68th International Atlantic Economic Conference

October 08 - 11, 2009 | Boston, USA

Information: The Lightning Rod of Value: Restructuring of GM Can Succeed

Sunday, October 11, 2009: 12:15 PM
Michael L. George Sr., M.S. , Executive, Institute of Business Entropy, Dallas, TX
Dinesh Rajan, Ph.D. , Dept of Electical Engineering, Southern Methodist University, Dallas, TX
Current restructuring of General Motors focuses on the reduction of hourly, factory, legacy and debt costs. However, Toyota adds Information to their processes at five times the rate of GM. As a result of higher Entropy, GM suffers an intrinsically low Return on Invested Capital. This results in a Market Capitalization that is tethered liquidation value. If GM launches a crash program to increase the rate of Information addition to equal that of Toyota, GM will not enter a second bankruptcy. The survival of all industries is dependent on the addition of Information to their processes. Information is the lighting rod that draws share Value from the Market.