An Internal Analysis Of General Motors

An Internal analytic thinking Of oecumenic MotorsGeneral Motors is the supranational confederation the ball-shaped securities industry place sh are is estimated at 12.5 percent as of 2008 (General Motor, no date), on that pointfore, base on the global food commercialize coverage, it apprise benefit from legion(predicate) regional countries, to allow remedy access to resources, talents and knowledge.. According to Boston Consulting Group, General Motors is one of the 25 most innovative companies in 2008, it arises from the impression autos like the electric Volt and a re vernaled focus on objective. The engageforce is value set and understands the business mission and vision.1.2 Intangible resourcesThe intangible resources of the organization are its brand image and its reputation. General Motors has its signifi female genitalst reputation for innovation and spic-and-span products in the self-propelleds market. This means that customers volition often associat e the brand with recent engine room and products.1.3 Core competenciesGeneral Motors core competencies including innovation. They constantly strive to deliver newly and exciting products to the market, and man resources. General Motors exonerate a well prepared knowledge and flexible workforce who is concentrated on reaching business goals. General Motors starts recommending fomite installed OnStar satellite in case of an emergency or theft.(Onstar, no date)2 Factors affecting the Automotive Industry (PESTEL Analysis)2.1 PoliticalThe safer vehicle and the environment in the American market is non restricted at a great disadvantage. authorities and authorities in the region do reasons to regulate, eventually start the implement and set the laws and regulation since the 1960s (L.S. Robertson, 2006)2.2 EconomicAccording the number of studies (Catherine Rampell, 2008), is the study user of steel, iron, lead, plastics, vinyl, rubber, aluminum, textiles, and computer chips. The study also mentioned that for each autoworker there are seven otherwise jobs created in other industries.2.3 SocioculturalThe consumer automotive market, especially the vehicles market, used to be dominated by men nevertheless nowadays is non true. Marketing strategies are also focusing on emotions. The presence of women in the market shall address out as fallback to cushion declining salesOn the other hand, young consumers growth their spending cause by working in a start out-time job or by receiving larger allowance from their increasingly financially successful parents.2.4 Technologythe internet has a great clashing on e precise industry in the anywhere and has also affect the automobile industry. According to the J.D. exponent and associates 2006 New Autoshopper.com Study, 59% of the buyers referred to the internet before qualification their purchases and out of that 59%, 85% of the serious buyers lecture the manufactures website before discharge to the renter for a test drive.2.5 EnvironmentalOn 30th November 2007, the business leading of 150 global companies published a communiqu to world draw offions calling for a comprehensive, legally vertebral column United Nations framework to tackle climate motley. In fact, there is a programme in which WWF and businesses collaborate to show lead in addressing climate change.3. Porters tail fin Force Anaylsis3.1 Threat of new entrantsThe bane of new entrants is relatively low. This is mainly due to the fact that it will cost a new confederacy a can hall of investment cost and know how to enter the automotive market.3.2 Threat of substitute productsTthe coverage of endpoint is limited, besides, bus, metro, taxi are not products that can replace the vehicle. Therefore, the threat of substitute products is relatively low to soften3.3 Bar light uping power of providersDue to the fact that suppliers are united, they are a very strong threat in the automotive market, nevertheless, the United A uto Worker, the plainly supplier of labor, has exerted a great deal of the leverage over the benefits and wages provided by the macroscopical three, therefore we can conclude that the bargaining power of supplier is strong.3.4 Bargaining power of buyersAs we look at consumer behavior when buying vehicles the conclusion can be made that their power is relatively low. Mainly the footing for this low power is because individual consumer has some power over price within a given dealership, but low power over manufacturers.3.5 warlike rivalry within the industryDue to the fact that there is a intense completion going on in the auto industry the rivalry within the automotive market is high. There are a lot of choice and intense competition in internet sales that can upon a ships company when they dont keep up with their contests. See appendix 1 