General Motors Corporation – 2005

Art McIntosh: Francis Marion University

Forest David: Francis Marion University

A. Case Abstract
General Motors is a comprehensive business policy and strategic management
case that includes the company’s year-end 2004 financial statements, competitor
information, and more. Sufficient internal and external data are provided to enable
students to evaluate current strategies and recommend a three-year strategic plan for the
company. Headquartered in Detroit, Michigan, GM’s common stock is publicly traded
on the New York Stock Exchange under the ticker symbol GM.
GM engages in the design, manufacture, and marketing of cars and light trucks
worldwide. It operates through two divisions: Automotive, and Financing and Insurance
Operations (FIO). The Automotive segment designs, manufactures, and markets
passenger cars, trucks, and locomotives, as well as related parts and accessories -
primarily under the brands Chevrolet, Pontiac, GMC, Oldsmobile, Buick, Cadillac,
Saturn, and HUMMER.
The FIO segment provides a range of financial services, including consumer
vehicle financing; full service leasing and fleet leasing; dealer financing; car and truck
extended service contracts; residential and commercial mortgage services; vehicle and
homeowners' insurance; and asset-based lending. GM’s automotive-related products are
marketed through retail dealers and distributors primarily in the United States, Canada,
and Mexico; and through distributors and dealers overseas. GM has partnerships with
Fiat Auto SpA of Italy; DaimlerChrysler AG of Germany; and Fuji Heavy Industries,
Ltd., Isuzu Motors, Ltd., and Suzuki Motor Corp. of Japan.
General Motors was founded in 1908 but today is struggling to survive. It is
closing dealerships, divesting operations, rightsizing, reducing pensions, and more, trying
to stay afloat. Its bonds are rated Junk status.

B. Vision Statement (proposed)

Our vision is to be the world leader in transportation products and services.

C. Mission Statement (actual)

General Motors is committed to be a leader in providing transportation products and
services of such quality that our customers will receive superior value, our employees and
business partners will share our success, and our shareholders will receive a sustained
superior return on their investment.

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 (proposed)

General Motors is committed to be the worldwide (3) leader in providing transportation

products (2) and services meeting the highest standards of quality so that our customers
(1) will receive superior value. Our employees (9) and business partners will share our
success and our shareholders will receive a sustained superior return on their investment
(5). GM is committed to become the most environmentally friendly (8) automobile
manufacturer in the world by offering many vehicles that are powered by renewable fuels
and hybrid engines (4). GM is committed to exemplary business ethics in all that we do
(6) while operating under a decentralized organizational structure (7).

1. Customer
2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

D. External Audit
Opportunities

1. Low interest rates (0 percent financing).

2. China’s GDP up 9.3 percent in 2005.
3. More than 77 million baby boomers retiring soon with large sums of money and
likely to purchase cars.
4. Over 73 percent of new vehicle buyers used the Web to research and buy cars in
2003.
5. Energy Act of 2005 requires 4 billion gallons of ethanol used by 2007.
6. Possible overhaul of health care system.
7. Cadillacs appeal to the European Market.
8. China is the fastest growing auto market in the world.
9. U.S. Secretary of Labor Elaine Chao announces $200,000 grant to Girl Scouts of the
USA to educate young women about career opportunities in the automotive industry.

Threats

1. Eroding market share caused by the Japanese auto industry.

2. Volatile oil prices.
3. Required wages for U.S. GM employees higher than many other countries.
4. Labor unions are aggressive in the auto industry.
5. Intense rivalry in auto industry.
6. Possible end to max sales tax on vehicles in some states.

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 7. Sagging demand for SUVs.
8. GM under investigation by the U.S. SEC for accounting errors.

