However, capital alone will not save the company, there must be a strategic effort of the management to properly restructure the company to ensure that GM can recover. Such a recover is going to require a very specific Strategic Plan. Such a plan will be detailed thoroughly in the remainder of this report.
Chapter III Strategic Plan
Strategic Plan
Although there is a great deal of negativity surrounding GM and the ability of the company to recover from its current situation, with the proper strategic plan the company can improve its situation. However, to develop an effective strategic plan the company must evaluate its situation and develop a plan that will properly address the situation.
Company Background
GM has existed for just over 100 years. The company, founded in 1908, operates in 34 countries and employs more than 244,000 people. GM manufactures automobiles (trucks and cars). GM's automobiles are sold in 140 countries throughout the world. The company manufactures automobiles under the following brand names: Saab, Buick, Holden, Chevrolet, GM Daewoo, HUMMER, Cadillac, Opel, Pontiac, Saturn, Vauxhall, Wuling and GMC. In the year 2008 the company sold more than 8 million vehicles. America is the largest market for GM. GM also has a significant share of the market in countries such as the United Kingdom, China, Russia, Germany and Canada. In addition, OnStar a GM company, is the leader in the industry as it pertains to security and vehicle safety (Company Profile).
Supporting case studies
GM is not the only automotive company that has experienced times of turmoil or overcome huge obstacles. One such company was Ford. Ford was faced with the challenge of creating a vehicle that would be affordable to a large number of people. This is the same challenge that GM is facing as it attempts to create hybrid./alternative fuel vehicle that is affordable to the masses.
In the case of Ford, Henry Ford wanted to manufacture
"a motor car for the great multitude." He wanted to build a high-quality automobile that would be affordable to everyday people. He believed the way to do this was to manufacture one model in huge quantities. "Ford and his company s engineers designed a car named the Model T. First offered for sale in 1908, the Model T. was produced like other cars -- one vehicle at a time. But the Model T
was more sturdy and powerful than other cars. Considered relatively simple to operate and maintain, the auto offered no factory options, not even a choice of color. The Model T. was also less expensive than most other cars. At an initial
price of $950, 10,000 autos were sold the first year -- more than any other model
("Henry Ford and the Model T")."
So how did Ford accomplish this? Henry Ford and those working with him developed an innovative way of manufacturing cars, known as mass production. Ford's feet was only accomplished because the company dared to be innovative and create a totally new way to manufacturing. This type of innovation is also essential for GM to adapt of it is to recover from its current dire situation.
Analysis and Methodology
For the purposes of this strategic plan the Situation, Target, Path (STP) methodology will be utilized. The first step in this methodology is to evaluate the current situation so that the problems can be properly analyzed and confronted. The second step is to specifically target weakness in the company so that they are handled in an effective way. The third step in this methodology is to develop a path for the future of the company (What is the STP).
Vision and Mission
Vision statement: to be the leading company in automobile manufacture/sells and related services (Vision & Strategy).
Mission statement: The company will continue to the be the global manufacturer of innovative environmentally friendly vehicles.
Quality and Management initiatives
General Motors is committed to the manufacture of quality automobiles. The company's utmost concern in terms of quality is the safety of its products. GM wants drivers and their passengers to be safe when they travel in a GM vehicle. To this end the company has always had a high standard for safety. In fact GM developed a retrofit trunk anti-entrapment system before any other company in the industry. GM was also the first car company to announce the development of an infrared trunk sensor that can detect the presence of human beings and will provoke the horn to sound and the trunk will open automatically (Vision & Strategy).
Also as it pertains to quality management the company has attempted to reduce vehicle emissions. In fact GM was the first automobile company in the Chinas market to put catalytic converters of all automobile manufactured in China (Vision & Strategy). All vehicle manufactured at GM's Shanghai facility contains a catalytic converter that only functions on unleaded fuel (Vision & Strategy).
As it pertains specifically to the company's plants GM is committed to the conservation of resources. In fact GM has established a "non-product output goals,...
General Motors Company, commonly called as GM is one of the largest automobile manufacturers in the world. It is an American multinational corporation headquartered in Detroit, Michigan. It has business operations in more than 157 countries around the Globe. It was founded in 1908 as General Motors Corporation; and renamed as General Motors in 2009. The top brands of the company include Chevrolet, Isuzu, GMC, Jie Fang, Cadillac, Vauxhall, Baojun,
The company's $291 billion in debt has recently been downgraded to below investment grade and it has about $16.5 billion of debt coming due this year (Snide). GM and General Motors Acceptance Corp (GMAC)., the carmaker's finance unit, each have about $23 billion of cash available. In addition, the company had about $50 billion in unused credit facilities at the end of last year. The company must carefully watch
The second decision was implemented and the same treatment would be applied to both Opel and Vauxhall. The first alternative would not have been extremely viable for the simple reason that both German and British manufacturers are subjected to the same environmental features and this means that there is no logic reason as to why they should be treated separately; they both fall under regulations of the European Community,
The crisis affects all aspects of life, but among the most prominent victims of the difficulties was the automobile industry. Once the largest employer of the country, the automobile makers are now closing their plants and sending the workers into unemployment. The aim of this paper was to look at General Motors' microenvironment in light of the crisis and establish if the media coverage of the crisis within the
Although some external players, such as potential new executives, may prefer this plan, there is little evidence that the major stakeholders have interest in major culture change. The third alternative is to place emphasis on operational issues first and foremost. Under terms of its new deal with the UAW, GM will be closing plants and shedding workers, and it is trying to sell off some of its underperforming units (Hummer,
When the sales of all American SUVs began to plummet as the price of fuel escalated, GM was the hardest-hit of all the Detroit-based auto manufactures. In 2006, GM recorded the second-largest loss of any corporation in U.S. history ("General Motors, 2008, Histomobile). On December 21, 1955 it was the first American company to make over one billion dollars in a year ("General Motors," 2008, Histomobile). Today, GM "is feeling
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