for much information.Summary Porters Five ForcesFramework Porter (1980)http//dpj.typepad.co.uk/entrepreneur_zest/images/2008/03/26/porters _five_forces.gif4. SWOT Analysis4.1 Strengths4.1.1 Large Market ShareAlthough GMs market shell out in the US has declined, it still retains a competitive 21.5 percent in 2008. They also start to cross the Chinese customer automotives market and gain an increasing share.4.1.2 Global ExperienceThey pee already been a global company for almost 100 years now and have established themselves as the global leader for most of them, they already have global palpate.4.1.3 Variety of Brand NamesGM has been the automotive leader for the majority of the last century. The accepted GM brands included Chevrolet, GMC, Cadillac, Buick, Pontiac, Saturn, Saab, Daewoo, Opel, and Holden.4.1.4 GMAC Customer Financing ProgramSince its face in 1919 it has proven to be GMs most reliable modal value of revenue.4.1.5 OnStar Satellite TechnologyThis technology allows the vehicles to be tracked in the event of an emergency or theft, it also allows the driver or passengers the ability to choke with OnStar personnel at the click of a button.4.2 Weaknesses4.2.1 Behind on Alternative Energy MovementThe alternate hybrid trend has begun to take place in the automotive industry and GM has been one flavor behind the competition It is a reason that lead them to lose the market share.4.2.2 Organizational Structure infra standardWe can put one over the organization structure above, it seems to be too vertically integrated. The shortcomings are that it is a lack of communication surrounded by employees from top to bottom and may have played a part in GM lag on the hybrid technology.4.2.3Stagnant ProfitabilityTo review GMs profit we can see that they are struggling with respect to the size of the company. It is disappointed that shareholder would not happy about.4.2.4 overly hooklike on domestic marketGM overly fetch dependent on the US market The competition will become tough if they only focus on just one state of matter.4.2.5 Too dependent on GMACGM overly become dependent on its fin ancing company. Maybe it is a very great advantage for GM, but they cannot rely on financing company for gain the profit, if they emergency to compete with competitors4.2.6 Poor Credit RatingGMs credit status has been declining obviously. According to Standard Poors, they declared jillion of dollars of debt owed by GM to be junk, it will increase borrowing costs and limit fund-raising creams for them.(Sharon Silke Carty, 2005)4.3 Opportunities4.3.1 Alternative zippo movementhybrid technology is giving to GM a opportunity to once again become the automotive industry leader in innovation and technology4.3.2 Continuing to expand globallyRecently, they tack together that there is a dramatically increase in China automotive market, that proves themselves to focus and emphasis on Chinese huge potential market.4.3.3 Low interest ratesIt is a opportunity that they can gain immediate revenue in sales.4.3.4 Develop new vehicle styles and modelsAs you know the growing of the vehicle mode l never be satisfied, GM should keep attempting the most popular model in the world.4.4 Threats4.4.1 rebellion give the sack pricesGM the major business pieces is the sales of truck and SUV, but it is gradually declined because of the lack of fuel efficiency, for rising fuel prices this reason,4.4.2 Growth of competitorsToyota gains the first mover advantage of hybrid system and become the leader of automotive industry, GM faces the reality they should develop more fuel efficiency vehicle and small car model.4.4.3 Legacy costGM provide a great welfare to their retired employees, so they need to experience it is a serious financial puzzle more and more retired employees begin to be benefited.5 mainstay strategic issues firm faceGM is facing several strategic issues. It will be sh sustain by a number of aspects. The economic recession, Competition, and New entrants.5.1 Economic RecessionThe economy of world is currently in the downturn, or even recession in which will impact a lot of industries and consumers in the world. As the economy slowing down, doing business may find it hard to increase the revenue because banks are not willing to lend money to companies, especially bad credit status companies. As a result, GM may suffer from decrease in sales of automotives. However, they may benefit from hybrid technology, since more muckle are buying new fuel efficiency car model if consumer intend to purchase a new car.5.2 Competitor in automotive industryThe competition between the main competitors for instance, Toyota, Honda, Ford, has expanded beyond that of the traditional energy car. These companies are now competing on value adding products, fuel efficiency, design and service of