers helps automatically in increasing mental satisfaction and thereby a sense of

security in a concern. This is very important for job- satisfaction.

Scope for new changes - Where the roles and activities to be performed are clear and

every person gets independence in his working, this provides enough space to a

manager to develop his talents and flourish his knowledge. A manager gets ready for

taking independent decisions which can be a road or path to adoption of new

techniques of production. This scope for bringing new changes into the running of an

enterprise is possible only through a set of organizational structure.

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Policy:---

A policy is typically described as a principle or rule to guide decisions and achieve

rational outcome(s). The term is not normally used to denote what is actually done,

this is normally referred to as either procedure or protocol. Whereas a policy will

contain the 'what' and the 'why', procedures or protocols contain the 'what', the 'how',

the 'where', and the 'when'. Policies are generally adopted by the Board of or senior

governance body within an organization where as procedures or protocols would be

developed and adopted by senior executive officers.

The term may apply to government, private sector organizations and groups, and

individuals. Presidential executive orders, corporate privacy policies, and

parliamentary rules of order are all examples of policy. Policy differs from rules or

law. While law can compel or prohibit behaviors (e.g. a law requiring the payment of

taxes on income), policy merely guides actions toward those that are most likely to

achieve a desired outcome.

Policy or policy study may also refer to the process of making important

organizational decisions, including the identification of different alternatives such as

programs or spending priorities, and choosing among them on the basis of the impact

they will have. Policies can be understood as political, management, financial, and

administrative mechanisms arranged to reach explicit goals.

Policy addresses the intent of the organization, whether government, business,

professional, or voluntary. Policy is intended to affect the 'real' world, by guiding the

decisions that are made. Whether they are formally written or not, most organizations

have identified policies

Policies may be classified in many different ways. The following is a sample of

several different types of policies broken down by their effect on members of the

organization.

1.Distributive policies

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Distributive policies extend goods and services to members of an organization, as

well as distributing the costs of the goods/services amongst the members of the

organization. Examples include government policies that impact spending for welfare,

public education, highways, and public safety, or a professional organization's

benefits plan.

2.Regulatory policies

Regulatory policies, or mandates, limit the discretion of individuals and agencies, or

otherwise compel certain types of behavior. These policies are generally thought to be

best applied when good behavior can be easily defined and bad behavior can be easily

regulated and punished through fines or sanctions. An example of a fairly successful

public regulatory policy is that of a speed limit.

3.Constituent policies

Constituent policies create executive power entities, or deal with laws. Constituent

policies also deal with Fiscal Policy in some circumstances.

4.Miscellaneous policies

Policies are dynamic; they are not just static lists of goals or laws. Policy blueprints

have to be implemented, often with unexpected results. Social policies are what

happens 'on the ground' when they are implemented, as well as what happens at the

decision making or legislative stage.

When the term policy is used, it may also refer to:

Official government policy (legislation or guidelines that govern how laws should be

put into operation)

Broad ideas and goals in political manifestos and pamphlets

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A company or organization's policy on a particular topic. For example, the equal

opportunity policy of a company shows that the company aims to treat all its staff

equally.

The actions the organization actually takes may often vary significantly from stated

policy. This difference is sometimes caused by political compromise over policy,

while in other situations it is caused by lack of policy implementation and

enforcement. Implementing policy may have unexpected results, stemming from a

policy whose reach extends further than the problem it was originally crafted to

address. Additionally, unpredictable results may arise from selective or idiosyncratic

enforcement of policy.

Types of policy analysis include:

Causal (resp. non-causal)

Deterministic (resp. stochastic, randomized and sometimes non-deterministic)

Index

Memory less (e.g. non-stationary)

Opportunistic (resp. non-opportunistic)

Stationary (resp. non-stationary)

System:---

System (from Latin systēma, in turn from Greek σύστημα systēma, "whole

compounded of several parts or members, system", literary "composition"[1]) is a set

of interacting or interdependent entities forming an integrated whole.

Very simply, a system is a collection of parts (or subsystems) integrated to

accomplish an overall goal (a system of people is an organization). Systems have

input, processes, outputs and outcomes, with ongoing feedback among these various

parts. If one part of the system is removed, the nature of the system is changed.

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Systems range from very simple to very complex. There are numerous types of

systems. For example, there are biological systems (the heart, etc.), mechanical

systems (thermostat, etc.), human/mechanical systems (riding a bicycle, etc.),

ecological systems (predator/prey, etc.), and social systems (groups, supply and

demand, friendship, etc.).

Complex systems, such as social systems, are comprised of numerous subsystems, as

well. These subsystems are arranged in hierarchies, and integrated to accomplish the

overall goal of the overall system. Each subsystem has its own boundaries of sorts,

and includes various inputs, processes, outputs and outcomes geared to accomplish an

overall goal for the subsystem.

Very simply, a system is a collection of parts (or subsystems) integrated to

accomplish an overall goal (a system of people is an organization). Systems have

input, processes, outputs and outcomes, with ongoing feedback among these various

parts. If one part of the system is removed, the nature of the system is changed.

Systems range from very simple to very complex. There are numerous types of

systems. For example, there are biological systems (the heart, etc.), mechanical

systems (thermostat, etc.), human/mechanical systems (riding a bicycle, etc.),

ecological systems (predator/prey, etc.), and social systems (groups, supply and

demand, friendship, etc.).

Complex systems, such as social systems, are comprised of numerous subsystems, as

well. These subsystems are arranged in hierarchies, and integrated to accomplish the

overall goal of the overall system. Each subsystem has its own boundaries of sorts,

and includes various inputs, processes, outputs and outcomes geared to accomplish an

overall goal for the subsystem.

A pile of sand is not a system. If one removes a sand particle, you've still got a pile of

sand. However, a functioning car is a system. Remove the carburetor and you've no

longer got a working car.

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The concept of an 'integrated whole' can also be stated in terms of a system

embodying a set of relationships which are differentiated from relationships of the set

to other elements, and from relationships between an element of the set and elements

not a part of the relational regime.

The scientific research field which is engaged in the study of the general properties of

systems include systems theory, cybernetics, dynamical systems, thermodynamics and

complex systems. They investigate the abstract properties of the matter and

organization, searching concepts and principles which are independent of the specific

domain, substance, type, or temporal scales of existence.

Most systems share common characteristics, including:

Systems have structure, defined by parts and their composition;

Systems have behavior, which involves inputs, processing and outputs of material,

energy, information, or data;

Systems have interconnectivity: the various parts of a system have functional as well

as structural relationships between each other.

Systems have by themselves functions or groups of functions

1.An open system:-- It is any distinct entity -- a cell, a person, a forest, or an orchestra

organization -- that takes in resources from its environment, processes them in some

way, and produces output. To survive, such a system depends on its environment, and

on interactions between its component parts or subsystems. When taking an open-

systems approach, we look both inward and outward. We are interested in

relationships and patterns of interaction between subsystems and their environments

within the organization. We also look for relationships and reciprocal influences

between the organization and the environment outside its formal "boundary."

2.Closed system:--

A closed system operates out of inflexible, stuck, negative rules designed to maintain

an unchanging status quo. It is dictatorial, controlling, perfectionistic.

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In a closed system people don't talk to each other. They second-guess each other and

make assumptions. They gossip, take sides and keep secrets. They are quick to blame

other people and slow to take responsibility for mistakes, so there is minimal

accountability. People argue without getting anywhere. Conflict of any kind is usually

avoided and people will not confront a problem even when it is glaringly obvious. On

those rare occasions when there is open conflict it usually doesn't get resolved to

everyone's satisfaction because people get stuck in having to win while making the

other person wrong and needing them to lose.

As in a family, people get stuck in having the same arguments over and over and

never getting anywhere. Individuals stay entrenched in their intractable positions and

the most people are willing to budge, if at all, is by agreeing to disagree. While that

may look reasonable on the outside it doesn't actually move things forward and it

keeps problems at arms length.

