Management-General Motors

General Motors Company (GM) is a corporation that constructs designs and sells trucks and cars. General Motors owns eighteen brands of vehicles including GMC, Cadillac, Opel, Chevrolet and many more. The corporate functions in more than 160 states and is one of the major vehicle manufacturers. The SWOT investigation 2013 of General Motors came up with the following strengths: new vision and policy, global existence, robust brand portfolio, strong presence in china, knowledge of home market and 4 well performing brands. There were flaws such as a high cost structure, bureaucratic culture, brand dilution and car recalls. Until 2007, GM was the leading automobile manufacturer in terms of sales.

GM has developed all over the world and is now operational in more than 157 countries. Chevrolet, one of its brands, reached world greatest sales of 4.95 million units in 2012. GM has experienced main changes and reorganized the way it does business. The firm’s managing team got new members with Daniel Akerson as the CEO. Daniel introduced new visions and policies to the business after dropping the bureaucratic organizational structure. Since then GM became cost-reasonable and leaner. To become more competitive, GM designed a strong brand portfolio. Currently, GM is selling 18 different automobile brands to meet the customers’ needs. The most popular brands are Buick, CMC, Cadillac and Chevrolet selling well in China and the United States.

GM has further made virtuous business steps by making its presence strong in China. It is the biggest automotive market in the world and a country whose economy is growing steadily; GM has made its presence felt. In terms of vehicle units sold, China is the second-largest market for GM. The main explanations why GM has a robust position in the automotive market in China are an early entry into China, well-accomplished partnerships and local Buick brand. The company has testified to accrued annual profits since 2010. GM was ranked second on the list with around 8.5 million units produced globally.

GM has good knowledge on their home market and customers. It is the largest car manufacturer in the US, with over 18% market segment. There is need to know the external market since it enables the company to develop better manufacturing skills and a tactical business approach. This has worked for General Motors. Managers can use external cradles in the process of generating information. Creating new knowledge encompasses combining external and interior knowledge in a unique way. Internal knowledge connotes information that a firm has produced within its boundaries. External knowledge alludes to the knowledge of other firms.

Firms attain information and rely on alertness created by other firms for two main motives. First, to create knowledge stereotypically; this comprises of huge costs that are beyond the proficiency of a single association to earn. This is factual in knowledge-concentrated industries. In these businesses, technologies and values change promptly. Firms form combined ventures, planned alliances or networks so that they can group their capitals in their efforts to make new information. Second is that the process of creating and gathering knowledge is never complete. The process continues through the ongoing interactions between organizations and individuals. Firms need to interact with and monitor the environment for sources of external knowledge. There are several costs involved in external knowledge acquisition. For this reason, corporates need to come up with social networks that take time and resources to build and sustain.

In the next five years, General Motors will be focusing on rebuilding its brand and the fundamental business operations. The best-selling brands in the market, Chevrolet, Buick, Cadillac will remain in the business while Saab, Hummer, Saturn will be closed. This decision is however based on the sales and market. Introducing new models and rebranding the old is anticipated to push the interruption point further other than having a positive impact on the bottom line. Hummer is not concordant with the GM’s policy of fuel efficiency and sustainability. The Hummer heightens lifestyle and has additional effects that do not endorse the green initiative. There is need to look at the needs of the present youths and create models that meet their desires. The youth demographic is rapidly increasing. Scientific investigation on the effects of global warming and green technology has pushed businesses across the board to become suitable and ecologically friendly. The consumer and the industry are both being asked to evolve with the environmental initiative. The vehicle industry is getting new products as well as fuel-efficient varieties. These varieties include electric, hybrid, and FLEX automobiles. Environmentally friendly vehicles and fuel-efficient ones are top priority for consumers.

The markets that have emerged such as Eastern Europe, India and China are increasing the buying power per capita. The government of India supports a system that will lead to growth in the business. This comes with the creation of (AMP) and (NATRIP) Automotive Mission Plan and the Automotive Testing and infrastructure project. The financing limitations in the automotive industry are relaxing and automotive brokers are to make their own financing assemblies in the Chinese Government.

A community of practice is a group of people who are in the same profession or share a craft. The group can naturally evolve because of the mutual interests of the members in a particular field. The group can instead be created specifically with the aim of knowledge acquisition that is in line with their field. Members learn from each other by sharing capabilities and information. General Motors can improve their brands by sharing facts with their customers, other automobile industrialists in the market and the knowledgeable stakeholders in the same field. GM is upgrading the machinery used in their automobiles. The company is subtle on fulfilling the needs of the customer. Because of this, GM is thinking of the best brands of vehicles to produce and models that will go in handy with the environment. Global warming is threatening the world today but technology is being advanced to favor man. The vehicles being developed have a low fuel consumption rate. General Motors produces each brand of vehicle with a certain purpose.

The company has to re-establish itself as America’s type. Advertisements and commercials in the US must promote sentiment while laying emphasis on the development in fuel efficiency and sustainability. Rapidly growing countries in the world such as China present a chance for GM to expand their global product and become the center of these new markets. From the most recent expertise, Cadillac announced at the Shanghai Auto Show that it will be adding a propulsion system called Plug-In Hybrid Electric (PHEV). The main purpose of the PHEV system is to double the fuel economy of the conventional powertrain offerings. Chevrolet Malibu is a vehicle based on the Bolt EV concept.

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