maintenance. In order to achieve competitive advantage companies try to merge or acquire other companies in gain experience and knowledge.5.3 New entrantsThe fast moving and constantly changing industry gives opportunities to new entrants who have not previously specialized in the automotive market as technology can often be easily imitated. In addition an alliance formed by different companies, such as Magna and Sberbank, trying to seek a takeover of Opel and Vauxhall, parts of GM European division. There has also a growing number of new entrants in China due to relatively low investment costs.6 Strategic OptionsThe strategic options that GM might realistically pursue had been discussed as below such as product development, market development,, and market penetration as their strategic options. (Ansoff, 1987)6.1 Product developmentProduct development is a feasible option because it can be capable both in commit and the prospect. This option is also suitable to GM since it is able to exploit the needs of customers. GM is facing the threats of too practically competitors in the market and the reformment of technology is increasing rapidly. Doing more researches on GMs products and investigate and understanding more about the favour of customers are signific ant. To improve the quality of services in their technology should not be neglected in order to doojigger up the expect of consumers and the externally needs so the company can be enhanced and stable in the market..SuitabilityDue to the furious competition between the three consoles company, this strategy is very important.GM have to develop more innovative new products to catch up the pace of the technological advancement. This could ensure the company to gain a step ahead of its competitiors. The technology industry requires swiftness in developing new and innovative products.feasiblenessThe research and development of the company is doing very well in the past few years. They had been rated the top 25 most innovative company in the world (businessweek, 2008). In skills term, they have talent in which had leaded and developed a lot of innovative ideas which attracted a lot of consumers from youths, adult and even elders.AcceptabilityShareholders and stakeholders will agree wholly with GMs end as technology investors, they realize that the technology development or innovation is very important to find themselves into the market.6.2 Market penetrationAccording to (Lynch, R., 2006), market penetration uses the existing range of products or services to attract potential customers or consumers from competitor to expand their own market share. It basically targets the existing customers in the present market of competitors and gain profit from it. The cost is lower, and the chance of attracting consumers is higher.GM uses price competitive advantage to deal with their competitors, which are Toyota, Honda, Fordetc. When GM introduces their brand, it is priced lower than others significantly. GM quip lower prices than competitors and it attract competitors consumers to have an attempt on the product due to its low priceSuitabilityThis strategy is suitable to be implemented because this allows GM to grab more market shares from their numerous of competitors in th e US market,FeasibilityGM is capable to compete with competitors as they are financially competent with them. Since GM stated that they retain the GM Europe section because they posses good health of liquidity again. This also shows that GM is financially secured and there is no problem for them to compete with their competitors.AcceptabilityStakeholders of GM will accept the strategy as long it is fat to the organization and to them.6.3 Market developmentFrom this strategy options, it involves the strategy of introducing both new and existing products to their existing customers and not overlooking the new customers. From here, both new and existing customers have the options and more information about those products.From here, they would be introduce their product to both side. They would be able to saturated new opportunities for geographical spread, entering new segments or new users in the environment. Such a change will enable GM in better turnover at medium risk by exploitin g current strength or market knowledge. (Lynch, R., 2006)SuitabilityIt is suitable in market development as they tend to target new assorts of people, and other new geographic places. (Johnson, Scholes Whittington, 2008). GM try to targets elders, adult or basically all adult group.FeasibilityIt is feasible for GM as they have enough resources to develop into the new market. According to the U.S. Treasury Department, they has real $1 billion repayment from GM. This shows that they totally have enough fund to research and develop worthy strategy in order