Team Drayton

1
Team Drayton

• A Management Case Study of
• General Motors Asian Business Alliances

2
The World Wide Web of General Motors

• General Motors many Asian Partnerships included
  the following companies

Toyota, Isuzu, Daewoo, Suzuki, Nissan, Mesin
Isuzu, GM Egypt SAE, Convesco Vehicle
Sales, Fanuc Robotics, Atsugi Motor Parts,
Akebono Brakes, NHK Springs, Overseas Components
Activities, Japan GM Cooperative Association
dozens of suppliers
covering everything from automotive
manufacturers to brake pads and everything in
between.
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GMs Core Problems

• Failure to maintain control over partnerships.
• Inability to develop long-term relationships with
  a high level of trust.
• Not aggressive enough in defending its interests.
• Need to act in a strategic manner with its
  partnerships.

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Can GM survive and prosper while doing business
in Asia?

• YES!!!

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How can G.M. develop better business alliances in
the Asian region?

• Three key characteristics for a company to look
  for in selecting a business partner
• A good partner helps the first achieve its
  strategic goals,
• A good partner shares the firms vision, and
• A good partner is unlikely to try to exploit the
  alliance for its own agenda

• Knowledge in important establishing productive
  business alliances. Collect information from
  three sources
• Collect as much pertinent publicly available data
  about a potential partner,
• Collect data from informed third parties,
  including those who have done business with them
  in the past, bankers, and past employees,
• Get to know the potential partner well before
  committing to an alliance, including making sure
  that senior management will interact well on a
  personal level.

Source Hill, Charles. International Business
Competing in the Global Marketplace, 4th
Edition. McGraw-Hill Irwin,.
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Goals and Objectives for General Motors to have
successful Asian alliances

• Develop stronger relationships with suppliers and
  partners.
• Expect more control and better returns with its
  investments.
• Protect knowledge and technologies.
• Put its business interests first.
• Improve product development.