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Strategic Management SUBMITTED TO: SIR Tasawar Javed COMPANY: General Motors SUBMITTED BY: Raashid Javed (32), Mudasra Amjad (21), Sumaira Tabassum (38), Abdul Latif (01) Muhammad Hassan (24), Sajjad hussain (34) Department Of Management sciences The Islamia University of Bahawalpur
GENERAL MOTORS TABLE OF CONTENTS Sr. #No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 2|Page Page Numbers DEDICATION HISTORY AND INTRODUCTION 3 4 THE EXTERNAL ASSESSMENT 8 9 14 16 17 Competitive analysis Poster five force model EFE Matrix CPM Matrix THE INTERNAL ASSESSMENT 18 19 22 24 25 Competing activities of general motors Major strengths of general motors IFE Matrix General motors value chain STRATEGY IN ACTION 28 29 29 30 31 32 Generic strategies of general motors Integrative strategies of general motors Intensive strategies of general motors Diversification strategies of general motors Defensive strategies of general motors STRATEGY ANALYSIS AND CHOICE 5 5 6 6 7 7 General motors Vision General motors Mission General motors Objectives, General motors Goals and Values General motors commitments General motors Management and hierarchy 33 34 35 37 38 39 SWOT Matrix Space Matrix BCG Matrix IE Matrix QSPM Matrix BIBLIOGRAPHY AND REFERENCES 41 The Islamia University of Bahawalpur
GENERAL MOTORS DEDICATION When the person does something there must be an inspiration behind for doing work. Especially we dedicate our work to our great Sir. Tasawar Javed from whom we have received a Great inspiration and boost for doing this important work, they guide us and show their confidence on us and realizes us that we are very capable of doing this work. We dedicate our work to all group members, who really help us to perform this work. May ALLAH bless all of them 3|Page The Islamia University of Bahawalpur
GENERAL MOTORS GENERAL MOTORS People in motion History The company was founded on September 16, 1908, in Flint, Michigan, as a holding company for Buick, and then controlled by William C. Durant. At the turn of the 20th century there were fewer than 8,000 automobiles in America and Durant had become a leading manufacturer of horse-drawn vehicles in Flint, MI, before making his foray into the automotive industry. GM's co-founder was Charles Stewart Mott, whose carriage company was merged into Buick prior to GM's creation. Over the years Mott became the largest single stockholder in GM and spent his life with his Mott Foundation which has benefited the city of Flint. In 1909, GM acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck (Ukessays.com). GMs market share peaked in the 1960s where they held 48.3% of the overall US market share. This total began to decline in the 1970s and continued to present day, due to greater international competition, mainly coming from the Japanese companies of Toyota and Honda. They strayed from the traditional American muscle cars, which were bulky and had poor gas mileage, to sleeker designs with better quality and efficiency (General Motors Corporation NYT). Introduction General Motors Corporation (GM) is the world's largest automaker and has been the global industry leader in sales for 76 years (General Motors, 2008a). The United States is GM's largest national market, followed by China, Canada, the United Kingdom, and Germany. Today, the company employs about 284,000 people worldwide. With its global headquarters located in Detroit, GM manufactures cars and trucks in 33 countries. In 2006, GM sold 9.1 million cars and trucks globally under the brands Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, and Vauxhall (General Motors, 2008a). GM has fostered partnerships with many automobile manufacturers around the world. The company is currently the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea (General Motors, 2008a). The company currently sells its genuine parts and accessories under the GM, GM Performance Parts, GM Good wrench, and ACDelco brands through GM Service and Parts Operations, which supplies GM dealerships and distributors worldwide (General Motors, 2008a). Business Industry - Automotive The general business activity and principal products or commercial enterprise of General Motors are categorized as being part of the Automotive Industry. 4|Page The Islamia University of Bahawalpur