CPM – Competitive Profile Matrix

GM Ford Toyota
Critical Success Factors Weight Rating Weighted Rating Weighted Rating Weighted
Score Score Score
Global Expansion 0.10 3 0.30 3 0.30 4 0.40
New Products 0.10 3 0.30 3 0.30 3 0.30
Advertising 0.08 2 0.16 3 0.24 3 0.24
Management 0.05 3 0.15 2 0.10 3 0.15
Technology 0.05 3 0.15 3 0.15 3 0.15
Market Share 0.05 3 0.15 2 0.10 3 0.15
Price Competitiveness 0.15 2 0.30 2 0.30 3 0.45
Financial Position 0.15 3 0.45 3 0.45 3 0.45
Product Quality 0.12 3 0.36 2 0.24 4 0.48
Customer Loyalty 0.15 3 0.45 3 0.45 3 0.45
Total 1.00 2.77 2.63 3.22

External Factor Evaluation (EFE) Matrix

Critical Success Factors Weight Rating Weighted Score

Opportunities
1. Low interest rates (0 percent financing). 0.10 4 0.40
2. China’s GDP up 9.3 percent in 2005. 0.10 4 0.40
3. More than 77 million baby boomers retiring 0.05 3 0.15
soon with large sums of money and likely to
purchase cars.
4. Over 73 percent of new vehicle buyers used 0.08 3 0.24
the Web to research and buy cars in 2003.
5. Energy Act of 2005 requires 4 billion 0.05 2 0.10
gallons of ethanol used by 2007.
6. Possible overhaul of health care system. 0.05 3 0.15
7. Cadillacs appeal to the European Market. 0.02 2 0.04
8. China is the fastest growing auto market in 0.02 3 0.06
the world.
9. U.S. Secretary of Labor Elaine Chao 0.03 1 0.03
announces $200,000 grant to Girl Scouts of
the USA to educate young women about
career opportunities in the automotive
industry.
Threats
1. Eroding market share caused by the 0.12 1 0.12
Japanese auto industry.
2. Volatile oil prices. 0.10 2 0.20
3. Required wages for U.S. GM employees 0.05 2 0.10
higher than many other countries.
4. Labor unions are aggressive in the auto 0.05 2 0.10
industry.
5. Intense rivalry in auto industry. 0.05 3 0.15
6. Possible end to max sales tax on vehicles in 0.03 1 0.03
some states.

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7. Sagging demand for SUVs. 0.05 3 0.15
8. GM under investigation by the U.S. SEC for 0.05 2 0.10
accounting errors.
Total 1.0 2.52

E. Internal Audit
Strengths

1. Flagship business of U.S.

2. World’s largest automaker, $500 billion in assets.
3. In 2004 saleswere up 4 percent.
4. In 2004 salesin China up 27 percent.
5. Global industry sales leader – 9 million vehicles in 2004.
6. OnStar – only available though GM.
7. GM credit card – 5 percent back on all purchases.
8. 12 brands – appeal to all age groups.

Weaknesses

1. GM Europe reported a 3-year loss of $2.5 billion.

2. GM’s credit rating: junk status.
3. $5.6 billion retiree health care cost in 2005.
4. 67 percent of sales are in U.S.
5. GMAC – 100 percent of GM profits in 2004.
6. GM heath care - $1,500 of each vehicle
7. Hybrid development slow.
8. Return on equity half that of Ford in 2004. GM – 10.6 percent vs. Ford – 26.2
percent.
9. GM’s stock price down 45 percent in the past year.
10. Excess plant capacity.

Financial Ratio Analysis (January 2006)

Growth Rates % GM Industry SP-500

Sales (Qtr vs year ago qtr) 5.20 6.00 14.10
Net Income (YTD vs YTD) -100.00 -31.40 15.60
Net Income (Qtr vs year ago qtr) -100.00 -50.90 14.10
Sales (5-Year Annual Avg.) 1.34 5.17 4.78
Net Income (5-Year Annual Avg.) NA 12.48 11.09
Dividends (5-Year Annual Avg.) 0.16 -9.41 4.61
Price Ratios
Current P/E Ratio NA 20.1 18.9
P/E Ratio 5-Year High 38.3 87.5 64.8
P/E Ratio 5-Year Low 4.2 10.9 17.4
Price/Sales Ratio 0.07 0.25 1.53
Price/Book Value 0.61 1.26 2.93
Price/Cash Flow Ratio 1.10 2.80 12.50

