Value Chain Management General Motors

According to Porter’s Generic value chain, the firm’s activities can be classified into two types (1.)Primary activities and (2.)Support activities (“ES&OR483  Strategy and Marketing Primer (version 3.0),2010).
Primary activities comprise of (a.)Inbound logistics dealing with raw materials supply,(b.)Operations, (c.)Outbound Logistics, (d.) Marketing & Sales, (e.) Service.
             These activities are to be supported by support activities comprising of (1.)Infrastructure of the firm,(2.)Human Resource Management,(3.)Technology Development and (4.)Procurement of Inputs.
              The company made many efforts to integrate their information technology. Not much is available about other links in the value chain, particularly primary activities(Laudon.K.C.& Laudon.J.P.,2010).
                It  may be noted that value chain management is mainly for entities which want to pursue a core competitive advantage.The value chain is useful for increasing the margin of profit.The value chain management aims at setting right  the chinks in the value chain links saving costs, thereby giving cost advantage to the firm(“ES&OR483  Strategy and Marketing Primer (version 3.0),2010)..
            But unfortunately GM’s problems are totally different.Its market share suffered a huge dent over the years.Its technology is outdated(Laudon.K.C.& Laudon.J.P.,2010).It has a huge non-contributive retired work force to whom they pay huge amounts and huge operational losses. The company has to take up rebuilding in almost all activities before on can speak of value chain management in relation to the company(Laudon.K.C.& Laudon.J.P.,2010).
          The fact is that General Motors with all the problems is perhaps nearing the end of its existence.It is almost impossible to resuscitate the company unless it is restructured with a massive government aid.

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