1.

what does the case’s opening anecdote about Lloyd Ruess and Chevrolet
customer say about General Motor?

Ans:

This case was about General Motor in 1990’s when the company was
struggling to sharpen its car images. The opening of the case was the
interaction between Lloyd Ruess the future president of GM and a customer
who had purchased Chevrolet Beretta. The event was from late 1990. The
customer complained about the essential quality that was GM seriously
lacking at that time. The quality was very poor that one of the front door fall
off. It also indicated that the company was not careful enough to ensure the
basic safety of a car.

4. Did Ron Zarrella have to overcome any credibility problems when he

arrived at GM in December 1994?

Ans:

When he arrived at GM, he wasted no time in attending to matters, although

some insiders doubted he would last very long due to corporate infighting.
When any credibility problem was to create a top-notch marketing
organization then Zarrella had a strong mandate for change. So, due to his
extroverted personality, candor, and marketing horse sense gave him instant
credibility.

What credibility problems do the outside brand managers he has hired

process?

As all managers are from outside they had credibility problem but all of them
succeeded very well. The outside managers were not experienced in auto
mobile industry. They did not worked for any auto mobile corporations ever
before. But even they were with no prior working knowledge regarding the
automotive corporations, their test showed promising result.
In bringing about a marketing revolution within GM, from what power bases
can Zarrella and his new ‘outside’ hires operate?

GM was looking for people with different perspective with automobile

background. So they hired Ron Zarrella as their Marketing czar and also his
close six deputies from outside. Ron also hired 28 members from inside GM
who will be under these 6 managers from outside. These “outsiders” had
some extrinsic and intrinsic power bases.

 The new 6 managers were eager to change.

 They provided new and fresh approach to the work.

 They were also given high authoritative powers to make decisions

instant and quick.

 These new operators were fast learners, doers and achievers.

6. What factors within GM will serve to frustrate the effectiveness of its new
Five-Phase Vehicle Development Process as a new product development
concept?

Ans:

In 1993 within the new North American structure GM placed this new concept
of Five-Phase Vehicle Development Process. This new approach seems to be
ok for product development. But a huge company like GM has its own
internal factors that can be major barriers to its effective implementation.
We may identify these accordingly:

I. Top management moved slowly by taking

important decisions, lost control over the
divisions and did not stop the production of the
dogs on time.

II. GM also lost touch with its customers and

dealerships, so, the well-respected brand name
became a dog itself in consumers’ minds.
 III. As for the first time GM had under taken such
process there should be a single autonomous
product team.

IV. GM was also dealing with bureaucracy. This

resulted waste of time and money.

V. During this process GM was concentrating on

cost cutting. As a result their new product
development process was also affected.

VI. GM was also suffering from high turnover of

top management. This frequent and
uncertainty of change in leadership created
disrupt in the uniformity of the new project.

7. What are the crucial steps in GM’s Five-Phase Vehicle Development

Process as presented in case Exhibit 8? How were these steps implemented
in the development of the Oldsmobile Aurora as outlined in case Exhibit 9?

Ans:

Product development process is one of the most complex process in any

industrial organization, for such a giant like GM its more complicated. In this
case GM had undertaken a new 5 phase product development process. After
studding the scenario several times carefully, we think that, the first 3 steps
are the most significant in implementing the new process truly. The
remaining 2 steps is going to come accordingly. Like any new process the
first few steps are always considered important. In the Exhibit-8, we are
considering the first 3 steps as the most crucial in the GM’s Five-Phase
Vehicle Development Process as presented.

Further analyzing the case, in Exhibit-9 shows the consistency of the GM’s
Five-Phase Vehicle Development Process. From Exhibit-8 and Exhibit-9, we
may collaborate how were these steps implemented in the development of
the Oldsmobile Aurora as following:

1. Determine what customer wants in a car

February 1988 over 4,200 customer interviews, that
customers wanted a quality, high
performance four door sporty sedan.

2. Develop the car’s concept based on consumer wants

Autumn 1988 GM designer Bud Chandler makes his

first sketches of the car which is
dubbed the “tube car” after its
cylindrical conformation entailing
prominent wheels and no grille.

3. Convert the car’s concept into a specific car’s styling and configuration

Early 1992 The design team reluctantly jettisons

Oldsmobile’s “rocket” logotype when
market research shows that the logo
is a liability rather than serving as a
reminder of the division’s glory days
as a technological innovator.

8. Reviewing the 1995 Oldsmobile Aurora’s test reports in case Exhibit 10,
what kind of cars was ultimately produced by GM? Does this car appeal to
the target market customers? Is the Aurora competitive with the other cars
in its intended class?

Ans:

After reviewing the summary consumer reports comments in case exhibit-10,

we are certain that Aurora was a sports sedan which was not been able to
meet the customers’ expectations.
The market that was targeted by GM for Aurora in 1995, was populated by
other competitors also. Eventually GM failed to appeal to its target
consumers. Rather the car’s reliability was below the normal average
comparing to its European counter parts.

The Exhibit-10 provides us the information, that Aurora was not even up to
the expected average performance perceived by its customers. Certainly we
had observed that it was not equipped with the competitive edge to fight
with the other cars in its intended class.