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THE OXFORD COLLEGE OF

ENGINEERING

An Innovative Success Achieved By

General Electric Motors

PREPARED BY:

Ritika Bhasin

Anoop Kadam

Himavant Reddy

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GENERALMOTORS

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GENERALMOTORS,

Also known as GM, is the world's second

largest car manufacturer based on annual sales. Founded in

1908, in Flint, Michigan, GM employs approximately

266,000 people around the world. With global headquarters

at the Renaissance Center in Detroit, Michigan, UnitedStates, GM manufactures its cars and trucks in 35 countries.

In 2008, 8.35 million GM cars and trucks were sold globally

under the brands Vauxhall, Daewoo, Buick, Cadillac,

Chevrolet, GMC, Holden, Pontiac, Hummer, Saab, Wuling,

Saturn and Opel.

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COMPANY PROFILE

About General Motors General Motors, one of the worlds

largest automakers, traces its roots back to 1908. With its global

headquarters in Detroit, GM employs 209,000 people in every

major region of the world and does business in more than 120

countries. GM and its strategic partners produce cars and trucksin 31 countries, and sell and service these vehicles through the

following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo,

Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GMs

largest national market is China, followed by the United States,

Brazil, the United Kingdom, Germany, Canada, and Russia.

GMs On Star subsidiary is the industry leader in vehicle safety,

security and information services. General Motors acquired

operations from General Motors Corporation on July 10, 2009.

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Fostering Global Partnerships and Consumer

Relationships

GM is the majority shareholder in GM Daewoo Auto &

Technology Co. of South Korea, and has product, power train

and purchasing collaborations with Suzuki Motor Corp. and

Isuzu Motors Ltd. of Japan. GM also has advanced technology

collaborations with Chrysler LLC, Daimler AG, BMW AG and

Toyota Motor Corp. and vehicle manufacturing ventures with

several automakers around the world, including Toyota,

Suzuki, Shanghai Automotive Industry Corp. of China,

AVTOVAZ of Russia and Renault SA of France.

The Global Reach of GM Parts and Accessories

Genuine GM Parts and accessories are sold under the GM, GM

Performance Parts, GM Good wrench and Adecco brands

through GM Service and Parts Operations, which supplies GM

dealerships and distributors worldwide. GM engines and

transmissions are marketed through GM Power train.

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Whats Killing General Motors?

.

Its balance sheet, for starters.Toyota is catching up to General motors in terms of sheer size, but has passedup the Detroit behemoth in many respects.

The proof of looming disaster is in the balance sheet. Here is GMs balancesheet, full of bullet holes. Here is Toyotas balance sheet, which is bulletproof.Focus on a few items, like long-term debt and equity. Note that General Motors

has a $480 billion balance sheet, and only $28 billion of equity. (Balance sheetsas of Dec 2004)

Toyota has a $142 billion balance sheet, with $84 billion in equity. And it hasone-sixth of the debt load as GM does. Rumor has long been that Toyotawill/may acquire the GM behemoth. That is unlikely to happen in any straightsort of business sense. Perhaps GM has two options for survival: a bailout bythe Feds, which Leviathan likely couldnt afford, or, an acquisition by a foreign

company such as Toyota. But why would Toyota, with its masterful financialoutlook and its vastly different culture, want to acquire an inefficient, union-laden abnormality with $300 billion in debt? It wouldnt, unless of course, theacquisition was bankrolled by the US government, which would be far lesscostly than a total bailout. Bankruptcy is one way in which Big Guv couldsubsidize a merger/acquisition, but a dangerous move for an auto manufacturerthat relies on brand loyalty.

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Despite turning cash flow-negative, GM has cash, and a lot of it, and that is

its only ace-in-the-hole. Right now, GMs cash comes from its GMAC

financing arm, its VEBA (pre-funded retiree account), and large-sum bank

lines. GM may soon have to hold back dividends to keep ahold of its cash.

