General motors core business

humankind(a) motors core businessINTRODUCTIONGENERAL MOTORS popular Motors was known as wiz of the worlds best self-propelled, started in 1908 with 76 age of management and attractorship at its best. Its worldwide headquarters located in Detroit, with employees of 204,000 multitude all over the world and operates business in iodine hundred forty countries. planetary Motors core business of producing cars and trucks operates in 34 countries and selling and service these vehicles through the following brands GMC, GM Daewoo, Holden, Buick, Cadillac, Opel, Vauxhall and Wuling. It has the largest merchandise in United States followed by China, Brazil, Germany, U.K, Canada and Italy. GMs main element, in which it is industry leader, is its vehicle safety, security and information services. As of 2008, General Motors is the ninth largest publicly traded community in the world. Recently the beau monde has endured major financial confusion, including a 38 billion dollar blemi sh in 2007. GM needs a sense of urgency regarding rewrite a strategic plan that incorporates the next generation of vehicles. In todays global economy and high uply competitive auto industry GM has no time for delay.Factors affecting General Motors and other car industry.Industry relate in the design, development, manu accompanimenture, grocery storeing and sale of motor vehicles be known as automotive industry. More than million of motor vehicles, including cars and commercial vehicles were produced worldwide in 2007. Figures show that in 2007, around 71.9 million new automobiles were sold worldwide in which 22.9 m sold in Europe, 21.4 m in Asia-Pacific, 19.4 m in USA and Canada, 4.4 m in Latin the States, 2.4 m in the Middle East and 1.4 m in Africa. Though the markets in northwestern America and Japan were inactive barely in South America and Asia markets grew very strongly. Russia, Brazil and China were the ane who showed rapid growth canvas to others.In 2008, automotiv e industry were experiencing a combination of pricing pressures from afflictive material cost and trades in consumer buying habits collect to rapid modernise in the price of oil. G.M and other automotive industries were also facing out-of-door competition from the public transport sector, as consumers re-evaluate their private vehicle usage. U.S is the worlds largest consumer market for light vehicles, passenger cars and light trucks which are conquered by big terzetto companies i.e. General Motors, cover Motors and Daimler/Chrysler. But recently these three industries were started to lose their market share to other rivals within the industry. General Motors are facing large competition by domestic company such as Ford Motors and Daimler/Chrysler and also by foreign companies such as Toyota Motors and Honda Motors who are able-bodied to produce car much cheaper cost than General Motors.In 2006, General Motors has been bankrupted and has been avoiding a filing for years. Fo r years it has been using cars as razors to sell consumers a monthly package of razor blades- in the form of highly economic car loans. And the reasons for its bankruptcy are beca enjoyment they were focusing mostly on their pay division rather than it vehicle design operation. GM cars were poorly intentional and build, to a faultk long time to manufacture as compare to its toughest competitor Toyota who has develop designed and high quality and cheaper. In past GM controlled one-half of North America vehicle market but presently it has just now 19 percent control as GM has been ignoring competition due to which Toyota and other industry took over the market share.Since General Motors were focusing on making profit from finance they did non care about expression better vehicles. It was managing in bubble as GM rewarded those employees who followed the old government agency of doing things and those who praises CEO wisdom and carry out his orders.PEST AnalysispoliticalSince 1960, on that point were more powerful and strict laws and Government intervention that has modify GM and other car industries. Mostly, all regulation was related to consumer wobble magnitude lodge in for environment and c at one timern for the safer automobiles.EconomicalAutomobile Industries plays an important social occasion on every countries economy. As Automotive industry are major user of com invester chips, aluminium, textiles, copper, steel, iron, lead, plastics, vinyl and rubber. Research and study had shown that for every autoworker there are seven other jobs created in other industry which allow in aluminium to lead to vinyl.SocioculturalTodays people are mostly concern about their status and society judges on the basis of what eccentric person of car one drives. Manufacture takes advantage of this thought and target the market. both one want attractive and nice car which other people admires. Consumers feel better when they driving nice and new car.Technology m esh had played a significant role in automotive industry. A study showed that about 60 % buyers referred to internet before making their buy and out of that 60 percentage. 