Professor Elam

It sounds easy, just cut some divisions. But wait, not so simple.  Read about the conundrum GM has with its divisions.   Alfred Sloan’s ori9ginal idea was to offer consumers an upward ladder of higher priced cars as their purchasing power grew.  Now critics say GM has too many.  Yet as we will study in ACCT 3270, cutting divisions may actually raise fixed costs for the remaining divisions. And litigation with dealers is very costly.
So, what to do?