General Motors: Case Study: General Motors

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General Motors – Case Study
General Motors first opened its doors in 1908 and it was the only car manufacture in the area. General motors expanded and by 1920s it was the biggest manufacture of vehicles, this happened under the management of Alfred Salon (Hashim, 2014). Alfred Salon consistently pushed for different styles and models of car every year. At the time the company already had four different types of car models to their name. Furthermore, General Motor was the sole manufacturer of cars; it had no other company to compete with. However this success was not to last long, because when Toyota Company started to manufacture cars everything changed for General Motors. In
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This process requires very specific scrutiny and consideration of data to make decisions in an organization. Balanced choice making taking into account logically acquired data is what rational decision making advocates to decrease the possibility of the same problem reoccurring again. This method can likewise diminish disappointments because the assessment and determination procedure of this method are in light of typical and rational data and learning. Rational decision making can help business supervisors to manage hard issues in a complex domain.
“It is a well-defined step-by-step approach that required defining problems, identifying the weighing and decision criteria, listing out the various alternatives, deliberating the present and future consequences of each alternative, and rating each alternative on each criterion” (Simon,1978). Utilizing this model, the issue will be attended to by using simple steps, and all parts of the subject will be considered with conceivable arrangements and afterward settle on good decision.
Application of the
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In this case, they have to rely on their intuition or their past experiences, which is solving it the way we did before (Perrow 1972). This concept applies to General Motors in that probably the managers did not have all the information about the changing taste of the market. For this reason, they opted not to change their car models because they did not understand the needs of their customers. Therefore, the underlying cause of General motor’s problem is they probably failed to make a decision or find a solution to their problem because they did not want to go the long way. Heuristics, however, advocates for use of common sense to make decision. General Motors’ managers should have tried to understand what was going on then decide on the action to be taken. Business managers should take risks and courageously make decision even in the event they do not lack all the required information. They should use their judgment to make
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