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General Motors Case Study Essay

The general motors case study is one of the most well-known business cases in the world. This paper will explore general motors’ rise to success, their decline, and how they are now finding themselves at a crossroads. General Motors has been around for over 100 years and has created some of the best cars in history. They have also experienced periods where they were struggling financially with slow sales and declining market share in both North America and Europe. The general mills general management team had several different strategies that they could use to help them turn things around, but it was not clear which strategy would be best for them given recent events.

Essay 1

From various perspectives, General Motors has been having a lot of poor turnouts in their operations, as seen by GM’s performance over the last several years. GM’s assets grew from 2002 to 2004, yet revenues barely rose during the same year, and their net remained almost static over the same time frame.

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GMC is facing huge financial challenges, which have caused the firm to issue a junk bond status for its investments. What should GM do about its junk-bond status? To effectively recover market share, GM should implement Related Diversification strategies by producing low-cost and fuel-efficient high-quality vehicles. To have a true cash value, assets and sell some business assets that aren’t performing well. To implement Retrenchment, regroup by cutting costs and assets. The asset that has the highest return should get more attention.

Why has GM deteriorated in terms of competitiveness? Because they didn’t develop new goods or improve their existing ones, GM let its industry dominance slip. They also failed to develop a fresh market for new items by trying to enhance their current models and create cheaper but higher-quality automobiles. They also neglected to expand their market presence in other countries where the market potential is great.

Finally, GM has neglected to pursue horizontal integration, which entails gaining control of or ownership over a rival. This was the method that helped GM achieve significant progress and growth in its early years. To what extent is GM well-equipped to take use of new technologies (e.g., hybrid cars)? In light of some of their antiquated equipment, GM’s position appears to be high in order to take advantage of new technology.

The objective of a GMM is to develop markets by introducing current goods or new services. They also need product improvement, which entails enhancing present goods or developing new ones. This implies that GM must take advantage of cutting-edge technology by building cheaper but high-tech cars in order to regain their competitive edge. To promote liquidity, they’ll have to convert a portion of their assets into cash through a reduced asset scheme.

Essay 2

Introduction

GM is a corporation based in the United States that has its headquarters in Detroit, Michigan. The organization is the world’s largest automakers. The company has operations in 157 countries throughout the world and employs around 210,000 people worldwide (Berger, 2001). Vehicles are manufactured in 31 different nations across the world by General Motors. Vehicle safety, security, and information services are provided by General Motors on its subsidiary, Star (Lawrence, 2008).

General Motors was formed in 1908 as a holding company for Buick. Charles Stewart, the co-founder of General Motors, owned Buick’s carriage business. The firm acquired two firms during the year 1909: Reliance truck and rapid vehicle motor companies of Owosso and Pontiac, both of Michigan. General motors was named the best in terms of sales among all automobile manufacturers throughout the second half of the twentieth century (Bell, 1965).

General Motors Company (GM) is the biggest car manufacturer in the United States. Since its inception, it has achieved great heights. However, in 2010, when it was ranked second globally, company sales dropped significantly. General Motors sells its cars to motor vehicle dealers as well as to fleet customers (Graeme, 2004). Commercial fleet consumers, automotive leasing firms, and governments are examples of fleet customers for General Motors. The United States is one of GM’s most important markets; China , the United Kingdom , Brazil , Germany , Canada , and Italy are also major markets (Alfred, 2004).

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The firm’s subsidiary offers automobile financing services. The United States Department of the Treasury is the company’s parent agency. Purchases of new and used automobiles are made by General Motors Financial Company, which purchases automobile finance contracts from franchised and select independent dealerships. The Department of the Treasury is in charge of the company’s management. General Motors Company is known for being an environmentally friendly business, as it aims to minimize pollution.

The firm endorses the use of renewable energy (Beverly, 2002). The company has established policies and demonstrated a trustworthy website to communicate with the public environmentally. All of the manufacturing by-products generated by the business are recycled. In the automobile industry, General Motors Company has focused on alternative technology cars and ethanol flexible fuel vehicles.

In the mid-nineteenth century, when inventors were discouraged from using steam engines in favor of piston engines, George Redmayne was one the first to use a gas engine. The firm began utilizing turbochargers and V6 engines. It began manufacturing an all-electric automobile. In over 30 years, General Automobiles Company produced America’s first zero-emission car (Maynard, 2003).

Competitors

General Motors Company competes in the automobile sector with other businesses throughout the world, transportation equipment manufacturing, auto component production, financial services, and lending. This is due to general motors’ worldwide presence and variety of goods. Foreign firms are General Motors’ main competition (Maynard, 2003).

Automobiles produced by foreign corporations such as Toyota, Honda, and Nissan dominate the small to big car market owing to their adaptability and lower pricing. Toyota’s successful Prius is a major challenge for General Motors’ Saturn hybrids. Foreign businesses account for more than half of the US automobile market (Alfred 1994).