88 % buyer went to auto website before dismission and taking test drive.Strength and Weakness of General Motors.Strength massive Market ShareAlthough General Motors market shares has dropped in United States but it still has very much competitive at 26 percent. On the other hand, it is increasing its share in Chinese market and world wide. They still believes that they render an opportunity to become automotive leader once again as it was before.Global ExperienceAlthough General Motors share moderate decline recently but they have capability of becoming leader once again due to vast have it off of almost degree Celsius years. As GM current opportunity is to expand globally and it has got experience to do so.Variety of Brand nameGeneral Motors had been leaders in the past and reason for that is wide variety of quality brand names that differentiate it from other automotive manufacturer. Its current brands include GMC, GM Daewoo, Chevrolet, Pontiac, Saturn, Hummer, Saab, Holden, Buick, Cadillac, Opel, Vauxhall and Wuling.GMAC customer Finance ProgramSince, General Motors Acceptance Corporation establishment in 1919, it has proven to be GMs most reliable source of revenue.On sense impression Satellite technologyStar Satellite technology was developed in1996 with a subscriber of more than 3 million and it is the standard of all GM vehicles. The benefit of this technology is that vehicle can be easily track at the time of emergency or theft. On the other hand, it allows the driver as well as passengers to communicate with On star personnel office just in one click of button.WeaknessBehind on Alternative Energy MovementThis is one of the biggest weaknesses of General Motors. The alternative zilch/hybrid technology has already taken place in the automotive industry and GM has been one s tep behind the competition in frontiers of alternative energy vehicles. As a result, GM go about lots of problem including loss of market shares and fall in company profit. Now days for any automotive company looking for advantage must be Hybrid friendly and fuel efficient.Poor constitutional StructureThis is the second and significant weaknesses of GM. Its organizational structure seems to be too vertically integrated. As a result, there is overleap of communication among top level management and bottom level management and whitethorn have played a part in GM dropping behind on the alternative energy movement.Stagnant ProfitabilityGeneral Motors profit has been certainly falling and they are struggling with respect to the coat of their company. General Motors profit margin was about 1.5 % and the ROE has dramatically fall by dropping to 10 % in 2004. At this situation shareholders are not happy and they are becoming less interested.Fully found on US marketFor any one who is concentrating on one particularr market cant be successful. This is what happened to GMs case, it fully dependent on the US market. It must take advantage of the opportunity to expand globally. Due to high competition, it is becoming too strong to focus on just one country.Over Dependent on General Motors Acceptance Corporation (GMAC) financial backingThe other important weakness of General Motors is that it is too dependent on its financial support program. Although, it is accepted that it is a great strength for GM, however it leave alone be a problem if it solely rely on financing and cant turn profits, in order to compete with Honda and Toyota who are rapidly growing.Poor Credit StatusGMs credit status is steadily declining similar as everything else. It is losing credit in market and amongst the customer. Its current ratio is merely above 1 and its acid test is even lower.Poor strategies and lack of ForesightDue to increase in oil prices, consumers began to turn off f rom SUVs, but still General Motors predicted much of its operating success on its ability to sell newly unpopular vehicles. While companies like Toyota, were concentrating on light vehicle and in improving efficiency where GM fictional sales would continue in future.ALTERNATIVE FORMS OF ORGANISATION DEVELOPMENTorganisational Development is a system which differs from other systems of organizational change by putting stress/focusing on process rather than problems. In fact, change system focuses on identifying problems in an organization and then arduous to alter the behaviour that creates the problem. OD is a methodology intended for use in complex situations to provide intervention strategy for change management. OD finds the behavioural interactions and the pattern that creates or sustain problem. In fact, OD does not change the behaviours, but they focus on creating a behaviourally healthy organization that will automatically solve and prevents the problems. OD generally consid ered long term effort that is of at least one to three years in most cases. In addition, it mostly focuses on combined management where omnibus and workers of different level communicate and unite to solve the problem. OD understands the fact that all organization is different and same solution cant put in every company. The other feature of OD is that it gives importance to group work and small group.The important features of OD programs is the change agent, that is group or individual which makes OD process much easier. Almost all change agent are adviser from outside who are experienced in managing OD programs but sometimes companies may utilize its inside managers. The benefits of consultant from outside are that they provide a different outlook and have a less biased view of the organizations problems and needs. The disadvantage of outside change agents is that its lack an in depth of understanding of main issues mainly one specific organization.