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1. What is your learning from the experience of General Motors India in this case study?

The General Motors Indias case study clearly depicts us the transformation made by them by managing capacity constraints problem. It initially had no market in India because of many reasons which includes heavy competition, down in terms of media voice, market share, product line up, and capacity constraints, and was badly affected by the phase-out of its once popular Opel brand. Then GM-India realized the major problem was the capacity constraints and actually not the former. They then started expanding their product portfolio by merging or taking over different automobile companies and started to re-enter the market with new names and new brands. GM rebranded and re-launched the products from its collaborations and later had huge market share and also won the bestselling car (Spark) award for many years. The takeover form this case study is, it is not only the marketing department deciding the sale of the product but also the production department which does not have capacity constraint as its problem decides the sale of the product. If the capacity constraint was not taken into account and the marketing activities continued continuously GM would have not been in a position which they are today. 2. If you are to set up a GM subsidiary in South Africa, what will be your considerations before designing the plant capacity? Please assume relevant data about SA passenger car market from internet resource. If I am setting up a GM subsidiary in South Africa, my consideration before designing the plant capacity are as follows: The existing demand and future forecasted demand of the passenger car segment. The capacity of the other manufacturers and the feasibility of GM merging with them. The feasibility of the car in the market. The marketing force involved in selling the product. The available workforce in the particular region. The number of Original Equipment Manufacturers in the country.

Plant Capacity Management (PCM) a combination of capacity expansion in lower-cost countries and a reduction of overcapacity in older, higher-cost facilities will be given much importance in GM. Frequent proper alignment of taxable income and cash flow on a global basis will be done simultaneously. The company will have an inter-company pricing policy based on companywide standard costs, when it merges with a new facility, the new facilitys low labor costs and high capacity utilization will contribute to extraordinarily large profits being earned in the new facility.