That's why problems can fester away for years beneath the surface, with suppressed

angers and resentments never being voiced or addressed. But because a system must

always be in balance, whether its functional or dysfunctional, those angers and

resentments will be expressed covertly. This might take the form of undermining

other people's positions, backstabbing, spreading gossip, not passing on information,

being obstructive.

Senior management are inaccessible: phone calls aren't returned, e-mails aren't

answered; people are in meetings all the time. Personal needs are, for the most part,

sacrificed to the needs of the system, which usually means that everyone operates

with a degree of low-grade anger and frustration. Stress levels increase enormously.

SWOT analysis:-

SWOT analysis is a strategic planning method used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business

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venture. It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favorable and unfavorable to

achieve that objective.

A SWOT analysis must first start with defining a desired end state or objective. A

SWOT analysis may be incorporated into the strategic planning model. Strategic

Planning, has been the subject of much research.

Strengths: attributes of the person or company that are helpful to achieving the

objective(s).

Weaknesses: attributes of the person or company that are harmful to achieving

the objective(s).

Opportunities: external conditions that are helpful to achieving the objective(s)

Threats: external conditions which could do damage to the objective(s).

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Identification of SWOTs are essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the

SWOTs.

First, the decision makers have to determine whether the objective is attainable,

given the SWOTs. If the objective is NOT attainable a different objective must be

selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify strengths,

weaknesses, opportunities and threats. It is particularly helpful in identifying areas

for development

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SWOT analysis template 

Subject of SWOT analysis: (define the subject of the analysis here)

strengths

Advantages of proposition?

Capabilities?

Competitive advantages?

USP's (unique selling points)?

Resources, Assets, People?

Experience, knowledge, data?

Financial reserves, likely returns?

Marketing - reach, distribution,

awareness?

Innovative aspects?

Location and geographical?

Price, value, quality?

Accreditations, qualifications,

certifications?

Processes, systems, IT,

communications?

Cultural, attitudinal, behavioural?

Management cover, succession?

weaknesses

Disadvantages of proposition?

Gaps in capabilities?

Lack of competitive strength?

Reputation, presence and reach?

Financials?

Own known vulnerabilities?

Timescales, deadlines and

pressures?

Cashflow, start-up cash-drain?

Continuity, supply chain

robustness?

Effects on core activities,

distraction?

Reliability of data, plan

predictability?

Morale, commitment, leadership?

Accreditations, etc?

Processes and systems, etc?

Management cover, succession?

opportunities

Market developments?

threats

Political effects?

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Competitors' vulnerabilities?

Industry or lifestyle trends?

Technology development and

innovation?

Global influences?

New markets, vertical, horizontal?

Niche target markets?

Geographical, export, import?

New USP's?

Tactics - surprise, major contracts,

etc?

Business and product development?

Information and research?

Partnerships, agencies, distribution?

Volumes, production, economies?

Seasonal, weather, fashion

influences?

Legislative effects?

Environmental effects?

IT developments?

Competitor intentions - various?

Market demand?

New technologies, services, ideas?

Vital contracts and partners?

Sustaining internal capabilities?

Obstacles faced?

Insurmountable weaknesses?

Loss of key staff?

Sustainable financial backing?

Economy - home, abroad?

Seasonality, weather effects?

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GENERAL MOTORS

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INTRODUCTION :---

General Motors Corporation, a U.S.-based company, has been in business for 100

years, has produced nearly 450 million vehicles globally, and operates in virtually

every country in the world. While GM has recently enjoyed rapidly growing sales

and revenues outside the United States, the U.S. remains the company‘s largest

single market

country. GM is woven into the very fabric of America. It has been the backbone of

U.S. manufacturing, is a significant investor in research and development, and has a

long history of philanthropic support of communities across the country. The auto

industry today remains a driving engine of the U.S. economy, employing 1 in 10

American workers, and is one of the largest purchasers of U.S. steel, aluminum, iron,

copper, plastics, rubber, and electronic and computer chips. Indeed, GM‘s ―Keep

America Rolling‖ sales campaign, following the September 11 attacks, is credited by

many as having prevented an extended recession in 2001. It is no secret that GM, like

all domestic automobile manufacturers, has increasingly struggled over the last

several years due to increased competition from foreign manufacturers with lower

wage, healthcare and benefit costs (in part, due to having far fewer retirees to support

in the U.S., and national healthcare structures in their home countries). GM has spent

$103 billion over the last 15 years alone on these legacy costs, constraining

investment in more advanced manufacturing and product technologies and

significantly weakening the company‘s balance sheet. GM has made mistakes in the

past — in now-untenable provisions from prior collective bargaining agreements, and

insufficient investment in smaller, more fuel-efficient vehicles for the U.S. Even so,

GM still supplies one in five vehicles sold in the U.S. today. In fact, 66 million GM

cars and trucks are on this country‘s roads today, 44 million more than Toyota. As

described in Appendix A, GM has made substantial progress in narrowing the gap

with foreign competition in quality, productivity and fuel efficiency. The Plan

commits to further improvements in these and other areas critical to our long-term

success. It is also noteworthy that in other markets, such as China, Latin America and

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Russia, and where GM does not have the burden of legacy costs, the company has

recently grown rapidly and outperformed the competition. Finally, GM has never

failed to meet a Congressional mandate in the important areas of fuel efficiency and

vehicle emissions, and sets the industry standard for ―green‖ manufacturing

methods. Furthermore, the company‘s role in creating ―green‖ technology and high-

paying jobs of the future will increase substantially as a result of implementing the

Plan.

BRIEF INTRODUCTION OF GENERAL MOTORS:-

Type Limited liability company

Industry Automotive

Founded 1908

Founder(s) William C. Durant

Headquarters Renaissance Center

Downtown Detroit, Michigan, USA

Area reserved Worldwide Key people

Edward Whitacre ( Chairman)

Daniel Akerson (CEO)

Products Automobiles

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Owner(s) - United States Department of the Treasury

(61%)

-United Auto Workers Union

Voluntary Employee Beneficiary Association

(17.5%)

Canada Development Investment

Corporation -

-Bond holders of Motors Liquidation Company

(9.8%) Employees 204,000 (2009)[1]

Divisions Chevrolet

Buick

Cadillac GMC

Subsidiaries Vauxhall

AC Delco

General Motors Canada

General Motors do Brasil

General Motors India

General Motors Ventures

Global Hybrid Cooperation

General Motors South Africa

GM-AvtoVAZ

GM Daewoo (70.1%)

GM Holden Ltd

GM Performance Division

OnStar

Opel

Website GM.com

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Management:--

The Renaissance Center in Detroit, GM's world headquarters.

On July 23, 2009, GM announced its new Board of Directors: Dan Akerson, David

Bonderman, Robert D. Krebs, Patricia F. Russo and Ed Whitacre (GM Chairman and

Interim Chief Executive Officer). Board members who are not GM employees will be

paid US$200,000 annually.[17]

As of December 1, 2009, The General Motors Board of Directors accepted Frederick

Henderson's resignation. In January 2010, chairman Whitacre was appointed

permanent chief executive officer after previously serving in an interim capacity.[18]

On December 4, 2009, GM announced leadership changes in a press release.

Edward Whitacre, Jr. - Chairman of the Board of the Directors and Chief

Executive Officer

Robert A. Lutz - Vice Chairman, advisor on design and global product

development [19]

Chris Liddell - Vice Chairman and Chief Financial Officer [20]

Thomas G. Stephens - Vice Chairman, Global Product Operations [21]

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Mark Reuss - President, GM North America [22]

David N. Reilly - President, GM Europe/Adam Opel GmbH [23]

Timothy E. Lee - President, GM International Operations (Asia-Pacific, Latin

America, Africa, and Middle East) [24]

Ray Young - vice president, International Operations [25][26]

Edward T. Welburn - Global Vice President of General Motors Design,

current and only the sixth head designer.[27]

For additional senior management see GM Senior Leadership Group

Whitacre was very active in GM's advertising. He appeared in an advertisement

touting the company's 60-day, money-back guarantee soon after the company exited

bankruptcy and a television advertisement that boasted the repayment of $6.7 billion

loan from government ahead of schedule, which caused a controversy.[28] On August

12, 2010 GM announced that Whitacre would relinquish the CEO position effective

September 1, 2010 and that of Chairman of the Board at the end of the year, to be

replaced in those functions by current board member Dan Akerson.[29]GM is a

conglomerate.