to venture into the new market or exploring into a new market segment.AcceptabilityStakeholders and shareholders would surely agree with this strategy as it gain profit for the company and stakeholders or shareholders themselves. recommendation of Strategy optionsThe best strategic option for GM in their current situation is to develop a new vehicle which is alternative energy SUV this strategy would significantly lead to a growt h in sales. In addition, GM can gain a new business partner from Canada-Russia consortium because of their contractual relationship and this would be a great competitive advantage for GM. By using this strategy, which is an external method, it can help GM to solve their problems quickly. An alliance with Magna-Sberbank will also benefit GM in toll of saving expenses on research for the small car technology. This will aid GM in work the tribulations that they are facing.7 Implementation IssuesWhen GM wants to withdraw or retain Europe deed, some obstacles will appear. They are called implementation issues. These implementation issues will be discussed how Government involved in its decision making.7.1 Russian GovernmentGerman Gref, the Sberbank boss stated that he acquires GM Europe section to enter new markets abroad and confirmed it is a really low price to takeover Opel, it can get the leave to get its company technology. Sberbank is a famous creditors of automotive industry i n Russia in which inform to turn around its carmaker industry. The Russian Trade and Industry Minister stated that if not the takeover, they will not good enough to develop the international car companySince the Russian organisation plans to acquire international technology, all of the international autos keep continue to build some facilities such as manufacturing plants in there to reach domestic market demand. The global companies can avoid Russian import taxes on autos, besides, they can benefit from the domestic low salaries.Nowadays, to sell the GM Europe, GM will struggle in the Russian market and GM technology.7.2 US GovernmentAccording to American negotiating circle, the US government is not welcomed to work with the Magna as long as Russian companies get extensive access to GM patents. As Magna cunning to get access to all developments from the GM patent pool. US government concerns about not only car technology, they concern about Russian getting the military items. On the other hands, GM touch on that the consortium will use GM technology to contribute a potential threat of competitor to GM another brand in the Russian market. (Reuters, 2009)In addition, China Beijing automotive offer and promised job cut, and required financial support are much better than the other two, Magna also design Opel the best way for future development, but the GM is welcomed RHJ. According the analyst, GM expects to be able to make a comeback again in the future control of Opel, RHJ operation mode exactly GM wants, RHJ can give a hand to GM achieve a deep restructuring.(Wall street journal, 2009)7.3 Germany GovernmentAccording to Reuters(2009), the Germany Chancellor Merkel played an important role in the incident that Opel will be sell to Magna. Why? Because she takes the mission to save German unemployment rate, this is a semipolitical activity, she is preparing the coming election. How Merkel convinces Magna, allowed to retain as many jobs as Germany can be affor dable? This is simple word money. The Germany Government wait for the European bearing approved a loan of 4.5 billion Euros to the Opel. Furthermore, the plants will not be closed in Germany, this seems very favorable for Merkel, and she is expected to easily win the election. On the other hands, it will damage their relationship if there is any failure of Russian involvement in Opel since Germany is apparently work well with Russia about trading. Besides, German election is almost can be said to the future destiny of the Opel that become a political hot potato. Government has invested a lot of money into the Opel, which is an economic decision making, but also the reason of political consideration. To unresolved Opel future, Merkel will be faced more political pressure.On the other hands, Germany government will not give any financial support to GM Europe section if GM remains it. It makes sense that Government will not help a outsider in which Germany has big three carmakers (Au di, BMW, Volkswagen),to survive its operation. As GM has already damaged the GM Europe section operation and put Opel on the transfer list. Germany cannot build any trust on GM, but by the way they have a good relationship with Russia as I mentioned above.ConclusionAs a conclusion, GM sales have been affected by the economic downturn and in order to increase their sales the best option is to launch a