Delphi in Trouble

            
 
Strategic Management|Management Strategy |Business Strategy Case Study|Business Strategy|Case Study|Case Studies

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR189
Case Length : 20 Pages
Pages Period : 1995-2005
Organization : Delphi Corporation.
Pub Date : 2005
Teaching Note :Not Available
Countries : US
Themes: Failure of Strategy
Industry : Auto and Ancillaries

To download Delphi in Trouble case study (Case Code: BSTR189) click on the button below, and select the case from the list of available cases:

Business Ethics Case Studies | Case Study in Management, Operations, Strategies, Business Ethics, Case Studies

OR


Buy With PayPal

Amount to be paid:



Prefer to pay in another currency ?
Select Currency for Payment



Exchange Rates: Click Here
Delivery Details: Click Here


For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Shipping & Handling Charges extra

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

Custom Search



Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



Chat with us

Strategic Management Formulation, Implementation, & Control, 12e

Please leave your feedback

Leave Your Feedback

ICMR India ICMR India ICMR India ICMR India RSS Feed

<< Previous

EXCERPTS

GM Spins Off Delphi

In the 1970s, many foreign automobile manufacturers, including several from Japan entered the US. Initially, they sold small, fuel efficient and low cost cars which were imported. Later some of them like Honda and Toyota established their manufacturing facilities in the country. The oil crisis in 1973 made US customers, who were using big cars, to shift to smaller Japanese cars which were more fuel efficient. Gradually, manufacturers such as Honda and Toyota started offering cars even in the luxury segment and started capturing the market share of American manufacturers like GM and Ford...

Life After the Spin Off

On June 09, 1999, Delphi declared its first quarterly dividend on $0.01 par value common stock of $0.07 per share. Battenberg said, "The dividend is in line with what had been indicated in our prospectus and represents our commitment to provide value to our shareholders." Though GM continued to be Delphi's major customer, Delphi tried to improve its business with non-GM manufacturers as well. Since February 1999, Delphi bagged 680 new business contracts from leading automotive and non-automotive companies throughout the world. Some of Delphi's contracts with non-GM customers included - US$ 550 million long-term contract with Navistar International, MAN Group and two other OEMs, a US$ 35 million contract with Daewoo International Corporation and a US$ 20 million contract with VW...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

The Problems Begin

In March 2001, Delphi announced a worldwide restructuring program to cope with the decrease in the number of vehicles manufactured. The restructuring included consolidations, sell-offs and closure of nine of its plants, and reduction of its workforce by 11,500 members at 40 plants. Out of these nine plants, three were located in the US. Under this restructuring program, Delphi sold of its non-performing businesses amounting to nearly US$ 900 million. Delphi laid off more than 4,000 temporary employees between December 2000...

Pension Liabilities Begin to Haunt

George Miller, a Senior Democrat on the Committee on Education and the Workforce, Pension Benefit Guarantee Corporation (PGBC) revealed that the unfunded pension liabilities for private companies had increased from US$ 26 billion in 2001 to record level of US$ 111 billion in 2002. He said, "The implications of such massive shortfalls in pension funds are staggering, for pensioners, taxpayers, and for the private companies themselves." The prime reasons for this were the defined-benefit pension plans adopted by the US companies in the 1950s and then the huge gamble taken by the US companies during the stock market boom in the 1990s...

Excerpts Contd... >>


 

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.