CASE ANALYSIS 1

(Internet Case)

See the red below to determine the precise assignment.

In an internet case, I ask you to do your own research on a current problem/issue. The
other format, used for the classroom discussions in the campus course, is to use an
HBS case and write from that. I may locate a similar such case to HBS cases "for
free" on the net for the later case, but I'm still considering...
Internet Case #1 - The global automobile industry - an analysis of General
Motors

I have been using some form of the "car case" for a few reasons...one, everyone
knows a little something about cars, from personal experience (usually). At the same
time, taking time to try and understand the industry from a strategic analysis point of
view is often eye-opening.

Below are some articles on companies in the automobile industry. You may use
anything as an additional source off the web, -- I expect you will. You will need
to keep a "references section" that shows where you got your information. (This
can be a compilation of weblinks. Please remember I can search the web to find
plagiarism on your paper with great ease, and it goes through TurnItIn.) Thus, you
can cite material, but you need to cite when it is not your own thinking. IF you are
putting word for word facts or materials from another source, and you do not
have quotation marks around it, that is plagiarism.

As we are only beginning Chapter 3, you may wonder what you can bring to the
table at this point. One of the "lessons learned" from an internet case is a sense
of the complexity of these issues. I do not ask you to stress any particular point,
YOU will choose the "main problem." Some examples of "main problems" may
be legacy costs, providing profitable new models, meeting government
regulations, having competent leadership, competing with rivals...... I want you
to use your experience, your interest, and information from the web to discuss
GM's strategic issues in 2018. I like "internet cases" because a finance type may
focus on learning more about who and where the money is; a marketing type
might focus on customer segments; a management type might be interested in a
crisis in leadership. THAT IS OK on this assignment.

A good place to get financial information on the overall industry are sites like

google finance
yahoo finance

Just type in the name of a car company, and work from there (i.e., click on main
competitors, add variables to the chart, or extend it...for instance, here is GM over 5
years compared to the S&P...you might be hoeful that you weren't invested in GM (in
blue)

Questions to think about:

Who are auto companies' non-stockholder stakeholders? How do companies have to

accommodate employees' needs (see ratings and lawsuits), environmental
organizations, suppliers and customers (e.g. dealerships).

What should GM do now? Do different companies have different options for the
future, and why do you think so?

To get a good understanding of what GM was "up against" before it was taken over
by the U.S. government I recommend this imagined letter of the GM chairman
written by a finance analyst back at the height of its pre-bankruptcy problems: More
from the chairman
You will need to learn more on your own from GM (see news at google, read GM's
site. search etc) quick examples: GM recalls

I am sure as you google you will find many updates, but here is a pretty good
update for you.

Background on automobile industry: (some parts are free, some proprietary,

so you have to surf.)

In recent years, people have thought that the US car companies began their downhill slide in
2008 due to the recession. If you do not know who the "Big 3" are, and you were not aware that
things were going downhill since the 1980s, read this 1990 New York Times article.

Plunkett Ward's auto

FOR Fun: North American auto show... concept cars?

Some of the companies out there:

http://www.gm.com/

http://www.ford.com/

http://www.hyundaiusa.com/

http://www.fiat.co.uk/

https://www.toyota.com

http://www.honda.com/

https://group.renault.com/

http://www.tatamotors.com/

Entrants? ... - who has the largest car sales in India? How about Africa? Chery

SO, using GM, and surfing for 1-3 hours, write on the below questions.
1. FIRST: Provide a quick table (can almost pull of f a website, you can pass this
part out among yourselves if you like)
Top 5 automobile firms in the world: Give me one list using Revenues (Sales) to
generate the list, then also give the Net Income, and Market Capitalization of
each firm. This task is strongly related to Chapter 1 review.

2. THEN, cover the below

(FROM THE CONTENT SECTION, on how to write a case analysis, do the
following, PLUS, make sure you do the overall Net Income/Sales/Market Cap table of
the top 5 firms)

(1) Brief diagnosis or problem definition (about one paragraph,

at most one page). What is the most important problem or set of
problems facing the company? What area(s) is(are) the problem(s)
in? Why is it important to solve?

(2) Analysis of the problem(about 1-2 pages). What caused the

problem? What evidence or analysis supports your interpretation
(yes, this means you should look at financial data if available to
support your case)? How does the problem connect with other areas
of the company or other businesses? Please make sure that you do
not recommend something that is already happening or already
failing -- e.g., do not say that GM should do an electric vehicle if
they are already pursuing the Volt... instead comment on their Volt
strategy. :)

(3) Recommendations (about 2-3 pages). What course of action

do you suggest?Be specific. How does your solution follow from
your problem analysis? How will your plan eliminate the problem?
How will it be implemented? Include an action plan. How much
will your plan cost? Is it feasible? How will it be financed? What are
the risks of your plan? What can go wrong? Include a risk
analysis. How will other actors (competitors, unions, employees,
governments, suppliers, etc.) react to your plan?