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 Profit Margins
Gross Margin 23.0 26.5 47.3
Pre-Tax Margin -3.7 3.2 12.1
Net Profit Margin -1.7 2.3 8.3
5Yr Gross Margin (5-Year Avg.) 26.2 27.7 47.3
5Yr PreTax Margin (5-Year Avg.) 1.7 2.9 9.4
5Yr Net Profit Margin (5-Year Avg.) 1.4 1.8 5.9
Financial Condition
Debt/Equity Ratio 12.41 2.46 1.07
Current Ratio 2.9 1.5 1.4
Quick Ratio 2.2 1.1 0.9
Interest Coverage 0.5 2.1 3.5
Leverage Ratio 20.9 6.6 5.8
Book Value/Share 39.65 28.40 13.20
Investment Returns %
Return On Equity NA 11.5 15.8
Return On Assets -0.7 1.7 2.7
Return On Capital NA 3.3 7.6
Return On Equity (5-Year Avg.) 12.2 8.1 12.0
Return On Assets (5-Year Avg.) 0.7 1.2 2.0
Return On Capital (5-Year Avg.) 1.0 2.2 5.7
Management Efficiency
Income/Employee -10,000 13,000 30,000
Revenue/Employee 596,000 574,000 366,000
Receivable Turnover 1.0 2.2 7.7
Inventory Turnover 11.4 10.7 7.8
Asset Turnover 0.4 0.8 0.4
Adapted from www.cnbc.com

Date Avg. P/E Price/Sales Price/Book Net Profit Margin (%)

12/04 9.30 0.12 0.82 1.4
12/03 8.40 0.16 1.19 1.5
12/02 14.80 0.30 8.21 0.9
12/01 30.20 0.39 3.54 0.3
12/00 10.70 0.39 2.40 2.4
Adapted from www.cnbc.com

Date Book Value/ Share Debt/Equity ROE (%) ROA (%) Interest Coverage
12/04 $49.06 10.83 10.1 0.6 1.2
12/03 $44.96 10.75 15.1 0.9 1.4
12/02 $4.49 29.64 25.5 0.5 1.3
12/01 $13.72 8.32 3.0 0.2 1.2
12/00 $21.20 4.72 14.8 1.5 1.7
Adapted from www.cnbc.com

Net Worth Analysis (January 2006 in millions)

1. Stockholders’ Equity + Goodwill = 27,726 + 600 $ 28,326
2. Net income x 5 = $2,805 x 5= $ 14,025
3. Share price = $24.00/EPS -6.91 = x Net Income $2,805= $
4. Number of Shares Outstanding x Share Price = 565 x $24.00 = $13,560
Method Average $18,637

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Internal Factor Evaluation (IFE) Matrix

Critical Success Factors Weight Rating Weighted Score

Strengths
1. Flagship business of U.S. 0.05 3 0.15
2. World’s largest automaker, $500 billion 0.10 4 0.40
in assets.
3. In 2004 sales were up 4 percent. 0.05 3 0.15
4. In 2004 sales in China up 27 percent. 0.08 4 0.32
5. Global industry sales leader – 9 million 0.05 3 0.15
vehicles in 2004.
6. OnStar – only available though GM. 0.05 3 0.15
7. GM credit card – 5 percent back on all 0.05 3 0.15
purchases.
8. 12 brands – appeal to all age groups. 0.05 4 0.20
Weaknesses
1. GM Europe reported a 3-year loss of 0.07 1 0.07
$2.5 billion.
2. GM’s credit rating: junk status. 0.07 1 0.07
3. $5.6 billion retiree health care cost in 0.07 1 0.07
2005.
4. 67 percent of sales are in U.S. 0.06 2 0.12
5. GMAC – 100 percent of GM profits in 0.05 2 0.10
2004.
6. GM heath care - $1,500 of each vehicle 0.05 1 0.05
7. Hybrid development slow. 0.05 1 0.05
8. Return on equity half that of Ford in 0.05 1 0.05
2004. GM – 10.6 percent vs. Ford –
26.2 percent.
9. GM’s stock price down 45 percent in the 0.03 1 0.03
past year.
10. Bloated plant capacity. 0.02 2 0.04
Total 1.00 2.32

F. SWOT Matrix
Strengths
1. Flagship business of U.S.
2. World’s largest automaker, $500
billion in assets.
3. In 2004 sales were up 4 percent.
4. In 2004 sales in China up 27
percent.
5. Global industry sales leader – 9
million vehicles in 2004.
6. OnStar – only available though
GM.
7. GM credit card – 5 percent back
on all purchases.
8. 12 brands – appeal to all age
groups.
Weaknesses
1. GM Europe reported a 3-year
loss of $2.5 billion.
2. GM’s credit rating: junk status.
3. $5.6 billion retiree health care
cost in 2005.
4. 67 percent of sales are in U.S.
5. GMAC – 100 percent of GM
profits in 2004.
6. GM heath care - $1,500 of each
vehicle
7. Hybrid development slow.
8. Return on equity half that of Ford
in 2004. GM – 10.6 percent vs.
Ford – 26.2 percent.
9. GM’s stock price down 45

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 percent in the past year.
10. Bloated plant capacity.

