Gossip, Gossip and more Gossip

homes The GM bankruptcy sent shockwaves throughout the entire United States. General Motors was the symbol of American economic domestic power and innovation. Unfortunately, times change and so does market demands. GM had slowly fallen on hard times over recent years and the mismanagement of its executives also contributed greatly to the problems.

GM Fritz Henderson is the current CEO of General Motors. He assumed his position in March of 2009 after previous CEO Rick Wagoner went down in American business infamy when the President of the Unites States ordered he be fired from his position after GM filed for bankruptcy. Wagoner had attempted to restructure the company in the aftermath of receiving several bailouts and loans. It didn’t work and the task moved to GM Fritz Henderson. Henderson, however, could not reverse the downward spiral and this should come as no surprise. The management of the company had been questionable for years. GM Fritz Henderson previous worked for the company as Vice President so it is curious why someone so linked to the GM bankruptcy would be tapped to run the company.

juegos carreras But, what led to the GM bankruptcy?

The concept of planned obsolescence was a major factor in GM losing a great deal of money in the past decade. Planned obsolescence was a design concept that ensured a car would not last many years/miles in order to stimulate new sales of newer vehicles. In short, cars were purposely built not to last. This was a foolish notion because foreign import cars were known for their ability to last upwards of 200,000 miles. GM Bankruptcy shows planned obsolescence was a poor managerial concept.

real estate investing Why did Sam Walton’s company go from a single local store to an international franchise? Is there a real secret to success, or were the stars just lined up correctly for such an occurrence?

Sam Walton expounded the buy low, sell low philosophy while others were just giving it lip service. Wal-Mart still pounds and oppresses their vendors to sell products at just above cost so they can, in turn, put those products on the market for less than everyone else. Making a little on a lot of volume makes for big revenues. It’s simple, if it’s done right.

There were additional problems GM faced and GM Fritz Henderson, Wagoner, and other executives were simply ineffectual in terms of their ability to handle these problems. The company was losing money from collapsing sales. Losses started to rise into the double digit billions. The company was quickly heading to insolvency.

These problems were compounded by various poor managerial decisions. Namely, a joint venture with Nissan and Renault proved disastrous. General Motors also poorly negotiated union contracts it was not able to afford. These problems further drained the company making a turnaround far too difficult.

What have we learned in 2009?

As we experienced the unprecedented, have we learned anything? I hope we did. Someone once said that if a person does the same things over and over again and expects different results, they are crazy. So, what are you going to do differently? How are you going to change how you manage your business, your finances, or your lifestyle, now that you have experienced the unprecedented? You can be published without charge. You can to republish this article in your website or blog. Please provide links Active.