Download - Genral Motors
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Analysis of the challenge faced by the multinational
organization, in maintaining, growing or divesting its business.
(as per requirement of the EBM 587)
To make audience aware of the General Motors (Management
style, marketing strategies, distribution network etc.)
Objective of the presentation:
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Brand of the company
Baric
GMC
Chevrolet
Cadillac
Daewoo
Holden
Isuzu
Jiefang Opel
Vauxhall and Wuling
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Vision of the company
GMs vision is to be the world leader in transportation
products and related services. We will earn our
customers enthusiasm through continuousimprovement driven by the integrity, teamwork, and
innovation of GM people."
Mission of the company
"G.M. is a multinational corporation engaged in sociallyresponsible operations, worldwide. It is dedicated to
provide products and services of such quality thatour customers will receive superior value while ouremployees and business partners will share in oursuccess and our stock-holders will receive a
sustained superior return on their investment."
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General Motors Slogan
"People in motion."
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General Motor Company in different
continental
1. North America
GM is primarily focusing on Chevrolet, Cadillac, Buick, andGMC in North America which are its core brand.
2. Asia
The Buick brand has a strong market in China. In 2004, the Cadillac brand and Chevrolet in 2005 were
exported to China.
GM and the Chinese company SAIC had a joint venture onMarch 25, 1997 and the company manufactured the
vehicles locally in Shanghai. But the Shanghai GM plant officially opened on December
15, 1998 and the first Chinese-built Buick came off theassembly line.
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The sales were increased by GM in China in March2010 by 68 percent to 230,048 vehicles. Besides, GMincreased the sales in U.S. by 22%. And it was noticedthat the company would be able to sell more than 2
million vehicles in China in 2010.3. Africa
In 1920, General Motors was established in Egypt withthe purpose of assembling the cars and light pickuptrucks for the local market.
At about the mid of 1950, the GM withdrew from theEgyptian market. But the year later, the GhabbourBrothers, till 1990, started to assemble Cadillac,Chevrolet and Buick models.
The General Motors Egypt was founded in 1983 by GMand Al-Monsour Automotive Company.
It is currently only the manufacturer of traditional GMbranded vehicles in Egypt.
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List of countries by motor vehicle
production
13,790,994,29%
7,934,516, 17%
5,711,823, 12%
5,209,857, 11%
3,512,916, 7%
3,182,617, 7%
2,632,694, 5%
2,170,078, 5%
2,049,762, 4% 1,557,290, 3%
China Japan United States
Germany South Korea Brazil
India Spain France
Mexico
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Series1
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Global sales of GM (2008)
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2,981,000, 46%
1,095,000, 17%
549,000, 8%
384,000, 6%
359,000, 6%
338,000,
5%
300,000, 5%
212,000, 3%133,000, 2%
117,000,
2%
United States China Brazil
United Kingdom Canada Russia
Germany Mexico Australia
South Korea
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Series1
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Model of Chevrolet available in market
Chevrolet Beat
Chevrolet Spark
Chevrolet Aveo U-VA
Chevrolet Cruze LT
Chevrolet Captiva LTZ AT
Chevrolet Tavera
Chevorlet Optra
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Pricing Chevrolet Beat
Chevrolet Beat 1200 CC Available Models: 1.2 PS 1.2 LS 1.2 LT 1.2 LTOptions NRs 1,840,000
Chevrolet SparkChevrolet Spark Available Models: 1.0 1.0 PS 1.0 LS 1.0 LT
NRs 1,650,000
Chevrolet Aveo U-VA
Chevrolet Aveo U-VA Available Options: Aveo U-VA 1.2 Aveo U-VA 1.2LS Aveo U-VA 1.2 LT NRs1, 895,000
Chevrolet Cruze LT
Chevrolet Cruze Available in : LT LTZ MT LTZ AT NRs 4,500,000
Chevrolet Captiva LTZ AT
Chevrolet Captiva LTZ AT NRs 5,900,000
Chevrolet Tavera
Chevrolet Tavera Available in: Basic A/c and Heater A/c,Heater and Powersteering Triple A/c, Heater, Power steering and Window(9 Seater) TripleA/c, Heater, Power steering and Window(7 Seater) Full Option(7 Seater)Full Option(8 Seater) NRs 2,520,000
Chevorlet Optra
Chevorlet Optra Available in: 2.0 Max TCDi 2.0 LS TCDi 2.0 LT TCDi 1.8LS 1.8 LT NRs 3,520,000
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Chevrolet promise
Models Maximum Maintenance Cost for 3 yrs(or 45,000 kms - whichever is earlier from date of vehicle delivery)
Spark Rs. 15,999
Beat Rs. 16,499
Aveo U-VA Rs. 16,999
Aveo Rs. 20,499
Optra Magnum(Petrol) Rs. 21,999
Optra Magnum(Diesel) Rs. 32,499
Cruze Rs. 41,999
In case the cost exceeds this amount, you canclaim a full refund of the difference.
