University Assignment: Change Management at General Motors Analysis

This report provides an in-depth analysis of the change management challenges faced by General Motors (GM). It examines the company's historical context as a dominant force in the automotive industry, highlighting its initial success and subsequent struggles. The report focuses on the emergence of Toyota as a major competitor and the impact of technological advancements and changing market conditions on GM's performance. It explores both external factors, such as technological evolution and shifts in consumer preferences, and internal factors, including strategic management and decision-making processes. The analysis incorporates relevant theoretical principles, including the critical theory of technology and the theory of price, to explain GM's decline and the factors contributing to Toyota's market dominance. The report also references relevant academic sources to support its arguments, providing a comprehensive understanding of the case study and its implications for change management practices. The report concludes by emphasizing the importance of strategic adaptation and effective decision-making in navigating dynamic market environments.

Running head: CHANGE MANAGEMENT AT GENERAL MOTORS
CHANGE MANAGEMENT AT GENERAL MOTORS
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1CHANGE MANAGEMENT AT GENERAL MOTORS
Highlight the reasons and forces behind the change in General Motors. The explanation
should be supported with references and links to theoretical principles and standards.
The General Motors was one of the major car maker company in United States, and
had enjoyed an uninterrupted and a non- competitive market for a long period of time and had
established a strong base within the market, enjoying success single handedly. The company
had introduced a numbers of brands, and it came up with a new designs every year. However,
the organization faced a difficult situation with the emergence and rise of the Japanese
company, Toyota. Toyota offered better, unique designs and quality material at a lower price.
This had posed the organization with crisis situations, and lost their grip over the market and
Toyota, got the hold of the entire American market.
However, the organization could have accounted the change if it had included a
strategic management. However, the organization came at a close, in 2009, when it faces an
utter bankruptcy. The organization was faced with a threatening situation with the emergence
of the Japanese car company. The fate of the organization was driven by a number of change
factors.
There are two types of change factors that affect the business of an organization,
external factors and internal factors. Considering the case study it is seen that especially the
external factors had affected the market for the General motors were, technological evolution,
and market conditions. A detailed analysis of these there factors have been presented in the
following.
Technology:
Technological change is one of the major reason for General motors, to have faced
with a crisis situation at the first place. The Japanese technology is famous for its
effectiveness and its uniqueness. The Japanese technology have changed the dimensions and

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the market conditions at all sectors, and it is observed for the technology industry, the
technological innovations and the technological advancement are the major reasons to
increase its market position (Helper, and Henderson. 2014). The critical theory of technology,
reflects upon the productive knowledge that are involved in the emancipation and evolution
of the technology from the market perspective (Kirkpatrick. 2017). The critical theory
includes a diversified approach and includes the knowledge related to the power relationships
involved in the market perspective. The critical theory involves value aspect to the designing
of the gadgets. Therefore, if the designing and the technological aspects of the cars made by
the General motors and the cars produced by Toyota, are observed, then it can be observed,
that the layer as much technologically empowered.
Market Conditions:
The market condition of America was also a contributing factor to the emancipation
of Toyota, in the market. The organization provided better features and better quality at a
lower range, than offered by General Motors. Toyota has changed the concept of car within
the industry, and introduced a number of designs which were more contemporary and trendy,
therefore, there was an immediate market shift that could be observed (Chowdhury. 2014).
In this notion, the concept of theory of Price can be included, whereby, it is stated that the
optimal market price or market equilibrium depends upon the available; items, the supply
process and upon the availability of the raw materials (Friedman. 2017). If the shift in the
market from the General Motors to Toyota, is observed, then it can be seen that the Toyota
had included variant design and innovation in the process that had kick started their position
in the market.
However, other than this, the strategic management and the decision making power of
the organization also influenced its market position. General motors lacked a sturdy decision

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making process and when it was offered with a collaboration approach, it should have
addressed it, and therefore, the fare of the organization could have been altered.

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References:
Chowdhury, S.D., 2014. Strategic roads that diverge or converge: GM and Toyota in the
battle for the top. Business Horizons, 57(1), pp.127-136.
Friedman, M., 2017. Price theory. Routledge.
Helper, S. and Henderson, R., 2014. Management practices, relational contracts, and the
decline of General Motors. Journal of Economic Perspectives, 28(1), pp.49-72.
Kirkpatrick, G., 2017. Critical technology: A social theory of personal computing. Routledge.