Causes of Insolvencies; a case study of General Motors

This book has intentionally been written for those large organisations, which run at risk of failure. World's one of the biggest car and truck manufacturing company, General Motors has been chosen as a case study. The reason behind selection of GM as a case study is its 100 years of long history, business operations in 158 countries across the world and filing for bankruptcy petition in year 2009 in an around the time of financial crisis of US. Therefore, financial data for three consecutive years of GM before its application of chapter11 bankruptcy petition have been analysed and compared with its global competitor Toyota. Another investigation is made by analysing the various currencies and important commodity trends against US dollar. This is done to know, how fluctuation in exchange rate of various currencies influence the performance of multinationals. In addition to previous researches, which were limited only to financial ratios, this research has been expanded beyond financial and included external factors such as economics, capitalism and currency fluctuations.