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Changes in the macro environment, uncertainty for the future, and a decrease in younger generation vehicle purchasing is causing General Motors to find a way to reinvent itself in order to retain its leadership position in the transportation industry. In order to meet these challenges, it is ________ to its traditional formalized divisional structure.

A. adding increased internal boundaries
B. eliminating relationships with external constituencies
C. reducing training sessions on task-oriented design thinking
D. adding boundaryless organization features

1 Answer

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Final answer:

General Motors is adding boundaryless organization features to its formalized divisional structure to maintain its industry leadership and rapidly respond to market changes driven by globalization and shifts in consumer behavior.Option d is the correct answer.

Step-by-step explanation:

In order to meet the challenges of changes in the macro environment, uncertainty for the future, and a decrease in younger generation vehicle purchasing, General Motors is adding boundaryless organization features to its traditional formalized divisional structure.

This strategic move aims to enhance the company's ability to quickly respond to rapid shifts in technology, economics, foreign competition, and globalization, as well as to changing workplace demographics. By moving away from strict division of labor and embracing more flexible work approaches through team structures, GM can better position itself to retain leadership in the transportation industry amidst global competition from companies like Toyota, Honda, and Volkswagen.

The automotive industry has undergone significant changes due to globalization, which has expanded market boundaries and increased competition. General Motors, along with Ford and Chrysler, once dominated the U.S. auto market but now occupies less than half of it, with competitors like Toyota and Honda claiming significant shares.

General Motors' strategy includes adapting its organizational structure to be more flexible and responsive to market conditions and consumer preferences, such as the decline in popularity of large SUVs and the shifting priorities of the younger generation.

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