General Motors Corporation (Performance Assessment)
...impacted their financial results, brutal international competition is causing GM to react with target costing strategies, rising fuel prices directly impacts their cash flows and complicates capital budgeting strategies and tactics and their ongoing health care and pension costs continue to color their future earning potential.
These challenges will be addressed by using performance assessment measures. The financial assessment measures include net income and their market share value, liabilities of health care and pension benefits, revenues, target costing and capital budgeting. Non-financial measures include customer satisfaction and branding effects on sales volume.
BACKGROUND
Managers use standards, benchmarks and metrics to assess organizational performance in a variety of settings. Performance measurement is defined as the extent to which actual outcomes correspond to planned outcomes. Management use performance assessment to improve processes, modify plans.
Motors Corporation, also known as GM, is the world's largest automaker and has been since 1931. Founded in 1908, GM today employs about 326,999 people around the world. GM manufactures its cars and trucks in 2 countries. In 2005, 17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Hummer, Pontiac, Saab, Saturn and Vauxhall. GM operates a finance company, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance.
General Motors Corporation is primarily engaged in automotive production and marketing, and financing and insurance operations. GM designs, manufactures and markets vehicles worldwide, having its largest operating presence in North America. The Company's finance and insurance operations are principally those of General Motors Acceptance Corporation, a wholly owned...
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