Opportunities S-O Strategies W-O Strategies

1. Low interest rates (0 percent 1. Build a plant in China (S1, O2, 1. Speed up hybrid development
financing). O8). (W, O2).
2. China’s GDP up 9.3 percent in 2. Increase development of ethanol 2. Divest GM Europe (W1, O2).
2005. vehicles (S2, O5).
3. More than 77 million baby
boomers retiring soon with large
sums of money and likely to
purchase cars.
4. Over 73 percent of new vehicle
buyers used the Web to research
and buy cars in 2003.
5. Energy Act of 2005 requires 4
billion gallons of ethanol used
by 2007.
6. Possible overhaul of health care
system.
7. Cadillacs appeal to the
European Market.
8. China is the fastest growing
auto market in the world.
9. U.S. Secretary of Labor Elaine
Chao announces $200,000 grant
to Girl Scouts of the USA to
educate young women about
career opportunities in the
automotive industry.
Threats S-T Strategies W-T Strategies
1. Eroding market share caused by 1. Offer GM card with purchase of 1. Offer free financing for up to 72
the Japanese auto industry. a vehicle (S7, T5). months (W5, T5).
2. Volatile oil prices. 2. Build V6 diesel (S4, T1, T7). 2. Offer $1,000 rebate for financing
3. Required wages for U.S. GM 3. Build six-speed transmission with GMAC.
employees higher than many (S4, S5, T1, T5, T7).
other countries.
4. Labor unions are aggressive in
the auto industry.
5. Intense rivalry in auto industry.
6. Possible end to max sales tax on
vehicles in some states.
7. Sagging demand for SUVs.
8. GM under investigation by the
U.S. SEC for accounting errors.

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G. SPACE Matrix

FS
Conservative Aggressive
6

CA IS
-6 -5 -4 -3 -2 -1 1 2 3 4 5 6
-1

-2

-3

-4

-5

-6
Defensive Competitive
ES

Financial Strength (FS) Environmental Stability (ES)

Return on Investment 3 Rate of Inflation -2
Leverage 3 Technological Changes -2
Liquidity 5 Price Elasticity of Demand -5
Working Capital 5 Competitive Pressure -5
Cash Flow 4 Barriers to Entry into Market -2

Financial Strength (FS) Average 4.0 Environmental Stability (ES) Average -3.2

Competitive Advantage (CA) Industry Strength (IS)

Market Share -2 Growth Potential 4
Product Quality -3 Financial Stability 4
Customer Loyalty -2 Ease of Entry into Market 5
Technological Know-how -2 Resource Utilization 5
Control over Suppliers and Distributors -2 Profit Potential 4

Competitive Advantage (CA) Average -2.2 Industry Strength (IS) Average 4.4

y-axis = FS + ES = 4.0 + (-3.2) = 0.8

x-axis = CA + IS = -2.2 + (+4.4) = 2.2

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H. Grand Strategy Matrix

Rapid Market Growth

Quadrant II Quadrant I

Weak Strong
Competitive Competitive
Position Position

Quadrant III Quadrant IV

Slow Market Growth

1. Market development
2. Market penetration
3. Product development
4. Forward integration
5. Backward integration
6. Horizontal integration
7. Related diversification

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I. The Internal-External (IE) Matrix
The IFE Total Weighted Score

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
High I II III
3.0 to 3.99

Medium IV V VI
The EFE Total 2.0 to 2.99
Weighted Score
GM

Low VII VIII IX

1.0 to 1.99

Hold and Maintain

Region Revenue
US $134,380M
Canada & Mexico $15,484M
Europe $33,225M
Latin America $5,598M
Total $188,687M

