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Introduction
General Motors is an American organisation that has been founded in 1908 and it effectively contributes to the global expanse of auto mobile industry by providing products that are constantly innovative as well as contribute to the welfare of the people. The organisation has effectively grown under the leadership of William C. Durant however he was forced out and was replaced by Alfred P. Sloan, Jr. He identified General Motors to be an uncoordinated business thus bringing the five mean automotive divisions into forming a single enterprise inclusive of Cadillac, Pontiac, Chevrolet, Buick and Oldsmobile. The coordinated corporate office then led to substantial increase in the autonomy of an overall policy of the organisation does effectively instructing a model that is large-scale industrial enterprise as well as effective management as an organisation in the United States. The sales team of General Motors was equally advanced by Sloan Jr. and in consumer financing, he introduced innovations. The purpose behind understanding the internal and external factor that influences the growth and the development of General Motors as an organisation and its impact on global economy is observed in this case study help.
Background
The General Motors company is a Console lead Asian of different Moto car companies that produced Cadillac, Pontiac, Marquette as well as other autos such as reliance in rapid trucks. It was founded in 1908 by William C. Durant who understood the requirement of the market however did not have the understanding of promotional and marketing strategies. Over the years he was succeeded by Alfred Bs Sloan who reorganised the business by bringing together the automotive divisions. The organisation then established its global expansion by 1929 in thus overcoming Ford Motor company as one of the leading American passenger car manufacturers. With the overseas operations, General Motors became the world’s largest manufacturer by 1939. However, the organisation is heavily dependent on the United States market with making 44% of its cars in the country while becoming one of the largest industrial corporation. The company has contributed a lot to the American economy and YC versa considering it is acquired benefits and profits from the American market more than the global space which puts it into a risky situation considering any crisis occurs in the American economy market.
SWOT: Internal factors analysis
Strength: organisation of General Motors has become one of the largest auto manufacturers in the market thus becoming the leader with having a market share of 16.9% in the year 2019. This also includes its strong strategic partnership aspects to address its own weaknesses by having strong partners so that the issues can be resolved. The organisation also contributes to innovation in terms of providing electric cars as well as manufacturing combustion engines does invest in research and development regularly. Use our online plagiarism checker for free to receive perfect academic documents.
Weakness: General Motors have been reliable on their pickup trucks as well as SUVs which is led to the decline in their profit and sales margin considering the pickup trucks and the SUVs demand in the market has decreased by 2% by 2019. One of the issues that has been observed is the quality issue where ignition switches in the automobiles have been faulty leading to many deaths and injuries in 2015 does experiencing legal issues regarding the same.
Opportunity: as an organisation, global motors have contributed to providing eco-friendly cars by establishing batteries for electric cars instead of use of fools. This has led to them exploiting the market by instigating flexible mobility as well as contributing to electric bikes for environmental safety. The company has also established its presence in markets such as Asia and Africa do strengthening its potential growth.
Threat: The organisation is facing devastating impact in terms of global recession due to the COVID-19 pandemic wiping of employment as well as devastating economies globally. There has been establishment of trade tension between the auto plans of the company that are established in China considering the US have had issues with China in terms of trade. The organisation is also suffering from certain civil lawsuits due to the compatibility of their auto mobiles with use of diesel in US.
PESTLE: External factors analysis
Political: with the increasing trade war between China and US, it has been observed that the company of General Motors having plants as well as labourers established in China has been facing issues. This political aspect of China and US has also acted as a roadblock in terms of General Motors accessing the huge population of China does unable to get them to invest in their services and products. With the government investigating into different aspects of legal procedures of the organisation, hefty penalties have been given by General Motors the suffering through political issues.
Economic: General Motors have been one of the leaders of the auto mobile market industry however it has recently suffered issues with its cost price as well as decrease in the profits that they are making considering their experiencing financial issues with dealers due to the raw materials being pricier leading to issues such as credit schemes, source of financing as well as cost in terms of General Motors perspective and brand image. With the implementation of innovative automobiles such as electric cars, it can be stated that there has been a decrease in the sales due to the weaker economic growth of US as well as other countries globally especially in recent pandemic.
Social: it is important to show sensitivity to the social structure of a nation or an organisation therefore it has been observed that the electric vehicles introduced by General Motors does impact purchasing patterns as well as people’s behaviour. It is important for the organisation to focus on electric vehicles in brands such as GMC, Chevrolet and others because the customers believe in security, automation as well as other advanced services related to electric automobiles. This is one good way of relating the social structure with the brand management.
Technology: with the technological advancement, General Motors have implemented and invested a great deal in the research and development projects so as to provide services and products which contribute to the welfare of the society as well as environment. General Motors have identified hydrogen fuel cell technology to be more effective in exchange of use of fuel. So, that people do not have to suffer through the expenses of electric batteries which also impacts the profit margin of the organisation
Legal: the organisation has got involved in legal controversies and complications especially with the Supreme Court of USA establishing the lawsuits that has been filed by many sufferers as well as their family members due to the faulty switches in the automobiles. The organisation was trying to pay of the sufferers however, the court has made them answerable in terms of providing compensation as well as establishing effective quality surveillance for the same. They have also got involved in many lawsuits where racial abuse at work has often been raised by workers working in the General Motors.
Environmental: the organisation has set up a manufacturing space in Texas that is completely based on renewable energy of wind energy. This is one of the initiatives that the organisation has taken towards environmental well-being as well as it has shown concern towards landfill free operations that is developing its brand image. General Motors has also contributed to ideas that will lead to greenhouse gas emissions to reduce as well as waste reduction solution has been provided by the organisation.
Recommendation
Based on the analysis of internal and external factors, it can be stated that in the past General Motors suffered huge losses when tried to modernise their automotive business however over the years times have passed and it has understood the significance of technology and digitalisation. With the effective technology advancement, the organisation is looking for providing electric cars so that you can contribute to the environment by using less fuel as well as contribute to the safety of its passengers. However, the issues arise in terms of class and financial requirements that might not be possible for every individual on the customer of the company to access an electric car.
Conclusion
The case study can be concluded in terms of the organisation General Motors being one of the largest auto mobile organisations in US as well as having a global presence providing good services and products to a huge number of customers. Over the years the organisation has contributed a lot to the social development as well as looking after the environmental issues, it has contributed to innovation. Research and development have been invested in terms of producing batteries for Electric cars that effectively helps people to produce less pollution in the environment as well as help experience safe driving. The organisation however over the years has been facing issues with financial viability due to its quality issues of faulty switches leading to deaths and injuries as well as plans established in China might impact the work in the production as well as of the labourers considering China and US are not on good terms in terms of Trade.
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