Organizing Essay Example | Topics and Well Written Essays - 1000 words

Organizing - Essay Example Furthermore, the paper entails valued suggestions, which will assist the company in mitigating the key challenges. Discussion Reorganization is considered to be a major part of any business who files for bankruptcy, as it is considered that reorganization can either dissolve a firm or help the business to attain a leading position in the global platform (United States Court, n.d.). The plan that has been designed with respect to the reorganization proposed by GM is stated here under: Development of a Competitive Product Mix along with a Balanced Cost Structure It is measured that GM is listed among those automobile organization that owes many well reputed automobile brands like Chevrolet, GMC, Cadillac, and Isuzu among others. The first reorganizational plan of the company inculcate to rationalize its vehicle brands by discontinuing well-known automobile brands like Hummer and many others and focusing on its core brands. The company then planned to reduce its name plates by 25% which is estimated to increase around 80% by 2014. GM is considered to be one of the oldest automobile companies in the world, which also implies the same for their dealers. However, it has been found that the dealers of the company are comparatively outdated in comparison to the other competitors resulting in decreased marginal sales of their products. In this regard the company planned to reshape its dealer and expand it dealership in all major part of its operating area. Additionally, the company merged its four product development organization, which was located in diversified part of the globe to foster effectiveness of reorganizational plan and to maximize the cost. Furthermore, these strategies will assist the company to develop better vehicles for its customers. It has also been identified that though the company has reduced its total labor cost by 28% from 2004 till 2008. However, there was no significant outcome of the implemented policies. It is also estimated that the company spends about $100 billion on retiree benefits irrespective of its losses (General Motors Corporation, 2009). The main issue that can act as a barrier for the company is the increasing cost of raw materials. The plan that has been made by the company has been estimated with the current prevailing cost of raw materials which are likely to increase in the future. Additionally the plan of refurnishing the existing dealers may be a challenging task which would require adequate amount of time (Kunze, 2012). Compliance with the Federal Environmental Regulation The second plan that has been proposed by the company i.e. GM is to develop vehicles to meet up the environmental regulation passed by the government of the United States of America. The company also developed plans to manufacture alternative fuel vehicles, adapting the company’s technological aspects in countries like Brazil. The increasing pollution has forced the government of different countries to pass laws that set guid elines for automobile industry to manufacture vehicle accordingly. In this aspect the company has planned to replace some of its higher authorities to maintain an effective structural management in Brazil, as it accounts about 60% of the vehicle sale in the South American region (Higgins, 2013;