General Motors: Strategic Management

Résumé du document

General Motors is a 100 year-old company which has built a big holding that owns many different car manufacturing brands distributed all around the world. During this century, GM has become the biggest car manufacturer in the world, with a turnover of more than a hundred billion sales in cars and trucks. However, despite this huge turnover, General Motors is loosing money due to an increasing competition between it and it's new competitors. Moreover, to complete the dashboard, we can add that the financial crisis has not been very well welcomed by General Motors. Due to numerous factors, General Motors is in bad shape, and needs to react quickly if the company wants to keep up it's market, it's employees and itself. To face these problems, we will show through this presentation the points that we want to develop to save General Motors and rebuild a brand that can renew it with success. In this report, we will build a strategic management plan to help GM do the transition from it's actual position to a winning one.

Extraits

[...] For our summary table, we will keep the 'strong and our 'diversity of products range' as our major strength, and our 'image of high fuel consumption car' and our 'bad financial health' as our major weaknesses SMGT 2B Strategic Management: GM 864"! Now let's take a look at the major opportunities in the market and the biggest threats that GM will have to deal with. External strategic factors Opportunities O1 New 'green market' O2 Conversion rate O3 Government help Threats T1 Competition (Ford, Toyota, Chrysler) T2 Emerging groups (Chinese) T3 Credit crunch T4 Oil Prices Total New expectations Export $ 0.69 Consumer&GM Weight Rating Weighted Score Comments Main competitors Buying power Purchasing power Fluctuations From this table we will keep 'the new green market' and the 'government help' for consumers to help them in buying, and also to help GM survive. [...]

[...] And the next 100 years will be no different. GM is committed to leading the industry in alternative fuel propulsion.'10 'GM's vision is to be the world leader in transportation products and related services. We will earn our customers' enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people.'11 General Motors is one of the big three, and has been a major car manufacturer for years, and has a great history of success. We want to give it back its history and renew it with success. [...]

[...] Synthetic strategic factors Internal S3 Strong R&D S4 Product range W1 Image of high fuel consumption car W2 Bad financial health External O1 New green market O3 Government helps T1 Chrysler, Toyota & Ford T3 Credit crunch Total Weight Rating Weighted Score Comments Anticipating the market Need diversifying Invest in eco friendly car Reduce costs and increase profitability New expectations To consumer & GM Main competitors Purchasing power What remain from this SFAS table is the weighted score of General Motors: 2.66 /5. It means that GM is just above the average, which is not good for a company of this size. That is why we will have to develop a new strategy for General Motors in order to rebuild the company that it has to be SMGT 2B Strategic Management: GM 13 /01&1!do In this part of our strategic plan we will clearly explain where we want to go. What is our goal for General Motors? [...]

[...] That is why we expect to increase our sales by 15% in the next five years, reimburse our government loan and increase our market shares overseas Source: website, http://www.company-statements-slogans.info/list-of-companies-g/generalSource: website, http://www.company-statements-slogans.info/list-of-companies-g/general- motors.htm 11 motors.htm 405 SMGT 2B Strategic Management: GM 14 We will use the PESTEL Analysis to have a clear overview of the US market, and in a second step of the European Market we will try to tap in the future after successfully implement our strategy in the U.S 45 At a corporate level, our goal is to increase our sales on the American market, and develop our presence oversea Our business strategy is to develop a new range of motorization for our cars, to increase our range of eco-friendly cars and involve everyone into a reduction of cost at every level of the company. By these strategies we can highlight three main points we will have to work on: increasing sales, reducing our costs and increas R&D. To reach those objectives that is what we will do. [...]

[...] - Increasing sales To increase our sales we will have to better adapt our range of product to what the consumer really want . To reach overseas customers we also will have to adapt our products to foreign regulations and standards that could be different and harder to reach SMGT 2B Strategic Management: GM 16 - Reducing our costs We will have to delocalize some business units overseas, maybe in China. It will also be necessary to start some negotiations with our labor force and unions to reduce costs, with car dealers to reduce the structure. [...]