Global ranking:--GM officially ranks as the world’s second largest manufacturer as

measured by OICA in 2009

Type of Organization:---

On October 19, 2009, General Motors Company completed its holding company

reorganization (the “Reorganization”). The Reorganization was conducted to

implement a new holding company structure that is intended to provide greater

financial and organizational flexibility. In connection with the Reorganization, all of

the outstanding shares of common stock and Series A Fixed Rate Cumulative

Perpetual Preferred Stock of the prior General Motors Company (“Prior GM”) were

exchanged on a one-for-one basis for shares of common stock and Series A Fixed

Rate Cumulative Perpetual Preferred Stock (“Series A Preferred Stock”) of a newly

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organized Delaware corporation (“HoldCo”) that now bears the name General Motors

Company. These new Hold Co securities were issued solely in exchange for the

securities of Prior GM in connection with a merger (the “Merger”) effected pursuant

to an Agreement and Plan of Merger, dated as of October 15, 2009, by and among

Prior GM, HoldCo and GM Merger Subsidiary Inc., a Delaware corporation and

indirect wholly-owned subsidiary of Prior GM. These new HoldCo securities have the

same economic terms and provisions as the corresponding Prior GM securities and are

held by HoldCo securityholders in the same class evidencing the same proportional

interest in HoldCo as the securityholders held in Prior GM.

The only asset currently owned by HoldCo is a 100% ownership interest in General

Motors Holdings LLC, a newly organized Delaware limited liability company

(“Intermediate HoldCo”). As a result of the Merger, Prior GM became a direct

wholly-owned subsidiary of Intermediate HoldCo.

In addition, in connection with the Reorganization:

 

•  Prior GM was converted into a limited liability company and renamed General

Motors LLC;

 

•  HoldCo and Prior GM entered into amended and restated warrant agreements

assigning to HoldCo all of Prior GM’s rights, duties and obligations under the

three separate warrant agreements originally executed by Prior GM in July 2009 in

connection with its acquisition of substantially all of the assets of Motors

Liquidation Company (“Motors Liquidation”). The operative provisions of the

amended and restated warrant agreements are substantially identical to the original

warrant agreements, except that the amended and restated warrant agreements

provide that the warrants issued thereunder to Motors Liquidation and the UAW

Retiree Medical Benefits Trust (the “New VEBA”) are now exercisable for

HoldCo common stock rather than Prior GM common stock;

 

•  HoldCo entered into an agreement with Motors Liquidation and Prior GM relating

to that certain Amended and Restated Master Sale and Purchase Agreement, dated

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as of June 26, 2009, as amended (the “Purchase Agreement”), among Motors

Liquidation, MLCS, LLC (formerly known as Saturn LLC), MLCS Distribution

Corporation (formerly known as Saturn Distribution Corporation), MLC of

Harlem, Inc. (formerly known as Chevrolet-Saturn of Harlem, Inc.) and Prior GM,

which provides that in the event that Prior GM becomes obligated under the

Purchase Agreement to issue any adjustment shares to Motors Liquidation in the

form of Prior GM common stock, HoldCo would instead issue any such

adjustment shares to Motors Liquidation in the

  form of an equivalent number of shares of HoldCo common stock;

•  HoldCo, the United States Department of the Treasury (the “U.S. Treasury”), the

New VEBA, 7176384 Canada Inc. (“Canada Holdings”) and Prior GM entered

into a Stockholders Agreement, dated as of October 15, 2009 (the “New

Stockholders Agreement”). The New Stockholders Agreement is substantially

identical to the original stockholders agreement entered into by Prior GM, the U.S.

Treasury, the New VEBA and Canada Holdings on July 10, 2009, except that the

New Stockholders Agreement contains a provision terminating the original

stockholders agreement;

 

•  HoldCo, Prior GM and Intermediate HoldCo entered into assignment and

amendment agreements with each of the U.S. Treasury and the New VEBA

whereby Prior GM assigned its obligations (i) as borrower under the Second

Amended and Restated Secured Credit Agreement dated as of August 12, 2009

with the U.S. Treasury (the “UST Credit Agreement”), and (ii) as issuer under the

Amended and Restated Secured Note Agreement dated as of August 14, 2009 with

the New VEBA (the “VEBA Note Agreement”) to Intermediate HoldCo. Pursuant

to the respective assignment and amendment agreements, the UST Credit

Agreement and the VEBA Note Agreement were amended to reflect the post-

Reorganization corporate structure of HoldCo and its subsidiaries. In addition,

pursuant to the respective assignment and amendment agreements, certain of the

representations and warranties, affirmative and negative covenants and events of

default will also apply to HoldCo under each of the UST Credit Agreement and

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the VEBA Note Agreement and HoldCo’s activities will be limited to those

incidental to the ownership of its subsidiaries, subject to certain exceptions,

including the incurrence of certain indebtedness permitted by the UST Credit

Agreement and the VEBA Note Agreement; and

 

  •  General Motors of Canada Limited (“GMCL”), a subsidiary of Prior GM, entered

into an amendment (the “EDC Amendment”) to its Second Amended and Restated

Loan Agreement dated as of July 10, 2009 (the “EDC Loan Agreement”) with

Export Development Canada (“EDC”). The EDC Amendment approved the

Reorganization and made certain other modifications to reflect the post-

Reorganization corporate structure of HoldCo and its subsidiaries. The EDC

Amendment also incorporated certain amendments made to the UST Credit

Agreement and VEBA Note Agreement in August 2009 so that certain

representations concerning the collateral and disclosure of information, affirmative

covenants with respect to financial reporting and notice of investments, negative

covenants with respect to incurrence of indebtedness, fundamental changes and

agreements restricting liens on assets and certain events of default, so that such

provisions would be consistent with the corresponding provisions in the UST

Credit Agreement and the VEBA Note Agreement. An Event of Default under the

UST Credit Agreement by Holdco of certain of its representations, warranties and

covenants under the UST Credit Agreement and the VEBA Note Agreement,

respectively, are an Event of Default under the EDC Loan Agreement.

Additionally, Prior GM ratified its obligations as a guarantor of GMCL’s

obligations under the EDC Loan Agreement and Intermediate Holdco entered into

a guarantee of GMCL’s obligations under the EDC Loan Agreement. Prior GM’s

guarantee of GMCL’s obligations is secured by a first priority lien on 35% of its

ownership interest in GMCL and a second priority lien on 65% of its ownership

interests in GMCL. Intermediate Holdco’s guarantee of GMCL’s obligations will

be secured by a first priority lien on 35% of Intermediate Holdco’s ownership

interest in GMCL and a second priority lien on 65% of Intermediate Holdco’s

ownership interest in GMCL when the ownership interests in GMCL are

transferred by Prior GM to Intermediate Holdco, which is expected to occur on or

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about November 2, 2009.

Prior GM continues to employ all U.S.-based personnel and operate the U.S.

automotive business.

The provisions of HoldCo’s certificate of incorporation (including the certificate of

designations for the Series A Preferred Stock) and bylaws are substantially identical

to those of Prior GM as in effect immediately prior to the Merger. The board of

directors and officers of HoldCo are the same individuals who were members of the

board of directors and officers of Prior GM immediately prior to the Merger.

Vision, mission & goals of the company:---

Vision:---

Vision Statement

The GM vision is as follows: GM’s vision is to be the world leader in transportation

products and related services. GM will earn our customers’ enthusiasm through

continuous improvement driven by the integrity, teamwork, and innovation of GM

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people.

