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General Motors has clearly been struggling for survival. From 2004 to 2008, it incurred $80 billion in losses. Its attempt to acquire another bailout, after receiving a $13 billion bailout from the Bush Administration, was rejected by the Obama Administration’s Automotive Task Force because of the criticism that its forecasts were unrealistically optimistic. GM has historically been weak at forecasting its car sales projections, its labor costs, oil prices, and demand for its gaz-guzzling sport utility vehicles.
1. Explain the relationship between human resource planning and other aspects of strategic business planning. To what extent are they interrelated? What can a company do to minimize the risks associated with poor forecasting?
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