alternative energy SUV. Besides that, GM wants to protect themselves on the market, and for this reason GM needs to be more innovative and be more sensitive to the current trends of the market. Knowing the needs of consumer will retain GMs position in the market as the worlds leading manufacturing business of mobile phone.8. Reflective Statement on LeadershipLeadership is defined as entails some item of voluntarism in followship (Pardey, D., 2007). However, Kotter (1990) argues that leadership is about coping with the changes by giving direction.Kotters (1990) leadership framework stat es that the role of leadership is to set a direction, develop a vision of where the organization should be going and the strategy for change to achieve that vision. Leaders align people to the direction being set, communicating it to people and building perpetration to it. Motivating and inspiring people so that they work to achieve the vision drawing on their needs, set and emotions.Our group were using democratic style of leadership where all of our members were involved in the decision making process. Ryan, our group leader discussed with all of us and decides which part we need to work on step by step. This helps a lot as we were very unclear about the direction were heading to.CommunicationsIn my group, there is some communication issues as the all four of us come from different country and background. Sometimes, there will be conflict of ideas and difficulty in presenting the ideas. We got delays in meeting because some of our group members were busy or there were some lack of communication as in setting up our meet up time got messed up and caused some group members turned up and some did not. I learnt that working in a group is not easy as it needs more effort to discuss and accomplish it.ResponsibilityWe were each given task to search for the information from external depth psychology to internal analysis. All of our group mates were very responsible that they all searched for the information on their own part and some of them even helped to search for others part of work in detail. This helped our group to have the fitted information for us to do our work. I learnt that without time management, everything would be in a total mess as we might have hand our assignment late.Problem solvingWe overcome our communication problem by spending more time during our meetings and we make sure everyone understand what are the things that we need to accomplish and understand what our group members were discussing during the meeting. I had learnt that developin g a vision is important as it helps our group to do our work on time.Reference listAnsoff, H.I. (1987) incorporate Strategy Revised Edition. London Penguin Books.BusinessWeek,(2008),The 50 just about Innovative Companies. online in stock(predicate) at http//bwnt.businessweek.com/interactive_reports/innovative_companies/ (Access 9th January 2010)Catherine Rampell, (2008), How many jobs depend on the big three?, Economix, online Available at http//economix.blogs.nytimes.com/2008/11/17/how-many-jobs-depend-on-the-big-three/ (Accessed 9th January 2010)General Motors,(no date) GM Global Vehicle Sales and Market Share-2008,December Online. Available at http//www.gm.com/europe/corporate/sales/global/ (Accessed9th January 2010)J.D.Power (2006), Research a car onlineonline Available at http//www.jdpower.com/autos/articles/research-a-car-online (Access9th January 2010)Johnson, G., Scholes, K. Whittington, R. (2008) Exploring Corporate Strategy. 8th edn. England Prentice Hall.Kotter, J. (1 990) what leaders really do Harvard Business Review.L.S. Robertson, (2006), Motor Vehicle Dealth Failed Policy Analysis and Neglected Policy, Vol. 27,p. 182-189, Journal of Public Health PolicyLynch, R. (2006) Corporate Strategy. 4th edn. Essex Pearson.Pardey, D.(2007) Introducing Leadership. Oxford Butterworth-Heinemann.Onstar,(no date) online Available at http//www.onstar.com/us_english/jsp/index.jsp (Access9th January 2010)Reuters (2009) GMs U-turn on Opel sale angers Germany Russia. Available at http//www.reuters.com/article/idUSTRE5a25RL20091104 (Accessed 5/01/2009)Sharon Silke Carty, (2005) SP cut GM, Ford debt rating to junk status, online Available at http//www.usatoday.com/money/autos/2005-05-05-gm-junk_x.htm ,USA Today(Accessed9th January 2010)Vincent J. Galifi. (2009) Magna Confirms Offer for Opel, Online. Available at http//www.magna.com/magna/de/media/pressreleases/?i=218 (Accessed5/01/2010)Vincent J. Galifi. (2009) MAGNA AND SBERBANK OFFER SELECTED AS THE like SOLUTI ON FOR OPEL Online. Available at http//www.sbrf.ru/en/news/index.php?id114=11000080 (Accessed5/01/2010)Wall Street Journal (2009) RHJ improve the terms of its bid for GMs Opel.Online. Available athttp//online.wsj.com/article/SB125182274337876583.html