This paper seeks to compare the quality of Toyota Corporation’s and General Motors’ mission statements, determine whether the goals set out in each statement could be defined as well as assist managers make strategic judgments, assess if there is a need for improvement, and analyze the vision statements of the two firms.
Mission Statements of the Two Companies. Mission Statement of Toyota Corporation
Toyota Corporation is one of the most successful car manufacturers in the world, yet its corporate goal appears to be rather basic than many other multinational businesses; to illustrate, according to Toyota (2012), Toyota’s aim is to attract and satisfy customers with high-valued goods and services while providing them with the most pleasurable ownership experience in America.
Mission Statement of GM
Prices start at $12
Prices start at $11
Prices start at $12
It’s worth noting that GM has a long and detailed purpose statement, with General Motors (2012) saying that its goal is a summary of the firm’s major feature, as well as a basic business description and fundamental principles. Specifically, General Motor is defined as a multinational corporation engaged in socially responsible operations across the world.
Furthermore, General Motor has prioritized the creation of a mission statement that reflects the company’s values and ethical standards. As a result, it promises to provide vehicles of such high quality that customers will get more value for their money, workers and partners will celebrate success together, and shareholders would get long-term benefits.
Comparisons on the Quality of Each Mission Statement
The Toyota Motor mission statement is quite basic, and it’s a short summary of what the company believes about running a client-focused business. It allows a user to grasp the corporation’s major goal quickly and effectively, as well as providing a clear yet important corporate outlook.
The mission statement of General Motors, on the other hand, is quite comprehensive and detailed, and it captures GM’s main features, key corporate issues, and critical standards and policies in a nutshell. It’s worth noting that GM has attempted to produce a mission statement that would make it easier for customers to understand and learn about the firm succinctly.
Mission Statements in Defining the Firms and Making Strategic Decisions
GM’s mission statements provide further insight into the corporation. GM has a better defined business and approach for running operations based on its goals. While operating, GM emphasizes and ensures that it is socially responsible internationally, aligned with its principles and ethics, and devoted to enhancing customer value and quality.
In contrast, vague wording in the objective statement of Toyota Corporation implies that it has some gaps in defining a huge company; nevertheless, its customer-centric operations indicate that it is committed to attracting and engaging clients with premium goods in strategic decision-making.
Need For Improvement
It is critical for General Motors to update its mission statement in order to save customers time, but the fundamental idea of the statement may stay the same. On the other hand, Toyota should strive to expand the company’s description and let people know about it a little more thoroughly.
Vision Statements of the Two Companies. Vision Statement of GM
General Motors’ mission statement is simple: the firm’s aim is to produce, develop, and trade the finest automobiles on Earth.
Vision Statement of Toyota Corporation
Toyota Corporation (2012) said that the company’s mission is to be the most successful and renowned automobile business in America; however, its plans include a significant emphasis on CSR and environmental issues. Its ambitions, however, are more focused on social responsibility.
Whether the Companies are Heading in the Same Direction
Both Toyota and Hyundai have several similar ambitions, which are expressed through their mission and vision statements, yet it appears they are heading in two different directions when it comes to operational management.
SWOT Analysis of GM. Strengths
The firm has operations in 157 countries and a commanding presence in North America, as The Wall Street Journal reported that GM is the highest ranking among vehicle sales in the US market because it sold 232,538 vehicles in 2010/2011. However, the subsequent graph shows additional data. This business still maintains a large global automotive industry presence, with above 209,000 skilled workers to manage the company during tough economic times.
GM’s market share has decreased dramatically since 1990, and it has lost a significant amount of market share in the United States, for example, its market share fell about 35.50 percent to 18.80% in this zone; therefore, GM’s performance in the stock market is inadequate, and the following graph shows where this firm stands in the stock market. The majority of automobile manufacturing companies change their vehicle models on a regular basis, but GM does not pay attention to this issue even if it hasn’t altered its approach to introduce new goods like environmentally friendly items.
A joint venture with local businesses or huge multinational corporations, for example, may help GM to improve profit margin and market share in the global market by allowing it to develop hybrid technology and offer new vehicle types and models targeted at specific markets. The purchasing power of the customers is one of the most significant components when selecting a car model; therefore, GM has room to alter its approach in order to increase financial success by offering low-cost products in high-density areas like India and China.
One of the key risks for GM is intense competition among market participants in the automobile sector, as Toyota, Honda, Ford, and Nissan have rapidly gained a large share of the worldwide car industry. The following graph compares GM’s position to that of other direct competitors.
The demand for GM vehicles for high fuel usage rates, as well as the high costs of running the firm due to oil price volatility, have caused significant problems for businesses in this sector.
The Way GM Responds to the Issue of Social Responsibility
From the start, GM has focused on corporate social responsibility and taken numerous steps to improve the product and protect the environment, for example, in 1968 it established the first diversity initiative, and in 1997 it adopted Sullivan Principles.
However, the main goal of this organization was to reduce carbon emissions, enhance road safety, improve values and profits through CSR compliance; as a consequence, GM’s management has funded several initiatives that focused on risk alleviation, social awareness development and public health protection (General Motors, 2011).
Kinds of Activities
General Motors, for example, has launched the use of E85 ethanol in its vehicles. The firm’s overall water reduction is 35%, and it has developed new brands like E85 FlexFuel and LaCrosse with eAssist to contribute about $68 million to charity (General Motors, 2011).
