Analysisof a corporation: Case study on General Motors
TheGeneral Motors is an automobile Industry specializing in themanufacture of vehicle brands like Bulk, Cadillac, Chevrolet, GMC, GMDaewoo, Holden Hummer Opel among other brands having been developedby William C. Durant (Townsend et al., 52).
Thecore purpose of the General Motors is just expressed in onestatement, ‘we are here to earn customers for life.` This usedetermines and influences how they invest in their brands around theworld with an objective to inspire loyalty and passion. It motivatesthem to adopt the breakthrough advanced technological advancementinto improving their vehicles to meet the expectations of thecustomers.
TheGeneral Motors have the vision to be the world class leader intransportation products and related services. This idea inspires themto come up with strategic plans that tend towards realizing theindustry portfolio through values like integrity, teamwork andinnovation.
Dueto its bankruptcy in 2010, the General Motors Industry embraced brandreorganization model to continue maintaining it among the best globalIndustry which it enjoyed until 2007. The General Motors (GM)therefore adopted the new strategy to rebrand its portfolio andreorganize its architectural structure. This flexibility proved to bea great strength for its recovery. The policy effect included thediscontinuity of producing certain brands like Hummer, Saturn, andthe Good wrench services. The GM industry has also switched from thecorporate endorsed architectural structure to a multiple invisiblecorporate architectural structure. Moreover, the GM sold off itsbrand of Saab and even recalled of their tendency to include their GMMark of Excellence on every car in August 2009. Also, it formerlyexisting square blue badge has been done away with to pave the wayfor the new all text logo on its United States site to give it a newperspective look.
Tofully recover with the new strategies, the GM retain two of theirbrands of Chevrolet which symbolizes value qualities, reliability,excellent performance and impressive design. The other brands of thevehicle they use to drive their industry are Cadillac which bringswith it a luxurious nature, very powerful and stimulating.Interestingly, the GM has regained its approach to having a diversityof alternatives to increase the chances of satisfying many customers.These other brands include Buick, GMC, Baojun, Opel, Holden andVauxhall. It hopes to optimally minimize the costs involved whilemaximizing the full profits potential (Townsend et al., 52).
TheGM has even developed a culture that esteems customers as valuable.The company, therefore, utilizes the needs of the customers like apreference to develop a variety of brands to enhance a wider marketof clients.
TheGM is currently being managed under Mary Barra, who is both thechairperson of the board and its C.E.O as from March 2017. Based onthe fact that it is a global industry, it has therefore based itsheadquarters at Renaissance Center in Detroit. The President of theGM is Daniel Ammann. In-charge of design is Mr. Edward T Wellburnwho, interestingly, is the first mixed America African to lead aglobal design organization. The total number of employee around theworld engaged in the GM industry is 220,000.
Likeother sectors, the GM still faces many challenges that constrain itsability to regain fully to be a leader again in the motor vehicleIndustry. The possible problems that are likely to strike the GMindustry. This article is of great significance because of itsrelevance to the GM industry. But above all, the article is anindicator of the possible weakness points of the GM which cansignificantly hinder the competitiveness in the market. Some of thechallenges cited include the following
Firstly,the GM branch in China is expected to experience problems of reducedproductivity due to increased taxes. China which proved to one of thehotbed markets for the GM products indicated by the 75% joint venturefrom 2010. However, China GM now faces on of the biggest challengecaused by fluctuation drop in prices and uprising pricing. This isfurther fueled by the fact that politics will try to win overstrategy. This serves as a weakness to the GM. Albeit, the GMcompany, can create mutual political relationships with other foreigngovernments regarding the tax regulations.
Secondly,the GM is faced with a relatively high stock value in the UnitedStates in the past few months which exerts pressure on production andpricing. The GM will be forced to restrain or stop the productionsystem in the States or offer relatively higher discounts whichnegatively impacts on the profitability of the Industry. This is aweakness can also be overcome by putting more emphasis on the valueof their products shifting their area of focus from the customersonly.
Thirdly,the prominent likely challenges have forced the GM to develop newInitiatives. For example, it is promoting the sales of SUVs overSedan due to the different margins. This will sustain the GM Companyto settle the heavy burdens of taxes in China. However, no matter howmuch the strategies seems promising, in the long run, they are likelyto fail terribly. Hence the GM should utilize the research anddevelopment to improve the quality of their merchandise.
Finally,investors are likely to bolt out. Due to the indicating warning signsof poor performance in the GM sector, investors may opt to go foralternatives. This will undermine the competitive advantage of the GMmotors. Therefore, they should make a better offer to the investorwith a promise of introducing a new advanced selling product in themarket.
Townsend,Janell D., S. Tamer Cavusgil, and Marietta L. Baba. "Globalintegration of brands and new product development at Generalmotors."Journal of Product Innovation Management 27.1 (2010):49-65.
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