GENERAL MOTORS General Motors Slogan A slogan is a short, memorable catch phrase, tagline or motto used to identify a product or company in advertisements. The advertising slogan, or business slogan most associated with General Motors, is: "People in motion" PRODUCTS Diesel Engines Marine Equipment Stationary and Industrial SERVICES Locomotive Maintenance, Locomotive Management, Leasing, Training, Welding VISION STATEMENT General motors vision is to be the world leader in transportation products and related services. We aim to earn our customers enthusiasm through continuous improvement driven by the integrity, teamwork and innovation of general motor people Where GM focus MISSION STATEMENT General motor is a multinational corporation engaged in socially responsible operation, worldwide. It is dedicated to provide product and services of such quality that our customer will receive superior value while our employee and business partner will share in our success and our share holder will receive a sustained superior return on their investment. 5|Page The Islamia University of Bahawalpur
GENERAL MOTORS Analysis of mission statement under nine components of mission statement COMPONENT Y/N DESCRIPTION BY MISSION STATEMENT OF GM Customer Product or Services Market Technology Concern for Survival, Growth and Profitability Philosophy Self-concept Concern for public image Concern for employees Yes No Yes No Yes A multinational corporation worldwide people are its customers. --------------Multinational corporation ,Worldwide --------------Sustained return on the investment. Share in our success Yes Yes Yes Yes Product and services high quality Superior quality products and services Multinational corporation engaged in socially responsible Our employee and business partner will share in our success Objectives Safety and Quality First Create Lifelong Customer Deliver Long-Term Investment Value Innovate Make a Positive Difference GM Goals In order to achieve our goals, GM has remained committed to the following formula for success: Move faster and take risks to achieve sustained success, not just short-term results Lead in advanced technologies and quality in creating the worlds best vehicles Give employees more responsibility and authority and then hold them accountable Create positive, lasting relations with customers, dealers, communities, union partners and suppliers to drive our operating success. Company Values of GM GM has six core values in which employees are to use in conducting daily business practices (General Motors, 2008c). These core values consist of Continuous improvement, Customer enthusiasm, Innovation, Teamwork, Individual respect, And responsibility. With this GM should add customer value and thinking green to its core values. Thinking green will show the company is concerned with doing right by the environment (Mateja, James, 1977). 6|P a g e The Islamia University of Bahawalpur
GENERAL MOTORS Commitments of GM We are committed to restoring and preserving the environment. We are committed to reducing waste and pollutants, conserving resources and recycling materials at every stage of the product life cycle. We will actively participate in educating the public about environmental conservation. We will vigorously pursue the development and implementation of technologies to minimize pollutant emission. We will work with all government entities for the development of technically sound and financially responsible environmental laws and regulation. We will continually assess the impact of our facilities and products on the environment and the communities where we live and operate with a goal of continuous improvement. Management of GM Daniel Akerson Chief Executive Officer & Chairman of the Board of Directors Daniel Ammann Chief Financial Officer Stephen J. Girsky GM Vice Chairman, Corporate Strategy, Business Development, Mark Reuss President, GM North America Karl-Thomas Neumann President, GM Europe; CEO, Adam Opel AG Timothy E. Lee President, GM International Operations Mary Barra Senior Vice President of Global Product Development Melissa Howell Vice President, Global Human Resources Selim Bingol Vice President, Global Communications Edward T. Welburn Vice President of Global Design for GM Hierarchy Source: A.P. Sloan, My Years with General Motors, Orbit Publishing, 2012, p. 57. 7|P a g e The Islamia University of Bahawalpur
GENERAL MOTORS THE EXTERNAL ASSESSMENT 8|P a g e The Islamia University of Bahawalpur
GENERAL MOTORS Competitors Analysis The major competitors of General Motors are domestic companies like Damiler Chrysler & Ford Motor and foreign companies like Toyota Motor & Honda Motor. GM SWOT analysis Strengths Weaknesses 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. Global presence New vision and strategy Strong brand portfolio Strong presence in China Knowledge of home market Well performing brands High cost structure Brand dilution Bureaucratic culture Car recalls Opportunities Threats 1. 2. 3. 4. 1. 2. 3. 4. 