Running Head: Multinational Corporation
General motors is a multinational corporation that was begun in 1908 by William Durant. It has ever since extended its services to several foreign countries including Mexico. It is the world’s largest known company for manufacturing of automobile (Cray & Chrome 1980).
Its outstanding business activities in Mexico are among others, provision of high quality Products in order to remain competitive in the global economy. The leaders in
General Motors have also invented business plans that enable them to reduce the costs of the
Intensive engineering, prototyping as well as tooling activities they operates in Mexico
The General motors management team has established a net working program for hiring new employees so as to facilitate manufacturing and marketing of heir automobiles. The corporation has also expanded an initiative known as jumpstart in Mexico whose main goals are to indoctrinate those who have been newly hired into the corporations’ culture and to give them a chance of meeting employees in other parts of the corporation so as to get exposed to the corporations’ business leaders (Cray & Chrome, 1980). This ensures smooth running of the business activities since high employee relation is established and maintained.
General motors operations on the host country, Mexico, has some comparative advantages. Compared to the US, labor costs in Mexico are much lower and therefore General Motors Corporation stands a good chance in Mexico as opposed to US since it cheaply obtain its parts production. At the same time General Motors Corporation in Mexico does not encounter stiff competition for skills and technology from many automobile companies than it could encounter in the US (Maurice, 1995).
This is well explained by the fact that US is believed to gain those jobs that require high skills and technology as it trades with Mexico. This indicates that most of the scientists and engineers who have the required skills and technology secure jobs in the General motors corporation (Lance & Ian 1998). Since it is a well paying and established compensations compared to any other automobile corporation in the country.
The environmental issues that prevailed during the on set of the General Motors Corporation in Mexico such as rising costs of health care as well as pension costs really affected rapid growth of the company. General motors however, have worked on these issues through working extensively with the Workers Union on ways for trimming down the health
care costs for the workers their families as well as the retirees (http:delphi.com/about/social/)
Although General Motors Corporation in Mexico was well established, it also faced stiff and competitive pressure form the other automobile companies. This could lead to lower sales than expected by the management and overall economic strain to the company. However, General Motors Company have embarked on innovation ever since and it has expanded computer as well as electronic content on their vehicles (Lorean & John, 1980). It has also extended its recruitment to cover most technologically advanced countries like China, Europe and India hence acquiring high skilled scientists and engineers.
There is also the issue of globalization that entirely has benefited the General Motors Corporation. It has been much easier for the company to get access to the technology that is being developed around the world (Jagdish, 2004). In Defense of Globalization.Oxford University Press. The different scientists and engineers recruited by the General Motors from diverse cultures influence the culture of the host country, Mexico. The stiff competition brought in by globalization has also made it difficult for the Mexico-based automobile companies to compete in the market especially the small companies (Frederick, 1947)
Resolving these issues has serious financial commitment and long-term expenses especially when the high skilled scientists and engineers demand for better salaries.
The Acme motors should put in place strong criteria upon which its workers are hired or employed so as to improve and maintain supply of high quality automobiles to its clients. The workers should be able to conduct thorough research and be technologically innovative so as to enable Acme motors compete sufficiently in the global market.
Cray, E. & Chrome C. (1980). General Motors and Its Time. New York: McGraw-Hill.
Cray, E. & Chrome C. (1980).A History of General Motors. New York: Smithmark
De Lorean & John Z. (1980).On a Clear Day You Can See General Motors. London: Sidgwick and Jackson.
David M. (2003).What the Market Does to People: Privatization, Globalization, and Poverty. Clarity Press.
Frederick H. (1947). Patterns of Union-Management Relations: United Automobile Workers (CIO), General Motors.Science Research Associates.
Jagdish B. (2004). In Defense of Globalization.Oxford. University Press.
Maurice E. (1995).Electronic Technology, Corporate Strategy, and World Transformation.Quorum Books.
Lance D. & Ian M. (1998).Biographical Dictionary of the History of Technology. Routledge.
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Retrieved on 24th January 2008, from http://delphi.com/about/social/