Whether GM’s Activities are Appropriate or Not
GM has also taken a number of measures, for example, it created the largest brand “Chevrolet” and invested $40 million in various carbon offsetting projects, indicating that it is dedicated to producing high-quality green technology goods that are safe and healthy.
The company’s financial position and shareholder interests were cited by the Gelman et al. (2011) paper as reasons why carbon offsetting initiatives were a poor investment for this firm, but the GM’s activities are in line with profit maximization, which should not be interpreted as one of the company’s principles.
“GM today: A Driving Vision Our unwavering dedication to earning lifelong customers has resulted in a strong financial position and world-class products that are winning in the market”(General motors). On September 16, 1908, William “Billy” Durant founded General Motors. GM was originally set up as a holding company for Buick. Even though GM had aircraft throughout the 1930s; their primary focus was on motorized vehicles. Later, GM became one of the largest automobile producers in the United States. In reality, GM maintains a headquarters in Detroit with over 212,000 workers (GM).
Nonetheless, in 2005, GM began to collapse, which had a detrimental influence on employees and their benefits. According to Chris Woodyard’s article published in USA Today called GM Bailout Played Over 5 Years, assistance was on the way. He discussed how the Bush Administration intended to assist the Detroit automobile industry by providing a bailout for General Motors and Chrysler Group (Chris Woodyard, 2013).
Despite the Bush and Obama administrations’ assistance, General Motors filed bankruptcy on June 1, 2009. According to James R Healey in his recent article for US Today called GM to buy back $5 billion in shares by end of 2016, General Motors is now showing signs of recovery. “General Motors stated this morning that they will repurchase $5 billion in GM shares by the end of 2016,” he wrote.
G.M.’s mission statement, on the other hand, is more narrow and vague, with much of it focused on customer satisfaction. The primary objective of Tata motors’ mission statement is to satisfy clients. G.M.’s mission statement not only focuses on customers but also investors, workers, and business partners in order to achieve their goals. Companies establish strategies and business models based on their mission statements because they define the objectives of businesses.
To suit the needs of Indian customers, Tata has paid attention to the road structure and conditions in order to develop vehicles that are easier to drive, such as the Nano is a tiny vehicle with – wheels for sharp turns and a small form. Because of its tiny design, it can be seen that the company is customer-focused. Furthermore, since most Indians are middle-income, Tata Motors has implemented a Low Cost Strategy in order to appeal to price-conscious buyers.
Furthermore, the acquisition of Jaguar and Land Rover from Ford has allowed Tata to expand its horizons and target other sectors of society. Furthermore, when discussing global recognition, the firm mentioned establishing itself firmly in India before expanding its roots to foreign countries by establishing dealerships in 26 nations across four continents.
In a nutshell, the G.M.M. mission statement refers to socially responsible operations and stating as a goal that they have begun working toward eco-friendly greener automobiles like the Chevrolet Volt, which has been created to travel about 40 million miles on electricity instead of 4.1 million gallons of gasoline. It has also set up 110 landfill-free facilities for recycling and converting waste into energy in order to help the environment. At this time, however, GM is far more cost efficient since it produces where it wishes to sell, resulting in lower costs.
G.M.’s strategy is to diversify into different businesses that may be more lucrative than the auto sector, including technology and logistics companies. G.M also has a large presence in China because of its alliance with SAIC which was founded in 1990 by Li Shufu, who now owns around 80% of the company’s shares after buying out his old partners at a much lower price. In other words, Li Shufu now controls virtually everything about GM – from day-to-day operations to product planning and design decisions – as well as getting an interest in up to 20% of all outstanding shares during bankruptcy proceedings.GM is a multinational corporation that has dealers and factories in the following regions: Oceania, Africa, Europe, South America, and North America. G.M also invests in market securities and bond portfolios to reduce its liability.
“GM’s aim is to be the world leader in transportation-related products and services. We will win our clients’ confidence through continuous improvement driven by the honesty, collaboration, and innovation of GM people.” “G.M. is a multinational corporation that operates in a socially responsible way across the world. It aims to provide goods and services of such high quality that customers will obtain excellent value while employees and business partners will share in our success, allowing stockholders to receive a better return on their investment.”
“It’s crucial to understand what is and isn’t your business.” —Gertrude Stein. I utilize this quotation from Gertrude Stein because reading, talking, analyzing, and explaining the goal and mission of a huge firm helps you comprehend not just what they provide to their clients but also what they may communicate with their workers and families. But why is it necessary for a company to have a vision and objective?
A clear and precise Vision of the firm gives an insight into what your company is all about. The organization’s Values are defined by establishing the fundamental concepts behind how you plan to achieve your Vision. Without Values in place, the business will be unable to make sound and forward-thinking decisions based on long-term success. To succeed, leaders must be willing to act as walking, talking embodiments of the company’s Vision and Values.
The Leader should next write a Mission Statement based on the organization’s principles. A leader should write a mission statement to provide a directional light that guides company strategies. The mission statement’s goal is to provide a guidance line for business decisions. Leadership can use an accurate definition of the mission to identify the Unifying Goals, which will inevitably bring strategic factions together in a comprehensive, progressive solution.