Causes of Insolvencies in Large Businesses. A Case Study of General Motors

Table of Contents

1.0 Chapter 1 – Introduction

1.1 Study Background

1.2 Rationale

1.3 Aims and Objectives

1.4 Organisational profile:

2.0 Chapter 2 - Literature review

2.1 Introduction

2.2.1 Impact of economic and financial crisis on large organisations

2.2.2 Capitalism and market economy

2.2.3 Strategic management

2.2.4 Financial management

2.2.5 Bankruptcy and Insolvency

2.2.6 Closure and divestment

2.3 Conclusion (summary of the literature review)

3.0 Chapter 3 – Methodology

3.1 Introduction

3.2 Research philosophy

3.3 Data Collection

3.4 Research design

3.5 Study Limitations and conclusion

4.0 Chapter 4 – Findings and Analysis

4.1 Introduction

4.2 Presentation of Data and Analyses

4.3 Comparison between General Motors and Toyota

4.4 Trend analysis

4.5 Questionnaires

4.6 Discussion of results

5.0 Chapter 5: Integrative Analysis and Discussion

6.0 Chapter 6: Conclusion

Objectives and Research Scope

This research aims to investigate the primary causes of insolvency in large corporations by examining the case of General Motors, particularly in the context of the 2008-2009 financial crisis. The study seeks to develop a risk model that identifies warning signs for corporate failure by integrating internal financial performance data with external economic factors, such as currency fluctuations and market trends.

• Analysis of financial ratios as indicators of corporate health and potential insolvency.
• Evaluation of the impact of global currency fluctuations on multinational performance.
• Critical review of strategic management and capitalist economic structures regarding business failure.
• Empirical assessment through questionnaire surveys of industry experts and professionals.
• Development of an organisational risk model to aid in strategic decision-making and business survival.

Excerpt from the Book

Summary of Chapters

Chapter 1 – Introduction: This chapter outlines the background of the study regarding global corporate insolvency, justifies the focus on General Motors, and establishes the research aims and objectives.

Chapter 2 - Literature review: This section provides a critical overview of theoretical frameworks concerning economic and financial crises, capitalism, strategic management, and the indicators of corporate failure.

Chapter 3 – Methodology: This chapter describes the research approach, including the philosophy, data collection methods (quantitative financial analysis and qualitative primary research), and research design used to address the study problems.

Chapter 4 – Findings and Analysis: This chapter presents the empirical results of the financial ratio analysis, currency trend investigations, and the quantitative data derived from the expert questionnaire surveys.

Chapter 5: Integrative Analysis and Discussion: This chapter synthesizes the research findings, evaluates the organizational risk model, and discusses the implications of strategic management and currency fluctuation on corporate survival.

Chapter 6: Conclusion: The final chapter summarizes the research conclusions, offers recommendations for large organizations to avoid insolvency, and suggests avenues for further research.

Keywords

Insolvency, General Motors, Corporate Failure, Financial Ratios, Economic Crisis, Strategic Management, Currency Fluctuation, Capitalism, Bankruptcy, Risk Management, Market Economy, Organizational Survival, Multinational Corporations, Debt-Equity Ratio, Innovation

Frequently Asked Questions

What is the primary focus of this dissertation?

The dissertation focuses on investigating the causes of insolvency in large businesses, using General Motors as a primary case study during the 2008-2009 financial crisis.

What are the central themes of the research?

The research themes include strategic management, financial health analysis, the impact of economic crises, and the influence of currency fluctuations on multinational corporations.

What is the main research objective?

The objective is to identify key factors challenging organizational survival and to propose a model that provides advance warning signs of failure for large organizations.

Which scientific methodologies were employed?

The researcher utilized a mixed-methods approach, combining secondary financial ratio analysis of GM and Toyota with primary data collection through expert questionnaires.

What does the main body of the work cover?

The main body covers literature reviews on corporate failure theories, detailed financial performance comparisons, currency trend analysis against the US dollar, and an analysis of survey responses from industry experts.

Which keywords best characterize the work?

Key terms include Insolvency, Corporate Failure, Financial Ratios, Strategic Management, and Risk Management.

How does currency fluctuation impact General Motors?

The study suggests that the consistent decline of the US dollar against major currencies since 2000 has had a significant negative impact on GM's global operations and overall financial performance.

What is the proposed "Organisational Risk Model"?

It is a strategic framework developed by the author that advises organizations to analyze base currency and financial ratios, and to implement proactive strategic changes, innovation, and efficiency measures when these indicators consistently fall below industry benchmarks.