What Can Cause the Planning Process To Fail? – Managerial Acct

Week 3 Discussion – GM’s Value Chain and the Five Force Model – Strat Man

You are the budget director for General Motors and have been assigned to evaluate the company’s market position and external environment using Porter’s Five Forces Model.

You will have to complete a little research to determine General Motors current state as well as the competitive forces in the automotive industry. Please address each of the five forces under separate headings with good support information and your conclusions.

Lastly, please look at GM’s value chain and determine if they have any strong weaknesses in it by providing four core issues they need to address. You may use the material in chapters 3 and 4 to address this discussion assignment.

Reference : (Chapter 3&4)

Title: Crafting & Executing Strategy: The Quest for Competitive Advantage  Author: Thompson, Peteraf, Gamble, & Strickland  Publisher: McGraw Hill Irvin  Ed/Year: 21st Edition; 2018  ISBN-13: 9781259899645

Week 3 Discussion – What Can Cause the Planning Process To Fail? – Managerial Acct

A survey of Chief Financial Officers identified six key areas that they determined were a key contributor to a failed planning process:

1. A poorly defined strategy.

2. No clear link between strategy and the operating budget.

3. Lack of individual accountability for results.

4. Lack of meaningful performance measures.

5. Inadequate pay for performance.

6. Lack of solid data and systems to make decisions.

In your opinion, which two points above do you feel are the main factors that create the gulf between planning and attaining performance objectives? Do you think that the growth in global competition will accelerate the process even further and why?

Reference:

Text: Managerial Accounting Author: Crosson and Needles Publisher: South-Western; Cengage Learning Ed/Year: 10th Edition; 2014 ISBN: 978-1-133-94059-3