Monday, April 8, 2013

GM's anti vertical integration

Vertical integration is supposed to give the parent company more control as well as lower cost of the element that they are integrating. However, after GM’s bankruptcy they are doing the opposite. GM is closing corporate owned dealerships as well as selling the parts supplier Delphi. These moves are to save GM money over the next few years. Instead of divesting though GM should have “broke” the union. By breaking the union, GM could have cut cost as well as become more nimble to human resource issues. 

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