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Essay / Research Paper Abstract
This 5 page paper takes a look at these two auto industry giants, comparing their management practices and organizational structure. Industry and overall business trends are noted. Bibliography lists 10 sources.
Page Count:
5 pages (~225 words per page)
File: RT13_SA015GMT.rtf
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Unformatted sample text from the term paper:
one evaluate a corporation and predict ultimate success or failure. In evaluating management practices, two companies will be examined. General Motors and Toyota, both in the automobile sector, will be
discussed. General Motors Corporation is based in Detroit Michigan and it has followed an industry trend toward consolidation ("General Motors," 2000). Changes in General Motors structure
in recent years has been significant. In fact, it was put this way in one article: "Americas biggest industrial company has announced its biggest reorganization in a decade" ("The
decline," 1998, p.PG). What had happened to cause GM to make radical changes is quite common ("The decline," 1998). Their wealth, as a result of growth, created a bureaucracy
and also a complacency (1998). Meritocracy reigned and created a sort of introverted oligarchy that wasted its talents by vying for position within the imperial court as opposed to expanding
the company itself (1998). This phenomenon has been seen time and time again in general business models. However, for GM, there was a bit of alarm and rapid changes made.
The original GM management system was pioneered by Alfred Sloan in the 1920s and it became the basis for the multidivisional modern corporation ("The decline," 1998). One does get
a sense of the importance that changes in GM has brought to the business world. An old model, one on which many corporations are based, has changed its tune. Of
course, one would have to agree that GM had to keep pace with the changing times and changing management practices. While some old mainstays continue their hierarchical approach and survive,
others die when faced with competition. Unlike the insurance industry for example, which rests on "the rock" concept, as offered by Prudential, or the vision of New York Life as
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