General Motors Analysis I. Executive Summary II. Company Overview and History III. Analysis of External Environment a. Analysis of the General Environment b. Analysis of the Competitive Environment i. Dominant Economic Characteristics of the Industry Environment 1. Market size and growth rate 2. Number and sizes of competitors 3. Stage in the industry life cycle ii. Strategic Group Analysis 1. Strategic Group Maps a. Identify Primary Competitors b. Identify Potential New Entrants iii. Five Forces Analysis (relevant to strategic group) …show more content…
This recession hits home with the automobile industry. During this current recession GM is facing the possibility of bankruptcy, but is hoping to be helped out by the government. History I. Analysis of External Environment a. Analysis of the General Environment One driving force of change is technology. The automobile industry is constantly focusing on technology in order to make themselves and their cars better. They constantly compete to be the “first” one to have the newest and best idea. One of these ideas is an electric vehicle. GM, Ford, and Toyota all have electric automobiles. GM has the Chevy Volt. Volt One of Ford’s electric cars is the Electric Ranger. Ranger Toyota had the Rav4 EV, but due to discouraging sales it stopped production. “Toyota remains committed to developing an "Eco Vehicle," one that will have a minimal impact on the environment.” Rav4 One purpose of the electric automobiles is to have the ability to drive to work using only electricity. Currently during longer trips you would have to use a combination of electric and gasoline power. Electric Car Another area of technology that the automobile industry is working on is fuel cells. Even though it is predicted that automobiles using fuel cells will not be released until 2010, Fuel Cell Vehicles (FCV), may be the next revolutionary idea in automobiles. FCVs reflect a completely new way of thinking about automobiles. FCVs use electric
The United States of America is one of the biggest automobile markets in the world. This trend has also created awareness for environmentalist to bring attention to rising level of pollution and emission within the cities and metropolis. As response, the U.S. Government is encouraging the automobile manufacturers to produce clean and renewable alternative vehicles that will drastically reduce pollution and emission. Subsequently, the automobile industry has witnessed a gradual introduction of environmental friendly vehicles that use clean and renewable energy to encourage less pollution and safer environment. The manufactures of these vehicles have introduced into the market three categories of electric passenger car
The goal of this consulting report is to analyze the strategy for General Motors. To start, a five forces analysis of the automobile industry was conducted. The five forces include the following factors: competition among rivals, threat of new entrants, supplier power, buyer power, threat of substitutes, and role of complements. Understanding the influence of each of these factors provides insight into the attractiveness of the automobile industry. Such an understanding is necessary for an effective critique of General Motors’ strategy for the future.
General Motors incorporates entrepreneurship and innovation into its business objectives. This is evident in General Motors Vision statement which states that its goal is to “lead in advanced technologies and quality by creating the world’s best vehicles”. (1) For instance General Motors has an extensive R & D, Design, and Engineering department that oversees the creativity, innovation, and invention of its strategic technologies and innovation programs which are aligned with its corporate vision. In order to lead in advanced technologies of the world’s best vehicles General Motors incorporates entrepreneurship and innovation concepts, which are essential to competing in the global market place.(2) In the spirit of entrepreneurship, which
Electric vehicles should be big a consideration for the world. Our planet is suffering a lot due to climate change. It’s caused by burning fossil fuel and releasing its gas into the air and most cars today run on fossil fuel and it’s damaging our planet. Electric cars are clean energy vehicles, meaning it doesn’t damage the world. This is the main reason while society needs to consider manufacturing more electric cars and make them affordable and more well known. If a big part of the world’s population used electric cars instead of cars that runs of gas, it would be very beneficial to the world. But even with this huge benefit that
General Motors was once a back bone of American economy. It was one of those organizations who were the driving force of American automotive industry single handedly. But like any other enterprise, it has its strengths and weaknesses. Global presence with an impeccable distribution system which ensures a highest reach out couple with strong research and development gives it a competitive edge over its rivals however it has also borne its share of trouble mainly caused by recession. But now that market is picking up again, GM is also showing steady growth.