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J. QSPM
Strategic Alternatives
Increase Increase presence
development of overseas
Key Internal Factors Weight hybrid cars
Strengths AS TAS AS TAS
1. Flagship business of U.S. 0.05 --- --- --- ---
2. World’s largest automaker, $500 billion in assets. 0.10 2 0.20 3 0.30
3. In 2004 sales were up 4 percent. 0.05 --- --- --- ---
4. In 2004 sales in China up 27 percent. 0.08 1 0.08 4 0.32
5. Global industry sales leader – 9 million vehicles in 0.05 1 0.05 4 0.20
2004.
6. OnStar – only available though GM. 0.05 --- --- --- ---
7. GM credit card – 5 percent back on all purchases. 0.05 --- --- --- ---
8. 12 brands – appeal to all age groups. 0.05 --- --- --- ---
Weaknesses
1. GM Europe reported a 3-year loss of $2.5 billion. 0.07 2 0.14 4 0.28
2. GM’s credit rating: junk status. 0.07 --- --- --- ---
3. $5.6 billion retiree health care cost in 2005. 0.07 --- --- --- ---
4. 67 percent of sales are in U.S. 0.06 1 0.06 3 0.18
5. GMAC – 100 percent of GM profits in 2004. 0.05 --- --- --- ---
6. GM heath care - $1,500 of each vehicle 0.05 --- --- --- ---
7. Hybrid development slow. 0.05 4 0.20 2 0.10
8. Return on equity half that of Ford in 2004. GM – 0.05 --- --- --- ---
10.6 percent vs. Ford – 26.2 percent.
9. GM’s stock price down 45 percent in the past year. 0.03 --- --- --- ---
10. Bloated plant capacity. 0.02 1 0.02 3 0.06
SUBTOTAL 0.75 1.44

Increase Increase presence

development of overseas
Key External Factors Weight hybrid cars
Opportunities AS TAS AS TAS
1. Low interest rates (0 percent financing). 0.10 --- --- --- ---
2. China’s GDP up 9.3 percent in 2005. 0.10 2 0.20 4 0.40
3. More than 77 million baby boomers retiring soon 0.05 --- --- --- ---
with large sums of money and likely to purchase
cars.
4. Over 73 percent of new vehicle buyers used the Web 0.08 --- --- --- ---
to research and buy cars in 2003.
5. Energy Act of 2005 requires 4 billion gallons of 0.05 4 0.20 1 0.05
ethanol used by 2007.
6. Possible overhaul of health care system. 0.05 --- --- --- ---
7. Cadillacs appeal to the European Market. 0.02 2 0.04 4 0.08
8. China is the fastest growing auto market in the world. 0.02 2 0.04 4 0.08
9. U.S. Secretary of Labor Elaine Chao announces 0.03 --- --- --- ---
$200,000 grant to Girl Scouts of the USA to educate
young women about career opportunities in the
automotive industry.
Threats
1. Eroding market share caused by the Japanese auto 0.12 2 0.24 4 0.48
industry.

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2. Volatile oil prices. 0.10 4 0.40 1 0.10
3. Required wages for U.S. GM employees higher than 0.05 1 0.05 3 0.15
many other countries.
4. Labor unions are aggressive in the auto industry. 0.05 1 0.05 3 0.15
5. Intense rivalry in auto industry. 0.05 --- --- --- ---
6. Possible end to max sales tax on vehicles in some 0.03 --- --- --- ---
states.
7. Sagging demand for SUVs. 0.05 --- --- --- ---
8. GM under investigation by the U.S. SEC for 0.05 --- --- --- ---
accounting errors.
SUBTOTAL 1.22 1.49
TOTAL ATTRACTIVNESS SCORE 1.79 2.93

K. Recommendations

• Increase development of hybrid cars to conform with the new regulations and
high oil prices. Total cost $1B.
• Build two new production facilities one in China and one in Eastern Europe to
take advantage of the cheaper labor and these growing markets. Total cost $4B.

