Organization Theories and the GM Crisis: A Case Study

Organization
management
Case study

Organization theories
 The resourced-based looks at the internal environment of an
organization in establishing a competitive advantage (Day, 2014).
 The industry-based view is used in determining the strategy and
performance of an organization.
 The institution based view focus on the range and dynamic relations
of institutions in the organization.
 Corporate governance is a set of rules and practices that determines
how an organization is ran.
 The stakeholder management view hold that the stakeholders of the
organization are anyone affected by the operations of the company.

The root cause of the GM crisis
 poor communication and putting profits ahead of safety.
 GM lead engineer, Ray DeGiorgio had approved the change in sizes of the
ignition switches and springs
 the change led to a faulty ignition system that did not meet torque
specifications.
 The company was also reluctant in following the recommendation of
investigators.
 General Motors failed to consider the needs of the consumer by selling
faulting Chevrolet Cobalt cars(Cheng, 2016).
 failure to take responsibility by recalling the cars early.
 The dragging of class action law suits by the lawyers of the company and
poor investigation into the non-deployment of the airbags.