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Environmental Analysis
GM and the entire auto industry are currently
challenged with the perfect storm. The auto
industry is being hit by a weak US and global
economy, rising fuel prices, and social andpolitical environmental concerns and issues. In
order to overcome these potential threat, GM
should consider mass producing a range ofalternative fueled vehicles, i.e. fuel cell,
electric, and hybrid.
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Competitors Analysis
The major competitors of General Motors are
domestic companies like Damiler Chrysler &
Ford
Motor and foreign companies like Toyota
Motor & Honda Motor
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Total motor vehicle production by
volume
7,234,439, 17%
6,459,053, 15%
6,054,829, 14%
4,685,394, 11%
4,645,776, 11%
3,042,311, 7%
3,012,637, 7%
2,744,562, 6%
2,460,222, 6%2,387,537, 6%
Toyota GM Volkswagen Ford Hyundai Kia
PSA Honda Nissan Fiat Suzuki
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Series1
SWOT A l i
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SWOT Analysis Strengths
1. Large Market Share
Although GM's market share in the US has dropped it is still very much competitive
at 26 percent. They also have an increasing share in the Chinese market.
2. Global Experience
3. Variety of Brand Names
GM has been the automotive leader for the majority of the last century.
A reason for that is the wide variety of quality brand names that appeal to all target
markets. The current GM brands include: Chevrolet, GMC, Cadillac, Buick,Pontiac, Saturn, Hummer, Saab, Daewoo, Opel, and Holden.
4. GMAC(General Motors Acceptance Corporation)Customer Financing Program
Since its establishment in 1919 it has proven to be GM's most reliable source of
revenue.
5. On Star Satellite Technology Developed in 1996 On Star currently has over 3 million subscribers and is standard
on all GM vehicles.
This technology allows the vehicles to be tracked in the event of an emergency or
theft.
It also allows the driver and or passengers the ability to communicate with On Star
personnel at the click of a button.
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weakness
1. Behind on Alternative Energy Movement
2. Poor Organizational Structure
GM's organizational structure seems to be
too vertically integrated .
lack of communication between
employees from top to bottom and may
have played a part in GM falling behind on
the alternative energy movement.
3. Overly Dependent on US market GM has become too dependent on the US
market and must take advantage of the
opportunity to
expand globally. The competition is
becoming too strong to focus on just one
country.
4. Overly Dependent on General Motors
Acceptance Corporation(GMAC)
Financing
GM has become too dependent on its
financing program.
Opportunities
1. Alternative Energy Movement
Hybrid technology is still verymuch new giving GM the
opportunity to once againbecome the automotiveindustry's leader in innovationand technology.
2. Continuing to Expand Globally.
Recently GM saw an increase inthe Chinese automotive market.
If GM can infiltrate these marketsand successfully grow along withtheir continuing focus on the USmarket they will be headed in a
positive direction.3. Develop New Vehicle Styles and
Models
GM should be attempting todevelop the automotive world's
most popular vehicles.
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Threats1. Rising Fuel Prices
With GM being a large producer in both trucks and SUV's, sales have drastically decreased due tothe lack of fuel efficiency.
The rise in fuel prices has played a significant role in creating the opportunity for development ofboth hybrid and more fuel efficient vehicles.
2. Growth of Competitors
Toyota took the first step in the direction of hybrid technology and has since drastically grown andbecome the questionable automotive frontrunner to start the 21st century.
3. Pension Payouts.Part of this threat is their own doing and is simply unavoidable. GM is responsible for providinggenerous pension benefits to its employees, which at the time seemed like a great idea, howeverthey are now experiencing problems as more and more people begin to collect.
4. Increased Health Care Costs
GM, like many large companies with quality employee health care benefits, is experiencing a large
financial hit that only gets worse as time continues.
