Accounting for Managers of a Company Undergoing Financial Crisis

Running head: ACCOUNTING FOR MANAGERS
Accounting for Managers
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Author’s Note

ACCOUNTING FOR MANAGERS
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Introduction
The main purpose of this assessment is to analyze the financial information of a company
which had undergone serious financial crisis and was ultimately declared insolvent. The
company which is selected for this assessment is General Motors which operates in many
countries and is regarded as one of the leading makers of automobiles in USA. The company has
a rich history and is known to be a big company in USA.
History of the business
The history of the business dates back to even a century where one of the largest car and
truck makers were established. The company was founded in 1908 in Flint, Michigan by William
C. Durant and the company is made up of several different companies which was acquired
rapidly within a short period for the purpose of effectively establishing the business of General
Motors in the country. Some of the main products which was manufactured by General Motors
were Buick, Oldsmobile, Cadillac, Oakland and a variety of trucks (General Motors., 2018). The
company then formulated strategies for rapid expansion in the market and for such a purpose
engaged in research and development activities in order to facilitate innovation in the business
(Kollewe, 2009). The company also had to face severe competition from other automobile
companies such as Ford and therefore the management of General Motors needed to formulate
strategies which included innovative approach, restructuring of the sales function of the business,
making subtle improvements in the model of the cars or other automobiles which was offered by
the business.
Key Initial Success Drivers and Milestones Achieved

ACCOUNTING FOR MANAGERS
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General Motors was always engaged in the business where there was intense competition
and the management had to plan strategies which can make the products which was offered by
the company better than the products which were available in the market. Therefore, in 1929, the
company made a change in the management and also change the process of the business. The
business started to invest more in innovations and better sales structure of the business. The
management of the company was more concerned with innovation and better model of cars and
therefore the introduction of Chevrolet Corvette and BelAir and also the Cadillac El Dorado
redefined the car design which was then available in the market. The introduction of such models
marked the era of golden generation of car deigning in the market and also attracted the
customers in large numbers (Helper & Henderson, 2014). The key success factors which can be
identified for General Motors was the brand of car which was initially acquired by the business
and also the adjustments which was made towards the model and engines of such cars in order to
differentiate the brand of General Motors from its competitors. Another success factor was the
innovation activities which was undertaken by the management of the company for the purpose
of making changes to the products which was offered by the business (Flores, Krueger &
Clements, 2013). This resulted increasing need for innovation and development in the market
and most of the companies in the industry adopted such an approach. Another successful policy
which was formulated by the management of General Motors was the mass production of the
automobiles in order to meet the increasing demand for automobile products in the market which
not only improve the revenue of the business but also build a strong reputation of the business in
the market. The financial performance of the business and the milestones which is achieved by
the business is clear from the reign of the business as the top manufacturer of automobiles in the
world. In addition to this, the acquisition made by the business also shows that the company has