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You will need to read three articles for this case: Mini-Case GM in China Bloombergs report on GMs electric car Bolt and Reuters report on electric vehicles in China.Please answer the following questions (not those listed after the mini case or in the Case&PaperGuideline). You can write one short paragraph for each question or organize your answer as an essay.
Discussion questions for CaseGMand Chapter 8 International Strategy:
1. What are GMsmotivations/incentivesto expand to overseas market? How can GM benefit from the expansion?
2. Whatinternational corporate-level strategy/strategiesis GM using? Multidomestic/localization Global or transnational? Is this strategy suitable for GMs core competency? Is this strategy suitable for the target overseas market China? Think of the two needs/pressures in the target market (needs to localize and needs to lower cost or integrate globally).
3. Whichstakeholder groupsare affected by GMs expansion into China? How? You can think about capital market stakeholders (shareholders) organizational stakeholders (GM workers in US and in China) and product market stakeholders (consumers suppliers environment).
4. What are the potential negative impact of GMs expansion in China? You can think along those stakeholder groups in Q3. What can GM do to alleviate the impact? What are the caveats of these approaches?
Required reading for Case GM in China:
1. Mini caseGM in China
2. Bloomberg Nov 2016GM’s Electric Car Bolt
https://www.bloomberg.com/news/articles/2016-11-30/gm-s-ready-to-lose-9-000-a-pop-and-chase-the-electric-car-boom
3. Reuters Jan 2016In coal-powered China electric car surge fuels fear of worsening smog
http://www.reuters.com/article/us-china-pollution-autos-idUSKCN0V51BH
The main takeaway from these articles are:
1.GM views China as next big business opportunity; but the expanding auto industry in the country has worsened air pollution;
2. GM launched its full electric car model Bolt in US in 2016 partly as a response to California and other states’ regulation on emission; the performance of Bolt rivals Tesla’s mass market EV Model 3;
3. Electric car might not solve the problem of air pollution in China due to its coal-powered power plants.