Who is to blame for the downfall of GM. When the economic crisis hit our country, we were left with a medley of issues to contend with. There was the housing bubble that popped, the insurance companies that needed bailing out and most importantly, the American auto companies, which were struggling to stay afloat. Should we blame management in this case or should we blame the economy?
According to the Wall Street Journal, it is management's fault to blame. This is especially the case for the head C.E.O at General Motors Company Holman Jenkins. Holman Jenkins' track record at the GM company was not as exemplary as he would have wanted it. It's even more embarrassing for Holman Jenkins since George W. Bush blames Holman Jenkins for a "decade of poor management" (wallstreetjournal.com). The tirade continues in the paper as he is berated for the drop in stock value. Although most C.E.O.'s would take the heat and generously accept any insults thrown their way, Jenkins goes ahead to dispel any bad word about him. He even goes to say that the numeric decrease in value of stock is not a valid measurement of a company's C.E.O's capability. It's believed that he is responsible for the downtrodden state of GM, and by the way he is dealing with the many criticisms, I can't believe anything but that fact. Generally, C.E.O.'s deal with criticism respectfully, declining to comment on the issue of their company. It all seems too defensive coming from a champion of capitalism.
There are too many issues to contend with when talking about G.M. Its C.E.O. being one major aspect. However, even as the C.E.O. is being berated by the media and criticized by his own words, it is hard for me to deny the fact that G.M. is doing better this quarter than the last. This quarter's performance although not as golden as the peak performance of 2007, shows that the C.E.O. is contributing his part into the company. I am to believe that he is not great at communicating with the media, but I believe that he is taking the company in the right direction and step by step rebuilding it to its former grandeur.
http://proquest.umi.com/pqdweb?index=2&did=2186586941&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1289934516&clientId=31806
The new CEO, Daniel Akerson, has an engineering degree from the US Naval Academy and a Master's Degree in economics from LSE. He's been very successful in his other positions and is no doubt ready to lead GM to greatness. His predecessors, on the other hand, weren't that great.
ReplyDeleteOne of the reasons why communicating GM's good numbers is hard may be due to the disconnect between the cars and the corporate image. People who buys goof Fords see the name every time they drive it. But GM products come in several different brands so a consumer may like a Chevy but still have bad feelings for "GM."
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