The three companies that I have chosen for this assignment are General Motors (product), Staples (product), and FEDEX (service).
GENERAL MOTORS (GM)
As of September 2009 General Motors has $25 Million dollars in cash or cash equivalents to pay its debts. Currently GM has $135 Million dollars in debt. However the situation with GM is not as bleak as it initially seems. The company currently is in good shape. They currently have $107 Million in total assets where last year they only had $91 Million. In addition to that while they currently have $135 Million in total liabilities last year they had $176 Million which means that in the last year they have raise revenue $16 Million and have shrunk their debt by $41 Million which means that they have had a $57 Million dollar shift in finances in one year and in addition to that they paid off $25 Million in Long term debt. If they continue on this path then GM is well on the path to financial success and will be able to completely pay off their long term debt and pay down their short term debt increasing the total value of their company and stock. The only hardship I see in this report is the rising cost of their pensions and retirement benefits which cost the company $57 Million dollars in 2009.
GM has also been investing in itself and its future by restructuring its operations around the world by building on its successes with cars such as the new Chevy Camero and The Opel (available in European markets) and cutting production on unpopular models. By doing this they are ensuring that they have fewer brands on the road and in doing so they are improving the cost of its operations (loss revenue from undersold cars must be taken from successful car sales to balance budgets).
I would give the management of GM an A in their current operations. Although just emerging from bankruptcy they have learned from past mistakes and are streamlining their operations and ensuring that the company has a financial...