1.      Summary of the Article of General Motors’s Fourth Quarter Results Hit by Factory Strike

The article is written in the automotive industry and its financial outcomes. General Motors is a famous name in the automotive industry. According to the information presented in this article, General Motor is expected to present a small operating profit margin in its 4^th quarter instead of a crippling strike. Recent estimation and forecasts for the sales of GM vehicles is not enough good to generate a higher margin for operating income. Company is expected to face a rapid slowdown in its sales of US and China markets.

A key reason behind this poor financial outcomes is the strike by the factory workers and the decline in the production sector outcomes. Following the article, the overall production was reduced in the General Motors Company during the month of October when it was expected to plunge the operating profit from 96% to 105% in 3 months duration only (October to December). Somehow, the author stated that General Motors Company failed to make a new labour contract in the month of September at US manufacturing plants because of factory workers strike at the production plant. As a result, General Motors Company faced a decrease in its operating income. However, comparatively, the author added the example of Detroit Auto making Company that generated the net profit of $6.7 billion for the same year in North America.

According to this article, automotive industries faces ups and downs because of changes in the internal and external environmental situations. For instance, General Motors Company faced a decline because it failed to draw a new labour contract in September. While Detroit Auto Making Company made a profit by an increase in the prices of their heavy vehicle. Additionally, another famous automotive company Ford barely broke-even during last fiscal year. The profit stream was affected by the overseas restructuring, challenges regarding the launch of new models in the US, increasing warranty cost, and losses overseas. Although, comparatively GM motors faced a decline in operating margin from 6.1 per cent to 8 per cent a year before this strike. The strike cost them $3.6 billion as told by the Finance Chief Officer (FCO) of General Motors Company in 2019.

2.      Relation of the Article with the Course of General Motors’s Fourth Quarter Results Hit by Factory Strike

The article is directly related to the course material and concept studied in this course. The article highlight the importance of the right business decision at the right moments. The General Motors Company did not make a contract within time as a result of this they faced a clear decline in their operating income. Similarly, management of Ford motors failed to create appropriate strategies for its operations in US and China as a result of this they suffered from the issues raised by these markets which also reduced their capability to generate better financial outcomes. As stated by the article, the company was only capable to meet its breakeven point. However, the article is also related to our course as it provides information about the importance of corporate social responsibility and environmental friendly business operations. Ford and GM motors did not pay enough attention to their workers. The factory workers strikes indicate dissatisfaction level of employees at GM motors. Companies suffered to this bad end because of their limited attention to these aspects. The fact is that businesses succeeded in the market when they work responsibly with the appropriate decision. Conclusively, the reasons for success and failure presented in this article for various companies are all the key concepts covered by this course therefore it can be said that the article highly relates to the course.

3.      Critical Analysis of the Article of General Motors’s Fourth Quarter Results Hit by Factory Strike

Critical analysis of this article concludes that the article contains very useful information about the failure and success of auto manufacturing companies such as Ford and General Motors Company.  The author presented all information in a sequence with relevant examples to elaborate on the possible factors that contribute for the failure of GM motors to generate an expected operating profit amount in the fourth quarter of the fiscal year. The article provides information about expected and actual outcomes of GM motors which makes it easy to understand the actual impact of wrong decisions and factory strike on the profitability of GM motors. According to the article, the company was expected to generate a higher profit return because of inclining market sales. However, in the end, the company was capable to generate only $8.4 billion as operating profit. Following my analysis, I agree with the point of the author that restructuring cost was also a contributing factor that reduced the sales of commercial vehicles in the market of China and causes to reduced revenue by the percentage of 20. I completely agree with the fact that GM motors did not understand the challenging macro environment. A wrong strategic plan translated the success of GM motors in the failure of GM motors to stand against competitors. In my opinion, the key issue was their limited attention given to the production sector and its employees. Following the information stated in the article, GM corporate management did not make the right strategies for their factories in the US market and took the wrong decision of launching vehicle models in the US market. Wrong business decisions are common. Many companies fail because of their wrong decisions regarding their workforce and production systems. However, the early they make amendments and changes the less they face challenges.

4.      Solutions to the Issues reported in Article of General Motors’s Fourth Quarter Results Hit by Factory Strike

The identified issue in this article is limited attention given to the workforce at US factories by GM motors which caused a decline in operating income. In my opinion and knowledge, companies can handle such issues by making changes in their HR policies and strategies. For successful business operations employee’s engagement, loyalty, and the corporation are essential which can be obtained by developing a positive relationship between the organization and its workforce. Some incentive packages and financial rewards can reduce workplace conflicts and issues concerning employees satisfaction. Therefore, I would recommend that business organizations should introduce attractive retention policies for their employees. Moreover, management should take decisions that benefit them in the long run.

References of General Motors’s Fourth Quarter Results Hit by Factory Strike

Craymer, L. (2020). Beyond Meat to Start Selling Plant-Based Beef in Starbucks China Stores. Retrieved from www.wsj.com: https://www.wsj.com/articles/beyond-meat-to-start-selling-plant-based-beef-in-starbucks-china-stores-11587458162