Genral Motors

8/13/2019 Genral Motors

1/30


2/30

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:


3/30


4/30


5/30

Brand of the company

Baric

GMC

Chevrolet

Cadillac

Daewoo

Holden

Isuzu

Jiefang Opel

Vauxhall and Wuling


6/30

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."


7/30

General Motors Slogan

"People in motion."


8/30

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.


9/30

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.


10/30

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


11/30

Global sales of GM (2008)


12/30

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


13/30

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


14/30

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


15/30

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.


16/30

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.


17/30

Competitors Analysis

The major competitors of General Motors are

domestic companies like Damiler Chrysler &

Ford

Motor and foreign companies like Toyota

Motor & Honda Motor


18/30

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


19/30

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.


20/30

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.


21/30

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.


22/30

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


23/30

Five forces Analysis

Force Threat to profit

Internal rivalry Strong

Entry Weak

Substitutes and complements Weak to moderate

Buyer power Weak

Supplier power strong


24/30

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


25/30

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.


26/30

Product Mix (General Motors):

Product Item

Product Line

General Motors

Different brands

People in motion

Product


27/30

RecognizationsBusiness Standard Motoring Import Car of the year

2009

Best SUV(2009)

UV of the year2009


28/30

GM - CSR INITIATIVES

Be Someone Special. Be a Blood Donor

Walking for a Cause


29/30

Suggested Strategies

1. Market Development2. Market Penetration

3. Product

Development

4. Restructuring

5. Retrenchment

6. Liquidation


30/30

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

Documents

Genral Motors