- The Future
THE PLAN - FIVE POINTS
- Increase General Motors U.S. market share to 33%
- Improve customer satisfaction as evidenced by points
of market share, not fractions
Each year GM spends billions in advertising and incentives
in the name of marketing. Yet there exist far less expensive,
and far more productive methods of acquiring and retaining
customers. This plan calls for no capital investment
and offers the opportunity for large reductions in marketing
- Implement both innovative and proven marketing techniques.
- Raise market share 1 percentage point in each of
five key areas
- Remake our corporate image as a leader by acting
rather than re-acting.
- Change focus of advertising from distress to aspirational.
Loss of market share experiences over the past two
decades is due to the dimished image of GM in the marketplace.
The five key areas contain specific steps for the new
The plan will address issues and offer solutions regarding:
- Our Customers
- Our Dealers
- Our Salespeople
- Our Employees
- Our Retirees
|To view the PowerPoint Presentation "Strategy
and Structure of 'The Plan'" download
a zip file.
|As DeLorean said, "You don't teach
a guy to play football by making him the coach."
Legacy Cost Issues to Consider
- Liability for pension and health care
- The tremendous increase in Long-Term debt which
needs to be serviced and eliminated. Notes and Loans
payable are up $70,000,000,000. There is less post
retirement liability but receivables and other liablities
are higher. This from a company once free of Wall
- Competition has grown stronger while we have downsized.
How to Re-establish Dealer Trust
- Dealers have lost confidence and trust
- Many dealers have taken non-GM Franchises
The purpose of the work on making the future is not to
decide what should be done tomorrow, but what should be
done today to have a tomorrow.
What major change in economy, market, or knowledge would
enable us to conduct business the way we really would
like to do it, the way we would really obtain the best
What is lacking as a rule, is the willingness to look
beyond products to ideas.
If a company is to obtain the needed contributions, it
must reward those who make them.
|"This business is not about the
cars, it is about people. The cars are merely the catalyst
that bring people together"
|"Nothing happens until somebody
sells something. Sales drive production, production drives
profit. How much is one point of market share worth to
the bottom line? Does it roughly equal an assembly plant?"
"Failure to provide an adequate
proving ground for ability is also inherent in the nature
of modern Big Business...Thus the corporation has to
find ways of giving its workers, especially its young
workers, a chance to show what they can do and a personal
contact with somebody interested in what they can do."
-- Peter Drucker
Concept of the Corporation
"You cannot obtain the products
of a mind except on the owner's terms, by trade and
by volitional consent...A man whose vision extends to
a shanty might continue to build on your quicksands,
to grab a fast profit and run. The man who envisions
skyscrapers, will not."
-- John Galt