The proposed new vision for GM is as follows: For GM to become the automotive

industry leader in alternative fueled vehicles and providing superior quality products

that global consumers call to mind when they think of quality and innovation. My

vision for GM is to be the industry leader in innovation, and where all other industry

competition strives to imitate.

Mission Statement

The current GM mission statements are as follows: Drive improvements in market

share, revenue, brands, people, responsiveness, and cost effectiveness through the

implementation of global common metrics and best practice sharing.

The new proposed mission statement will be as follows: GM will become an industry

leader, not a follower. To regain lost market share that was lost to foreign

competition, and once again be the auto industry leader in sales and market share in

today’s global market.

Values Statement

The auto industry just like the global economy is going through tremendous change,

due to rising fuel prices, and environmental worries, such as global warming. GM

must use these threats as opportunities, and take advantage of changing consumer

buying habits. GM needs to change consumer perception of the company, from a dull,

poor quality, vehicles to innovative, quality, and environmentally friendly company.

To do this GM must portray an image that states that GM values what the consumer

wants and what the environment needs. Listen to what consumers are saying directly

and indirectly about GM’s current products, and create innovative, green, vehicles

that turn consumers into customers. At the same time provide GM stakeholders pride

and financial incentives to remain with GM.

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Goals:---

General Motors Corp. is poised to take the lead in development and production of

more fuel-efficient vehicles and the conversion to alternative power, such as

electricity and hydrogen fuel cells, to power vehicles, Larry Burns, vice president of

research and development and strategic planning, said at UD on April 13.

Speaking to about 100 students and faculty, Burns said the growing demand for oil

and fluctuating prices have created serious concerns for the automobile industry,

which is almost totally dependent on gasoline.

“We are in a situation where energy is at the heart of the future of the world,” Burns

said, adding that demand for petroleum is expected to grow by 70 percent in the next

23 years. “If we have energy security concerns today, imagine what those concerns

are going to be in the year 2030. If you are in the auto business where we are 98

percent dependent on petroleum for our energy sources, imagine the business risk in

not having solutions to these issues.”

Burns said General Motors has embarked on a major research and design strategy

aimed at playing a leading role in the automobile industry while maintaining business

sustainability.

“It's really time to seize this opportunity and the opportunity that technology brings,”

Burns said. “We are seeking to improve the fuel efficiency and emissions of our

vehicles. Essentially, we want to have zero-emission vehicles, and we want to get the

car out of the energy/environmental debate. We believe the way to do that is to

displace petroleum. The key to displacing petroleum is energy diversity, using

petroleum and alternative sources of petroleum, biological and synthetic fuels and

hydrogen and electricity.”

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Burns said GM already has about two dozen vehicles in the market whose fuel

consumption averages more than 30 miles per gallon on the highway. The higher

efficiency, he said, has been made possible by innovations like active fuel

management, in which some engine cylinders shut off when a vehicle is cruising at

highway speeds, as well as energy-efficient six-speed transmissions.

Some 2 million GM cars and trucks on the road can use flex-fuel--a combination of

81 percent ethanol and 19 percent gasoline--and 400,000 more are being sold every

year, Burns said. The growing use of ethanol, he said, will not only ease dependence

on petroleum, but it will create many opportunities to make ethanol from cellulose,

which occurs naturally in plant cell walls.

In contrast, Burns said, Toyota will not produce a vehicle that can run on 85 percent

ethanol until the year 2010. “That's how much of a lead we have,” he said.

“The whole principle here is to create jobs in the United States by creating alcohol

from cellulose, keep the dollars going outside the United States to buy petroleum here

to drive our economy, and use a renewable source of energy that requires carbon

dioxide [to be] removed from the atmosphere to grow those plants,” Burns said.

In addition to flex-fuel, GM is developing more electric hybrid vehicles, beginning

with the introduction of 550 of the company's Allison hybrid buses since 2003. The

buses use energy created from braking to charge a power source for the motor, Burns

said. Electric hybrid technology has been built into the Saturn Vue and the same

system will be put in the Saturn Aura and the Chevrolet Malibu.

Burns: “We are seeking to improve the fuel efficiency and emissions of our vehicles.

Essentially, we want to have zero-emission vehicles, and we want to get the car out of

the energy/environmental debate.”

Also in development is a two-mode engine, in which a six-speed transmission is fitted

with four gears instead of six and two electric motors. The mechanical power path is

then blended with the electric power path to help capture regenerative braking power

and shut down some cylinders at cruising speeds, resulting in a 25-35 percent fuel

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efficiency. The technology will be available in the Suburban, Yukon and Escalade

sport utility vehicles later this year.

GM also is focusing on the development of variations of the electric hybrid engines to

include electric power sources that can be charged from electricity mains. Such

technology has been used in the Sequel, “the world's most advanced” hybrid vehicle,

which travels up to 300 miles on its hydrogen supply, and accelerates to 60 miles per

hour in less than 10 seconds.

Burns praised UD for its role in the development of a hydrogen fuel cell bus that was

recently unveiled on the Newark campus and said that such technology is a major part

of GM's strategy.

“It is very, very nice to see that you have a hydrogen fuel cell bus running here on

your campus,” Burns said. “You need to be enormously proud of that fact. There are

not many of those buses that exist in the world and to be able to experience this

cutting-edge technology firsthand and, importantly, to have created the relationships

that allows you to get this bus built and on your campus is something that you should

be very proud of.”

In addition to fuel sources, GM is also developing smart car systems, such as

enhancing the use of the OnStar navigation and emergency assistance systems

available on most GM vehicles by linking it to stability control systems.

“Stability control is based on steering movement, speed and chassis movement,”

Burns said. “We can share that data between cars and predict where the car will be in

the next 20 milliseconds. When we know where the cars are now, we know where

they will be, and we can avoid crashes. We can also keep the space between cars

uniform and improve traffic. Vehicle-to-vehicle communication is very exciting

technology that General Motors is pioneering.”

Burns, who oversees GM's advanced technology, innovation programs and corporate

strategy, began his career in 1969 as a member of the company's research and

development staff, where his research focused on transportation, logistics and

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production systems. He has held executive positions in several GM divisions in the

areas of product program management, quality, production control, industrial

engineering and product and business planning. In May 1998, he was named a vice

president of General Motors, with responsibility for research and development and

planning.

Burns holds a doctorate in civil engineering from the University of California at

Berkeley. He also has a master's degree in engineering/public policy from the

University of Michigan and a bachelor's degree in mechanical engineering from

General Motors Institute (now Kettering University).

DETROIT — Admitting that there has been a lot of "damage" to General Motors in

the aftermath of the federal bailout and bankruptcy, the automaker's new management

team on Tuesday pledged that there will be no more "bad behavior" or "parlor tricks"

as it makes the transition to newer products like the 2011 Chevrolet Cruze.

Mark Reuss, the new president of GM North America, and Susan Docherty, the new

GM vice president of sales, service and marketing, spent nearly an hour on a

conference call fielding questions from a sometimes hostile media. At one point, Wall

Street Journal reporter John Stoll described last Friday's management reorganization

in negative terms, saying "it feels a lot like the old GM."

Reuss fired back: "I guess that's what you feel. We're going to do different."

Both Reuss and Docherty are longtime GM executives.

Reuss told reporters that the new management team had its first meeting on Monday

and laid out its goals for the automaker for 2010.

"I'm not getting into a metric session," Reuss said, while refusing to put a number on

GM's goal for future market share and other key measurements of success. "What we

think success looks like for General Motors in 2010 [is this]. We need to repay the

money that we've borrowed [from the federal government]. Everybody in this

company wants that desperately. We want to make this country proud of General

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Motors, and we want to do that fast. The only way is with our products and how we

sell those products and how we build those products. If we can get that done, and we

can go public, and we can get the relationships of the American people back, man,

look out. And that's what we talked about yesterday."

In a rather stunning confessional, Docherty said: "What's different here is that in the

old GM, we had a tendency to buy our market share. With our focus from going from

eight brands to four brands, we're going to earn our market share. That's where the big

difference is."

