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Business Analysis Gm

Essay by   •  March 30, 2012  •  Research Paper  •  1,303 Words (6 Pages)  •  2,134 Views

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Business Analysis Part I

General Motors Company established in 1908. This is one of the largest automakers in the world. GM has more than 209,000 of employees in the world. The company is engage in manufacturing of auto mobile, trucks, and automobile parts. The company is also engaged in financing and insurance. GM includes automobile brands such as Chevrolet, Daewoo, Hummer, Cadillac, GMC, and many others. GM has power to health of the United States economy. The ex-president of the company Dwight Eisenhower was saying: "As goes General Motors, so goes the nation."

SWOT analysis

Strengths

Strong brand portfolio.

Existing since 1908 the company produces cars such as Chevrolet, Daewoo, FAW, GMC, Holden, Isuzu, Opel, Hummer, Cadillac, and etc. GM has well rooted in different geographies in the world.

Worldwide presence.

"The company has presence in 106 locations in 25 states and 89 cities in the United States. Of these locations, 40 are manufacturing sites, of which 11 are engage in the final assembly of cars, and trucks. In addition, the company has presence in 17 locations in Canada. It has assembly, manufacturing, distribution, office, and warehousing operations in 61 other countries.

The major facilities outside the United States and Canada, which are principally vehicle manufacturing and assembly operations, are located in Argentina, Australia, Belgium, Brazil, China, Colombia, Ecuador, Egypt, Germany, India, Kenya, Mexico, Poland, Russia, South Africa, South Korea, Spain, Thailand, the UK, Uzbekistan, Venezuela, and Vietnam. Extensive geographic spread of operations allows GM to have a presence in leading and developing markets, thereby enabling the company to spread its risks across markets." ("General Motors Company," 2011)

Dealership network

The company has a strong dealership network. GM markets its vehicles through a network of independent retail dealers and distributors. "As of FY2010, GM operated through 20,215 authorized dealerships worldwide. The company operated 4,458 vehicle dealers in the United States, 465 in Canada and 244 in Mexico and other Central American locations" ("General Motors Company," 2011)

Weakness

Bankrupt.

"General Motors went bankrupt in June 2009. The U.S. Government has allocated about $ 30 billion, and in return received a 60% stoke, the Government of Canada received 12% stoke.

GM puts a public stock at the end 2010. The Government realized stock and return around $ 23 billion. The Government still owns 26% of the company in stock" (Baldwin & Kim, 2010)

Product recalls.

General Motors has issued a recall for 1.3 million most popular models Chevrolet Cobalt and Pontiac vehicles."After the National Highway Traffic Safety Administration opened an investigation into more than 1,000 consumer complaints of the power steering suddenly ceasing to work on some vehicles. Among the reports of steering problems linked to vehicles were at least 14 car crashes." ("General Motors Company," 2011)

Opportunities

Growth potential in other countries.

GM Company can increase partnerships in other countries. GM can build more factories and offices in other countries, for example in countries such as India and China. Car market in these countries achieved high ratings. Growing markets in China and India will provide an opportunity for GM to increase its revenues and profitability.

Positive outlook for hybrid electric vehicles

General Motors can to improve ratings with new design cars, make more comfortable interior of the vehicle.GM should quickly develop hybrid electric vehicles. "GM currently offers seven hybrid models". ("General Motors Company," 2011) This is also developing plug-in hybrid electric vehicle technology and the Chevrolet Volt and Opel Ampera electric vehicles with extended range.

Threats

Weakness in Global Automobile Industry

Requirements for commercial vehicles declined. "The Japanese car market declined, with a drop in sales of nearly 4%.The Western European automobile markets suffered as well particularly the volume markets in Italy, Spain and the UK. In total,

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