5. Positive attitude towards green vehicles Increasing fuel prices Changing customer needs Growth through acquisitions Fluctuating fuel prices New emission standards Rising raw material prices Intense competition Exchange rates Damiler Chrysler As the number two auto manufacturer in total revenues Daimler Chrysler has positioned itself as an industry leader, with this come many strengths. The DaimlerChrysler umbrella covers many well-known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep. This means DaimlerChrysler has strong brands that are recognizable in almost every part of the world. Damiler Chrysler Objectives The objectives of the Daimler-Chrysler merger their intentions were essentially to extend their size and scope as well as to combine their strengths. One of the main objectives of this merger was the conquest of new markets (World/Welt AG). Companies complement each other perfectly in terms of product lines, geographic markets and capabilities. Chrysler was good in designing & product development, whereas Daimler was good in engineering & technology. Their products do not target the same customer. 9|P a g e The Islamia University of Bahawalpur
GENERAL MOTORS SWOT Analysis Strengths Weaknesses 1. Merger combined two strong companies. 2. Savings resulting from economies of scale. 3. Company does more than just autos. 4. Daimler has outstanding reputation. 5. Chrysler was a very cost-effective company. 6. A leader in innovation. 7. Record revenues and increasing market share. 8. Lack of capital constraints. 9. Strong existing product brands. 10. $47 billion allocated for research and development. 11. A wide array of corporate holdings. Leader in Fortune Global 500. Opportunities 1. Merged company should be able to expand markets, particularly into Asia. 2. Safety failures at Ford should open door for DaimlerChrysler. 3. Innovation will lead to new products on the market. 4. A hybrid car, which is very environmentally friendly, will be launched soon. 5. Creating a DaimlerChrysler corporate brand identity. 6. Over 68 percent of the company's profits come from automotive brands. 7. Can reach opinion leaders and existing customers with similar communication plans. 8. Innovative car ideas. 10 | P a g e 1. Merger combined two different company cultures (European and American). 2. Harder to inspire vision and direction for this large global company. 3. Employees have been leaving at a high rate. 4. DaimlerChrysler brand is unknown and difficult to define. 5. Image campaign could distract from strong product brands. 6. DaimlerChrysler products do not bear the company name. 7. Companys broad holdings are still seen as separate entities, not as parts of DaimlerChrysler. Threats 1. Has been an extended period of time without corporate communications. 2. 2Globally, the general population knows little about this corporate merger. 3. DaimlerChrysler does not yet have a corporate brand identity. 4. Over 68 percent of the company's profits come from automotive brands; this is a threat if the market takes a downturn. 5. Behind in the research and marketing of hybrid autos. 6. Size of company will demand a varied marketing program; a cookie-cutter approach will not work. The Islamia University of Bahawalpur
GENERAL MOTORS Ford Motor Company Ford Motor Company is a global company with two core businesses: Automotive and Financial Services. The Automotive business consists of the design, development, manufacture, sale and service of cars, trucks and service parts. Ford has been focusing on cutting costs to increase margins more than its competitors. It has used reverse engineering in the development of their products. Thus Ford has been an innovator in the auto industry. SWOT Analysis Strengths Weaknesses 1. 2. 3. 4. 5. 1. Poor environmental record 2. High cost structure 3. Unprofitable Europe operations Strong position in US market Economic initiative Sound financial performance One Ford approach Significant growth in China Opportunities Threats 1. 2. 3. 4. 1. 2. 3. 4. Positive attitude towards green vehicles Increasing fuel prices New emission standards Growth through acquisitions Decreasing fuel prices Rising raw material prices Intense competition Fluctuating exchange rates Ford Company Objective: To sell vehicles and make a profit for stockholders, Providing jobs for thousands of workers. Toyota Motor Corporation The Toyota Motor Corporation was incorporated in 1937 and has many strengths being one of the industry leaders in the automotive industry. Toyota has three major brands underneath the company umbrella; Toyota, Lexus, and Scion. By having these three distinct brands, it lets the company reach many sectors of the globe in a choice of vehicle for customers. Toyota has traditionally also been the leader in Total Quality Management or TQM. By using the Kaizen theory of continuous improvement, Japan caught up the U.S. auto makers during the 1980s. 11 | P a g e The Islamia University of Bahawalpur
GENERAL MOTORS SWOT analyses Strengths Weaknesses 1. 2. 3. 4. Innovative culture Brand reputation valued at $30 billion Industry leader in production and sales Strong brand portfolio 5. The leader in green cars development 1. Large recalls 2. Weak presence in the emerging markets Op...