1,636
24
Essay, 2 pages (300 words)

Sample essay on general motors

Advertising We'll write a high-quality original custom paper on Sample essay on general motors just for you with a 15% discount for the 1st order Use a Discount Use a Discount

Managers are accountable for the performance of any given company. They are the overseers of the capital of the shareholders. They have been given the mandate to invest this capital at satisfactory rates of return so as to increase the value of the shareholders. The recent past global financial crisis put to test managers in various companies with regard to the responsibility of maximizing the value of the shareholders. General Motors managers are a perfect example in this particular case. The managers of the Company failed to fulfilled their responsibility of maximizing the value of the shareholders.
It can be argued that the financial problems of General Motors emerged as a result of the global financial crisis, which affected almost every company in all parts of the world. However, the failure of the managers of the company is evident taking into consideration the events that took place before the onset of the global financial crisis (Alex, 2013). Arguably, the company was already financially vulnerable before the crisis. It recorded a significant amount of losses in 2005, approximately $10. 6 billion, and this led the company to seek government financial aid the following year to support its programs. The failure to obtain this aid saw the company make more losses in 2007, amounting to approximately $38. 7 billion, followed by a decline in sales in 2008 by approximately 45% (Alex, 2013).
All these happened because of the miscalculations of the managers of the company in their investment activities. They failed to read the market dynamics even before the onset of the financial crisis, and when the crisis started the company was already on the downfall, which made it difficult for it to sustain itself in the market. Based on this analysis, it can be argued that the managers of General Motors failed to fulfill their responsibility of increasing the value of the shareholders.

Reference

Alex, A. (2013). How General Motors was really saved: The untold true story of the mostimportant bankruptcy in U. S. Retrieved from http://www. forbes. com/sites/danbigman/2013/10/30/how-general-motors-was-reallysaved-the-untold-true-story-of-the-most-important-bankruptcy-in-u-s-history/

Thanks for voting and helping us improve!
Sample essay on general motors. Page 1
Sample essay on general motors. Page 2
Sample essay on general motors. Page 3

The paper "Sample essay on general motors" was contributed to our database by a real student. You can use this work as a reference for your own writing or as a starting point for your research. You must properly cite any portion of this sample before using it.

If this work is your intellectual property and you no longer would like it to appear in our database, please request its deletion.

Ask for Removal

Create a Citation on Essay

References

PaperPrompt. (2021) 'Sample essay on general motors'. 28 November.

Reference

PaperPrompt. (2021, November 28). Sample essay on general motors. Retrieved from https://paperprompt.com/sample-essay-on-general-motors/

References

PaperPrompt. 2021. "Sample essay on general motors." November 28, 2021. https://paperprompt.com/sample-essay-on-general-motors/.

1. PaperPrompt. "Sample essay on general motors." November 28, 2021. https://paperprompt.com/sample-essay-on-general-motors/.


Bibliography


PaperPrompt. "Sample essay on general motors." November 28, 2021. https://paperprompt.com/sample-essay-on-general-motors/.

Work Cited

"Sample essay on general motors." PaperPrompt, 28 Nov. 2021, paperprompt.com/sample-essay-on-general-motors/.

Get in Touch with Us

Do you have more ideas on how to improve Sample essay on general motors? Please share them with us by writing at the [email protected]