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Case
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Reference no. 9-389-017
Published by: Harvard Business Publishing
Originally published in: 1988
Version: 30 August 1989

Abstract

Senior management of General Motors must select a site for a new assembly plant to replace two plants located in Detroit. The economics strongly favor a site in an adjacent state. However, a relocation would have substantial, negative impact on the existing work force, the City of Detroit, and suppliers in the Detroit area. Selection of a Detroit site would result in higher costs and would require the taking by eminent domain of 1,200 homes in the community of Poletown. The case raises issues of corporate responsibility, business-government relations, and stakeholder analysis.
Location:
Industry:
Size:
Fortune 500, USD66 billion sales
Other setting(s):
1980

About

Abstract

Senior management of General Motors must select a site for a new assembly plant to replace two plants located in Detroit. The economics strongly favor a site in an adjacent state. However, a relocation would have substantial, negative impact on the existing work force, the City of Detroit, and suppliers in the Detroit area. Selection of a Detroit site would result in higher costs and would require the taking by eminent domain of 1,200 homes in the community of Poletown. The case raises issues of corporate responsibility, business-government relations, and stakeholder analysis.

Settings

Location:
Industry:
Size:
Fortune 500, USD66 billion sales
Other setting(s):
1980

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