Daimler Chrysler and Gm

Topics: General Motors, Automotive industry, Mercedes-Benz Pages: 3 (1002 words) Published: September 17, 2006
Problem Definition
In this case, GM took the strategy called "shotgun" that implements a high information technology and had spent a lot of money on information technology, but it was not centralized and standardized to reach every department and employee of the company. In other words, the information system was not linked together and standardized, which kept information from the employeesso they were unable to make efficient and effective decisions. One of the symptoms that GM faced in the process of producing a product was that the employee was not educated with the system, which led them to make the same mistakes over and over. Also, the design engineer was not aware of the manufacturing environment, so they could not design a product properly to fit to the automated robot assembly system and reduce the work force to make product more efficiently and reduce the cost. Chrysler took the strategy call "rifle" approach, which saved the company from bankruptcy. Chrysler did not have the funds to implement the high technology through out the entire company, but they invested funds in high technology, which was where they were needed most, and created a fast return. It is clear that Chrysler's strategy is different than GM: Chrysler's information system is linked and centralized so it is utilized well by employees and other stakeholders such as suppliers. Due to this effort, Chrysler had improved in productivity and efficiency, but quality and productivity was not enough to compete with oversea competitors like Japanese automakers. Also Chrysler merged with Daimler Benz which is a German high-end automobile maker. Daimler Chrysler is now facing the challenge of combining two different cultures to use the information system to benefit both companies.

Justification for Problem Definition
GM is the biggest auto maker in the industry and has five different, separate operating groups and divisions (Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac)....
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