Reuss added: "This is going to be a fundamental approach to being a great company.

The initiatives, the parlor tricks, that's not what's going to be going on here."

When Docherty was asked to explain her remark about market share, she added: "I'm

not proud of the fact that we've been the incentive leader. We are going to pull back

on incentives or be more strategic on incentives. As we transition from [Chevrolet]

Cobalt to [Chevrolet] Cruze, I don't want to flood the market with Cobalts while we

wait for Cruze. We don't want to jam cars on the marketplace to buy share. That's a

bad behavior. [We have to] manage the transition between old products and new

products."

The new management team clearly is grappling with a GM image problem in the

aftermath of its bankruptcy filing earlier this year. Reuss said, "There is a lot of

damage with what people see in the media and a bankruptcy on one of the biggest,

most respected companies in America."

While unable or unwilling to quantify things like future market share, GM did reveal

some key numbers in Tuesday's session. Docherty said the automaker's 60-day

money-back guarantee has resulted in 163 returned vehicles out of 300,000 vehicles

sold, as of December 6. "We're learning lots from everybody that does return," she

said.

Reuss said the automaker has taken information from one woman in Kentucky who

returned a Chevrolet Silverado and are using her complaints to improve the truck "for

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the next program." Her issues included a too-small backseat, disappointing fuel

economy and paint problems.

Reuss said he is not seeking the job of GM CEO, which is up for grabs in the

aftermath of Fritz Henderson's resignation last week.

ORGANIZATION STRUCTURE OF GENERAL MOTOR:--

Board of Trustees

The responsibilities of the Board of Trustees are as follows:

To strive to continue the Foundation until the etiology, prevention, and successful

treatment of cancer have been found; to be responsible for exercising direction and

control over the property and affairs of the Foundation; to be responsible for adopting

by-laws and ensuring that their requirements are met by the various committees and

personnel; final responsibility for amendments resides with the Board of Trustees; to

indemnify members of the Foundation, Awards Assembly, Selection Committees, and

others for any liability arising from their work on behalf of the Foundation; and to

appoint members of the Awards Assembly on recommendation of the President of the

Foundation.

The Board is composed of the following individuals:

John F. Smith, Jr.

Chairman, Chief Executive Officer and President

General Motors Corporation

Detroit, Michigan

Samuel A. Wells, Jr., M.D.

President

General Motors Cancer Research Foundation

Chicago, Illinois

Joseph G. Fortner, M.D.

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President Emeritus

General Motors Cancer Research Foundation

New York, New York

Karen L. Katen

President

Pfizer U.S. Pharmaceuticals Group

Executive Vice President

Pfizer Pharmaceuticals Group

Vice President, Pfizer Inc.

New York, New York

LaSalle D. Leffall, Jr., M.D.

Professor and Chairman

Department of Surgery

Howard University School of Medicine

Washington, D.C.

Phillip A. Sharp, Ph.D.

Professor and Head

Depamnent of Biology

Center for Cancer Research

Massachusetts Institute of Technology

Cambridge, Massachusetts

Louis W. Sullivan, M.D.

President

Morehouse School of Medicine

Atlanta, Georgia

Officers of the Foundation

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Chairman

John F. Smith, Jr.

President

Samuel A. Wells, Jr., M.D.

Vice Presidents

James C. Cubbin

Executive Director, Health Care Initiatives

General Motors Corporation

Christopher C. Green, M.D., Ph.D.

Director, Technology/Research Partnerships

General Motors Corporation

Secretary

Deborah I. Dingell

President, General Motors Foundation

Treasurer

Ruth Boam

Tax Officer

Kevin W. Cobb

Awards Assembly

The Awards Assembly is composed of 38 members. Each is a distinguished scientist

or physician especially knowledgeable in areas of relevance to cancer. Assembly

meetings are held two times per year or as determined by need. Members select prize

winners from the three nominations of each Selection Committee. They also elect

Selection Committee members. Awards Assembly membership is through

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appointment by the Board of Trustees on recommendation by the President of the

Foundation. Assembly membership is for four years.

Advisory Council

Membership is composed of Assembly members whose active tenure has expired.

Advisory members will be kept abreast of Assembly activities by viewing a copy of

the minutes of each meeting. Their advice may be sought on various matters which

concern the Assembly.

Selection Committees

There is a Selection Committee for each of the prizes. Each of the three committees is

composed of seven members and two alternates elected by the Awards Assembly.

Each Committee's Chairperson may add associate members and consultants, after

approval by the Foundation's President, in order to ensure adequate coverage of a

specialty of particular importance in a given year. Associate members and consultants

are nonvoting. Each Committee has a Chairperson and Vice Chairperson. Each

Selection Committee is multinational. The President of the Foundation and the

Awards Assembly Chairperson serve ex officio on each committee. Committee

membership is for two years.

Product hierarchy

In a product hierarchy, there is a separate division for each product.or major product

line. We use the term "product hierarchy" here, even though the groupings are

sometimes made along other "missionoriented" lines such as geographical regions or

market segments. Each division has a "product manager" and its own separate

departments for different functions such as marketing, manufacturing, and

engineering. General Motors was one of the earliest and best known examples of this

form with its separate divisions for Chevrolet, Pontiac, Cadillac, and other product

lines (seeChandler, 1962). In this form, the "executive office" may set long-range

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strategic directions, but it is not ordinarily involved in the operational coordination of

tasks and processors. The lack of connection with the executive office for operational

purposes is indicated by dotted lines in Figure 1. (This form is sometimes called the

"multi-divisional" form [Chandler, 1962] or the "M-form" [Williamson, 19751.) The

solution to the task assignment problem that is implied by this "pure" form is simple:

Whenever a task of a certain type needs to be done, the product manager assigns the

task to the department that specializes in that type of task. For example, in the "pure"

form of this structure, the general manager of the Chevrolet division would ordinarily

expect all new Chevrolet models to be designed by the engineering department in the

Chevrolet division. In this "pure" form, there is only one department (or one

processor) for each type of task, so the assignment decision is trivial. When a

processor fails in a product hierarchy, the product division in which the failure occurs

is disrupted, but the other divisions are not necessarily affected. For example, a major

mechanical failure at a factory that produced only Chevrolets would not have any

direct effect on the other divisions. A failure by the Cadillac marketing department to

correctly predict what their customers would want in next year's models, would not

necessarily affect the other divisions, either. Our formal model involves only the

operational coordination involved in task assignment and processing so it does not

include any interactions between the divisions of a product hierarchy. From the point

of view of this model, therefore, a product hierarchy is equivalent to a holding

company or, indeed, to a set of separate companies that do not share any resources.

Functional hierarchy

In a functional hierarchy, as shown at the bottom of Figure 1, processors of a similar

type are pooled in functional departments and shared among products. This sharing

reduces duplication of effort and allows processing loads to be balanced over all

products. For example, General Motors might need less manufacturing capacity if

instead of having to provide enough capacity in each division to meet peak demands it

could balance heavy demands for one product against ordinary demands for other

products that share the same manufacturing facility. As another example, having a

single research department in a company instead of separate research departments in

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each division might reduce the need to duplicate expensive facilities and may allow a

few people with specialized expertise to be shared among all products instead of

having to hire separate specialists for each division. (The functional hierarchy is also

sometimes called the "unitary" form or "U-form" (Williamson, 1975).) In a pure

functional hierarchy, as we have defined it, the "executive office" must coordinate the

operational processing for all products. The task assignment method implied by the

"pure" form of this organizational structure is somewhat more complicated than for

the product hierarchy, because an extra layer of management is involved: Whenever a

task of a certain type needs to be done, the executive office delegates it to the

functional manager of the appropriate type who, in turn, assigns it to one of the

processors in that department. In order to make this assignment intelligently, the

functional manager needs to keep track of the loads and capabilities of the processors

in the department. For example, if General Motors were a "pure" functional hierarchy

a central manufacturing department would contain all the manufacturing plants. The

vice-president of manufacturing and his or her staff would be responsible for

coordinating the sharing of these facilities to produce all the different kinds of cars for

all the different product lines. This overall coordination requires significantly more

information and interactions than does the simple product hierarchy. When an

individual processor fails in a functional hierarchy, the tasks it would have performed

are delayed until they can be reassigned to another processor. For example, if

General Motors had a single centralized sales and distribution department for all its

products, it would be relatively easy to shift car allocations from poorly performing

dealerships to more successful ones. If GM had a pure

product hierarchy, on the other hand, it would be very difficult to shift sales volume

of Cadillacs into dealerships that handled only Chevrolets. There is another kind of

failure however, in which the functional hierarchy is much more vulnerable. When a

functional manager fails instead of just an individual task processor, the processing of

the entire organization may be disrupted. For instance if the vice-president in charge

of all manufacturing performed very poorly, the manufacturing of all

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SWOT ANALYSIS OF GENERAL MOTOR:--

Strengths Weaknesses

1. Large Market Share :-Although GM's

market share in the US has dropped it is

still very much competitive at 26 percent.

