General Motors: Narrative, Performative And The Business Model
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If we talk about mergers in the automobile industry and more specifically about General Motors, the reasons behind any merger or acquisition are the firm’s need to increase its market share, achieve economies of scale or to expand their product range. The mergers in this industry are now usually done in order to increase the speed of the firms overall growth. General Motors have greatly benefited from this theme, as a result, extended its arms into various countries globally through continuously swallow companies vertically and horizontally over time. Moreover, it has translated into General Motors’ core business strategies which improve its competitiveness and market share in early 2000’s.
The second theme of the “GE under Jack Welch: Narrative, Performative and The Business Model”, describes that during the 1990’s era, General Electric and its CEO Jack Welch were highly successful even under the economy crash. Fortune declared the company as the most admired company and Welch as the most widely admired and imitated CEO of his time. During the year 2002, the earnings and stock prices increased continuously and the P/E ratio was much higher than the other stock. These achievements are generally associated with leadership of Welch, the finance control and key performance initiatives as its internal culture which define every achievement of General Electric. However some critics disagree with this.
According to the author of this case, GE is a company that sells its products