Will GM's Strategic Plan Lead to Future Success Case Study

Will GMs Strategic mean Lead to Future Success - Case Study ExampleThe third strategy that GM has apply is the premium pricing strategy that has led to higher margins and prices thus ultimately leading to higher sugar per unit sales. GM has cut the incentives for the dealers in order to attain higher margins. The fourth strategy linking the executive compensation to company performance through ensuring the executive bonuses are dependent on the margins posted by the company. The company has alike carried out staff rationalization in order to reduce the boated wage bill.establish on the case study, GMs vision is to become the most profitable auto learnr in the world. The company is not interested in expanding its market share, but its strategies aim at reducing the direct be and increasing the unit margins in order to improve the profitability of the company (Daft 183). The vision is pragmatic since it managed to regain from Toyota as the largest automaker in term of sales figu res and has increased its profit margins. The company has also controlled costs. In this case, higher margins and sales volumes allow for make GM the most profitable automaker if the measures employ in controlling costs are successful.The first SMART goal is to raise profit margins by 10 percent. This goal is specific and measureable since the current profit margin is 6 percent and this could go up to 10 percent after restructuring the company and improving operational efficiency. The reduction in engineering and manufacturing costs through downsizing the auto platforms go forth significantly reduce the manufacturing costs. Use of standardized plants and assembling will also improve efficiency of operations and lower costs. Other companies that give birth few auto platforms have managed to attain a return of 10 percent of sales and this goal is realistic and time-bound since GM will have only 14 auto platforms by 2018.The second SMART goal of GM is to make more than $ 10