They also have an increasing share in the

Chinese market. With the right decisions

there is no reason for GM to not become

the automotive leader it once was.

1. Behind on Alternative Energy

Movement :-This is GM's biggest

weakness. The alternative energy/hybrid

trend has begun to take place in the

automotive industry and GM has been

one step behind the competition in terms

of alternative energy vehicles. This has

led to many problems including loss of

market share and a decrease in company

profit. In order for any automotive

company to be successful from this point

forward they must be Hybrid friendly and

fuel efficient.

2. Global Experience :--As explained

above even with GM's recent decline they

still have the market share and the

experience to bounce back. They have

been a worldwide company for nearly a

century now and have established

themselves as the global leader for most

of them. If you recall I mentioned above

that a current opportunity for GM is to

expand globally and as we can see they

2. Poor Organizational Structure

As we can see in exhibit 1 of the case

GM's organizational structure seems to be

too vertically integrated. This causes a

lack of communication between

employees from top to bottom and may

have played a part in GM falling behind

on the alternative energy movement

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already have the experience to do so. It is

just a matter of the correct planning and

proper implementation of those plans that

will decided whether or not GM's goals

are achieved

3. Variety of Brand Names

GM as I mentioned has been the

automotive leader for the majority of the

last century. A large reason for that is the

wide variety of quality brand names that

appeal to all target markets. The current

GM brands include: Chevrolet, GMC,

Cadillac, Buick, Pontiac, Saturn,

Hummer, Saab, Daewoo, Opel, and

Holden.

3. Stagnant Profitability :---Looking at

GM's profit we see that they are certainly

struggling with respect to the size of their

company. Their profit margin was about

1.5% and the ROE has dramatically

decreased over the recent years dropping

to 10% in 2004. This is a situation that

shareholders will not be pleased with.

4. GMAC Customer Financing Program

Since its establishment in 1919 it has

proven to be GM's most reliable source of

revenue

4. Overly Dependent on US market

GM has become too dependent on the US

market and must take advantage of the

opportunity to

expand globally. The competition is

becoming too strong to focus on just one

country

5. OnStar Satellite Technology

Developed in 1996 OnStar currently has

over 3 million subscribers and is standard

on all GM vehicles. This technology

allows the vehicles to be tracked in the

event of an emergency or theft. It also

allows the driver and or passengers the

ability to communicate with OnStar

personnel at the click of a button.

5. Overly Dependent on General Motors

Acceptance Corporation(GMAC)

Financing

GM has become too dependent on its

financing program. Granted it is a great

strength for GM, however they once

again cannot rely solely on financing in

order to turn profit, especially if they

want to compete with Honda and Toyota

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who are rapidly growing

6. Poor Credit Status :--GM's credit status

has like everything else has been steadily

declining. Their current ratio is just

barely above 1 and their acid test is even

lower. Although, I don't see them getting

denied based on their credit at this point,

the seriousness of the matter is certainly

apparent.

Opportunities Threats

1. Alternative Energy Movement

It is obvious that GM was behind its

competition with regards to the research

and development of hybrid vehicles.

However hybrid technology is still very

much new giving GM the opportunity to

once again become the automotive

industry's leader in innovation and

technology.

1. Rising Fuel Prices

With GM being a large producer in both

trucks and SUV's, sales have drastically

decreased due to the lack of fuel

efficiency. The rise in fuel prices has

played a significant role in creating the

opportunity for development of both

hybrid and more fuel efficient vehicles.

As you will find with most threats, an

equal opportunity will usually emerge as

is the case here with GM's opportunity

mentioned above.

2. Continuing to Expand Globally.

Recently GM saw an increase in the

Chinese automotive market, which

proves their needs to be more emphasis

put on foreign markets. If GM can

2. Growth of Competitors

GM no longer has the luxury of being the

known leader in the automotive industry

and faces the reality that they are in

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infiltrate these markets and successfully

grow along with their continuing focus on

the US market they will be headed in a

positive direction.

.

serious trouble. As I mentioned earlier

Toyota took the first step in the direction

of hybrid technology and has since

drastically grown and become the

questionable automotive frontrunner to

start the 21st century.

3. Low Interest Rates

With the right marketing strategy the low

interest rates have the potential to

generate an immediate increase in sales

3. Pension Payouts.

Part of this threat is their own doing and

the other is simply unavoidable. GM is

responsible for providing generous

pension benefits to its employees, which

at the time seemed like a great idea,

however they are now experiencing

problems as more and more people begin

to collect.

4. Develop New Vehicle Styles and

Models

This is an opportunity that will never be

satisfied, meaning that GM should always

be attempting to develop the automotive

world's most popular vehicles, and as we

know, what is in today will be out

tomorrow.

4. Increased Health Care Costs

GM, like many large companies with

quality employee health care benefits, is

experiencing a large

financial hit that only gets worse as time

continues.

5. Rising Supply Costs, i.e. Steel

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Once again this threat affects the entire

automotive industry and forces each

company to cut manufacturing and

production costs as much as possible,

without taking away from the quality of

the product.

Functional pattern:-

People:---

In order for GM to remain one of the top competitors in China, it needs to invest in

human resources. In China, many people go to vocational or trade schools instead of

attending high school It would be advantageous for GM to give away scholarships and

internships for people interested in becoming mechanics. GM would offer greater

financial support for mechanics who agree to work for GM after finishing with their

training school. As part of the lock-in strategy of the plan, GM could organize meeting

and training sessions for mechanics and engineers aimed at familiarizing them with GM

models. In addition, GM should donate trucks and cars, to vocational schools for

mechanics. This will improve the company image of GM, and familiarize the people

studying at these schools with GM automobiles. This also gives GM an advantage for the

auto purchasing choices these people make in the future, since they will be

more comfortable with GM models. Finally, GM should invest in providing better

training for car dealers in GM dealerships. Currently, car dealerships in China suffer from

having inexperienced car dealers Many car dealers “know nothing about cars” and the

only training they receive comes in the form of an information pamphlet they are

instructed to read GM would greatly benefit from providing effective training to dealers

selling GM automobiles. By providing buyers with professional and knowledgeable

sellers, GM can improve the overall experience of its customers, hence build up on its

reputation, and perhaps help it to establish brand loyalty from its buyers.

