Date of Defense

Spring 4-24-2003

Department

Marketing

First Advisor

Andrew Brogowicz, Marketing

Second Advisor

Mushtaq Luqmani, Marketing

Third Advisor

James Eckert, Marketing

Abstract

The current policies used by General Motors for collision parts regarding pricing, discontinuation, and scraping are inefficient. Because the proper management of these elements directly affects the profitability of a company, it is crucial to develop policies to minimize costs and maximize profits. The research for this document is a four-year progression involving interviews with General Motors' employees and management, plant operations studies, analyses of market share and profitability statistics, and literature reviews. The result of this research is the development of two strategies designed to improve the profitability of the company: (1) a profit maximizing pricing strategy for parts with competition, and, (2) a proactive part discontinuation and scrap process. By pricing parts with a competitive threat to maximize profits, General Motors could greatly improve the profitability of its Service and Parts Operation division. In addition, through the adoption of a product life cycle management system, General Motors could reduce inventory waste, scrapped materials, and increase part sales and profits from these sales.

Access Setting

Honors Thesis-Campus Only

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