I recently read a nonfiction science book by Jill C. Wheeler called Alternative Cars. Many people don’t know this but electric cars were invented before gas powered cars, The first practical electric car was invented in 1884 while the gas car was invented in 1885 by Karl Benz. Cars were owned only by the rich back then and electric cars were considered ladies cars because you didn’t need to crank the engine to start it and it went much slower with a very small amount of power. Electric cars soon became rare when Henry Ford came out with the Ford Model T, which sold over 15 million cars between 1908 and 1927. Electric cars were so expensive compared to the mass produced Model T that they ceased production. The idea of electric cars came back again in the 1960s after a severe decrease in petroleum. Around this time many people became worried about pollution and sought cars with better gas millage which produced less CO2. In 1996 General Motors (GM) Mass produced an electric car they named the EV1, it became popular because it was inexpensive compared to the previous cars made. In 2004 GM gave in to the oil companies pressure to stop production and blamed their lack of consumers who wanted their product. In 2006 Tesla Motors came out with the lightweight, fast, and sporty Tesla Roadster. This was not
There are new technologies in automotives out there now. For example, there is the electric car. The only problem with this is that the car needs to be plugged in and can only run for four to six hours at a time, making it hard for long distance travel. Another example is a vehicle that uses a combination of a gasoline and electric engines. They call it a hybrid electric vehicle (HEV). This particular vehicle used no gas while idling and the gasoline engine turns off while the vehicle is stopped. As a result, this vehicle uses less gasoline and the tank lasts longer. The electric motor boosts acceleration so not as much gasoline is used. The HEV has a regenerative braking system that recharges the battery. This vehicle emits half of what an ultra low emission vehicle does, so is much better for the environment. It is already possible that by the year 2003 this type of vehicle will cost less because of various state and national tax incentive plans to lower the cost significantly. This has already been accepted in Maryland
The General Motors (GM) Foundation was fashioned in 1976 with a purpose to support and strengthen communities across the country. However in the past year GM has decided to take the foundation in a new direction renaming it GM Philanthropy and Corporate Giving but the transition will not take place until the end of calendar year 2016 (Cain, 2016). The foundation focuses on donating money to projects in the areas of sustainability, STEM education, safety, and to teamGM Cares which is comprised of employees who give time to volunteer in the communities where GM operates (General motors, 2016). “In the last decade alone, the GM Foundation has provided more than $261 million in grants to American charities, educational organizations and to disaster relief efforts worldwide,” reports the foundation’s parent company, General Motors (General motors, 2016). All funding for the GM Foundation is provided by General Motors unless in cases where the foundation matches donations given by its employees. After recently pushing the foundation to expand its philanthropic reach, General Motors names Jackie Parker as the director, global philanthropy and corporate giving who has the daily tasks of accepting grant applications, selecting which grants fall under the foundation’s purpose, and seeing through all projects that are taken on by the organization (Welch, 2015). Although the Foundation has seen many great successes in recent years this has not always been the case as
So we all know that cars use gasoline right? And when cars use gasoline, they create carbon dioxide which increases global warming. But when you hear about the idea of electric cars, you would be excited and you wanted to order one instantly. You were ready to abandon your old cars and soon you will be slashing your carbon footprint into that sexy new vintage Tesla Model S. But if you are selling that old car you have had for years to buy the new Tesla, all you really are doing is just buying a bright shiny eco-friendly car. Yes, it may be the new trend of the next generation, but it still has its downsides. Usually, the companies who make electric cars like to market them as the greenest object known to mankind. Yet that message they are sending
Through my research question, I hope to learn whether electric vehicles make a big enough difference to help our environment. I also want to explore why we have not gone entirely electric and specific reasons as to why people are afraid of change. People find switching to an electric vehicle to be a huge lifestyle change.
The Ford Model T, the world’s first mass produced car. It was a breakthrough in transportation. See, back then, everybody thought that we had unlimited fossil fuels such as gasoline. Then, more recently, scientists discovered that we did indeed have limited resources, they also started to notice the polluted emissions of cars. As the demand for more fuel efficient and more eco friendly cars rose, car companies such as GM, Toyota, as well Mitsubishi invested millions in developing fully electric cars. But, for this research, we will be using Tesla Motors as our model standard. Electric cars are now more popular than ever and now they have been mass produced long enough that we are now finally seeing their long term footprint on the environment, and the results are surprising. Electric cars don’t have an eco footprint as good as many people thought due to how they are produced, how they get their electric power as well as their recyclability-or lack thereof.
One of the most serious problems that GM faces is when the firm announced a $10.6 billion loss, which was their first in 12 years. The auditors for General Motors even thought that the firm’s survival was in substantial doubt even if they received the additional $30 billion they were going to borrow from the federal government. The problems have grown as a result of mistakes by GM’s management over the last 30 years. They built up a bloated bureaucracy that supplied boring, low-quality cars for many years. GM will also lose leadership of the United States market, having already been replaced by Toyota as the world’s largest automaker. GM has been burdened with a high cost structure
Because of environmental concerns and competition companies spend and must continue to spend considerable time and resources on research and development. There are several technologies that the auto industry could adopt in the next half century. One possibility is that new fuels and engines will be developed that are more environmentally friendly and get better fuel milage. At the moment there are several possibilities, “The top 4 technologies powering alternative fuel cars: biodiesel, ethanol, hybrid, and hydrogen.” (Cars Direct, 2012) Another potential scenario is that vehicles in the US will become electronic or hybrid or utilize solar power. Currently several companies are working on a technology that would allow cars to communicate with each other on the road. This technology is called vehicle-to-vehicle or V2V. “[The] National Highway Traffic Safety Administration in 2010 [said] that V2V has the potential to reduce 79 percent of target vehicle crashes on the road.” There are many other
The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging
The global recession along with the soaring gas prices hurt the auto-industry very badly. It was so severe that two out of the three American automakers, General Motors (GM) and Chrysler, would fail and liquidate without government intervention. About 1.1 million people were hired in the American auto industry (Welch, 2010), making structural unemployment a big issue. However the two firms were burning through billions of dollars in months, making proper