Pls reword Under 30% its and absolute must MGM355

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DENATIONALIZATION 6

“Denationalization”

MGM355-1404A-01

Quesadra D. Goodrum

Individual Project Phase 1

International Business Practices

Colorado Technical University

Instructor: Juan Roman

10/13/2014

Introduction

I would like to start by saying during my research process it was very interesting to find General Motors as one of the companies dealing with denationalization. I would also like to start by given you the definition of denationalization is changing a government-run business into a private-sector firm. The change is another key point denationalization is also known as “privatization”. This is crucial with this research project to understand what we are look up and looking for to complete this research project.

Lowering marketing costs and creation of new opportunities

In one of the reports from General Motor`s, the company made $865M USD in its first quarter of the year which, is very impressive. It then saw net revenue go from $22.4B USD to $31.5B USD in the month of April. The rising company sold 183,997 cars and trucks went up to 6.4 percent from 173,007 it had sold a year ago. The information above shows how the marketing cost was lowered and the market opportunities that were discovered. It does not compare to Ford Motor Company`s which it helped increase income all year, benefited local market, and reduced expenses by $2B USD. It also shows what kind of shape General Motor`s was in last year.

How it improved income all year, benefited the local market, and reduced business expenses

Privatization of General Motor`s helped increase the company’s income by 6.4 percent get out of debt with the government. In addition to that, the company also used some of its bailout money to settle debts. By General Motor`s paying back it debts to the government, General motor would now its product at a reasonable range for revenue and profit maximizations. Other than General Motors, the government also benefited from privatization. The benefits gained by the government meant some revenue for the taxpayers at large. Further, to the benefit of General motors, there was a decrease in the company’s overheads. The debt no longer negatively influenced the revenue as it had been cleared which, in turn, altered the company’s profit and loss account to its favor.

Influence of use of technology on other production inputs

The use of technology for General Motor would help the company see to the invention of, say an electric vehicle, which would help increase sales revenue. With the revenues from the increased sales, the company would expand the business that may help business continuity. General Motors productions plant technology oriented building machines. The company reduced the use of human capital significantly and only need few people to monitor the assembly line machines. A computer point operating system with barcoding to control waste, shipping, and reorder points are used for that purpose.

Impact of the product on employment and wages domestically and internationally

General Motors did not change its position domestically nor internationally. General Motors is still General Motors for the most part. It is on a slow recovery from nearly being declared bankrupt and is currently trying to make its return into the spotlight. Once a heavy contender, General Motors has lost its spot in the lime light. Wages remained the same while profit sharply increased. People are, therefore, not necessarily making more by working for them; it the same as it always has been. That could, however, change as denationalization would let them set their prices.

Environmental effect; domestic versus international

The change did not affect the environment domestically nor did it affect the environment internationally. General Motors has steadily become greener and greener throughout the years. Each year the firm tries to reduce the economic footprint it leaves on the environment. The cost of the major changes it has enacted may have caused some original hardships, but General Motors saw it as a needed risk. After its government bailout, General Motors returned to the spotlight with its new car line to show contrition. They were the companies most eco-friendly cars. In addition to the new car line, a new automobile assembly plant opened for business greener than its predecessors were.

Effect of denationalization of the supply chain on the global economy

Remember the United States dominated the automotive industry. The US automobile market was the largest national market in the world; US car corporations were number one. Then during the economic downturn Asian companies such as Hyundai, Honda, and Toyota followed and took over. During this time, the crisis in the United States hit General Motors wrong and the lost their superior flexibility. In the vehicle industry, I would have to lean towards stating that denationalization is good for the global economy. Denationalization prevents one country from having total dominance over the industry. True enough it would place more power in the organizations hands. However, when it comes to aiding in economic elevation to developing and poverties countries, denationalized companies are of great help. It leaves chances for consideration of other options. We have the World Bank and NATO why not form some type of agreement that aids the global economy as a whole. It had been achieved before when they said it could not be done just a little food for thought.

A little food for thought

The year that the government bailed General Motors out of bankruptcy in which the government spent $6B USD General Motors is the largest industrial bankruptcy that the nation has ever had. The Obama and Bush administrations it were able to help General Motors move to the private sector. This was through bailing the company out of bankruptcy. It took them two tries in order to complete the bail-out that is very interesting if you think about it. 

References Ikenson, D. J. (2011, 06 22). CATO. Retrieved from CATO.org: http://www.cato.org/publications/congressional-testimony/lasting-implications-general-motors-bailout Unido.Org. (2009, 04 16). Unido.Org. Retrieved from Unido.Org: http://www.unido.org//fileadmin/user_media/Publications/Research_and_statistics/Branch_publications/Research_and_Policy/Files/Working_Papers/2009/WP%2016%20Impact%20of%20the%20Global%20Economic%20and%20Financial%20Crisis%20over%20the%20Automotive%20Indust