The automobile businesses compete on a variety of fronts, including price and non-pricing issues. Price competition raises profit margins, whereas non-price competition leads to higher fixed cost and marginal cost. The intense rivalry in the automobile business is due to a dearth of differentiation possibilities (More, 2009).

Automobile manufacturers produce cars, light trucks, or sport utility vehicles. In the recent weeks, significant market share differences have been evident, which is a further indication of rivalry that poses a major threat to profits. The analysis of General Motors Company and its rivals in the automobile business follows (Alfred, 2004).

Communication activities

GM’s large automobile company uses a variety of communication methods to communicate with potential consumers about its goods and services. The business offers tools that distribute corporate success and developments across the world. Communication is an important part of both internal and external audiences’ lives, allowing them to speak out. General motors’ communication consists of four primary areas (Bell, 2003).

Product communications include product exposure strategy in support of engineering, sales, marketing, advanced technology, motor sports, and automobile shows. General Motors’ corporate communications encompass press relations; community and charitable relations; diversity efforts; and financial, labor, and purchasing discussions.

Internal financial and executive communications are another method of GM’s communication utilized in general (Church, 2003). This includes the management of finance issues as well as media relations assistance for senior executives. The fourth sort of communications is operations communications.

It includes everything from logistics such as producing press kits, organizing event planning, and researching communication suppliers to maintaining general motors websites and adopting new technologies. People with prior experience in the news media, automobile companies, and public relations firms have a role in increasing communication at GM.

The role of internal communications staff in generating goodwill and establishing cooperation among stakeholders has changed significantly. Internal communications staff are now able to foster goodwill and cooperation through the use of social media platforms, video, podcasts, blogs, Wikipedia, and other technologies. These new media provide dynamic new lines of communication for the motor vehicle sector (Davidson).

GM Company takes part in social media through company-approved channels. In this example, only employees granted permission by the firm may speak on behalf of the corporation on these platforms. Some GM workers might want to participate in social media on a personal basis and express their own views about general motors or its goods.

General Motors conducted a multi-city road show and an internet road show after emerging from bankruptcy to assist the management in conveying the company’s future return to profitability. It gave executive media interviews once it traded on the stock market again (Vincent, 2004). This helped reach important audiences and guarantee accurate message delivery.

The Company worked with NYSE EuroNext to hold opening bell ceremonies. This entailed leading a procession of GM cars outside the stock exchange. It used online tools to distribute information on its IPO. It conducted internal communications to educate workers about the offering and build confidence in the new firm. The firm hosted an odd staff party at its headquarters in Detroit, which included live entertainment and top executives’ remarks. It engaged directly with dealers and suppliers. To tout its goods, General Motors posted advertisements on all production facilities.

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Automotive dealerships frequently have posters on their windows to advertise their cars. To promote its goods, General Motors employs the above messaging techniques. The company used advertising to boost sales by promoting that the Chevrolet Volt is an electric vehicle. This was found to be a false claim, since when the car’s gasoline engine kicks in during a hard acceleration, it becomes apparent that it is powered by a combustion engine (Farber, 2001).

General Motors ran an ad in which it claimed that its automobiles are environmental beneficial. This was a case of green washing, according to Ralph Nader, a consumer activist. On vehicle safety concerns, Ralph Nader, a consumer advocate, has criticized general motor items particularly the Chevrolet automobile. The company was sued for attempting to deceive Ralph and Robert Kennedy during the trial. At the top management level, the company was charged with corruption, mismanagement, and irresponsibility.

The firm has come under fire for using government money to repay a government loan in order to gain more cash. The company stated that it had returned millions of dollars in government loans, but many people have asked how it did so. The company ran television commercials stating that the firm had repaid the United States and Canadian loans five years ahead of schedule, according to its website. By paying back taxpayers with taxpayer money, the business has been accused of performing an accounting trick.

Conclusion

The General Motors Company is one of the world’s largest businesses. It is a major player in the automobile sector and one of the market leaders in the industry. It is the world’s most significant vehicle manufacturer, making automobiles and trucks. Other car producers, such as Honda, Toyota, Nissan, and Ford Motor Company are competing with it (Pelfrey, 2006).

The business is exposed to a variety of risks, including legal, currency, and interest rate risk, among others. The company is currently utilizing a dangerous technique in attempting to bring its little car, the cruze, to market. General Motors has been attempting to develop new models in order for the firm as a whole to perform better (Roe, 2002).

There’s a chance the firm will combine with another firm in the future, therefore it’s important to begin acting rather than waiting to act. The company has been advertising the production of hybrid cars that are good for the environment. This has aided the company’s sales revenue and public image.

