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General Motors

General Motors. Environmental Scanning. Economic Factors Business Cycle Consumption Employment. Environmental Scanning. Competitive Factors e ntry and exit strategies competition m arket segments. Environmental Scanning. Geographical Factors h eadquarters warehouse location

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General Motors

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  1. General Motors

  2. Environmental Scanning • Economic Factors • Business Cycle • Consumption • Employment

  3. Environmental Scanning • Competitive Factors • entry and exit strategies • competition • market segments

  4. Environmental Scanning • Geographical Factors • headquarters • warehouse location • foreign markets

  5. Ease of Entry Into the Industry Degree of Rivalry Although there are several competitors within the industry, the traditional powerhouse automobile companies such as GM, Ford, and Chrysler have controlled the market for the past century. There is somewhat of a threat within the industry when considering foreign carmakers such as Toyota, Honda, VW, and Hyundai.

  6. Easy of Entry Into the Industry Threat of Substitutes • As of now, there is not much of a threat, considering the compatibility and convenience of the automobile. Also, there has not been much talk of any type of alternative. • If there were to be a threat to the automobile industry, it would come from one of the following units: Bus, train, watercraft, or airplane. These are the only reasonable threats to the industry.

  7. Ease of Entry Into the Industry Barriers to Entry In order to start an automobile company, a very large amount of capital is needed. Also, considering the age of the industry, the difficulty is only that much higher. Therefore, the barrier of entry is considered “very large”, and almost impossible.

  8. Ease of Entry Into the Industry Buyer Power • With low switching costs, and the ability to buy in large quantities, the buyer power of companies within the industry is considered “very high” • Also, once one unit is produced, the cost of production takes a considerable decrease because the cost of the initial creation of the product is much higher than the units that follow. This also plays favor for the buyer because with the standardization of cars the cost for buyers is considered reasonably low.

  9. Ease of Entry Into the Industry Supplier Power Because of the minimal number of automobile retailers, the supplier power is considered “low”. This results in suppliers being unable to dictate prices and conditions.

  10. Gm Weighted Competitive strength Assessment

  11. Wieght – Indicates significance, overall strength • Quality/Product Performance (weight - .3, GMC – 8) • Technology (weight - .15 GMC – 8) • Cost (weight - .25 GMC – 8) • GMC Overall Strength Rating 7.95 out of 10

  12. Strategic Performance Indicators • Assesments of sucsessbsased off specific performance indicators • Market Share • Sales Growth • Net Profit Margin • Return On Equity

  13. Strategic Performance Indicators

  14. General Motors’ Capability Profile • Managerial Factors • Corporate Social Responsibility • Strategic Analysis • Ability to Meet Changing Technology • Meeting the Competition

  15. General Motors’ Capability Profile • Competitive Factors • Product Strengths • Market Share • Low Costs • Customer Concentration

  16. Organizational Chart GM has moved to a more flatter Organizational structure This aids in having executives be more accountable for their portfolio Mark Reuss head of GM North America “This structure has been developed with as few layers as possible between me, the dealer and the customer.

  17. GM Organizational Structure North America

  18. Assessment of Cultural Elements Founders Beliefs: William Durant Key Executives Style Cohesiveness and Collaboration Consistent communication Degree of Social interaction Opportunity for growth Degree of Innovation

  19. Organizational Life Cycle Phase 1: Initiation establishment of the company by William Durant in 1897. Phase 2: Formalization – demand for the automobile and the establishment of Buick as the flagship Brand Phase 3a: Expansion – Acquiring of other brands to form the Group GM Phase 3b: Coordination- Reengineering of the product and the Business model Phase 4: Globalization: Dealing with new competition and a whole new marketplace

  20. Porter’s Five Forces

  21. GM Blue Ocean Strategy • Four Blue Oceans in GM history • 1924 • Japanese Fuel efficient car • Chrysler Minivan • Electric Car

  22. GM and Great by Choice Empirical Creativity 20 Mile March SMaC Recipe

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