L. EPS/EBIT Analysis
$ Amount Needed: 5,000M
Stock Price: $24
Tax Rate: 30%
Interest Rate: 7%
# Shares Outstanding: 565M

Common Stock Financing Debt Financing

Recession Normal Boom Recession Normal Boom
EBIT $10,000,000,000 $13,000,000,000 $16,000,000,000 $10,000,000,000 $13,000,000,000 $16,000,000,000
Interest 0 0 0 350000000 350,000,000 350,000,000
EBT 10,000,000,000 13,000,000,000 16,000,000,000 9650000000 12,650,000,000 15,650,000,000
Taxes 3,000,000,000 3,900,000,000 4,800,000,000 2895000000 3,795,000,000 4,695,000,000
EAT 7,000,000,000 9,100,000,000 11,200,000,000 6755000000 8,855,000,000 10,955,000,000
# Shares 773,333,333 773,333,333 773,333,333 565000000 565,000,000 565,000,000
EPS 9.05 11.77 14.48 11.96 15.67 19.39

70 Percent Stock - 30 Percent Debt 70 Percent Debt - 30 Percent Stock

Recession Normal Boom Recession Normal Boom
EBIT $10,000,000,000 $13,000,000,000 $16,000,000,000 $10,000,000,000 $13,000,000,000 $16,000,000,000
Interest 105,000,000 105,000,000 105,000,000 245,000,000 245,000,000 245,000,000
EBT 9,895,000,000 12,895,000,000 15,895,000,000 9,755,000,000 12,755,000,000 15,755,000,000
Taxes 2,968,500,000 3,868,500,000 4,768,500,000 2,926,500,000 3,826,500,000 4,726,500,000
EAT 6,926,500,000 9,026,500,000 11,126,500,000 6,828,500,000 8,928,500,000 11,028,500,000
# Shares 710,833,333 710,833,333 710,833,333 627,500,000 627,500,000 627,500,000
EPS 9.74 12.70 15.65 10.88 14.23 17.58

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 Note: GM’s interest expense has had an enormous increase recently and this analysis is
void of this assumption.

M. Epilogue

On February 10, 2006, a GM top executive said, “GM needs to maintain its
current North American brands despite pressure to shed some as part of a broader
restructuring.” GM's largest individual investor, billionaire Kirk Kerkorian, has called on
the No. 1 automaker to consider eliminating Saab and possibly Hummer in order to focus
attention on turning around its loss-making U.S. manufacturing operations. GM brands
Pontiac and Buick are doing very poorly.
Saab had badly underperformed Ford Motor’s Volvo division, another
Scandinavian brand, because Volvo has maintained a sharper consumer identification
with safety, while the Saab message was more uncertain. GM has reduced its dealer
count by about 20 percent over the past decade, a period in which it lost about 10 percent
of its sales.
Executives from General Motors and Ford Motor both agree the firms need to
reduce the number of dealerships they have as their U.S. market share shrinks. "Just as
we're rightsizing our manufacturing footprint, we have to rightsize our dealer footprint as
well," Mark Fields, Ford's president of the Americas, said at a conference sponsored by
J.D. Power and Associates. Mark LaNeve, vice president of sales and marketing for GM,
said GM, Ford, and DaimlerChrysler AG's Chrysler Group have a dealer network that
was established 50 years ago, versus the newer and smaller networks of competitors like
Toyota Motor Corp. and Hyundai Motor Co. That hurts individual GM dealers' ability to
make a profit, he said. GM has 6,800 dealerships for the Pontiac, Buick, GMC, Hummer,
Cadillac, and Chevrolet brands and 438 Saturn dealers in the United States. Ford has
nearly 4,400 Ford, Lincoln and Mercury dealerships. GM controls about 26 percent of the
U.S. market, while Ford controls about 18 percent. By comparison, Toyota has 1,430
U.S. dealerships and controls 13 percent of the U.S. market. Toyota has commitments
from dealers to open another 39 dealerships soon.
After suffering billion-dollar losses in North America in 2005, GM and Ford are
planning to close facilities and cut a combined 60,000 jobs in the next several years. They
also have won concessions from the United Auto Workers to help with spiraling health
care costs. But Goodall says the number of dealers "is as significant a legacy issue as is
the manufacturing, health care, and union issues these companies also face today." Ford
division dealers sell about 780 vehicles per dealership, while Toyota division dealers sell
almost double that, Goodall said. That puts significant pressure on Ford dealers, he said.
Suburban dealerships are the most in danger, because customers can easily drive to
another dealer, Goodall said. He said dealers can boost their bottom line by adding used
car sales, consolidating showrooms, and improving their service departments, but that can
be difficult.

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