GM Essay Example | Topics and Well Written Essays - 500 words

GM - Essay Example Through this structure the car design process speed up as the decision making of the global engineering and design groups was recentralized. GM had employed a 'Localization Strategy' in the beginning. With this strategy, although there was local responsiveness and the products were designed according to the demands of the various global divisions but due to this decentralized control in each country it operated, there was a duplication of the various activities like the design, component parts, manufacturing and sales functions in the various divisions which resulted in an increase in the costs of GM and therefore effected GM's revenues and profits. The company later implemented a 'Global Standardization Strategy'. This strategy was based on the product-group structure and aimed at coordinating the activities of home and overseas operations. Through this strategy by sharing expertise, the various divisions work together to design cars which can be sold anywhere across the globe. GM has been changing its global structure to allow it to coordinate the production and sale of its products most effectively around the world by the implementation of a "Global Standardization Strategy". GM has firstly centralized the car design and production decisions.