Weaknesses

• Damaged reputation
• High cost structure
Strengths
• Ineffective marketing strategy
• Old & outdated technologies
• High market share
• Low quality products/services
• Plant & Equipment
• Poor financial position
• innovative
• Poor relationship with employees
• Weak Brand
• Pension plan offerings(i.e.,
pay/medical)
Opportunities

• Available Governmental support

• Expertise of the existing workforce
• Improvement in economic climate
• Merger or takeover
• Strategic alliances & joint ventures
• American's still want to believe in the
company
Threats
• Competition from foreign markets
• Financial slowdown
• Market slow growth or decline
• Products entering decline stage
• Unions

Strategic Analysis Of Gm

General Motors’
Strategic Analysis

By Cyriac Thomas
(cpg07bm025)

[pic]
Automotive Industry

The automotive industry is the industry involved in the design, development,

manufacture, marketing, and sale of motor vehicles. In 2007, more than million motor
vehicles, including cars and commercial vehicles were produced worldwide.
In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in
Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in
Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in
North America and Japan were stagnant, while those in South America and Asia grew
strongly. Of the major markets, Russia, Brazil and China saw the most rapid growth.
In 2008, with rapidly rising oil prices, industries such as the automotive industry, are
experiencing a combination of pricing pressures from raw material costs and changes in
consumer buying habits. The industry is also facing increasing external competition from
the public transport sector, as consumers re-evaluate their private vehicle usage.
The United States is the world’s largest consumer market for light vehicles, passenger
cars and light trucks. The United States auto industry is dominated by the Big Three or
General Motors, Ford Motors and Daimler/Chrysler. These three account for roughly a
little over half of the production of cars and light trucks in the industry. What has
currently started to happen in the recent years is that the Big Three are starting to lose
market share to other rivals within the industry. In 2006 the Big Three accounted for
41.5% of light vehicle sales when compared to the top three foreign companies which
accounted for 36.6% (Toyota, Honda, & Nissan). Overall the Big Three account for
54.9% of the U.S. market in 2006. This was down from 58.2% in 2005, 60.1% 2004 and
61.8% in 2003. This trend is expected to continue but to taper off in the...

Strategic Plan Analysis

Strategic Plan Analysis

Michelle Ballard
University of Phoenix
MGT/449
George Monk
August 26, 2008

Strategic Plan Analysis

The following paper will discuss General Motor’s (GM) mission, vision, objectives, and
goals, along with General Motors compared and contrasted by management styles with
Toyota Corporation whom adopted total quality management (TQM). The paper will
discuss characteristics of Toyota Corporation TQM with General Motors and the extent
to which Toyota Corporation TQM practices can integrate into General Motors
management practices.
In 1968, General Motors became the first automotive company to establish a formal
supplier diversity program (GM, 2008). GM’s mission will remain the same during this
establishment of diversity. “To develop and grow a performance-based, world-class,
competitive diversity supply base that will work with General Motors toward its goal of
being the market leader in the Automotive industry” (GM,2008). GM is primarily
engaged in the production of vehicles. The company designs, manufactures, and markets
cars, trucks and other automobile parts in North America, Europe, Latin America, and
Asia Pacific regions. GM vision is to be the world leader in transportation products and
related services. In order to achieve this vision, GM recognizes that hurdles will block
them and they will address them before GM achieve goals to reach this vision (GM,
2008). GM’s future success is dependent on innovation in technology, which will allow
GM to achieve aggressive goals.
GM management style has not always been the best of practices. In order to enforce any
type of action, GM employees’ will contact their attending manager. From there the
complaint or request will go to the top of the chain, higher management. The decision is
prepared and released to lower management back to the employee. This type of
management style worked out sound for a time, but with GM entering into the global
world their product will need...
S

Gm Strategy Analysis

Strategic analysis of General Motor

Upon your request, I have prepared the enclosed report on the effect of external
environmental changes on General Motor’s strategy. The content of the report includes
an evaluation of General Motors current overall strategy and recommended reaction for
the President’s newly imposed policy.

Saab is a product differentiator with specific target customer groups.

Safety-oriented, high-quality, environmental-friendly, Saab has its unique value

proposition. Unlike brands like Chevrolet which is known for a broad range of products,
smaller brands like Saab focus on specialized market instead. On its website, Saab
emphasizes how the turbo-charged technology is “reliable, durable and exhaust-
driven”[i], which makes it different from other brands. It has a mid-high price range
among competitors. That’s probably why Saab has competitors like BMW, Volvo and
Mercedes. Customers for Saab cars are people who care more about the car’s safety
features and less about the price.

Industry factors show that Saab has a pretty strong competitive advantage.

Auto manufacturing industry is in mature stage of its development. The trend towards
environmental-friendly and fuel-saving have had great impact on the industry in the past
few years. There are very few barriers to entry for potential competitors. However, the
fact that we are heading towards a recession is hurting the demand for cars. So there are
very limited threats of new entrances. I think the power of suppliers is neutral. There are
several suppliers available for providing raw materials, mainly steel. However, there are
not that many suppliers for key parts such as the engine of a car. The power of buyers is
high, as customers’ concentration is low and that customers don’t have a high switching
cost. The availability of substitutes is very high, considering public transportations are
popular nowadays. (See attached Exhibit 1) The industry is well concentrated, as “the
eight...
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• Date Submitted: 12/10/2008 10:35 PM
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