RM-7

Student 1:

Game Theory aims to help us to understand the interaction of decision-makers and their situation. A game in the everyday sense “a competitive activity . . . in which players contend with each other according to a set of rules”, in the words of my dictionary is an example of such a the situation, but the scope of game theory is vastly larger.

GM can use game theory to identify the potential risks from the perspective of consumers, suppliers, competitors, and employees. If GM wants to undergo any change, the suppliers must also make changes in order to satisfy GM’s needs for the new model. GM does build its cars, but there are many suppliers involved in manufacturing (Budler & Trkman, 2017). GM has to completely change the requirements for the suppliers to electrical components required to build electric cars from the traditional requirements which they had previously.

a. One of the major risks involved to make electric cars is the lack of expertise. GM’s employees work on traditional vehicles that run on gasoline. The new electric line of vehicles needs employees who are experts in electrical components and there’s always a risk involved in finding such employees.

b. Another risk involved is the lack of electric charging stations across the globe. As we all know that electric vehicles can only go up to a range of 300 miles in a single charge and needs at least 30-40 mins of charging before running another 300 miles. This means charging stations need to be placed every 300 miles across the country. GM might face the risk of losing customers to another competitor if they do not have enough charging stations.

 

Reference

Budler, M., & Trkman, P. (2017, June). The role of game theory in the development of business models

n supply chains. In 2017 IEEE Technology & Engineering Management Conference (TEMSCON) (pp. 155-

59). IEEE.

Student 2:

One of the leading companies in dealing with motor vehicles is the general motors. It has successfully managed concurrences with the arrival of the Chevrolet Bolt EV. The size of the car is an important aspect when it comes to motor vehicles. The electric vehicle can be used in demonstrating masses in affiliation (Case study E hot-rod car project, 2019). The GM decided to replace one of their traditional model of cars with electric vehicles. The introduction of the electric vehicles supporters and correspondents assures that GM feared more significant advancement in the field of electric vehicles. Meddling with the extra parts option since the electric-powered vehicles have a smaller number of parts compared to the traditional vehicles that they intended to replace.

For the General Motors, the Game theory is very important, and it resolves to neglect the conventional model and to adopt the new models which are electric. The change will act as a strategy to attract and expand the customer base to suit them on the advantage, to have a more significant impression to the clients, the general motors need to make use of the conditions, and a more significant challenge is how to change the terms and the effects to the market.

The market response is a significant risk. There is a need by the general motors to evaluate how their things will impact on the clients and how they contrast to the things of the test. The two are the main threats or risks that general motors need to focus on .hey have to analyze if the customers will be in favor of the new model and the significance of the latest model to the organization or the company (Case study E hot-rod car project, 2019). The company stands at a crossroad which is comparatively dangerous on whether to organize most of its advantages on the new electric models or if to concentrate its strengths on benefiting the powerful standard models. It is essential to note that the electric models are designed for the future, and the organization must go to that direction for relevance in the future, but it also has some obstacles.

Main risks

There are many dangers associated with the shift from the traditional model to the electric model and are likely to affect the general motors. One of the perils is the center shot.it is worthy to note that the company does not and will not care to contribute conversely. The company needs to put more effort and focus more on the new electric model (Vecasey, 2018). This property suggests that it can be facilitated in a single district. The other peril is the market possibility .this danger can mistakenly in the market due to the impact of stiff competition and vulnerabilities

References

Case study E hot-rod car project. (2019). Managing Project Risks, 417-419. doi:10.1002/9781119489719.oth5

Casey, P. (2018). GM light-duty fuel cell electric vehicle validation data. doi:10.2172/1479624

Student 3:

ERM at General Motors and Risks

The ERM of General Motors was founded in the year of 2010. Within the company, the CRO was selected to support the program. The General Motors game theory can use to announce with a sustainable electric vehicle that is powered with the electric emission that as the traditional vehicles performance that is offering at least 200 miles per gallon and the traditional vehicles are incapable to reach (Mitropoulou, & et al, 2018).

From this decision, the two major risks are driven those are

· To purchase these electric vehicles the customers are not willing to purchase because of fear that to stop on the road (entrusted engine).

· Because of the cost, the customers were retained to buy these cars. When compared to traditional vehicles there is no doubt that these electric cars are more expensive.

Entrusted Engine

From purchasing the electric cars the customers may refrain that not only because of fear that the engine to break down at any time of operating and also because of car size. The car may not be enough to carry the number passengers the owner wants to ride with. 

Cost

The interesting factor is the cost where the people may believe that the electric car is costly based on its size event though on gas it will save them money (Robinson & Bingyong Zheng, 2010).

How could General Motors use the game theory to identify and access the major risks to this decision?

Motors are possible to influence other actions and the usage of scientific theory will play an important role in avoiding the different types of misunderstanding. The game theory was used that wherever the organization management will place themselves on every player's shoes and looking for clarification from them that ability to understand that whether they are comfy with the provided decision or not. Their views were given by the players and asked if they needed each possibility which was enforced as well as the choices out of their management and with the different player's list choice will be important (Thun & et al, 2011).

References

Mitropoulou, G., Haba-Rubio, J., & Heinzer, R. (2018). Score NoSAS: un outil de dépistage du syndrome d’apnées du sommeil pour le médecin de premier recours. Praxis (16618157), 107(6), 323–327.  https://doi.org/10.1024/1661-8157/a002921

Robinson, C., & Bingyong Zheng. (2010). Moral hazard, insurance claims, and repeated insurance contracts. Canadian Journal of Economics, 43(3), 967–993.  https://doi.org/10.1111/j.1540-5982.2010.01602.x

Thun, J.-H., Drüke, M., & Hoenig, D. (2011). Managing uncertainty - an empirical analysis of supply chain risk management in small and medium-sized enterprises. International Journal of Production Research, 49(18), 5511–5525.  https://doi.org/10.1080/00207543.2011.563901