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General Motors Corporation Case Analysis

Essay by   •  May 8, 2012  •  Case Study  •  906 Words (4 Pages)  •  2,084 Views

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Summary / Abstract:

General Motors has played a pivotal role in the global auto industry for more than 100 years. From the first Buick horseless carriages to technological marvels like the Chevrolet Volt, our products and innovations have always excelled at putting the world on wheels. Recently, they had completed the world's largest initial public offering, emerging with a solid financial foundation wherein they were enabled to produce high quality standard of vehicles. Their policy is based from return on investment in regard to the pricing of their product. The long term rate of return on investment represents the official viewpoint as to the highest average rate of return that can be expected consistent with a healthy growth of the business. In General Motors Corporation, standard burden rates are developed for each burden center so that there will included in costs a reasonable average allowance for manufacturing process Factory costs and commercial expenses for the most part represent outlays by the manufacturer. General Motors is the world's largest automaker. It was founded in 1908 and shortly thereafter became the industry's annual global sales leader - the title it still holds today, in the face of fiercer-than-ever competition. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries.

In the U.S., GM sells its vehicles through a nationwide network of roughly 8,000 dealers. The company supports dealer sales efforts in a myriad of ways - from high-profile television advertising to glossy four-color brochures. But the crux of the GM-dealer relationship is contained in a Policies & Procedures Manual. This manual spells out everything from service standards and training requirements to claims processes and warranty specifics.

I. Objective:

- To be able to come up better policy in operation of business

II. Central Problem

How to increase sales to 10% by General Motors Corporation within 2 years?

III. Areas of Consideration

SWOT Analysis

STRENGTHS

* Standard prices is used to forecast greater accuracy

* Advanced technology

* Customized interface

* Centralized control of programming

* Centralized management

* Developed internet distribution channels

* Quality improvements

* Economies of scale

* Completely expressed in the conception of standard volume and economic return attainable

* Standardized operating procedures like burden rate, manufacturing rate, rate of return on investment

* Low cost suppliers from competitive bidding process

* Global network of suppliers and distributors

WEAKNESSES

* Brands requires large investments to maintain equity that hinders development

* Poor corporate reputation for green technology

* Potential customers' perception of low quality

* Fixed and unmodified pricing policy

* Inadequate experience in smaller vehicle production

* So many divisions and units which made it weak in integration

* Basic pricing policy does not absolutely dictate specific price

OPPORTUNITIES

* Can be able to come up new ideas to catch up with their other competitors

* Chance for seasonal conditions or from changes in the general business situation

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