5. Rising Supply Costs, i.e. Steel
this threat affects the entire automotive industry and forces each company to cut manufacturingand production costs as much as possible, without taking away from the quality of the product.
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Porters Five-Forces Analysis
The competitive structure of an industry is
another important component of identifyingfactors that are a threat to diminish profitability.
Michael Porter's five-force analysis.
(1) rivalry between existing competitors,
(2) threat of entry by new competitors,
(3) price pressure from substitute orcomplementary products,
(4) bargaining power of buyers,
(5) bargaining power of suppliers
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Five forces Analysis
Force Threat to profit
Internal rivalry Strong
Entry Weak
Substitutes and complements Weak to moderate
Buyer power Weak
Supplier power strong
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Core Competence
The core competence of General Motors is innovation.
In 1911, it conceptualized engineered andcommercialized the self-starter engine for the firsttime.
In 1926, its product Cadillac was the pioneer in
devising a nationwide service strategy. In 1996 General Motors introduced On Star satellite
technology.
Other new car concepts include mini cars such asChevy Aveo.
However in the case of hybrid vehicles, General Motorswas unable to keep up to the pace of the marketdemand
Fi i l R l
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Financial Results
Based on the GMs consolidate net sales and revenue, it shown thatGeneral Motor Corporation revenue has been falling to $ 192.6
billion in 2007 from 193.5 billion in 2004. GM incurred aconsolidated net loss in 2007 of $ 10.6 billion, compared to netincome of $ 2.8 billion in 2004.
In the last 1990s, GM had regained market share up $ 80 a share.
In 2000, the interest went up by the Federal Reserve to quell the
stock market and a severe stock market decline following theSeptember 11, 2001 attacks. Due to this factor, it affected a pensionand benefit crisis at General motors and many other Americancompanies.
The current stock market price of General Motor sare fallingbetween $28- $29 per share. It has been falling down gradually in
the past six years General Motors North America market share in2007 fell to 25.5% compared to 26.7 in 2004.Decreased in marketshare also due to sales declines in segment where GM has highvolume such as large, sport, utilities, mid-sized, utilities, and mid-sized cars.
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Product Mix (General Motors):
Product Item
Product Line
General Motors
Different brands
People in motion
Product
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RecognizationsBusiness Standard Motoring Import Car of the year
2009
Best SUV(2009)
UV of the year2009
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GM - CSR INITIATIVES
Be Someone Special. Be a Blood Donor
Walking for a Cause
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Suggested Strategies
1. Market Development2. Market Penetration
3. Product
Development
4. Restructuring
5. Retrenchment
6. Liquidation
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Bibliographic References:
http://pricenepal.com/22-chevrolet
http://www.google.co.in/#q=advertisement+o
f+general+motors&
http://wikicars.org/en/List_of_Manufacturers
http://carblog.classifieds1000.com/top_auto
makers_for_2009
http://www.chevrolet.co.in/content_data/AP
/IN/en/GBPIN/001/coo-index.html
http://pricenepal.com/22-chevrolethttp://www.google.co.in/http://www.google.co.in/http://wikicars.org/en/List_of_Manufacturershttp://carblog.classifieds1000.com/top_automakers_for_2009http://carblog.classifieds1000.com/top_automakers_for_2009http://www.chevrolet.co.in/content_data/AP/IN/en/GBPIN/001/coo-index.htmlhttp://www.chevrolet.co.in/content_data/AP/IN/en/GBPIN/001/coo-index.htmlhttp://www.chevrolet.co.in/content_data/AP/IN/en/GBPIN/001/coo-index.htmlhttp://www.chevrolet.co.in/content_data/AP/IN/en/GBPIN/001/coo-index.htmlhttp://www.chevrolet.co.in/content_data/AP/IN/en/GBPIN/001/coo-index.htmlhttp://www.chevrolet.co.in/content_data/AP/IN/en/GBPIN/001/coo-index.htmlhttp://carblog.classifieds1000.com/top_automakers_for_2009http://carblog.classifieds1000.com/top_automakers_for_2009http://wikicars.org/en/List_of_Manufacturershttp://www.google.co.in/http://www.google.co.in/http://pricenepal.com/22-chevrolethttp://pricenepal.com/22-chevrolethttp://pricenepal.com/22-chevrolet