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Chinese Consumers

The culture of Chinese consumers offers the opportunity for GM to gain a strong edge

over its Asian and European competitors. One of the major points is their mild dislike of

the Japanese and their strong trust of American products [5]. Due to this, GM has an

advantage in that their products will be inherently preferred over Japanese products by

some Chinese consumers. In addition, Chinese people have historically saved a higher

portion of their income. However, they are also more willing to dish out more money

when it comes to quality because of their high emphasis of self-image [5]. This creates a

dynamic where brand image and reputation play major roles in purchasing decisions,

especially for more expensive goods. Furthermore, the stimulus package recently passed

by the Chinese government promises to provide further incentives for large consumer

purchases, such as buying a car In 2009, GM employed approximately 244,500 people

around the world. The Renaissance Center, located in Detroit, Michigan, United

States, is GM's global headquarters. In 2008, GM sold 8.35 million cars and trucks

globally.[11] GM is the majority shareholder in GM Daewoo Auto & Technology Co.

of South Korea and has collaborations with Shanghai Automotive Industry

Corporation of China, AvtoVAZ of Russia, and most recently, UzAvtoSanoat of

Uzbekistan. GM has had collaborations with various automakers including Fiat and

the Ford Motor Company. GM retains various stakes in different automakers. GM's

best success internationally has been its performance in China, where GM's sales rose

66.9 percent in 2009, selling 1,830,000 vehicles and accounting for 13.4 percent of

the market

POLICIES OF GENERAL MOTOR:--

1. General Motors Company (GM) is committed to being a responsible corporate citizen,

to ensuring compliance with the letter and spirit of the law, and to promoting disclosure

and accountability regarding political contributions and expenditures.

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2. This policy supports GM’s interest in promoting public policies of concern to GM,

educating public officials about our business, and facilitating employee contributions to

political candidates through the General Motors Company Political Action Committee

(GM PAC) and various GM state political action committees, while complying with all

relevant laws and regulations governing political contributions or expenditures for

federal, state, or local elections, including the reporting and disclosure of such amounts.

3. Federal law generally does not permit contributions, including in kind contributions, by

corporations to candidates for federal office or national party committees, but

corporations may make contributions to candidates running for state or local office in

some states and may contribute to various organizations that engage in political activities.

4. GM and its employees participate in the political process as individuals and through the

GM PAC and various GM state political action committees, the purpose of which is to

contribute funds of eligible employees to political committees or candidates. These

political action committees are funded by voluntary contributions from eligible

employees. As permitted by law and authorized by the Vice President Government

Relations, corporate funds and facilities may be used to provide the administrative

support for the operation of GM political action committees.

5. Using the following criteria, GM PAC and GM state and local contributions will be

guided (pursuant to governing law) by a Steering Committee and a separate Campaign

Selection Committee appointed by the Chief Executive Officer of GM:

a. Public integrity of the candidate

b. Representation of a jurisdiction of importance to GM

c. General support for issues of importance to GM

d. Service in a leadership role

e. Nature of the opposition

f. Financial need

6. The Vice President Government Relations will review, at least annually, with the

Public Policy Committee of the GM Board of Directors all corporate political

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contributions as well as GM PAC and various GM state political action committee

contributions and expenditures and the process by which those are made.

7. To promote transparency, GM’s annual voluntary disclosure will include the following

information on GM’s publicly available website:

a. A copy of the General Motors Policy on Corporate Political Contributions and

Expenditures,

b. A list of the amount and recipient of corporate contributions to section 527

organizations,

c. A list of the names and amounts of corporate contributions made to individual

candidates for state or local office,

d. For each U.S. organization identified as tax-exempt by the Internal Revenue Service as

either a section 501(c)(6) trade association or a section 501(c)(4) social welfare

organization that receives at least $50,000 in dues or similar payments during a given

year, the portion of the payments that is identified by the organization as being used for

non-deductible political expenditures, and

e. A link to the FEC website which details employee contributions to the federal GM

PAC as well as GM PAC contributions.

8. GM will disclose the above information by March 1 of the year following the year in

which the payments were made.

9. GM will not reimburse anyone for a political contribution or expenditure.

10. GM encourages elected officials to tour GM facilities consistent with applicable laws

and policy. Candidates for public office are not permitted to use GM facilities for

campaign purposes, such as the distribution of campaign literature and making of

campaign speeches, unless authorized in advance by the Vice President Government

Relations and permitted under governing law and policy.

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11. GM has supported national party conventions and selected meetings of public

officials as an opportunity to promote our products and public policy positions. At the

time of the national political party conventions, GM will carefully consider its convention

participation and attendant opportunities to showcase its products and to support national

party committees, host city committees, or other organizations involved with the

convention.

12. Republican and Democratic Presidential candidates may visit no more than three GM

plants at the mutual agreement of GM and the National campaign headquarters of the

nominees during the election cycle. These restrictions apply not only to visits by the

candidate but also to visits by the candidate’s immediate family.

13. GM encourages personal participation by employees in the political process,

consistent with good citizenship, including exercising their right to vote. However,

employees’ political efforts, such as helping to elect a federal, state or local official, must

be on a purely personal basis, and may not in any way imply that such activities have the

concurrence or endorsement of GM. Except for participation in GM PAC and various

state political action committees or other political activity directly authorized in advance

by the Vice President Government Relations (subject to applicable laws), GM employees

may not make or offer contributions, expenditures, or assistance, on behalf of GM, in

connection with elections to public office. GM employees may not furnish services to any

candidate or his or her staff during the employee’s normal working hours or use corporate

stationery, facilities or other property to support a candidate. In addition, employees

should not use their positions or titles with GM in their personal efforts to elicit support

on behalf of a candidate or political party. All GM employees should be alert to the

possibility of actions that might be considered contrary to this policy and notify their

management if they become aware of such actions.

14. GM needs to maintain its ability to interact with a comprehensive network of thought

leaders who help shape public opinion and policy about the auto industry and at the same

time maintain the highest standards of integrity and the ethical conduct of business. To

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that end, GM may provide information to legislators, regulators and the public, in the

form of testimony, advertising, communications or information releases.

Findings:-

76 percent of U.S. consumers would switch brands based on a company’s

image and 55 percent said they always take into account a company’s ethics

and values when buying products or services.

A Wall Street Journal survey found that ethics and values were the most

important corporate attributes in assessing the value of a company.

Among large corporate Web sites, no Fortune 20 company site emphasizes its

community partnerships and community impact across the globe.

MS&L has conceived and developed a range of strong, interactive content on the site,

with input from GM stakeholders. One of the site’s key tools allows a consumer to

compare the fuel economy of any GM vehicle to any of its competitors, and to

calculate your annual fuel costs based on driving habits and local prices. An

interactive graphic showing how fuel cell vehicles work has been used in

presentations to GM directors, has been translated into four European languages and

is currently being translated into Mandarin. A Google map shows GM’s presence in

the U.S., including its hybrid buses in city transportation fleets, in-kind donations to

schools, truck donations to The Nature Conservancy, and GM facilities.  A database

of profiles of GM manufacturing facilities in the U.S. gives key information about

each plant, including its community activities and the amount of waste and emissions

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it reports each year to the EPA. The database is also used on GM’s media site, and a

microsite built for journalists covering labor negotiations with the UAW.

The site has enjoyed amazing success. In 2006, more than 1.2 million unique visitors

came to the site and viewed more than 3.9 million pages. In a major independent

review of automotive web sites in 2002, GM-ability was named as an industry model

for its enhancement of GM’s corporate image.

Chevrolet cars are seen at a GM dealership in Miami, Florida August 12, 2010.

Credit: Reuters/Carlos Barria

By Clare Baldwin and Kevin Krolicki

NEW YORK/DETROIT | Tue Aug 17, 2010 7:40pm EDT

NEW YORK/DETROIT (Reuters) - General Motors Co is unlikely to file for its

initial public offering on Tuesday, three people familiar with the situation said.

Even as recently as Tuesday morning the filing had been expected on Tuesday, a

fourth person with knowledge of the preparations said.

Page104

It is unclear why the delay in the much-anticipated filing emerged but the decision on

when the paperwork for an IPO is filed with U.S. securities regulators now depends

entirely on GM and not the underwriting banks, the three sources said.

The initial S-1 filing that GM plans to make with the U.S. Securities and Exchange

Commission has been completed, they said.

Ron Bloom, the Obama appointee overseeing the government's investment in GM and

Chrysler Group LLC, declined to comment on the GM IPO on Tuesday.

Bloom, who was attending an event in Cleveland, said U.S. Securities and Exchange

Commission regulations barred him from discussing anything related to the expected

filing.