GM has been trying to develop “green” items, and today’s buyers are increasingly purchasing “green” goods. To avoid environmental pollution, General Motors makes use of renewable energy. It has put in place environmental protection policies and maintains an extensive website that informs the public about these issues.

Recycled or reused in the manufacturing process to reduce environmental pollution, the by-product of the business’s production is disposed of. In addition, the firm is undergoing corporate restructuring as part of its three-year debt strategy (Blumenstein, 2007). To improve its financial status, it has implemented a three-year debt reduction plan.

The company’s new plan calls for the closure of several manufacturing facilities, the implementation of significant job cuts, the introduction of fresh automobile lines, and a thorough overhauling of general motors’ overall marketing approach. The marketing plan is important for General Motors to remain competitive in the automobile sector (Krisher, 2007). General Motor s is a major provider of cash donations and kind gifts to charity.

Recommendation

GM, Ford and Toyota must pursue a hybrid vehicle strategy in order to enhance market share. The hybrid business is growing in popularity, and other competitors within the automobile sector are taking notice. This will allow customers to understand that the firm is committed to the environment by emphasizing fuel-efficient vehicles.

To minimize environmental pollution, Toyota should reduce cars and trucks that are not environmentally beneficial. It should also conduct a thorough study of its rivals to enhance efficiency. In order to avoid future gripes, the firm should improve its communication approach. General Motors should also use this opportunity to eliminate non-profitable product lines in order to increase hybrid manufacturing.

General motors must continue to introduce fresh items by utilizing cutting-edge technology in order to survive in the extremely competitive automobile market (Madsen, 2001). Finally, top management at general motors should be reviewed on a regular basis in order to avoid the firm from going bankrupt once more.

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Essay 3

GM, the largest automobile producer in the world, is a corporation headquartered in Detroit, Michigan that was founded 100 years ago and remains one of the most profitable companies on Earth. Throughout its century-long history, GM has developed more than 400 million vehicles and continues to expand throughout various locations around the world. To satisfy customers all over the world, the company has been expanding sales, acquiring other brands, and implementing new goods and technology.

GM liquidates in bankruptcy protection in 2009, after which the company continues to restructure its management, refocus its core business, which are GMC, Cadillac, Buick, and Chevrolet. This automobile portfolio allows GM to generate a significant amount of recurring revenue and helps the business develop and expand market shares in the foreseeable future.

The automotive industry has reached the maturity phase based on time, sales, and earnings, as well as projected future growth, according to Forte Consultant (2016). These criteria provide GM with critical insights into how it should continue and develop in the market. GM, on the other hand, has refocused its efforts on its core portfolio, including GMC, Chevrolet, and Cadillac, which it uses to compete in the market. The firm re-engineers and increases fuel efficiency in their cars (Forte Consultant).

Essay 4

GM, or General Motors, is an American automobile company based in Detroit that produces automobiles. GM was founded by William Durant in 1908. In the early 20th century, GM followed a strategy of “a car for every purse and purpose,” making several advances to the vehicle.

GM’s rise to dominance was aided by the company’s ability to successfully synthesize engine technology, design and develop powerful vehicles, and integrate all of these factors with its high level of supplier collaboration. GM was able to further improve on its original milestone in terms of performance and fuel efficiency thanks to the introduction of smaller engines with improved refinement, power, and torque.

Later on, environmental concerns, higher oil prices, and foreign competition necessitated that GM innovate even more , bringing about engines that could run on unleaded gasoline cars with air bags as well as emission-reducing technologies. Despite these advancements, though, GM’s market position began to deteriorate when Japanese and German cars were.

Despite this, GM continued to develop. The Chevrolet Volt concept, for example, was one of the inventive vehicles released by the firm. However, the 2008 recession, which resulted in a credit crunch, was harsh on GM, which required immediate working capital. It was able to obtain a loan from the government on condition that it accelerate severe cost-cutting actions.

In 2009, General Motors filed for bankruptcy and a new, leaner General Motors Company was formed to acquire its most valuable assets. Today, GM sells vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang (Jiang), Opel (Omega), Vauxhall (Buick) and Wuling brands across the world. The extent of GM’s operations is unrivaled. It has more than 200,000 employees in nearly 400 locations across six continents. In addition to that, GM has 21 thousand dealers throughout the world as part of its distribution network.

GM posted a $2.8 billion net loss in 2013, down from $3.7 billion the year before. GM’s performance compared to those of its competitors and the economy more generally is an important indicator of whether it effectively tapped into its internal resources. As can be seen in the graph below, GM has consistently underperformed industry and stock market indices. The automobile business has long been the domain of General Motors, which began with its innovative engines and vehicles. However, as its size increased, it was unable to take use of its internal milieu and develop products that provided a compelling value proposition to consumers.

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General Motors Case Study Essay. (2021, Nov 15). Retrieved December 8, 2021, from https://essayscollector.com/examples/general-motors-case-study-essay/