Audit Report Case Study Help
This topic is related to the decreasing market share of General Motors (GM). Thegain and loss of the market share might have asubstantial impact overthe company’s performance, which entirely depend on the industry’s conditions. Market share is basically a proportion of the business line’s total sales. Fluctuations in the market shares’ values have a superior impact on the company’s performance,which is operating in a gradually growing cyclical sectors. GM’s stakeholders include employees, the United Automobile Workers ’Association (UAW), the board of directors, investors, and the managing directors. GM’s external stakeholders include suppliers, consumers, customers, competitors and governments. The purpose of this audit report is to identify the problem and provide relevant solutions to the problem. The methodology used to complete the report isthe interview of the company’s stakeholders and relevant staff.(Investopedia, 2015).
Conduct of the Study
The interview was conducted by Rogers and Nelson (staff of the GM), which is told that General Motors Corporation has paid more than $ 700 million to Ross Perot, for the acquisition of another company in order to increase its market share.(Holusha, 1986).
GM’s market share has had a significant decline, last month, itaccounted for 32.4% of the total sales of passenger cars and light trucks, decreasing with a substantially high margin from 38.4% and 50% just a year prior. In the sector as a whole, the sales of the domestically produced cars increased in November as compared what they were in the same period last year, but the sales of genetically modified cars had a fall. The company’s operating loss for the third quarter was $ 338 million.GM has dominated the automotive industry for decades,after re-emerging from the merger of manufacturers, component manufacturers and other business units in the early 20th century.
GM has been considered as the epitome of an irresponsible business for many. In the 1960s, the company was at the center of car safety debates and through clumsy measures, it helped transform Ralph Nader’s lawyer-representative into a national figure. In the 1970s, the company tried to push the assembly line to an unbearable level and led to a blue-collar rebellion at the company’s factory in Lord’s town, Ohio. In the 1980s and 1990s, the industry-led efforts to avoid higher federal standards for energy efficiency. GM later said it was seriously considering developing zero-emission electric vehicles, but stopped the production prematurely……………………………
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