In just over a year, the No. 1 U.S. automaker has gone from bankruptcy to the brink of

a stock offering expected to be one of the largest ever.

A successful GM IPO could bolster the Obama administration's case that the bailout

of GM was a justified use of taxpayer funding.

The U.S. government stepped in with a $50 billion bailout of GM and currently holds

a 61 percent stake in the company.

GM's IPO is expected to be between $15 billion and $20 billion, which would make it

one of the largest IPOs, globally, of all time.

Its expected debut, sometime between late October and the U.S. Thanksgiving holiday

at the end of November, means that the automaker's first trades will come right

around the time of U.S. midterm Congressional elections.

Government officials and GM executives have repeatedly denied any link with the

elections.

GM earlier on Tuesday recalled more than 243,000 crossover utility vehicles, mainly

in the United States, to inspect safety belts for possible damage.

Page105

Conclusion:--

Porter’s Five-Forces Analysis

The competitive structure of an industry is another important component of

identifying factors that are a threat to diminish profitability. One of the most efficient

ways to assess competitive issues is to consider Michael Porter's five-force analysis.

Porter (1980, 1985) has highlighted five such factors: (1) rivalry between existing

competitors, (2) threat of entry by new competitors, (3) price

pressure from substitute or complementary products, (4) bargaining power of buyers,

and (5)

bargaining power of suppliers.

1. Rivalry between existing competitors

With the rise of foreign competitors like Toyota, Honda and Nissan in the 1970's and

80's, rivalry in the American auto industry has become much more intense. Firms

compete on both price and non-price dimensions. The price competition erodes profits

by drawing down price-cost margins while non-price competition (e.g., new car

rebates and interest free loans) drives up fixed cost (new product development) and

marginal cost (adding product features). One of the other reasons there is such high

rivalry is that there is a lack of differentiation opportunities. All the companies make

cars, trucks or SUVs. The competitors are compared to one another constantly. In

recent years there has been significant market share variation, another indication of

rivalry and its very strong threat to profits.

2. Threat of entry by new competitors

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The presence of new firms in an industry may force prices down and put pressure on

profits. There are, however, barriers to entry that tend to protect established firms. One

would expect the production of automobiles to require significant economies of scale,

an important barrier to entry. The new entrant would have to achieve substantial market

share to reach minimum efficient scale, and if it does not, it may be at a significant cost

disadvantage. While the evidence suggests that economies of scale in the auto industry

are substantial, there are also indications that large size may not be as important as

commonly assumed. Nevertheless, entry would represent a large capital investment to

any new firm and the body of research still indicates that economies of scale represent a

substantial barrier to entry. Consequently, entry is currently a weak threat to

profitability.

3. Price pressure from substitute or complementary products

While five-forces do not directly consider demand, it does consider two factors that

influences demand ― substitutes and complements. Although new cars generally are

slightly price elastic, suggesting few real substitutes (e.g., bus and rapid transit), the

demand for a particular model is highly sensitive to price because of the availability

of close substitutes for a given model. A change in the price of a complementary

product (e.g., gasoline, batteries, and tires) could have a significant impact on the

demand for automobiles. The rising price of gas, an important complementary

product, is likely to affect some firms more than others depending upon the vehicle

composition. Recent rising fuel prices are likely to have a greater impact on the big

three (GM, Ford Motor and Daimler-Chrysler) whose most profitable models are

energy inefficient pick-up trucks and sports utility vehicles. On balance, the overall

impact on "industry" profitability from substitutes and complements is weak to

moderate.

4. Bargaining Power of Buyers

Buyer power refers to the ability of individual customers to negotiate prices that

extract profit from the seller. Individual consumers have some influence over price

within a given dealership, but little power over manufacturers. Customers can easily,

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and with little cost, switch to other auto dealers. Furthermore, customers now have

access to market information (prices and costs) from the Internet that enhances their

negotiating power. But when you have many individual customers, each representing

a small proportion of total sales, they will have little bargaining power with

manufacturers and therefore pose a weak threat to industry profit.

5. Bargaining Power of Suppliers

Auto manufacturers require inputs-labor, parts, raw materials and services. The cost

of these inputs can have a significant effect on profitability. Whether the strength of

suppliers is weak, moderate or strong depends on how much bargaining power they

can exert. The auto manufacturers have large supplier networks that appear to exert

little bargaining power. Nevertheless, the United Auto Workers (UAW), the only

supplier of labor, has historically exerted a great deal of leverage over the benefits and

wages provided by the big three. Because of this historical dominance by the UAW

and the uncertain results of their current negotiations with the big three, one has to

characterize supplier power, at least in this segment of the American market, as a

strong threat to profits.

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BIBLIOGRAPHY

1. Robbins, Judge & Sanghi : “Organizational Behavior”, 2007, Dorling

Kindersley (India) Pvt. Ltd.

2. Greenberg & Baron: “ Behavior In Organization”,2003, Prentice – Hall of India

Pvt. Ltd.

3.L.M. Prasad: “Organisational Behavior”, 2004, S. Chand & Sons.

4.IFFCO AT A GLANCE 2006-07.

5.Dr. U. S. Awasthi, “Indian Farmers Fertilizer Cooperative Limited-

Experiences”.

6. www.iffco.nic.in

Page109

References:-

[1] http://news.bbc.co.uk/1/hi/business/7880806.stm

[2] http://www.altassets.com/casefor/sectors/2005/nz6592.php

[3] http://burnickblog.sovereignsociety.com/2008/01/chinas-car-buye.html

[4] http://news.bbc.co.uk/2/hi/business/6658583.stm

[5] http://money.cnn.com/2005/08/09/news/international/china_poll/index.htm

[6] http://www.shanghaidaily.com/sp/article/2009/200903/20090306/article_393318.htm

[7] http://fastlane.gmblogs.com/archives/2006/12/buick_is_popula_1.html

[8] http://www.nytimes.com/2009/03/05/world/asia/05china.html?_r=2&ref=asia

[9] http://www.buyusa.gov/mexico/en/automotive_manufacturing.html

[10] http://www.chinadaily.com.cn/bizchina/2008-04/22/content_6635789.htm

[11] http://www.insideselfstorage.com/articles/4a1FEAT6.html

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[12] http://www.chinacartimes.com/wp-content/china-car-sales-2008.pdf

[13] http://www.ilo.org/public/english/employment/skills/hrdr/publ/010.htm

[14]http://media.gm.com/division/2003_prodinfo/03_corporate/

03_Corporate_Manufacturing.pdf

[15]http://www.shanghaidaily.com/sp/article/2008/200812/20081218/article_384907.htm

ANNEXURE

General Motors Company today announced its first quarter 2010 results, marked by revenue of $31.5 billion and operating income of $1.2 billion.  Net income attributable to common stockholders was $0.9 billion, resulting in earnings per share on a diluted basis of $1.66.

GM’s first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.GM North America had EBIT in the first quarter 2010 of $1.2 billion, up from a loss of $3.4 billion in the fourth quarter 2009.  GM Europe had a loss before interest and taxes of $0.5 billion; an improvement of $0.3 billion from the fourth quarter.  GM International Operations posted EBIT of $1.2 billion, up $0.5 billion from the fourth quarter.

Cash flow from operating activities was $1.7 billion and after adjusting for capital expenditures of $0.7 billion, free cash flow was $1.0 billion.  GM ended the first quarter with $35.7 billion in cash and marketable securities, including funds in escrow.“We’re pleased with our first quarter performance, in particular achieving profitability,” said Chris Liddell, vice chairman and chief financial officer. “In North America we are adding production to keep up with strong demand for new products in our four brands. We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet.  These are all important steps as we lay the foundation for a successful GM.”

Forward-Looking Statements: In this press release and in related comments by our management, our use of the words “expect,” “anticipate,” “possible,” “potential,” “target,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” “project,” “projected,” “positioned” or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include:  our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planning significant investment in new technology; our ability to realize

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successful vehicle applications of new technology; and our ability to comply with the continuing requirements related to

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