Another huge cash drain for GM would be a Delphi strike, which could drain$10 billion+ over the span of a quarter

All said, it explains some of what I have been arguing about GMs potential

for bankruptcythat it would be a deadly move on GMs part, considering

that it could lose a major portion of its customer base due to the reasons

described therein. People dont want to buy cars a long-term purchase

from an auto manufacturer in Chapter 11. The rental marketanother way

the American automakers stay afloatwould also cave in, due to theliquidation factor that car rental companies would be faced with were GM to

claim bankruptcy.

In recent weeks, GM has been making a last-ditch effort to deal with its

mounting problems and somehow escape bankruptcy. The final outcome

remains to be seen, but any bailout efforts or even the most drastic of moves

at this stage seem to be, as visualized below, the equivalent of liftingmassive, crushing weights with simple balloons. Yesterdays announcement

of the resignation of GM Chairman and Chief Executive Officer Rick

Wagoner at the behest of the Obama administration was just the latest in a

series of moves designed to reassure public confidence in the flailing

automotive manufacturer. We hope our infographic helps you grasp what has

led to the current squeeze on GM.

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Campaign: "Imagination at Work"

Goal: Reposition GE as a provider of more thanlighting and appliances and raise awareness of suchGE businesses as wind power, water technologies,security systems and jet engines. Duration ofcampaign: January 2003-present Integratedelements: TV, print, online Results: Perception of GE

as being "innovative" increased 35%; perception of GEas offering "high-tech solutions" increased 40%; andperception of GE as being "dynamic" increased 50%.Budget: Not disclosed Agency: BBDO New York andatmosphere BBDO, New York.

When General Electric Co. set out to rebrand itself inearly 2003, it was faced with the challenge ofchanging perceptions of the company held by itscustomers, investors, employees and businesspartners.

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"We wanted people to know that GE is more than just lighting and

appliances,'' said Judy Hu, general manager, advertising and brand,

at GE.

"We wanted to highlight some of our `wow' products and services-

things that were unexpected and that people didn't know GE was

involved in,'' she said. Some of those businesses include jet engines,

wind power, water technologies and commercial financing.

To accomplish this, GE turned to its ad agency, BBDO New York,and interactive shop atmosphere BBDO to create an integrated

campaign with the tagline "Imagination at work.''

"The overall objective was aligning our market position with our

future and creating a truly integrated campaign,'' said Beth

Comstock, GE's chief marketing officer-corporate VP of marketing.

"It had to be global, touch our external and internal constituencies

and use as many different types of media as possible.''

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The campaign was launched in the U.S. on Jan. 19,2003, with TV, print and online ads. One week priorto the campaign's launch, GE held a companywidemeeting with promotional items for employees,including mouse pads and door hangers, and anonline trivia contest about the company. The winnerof the contest won a trip to the Golden Globe Awards,during which the first TV spots broke on NBCsbroadcast of the event.

"We wanted everyone to understand why we weredoing it and what it meant,'' Hu said. "It was a bigmove away from `We bring good things to life,' " GEsformer ad campaign, which was also developed byBBDO.

A series of TV spots used humor and innovation toshowcase GE's different businesses. In onememorable ad, a GE jet engine is attached to theWright...

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GE Success Story

GE Profile:

GE Capital (GEC) is a global financial services

organization including equipment leasing, insurance

and reinsurance, mortgage, credit cards, and various

specialty businesses.

Challenge/Opportunity:

Though a successful and growing unit of GE, the

Capital organization was challenged by then-

Chairman Jack Welch in 1996 to adopt Six Sigma as a

core leadership and improvement strategy. The GECvisionCompletely Satisfy Customer Needs

Profitablytargeted organic growth while reducing

costs, eliminating defects, building greater customer

focus and driving boundaryless behavior.

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Pivotal Services and Solutions:

Key partner to GE Capital Six Sigma team, includingdevelopment and refinement of pioneering service-

industry curricula for Leaders, Champions, Black andGreen Belts

Consulted with business unit senior executives oninitiative planning, project selection, processmanagement and metrics

Trained & coached thousands of GECS leaders,professionals and suppliers worldwide in DMAIC,process redesign, and change acceleration methods

Results/Successes:

Billions of dollars documented in savings and newrevenue, targeting operations, sales, financialmanagement and acquisition integration. GECs effortbecame a model for Six Sigma successes in hundreds ofcompanies worldwide.

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