Intellectual Capitalism (Swot and Industry Analysis of General Motors)

Q2) What in variety showation is provided and how can this be physical exerciseful in clearing your elect unions strategic situation? The profile c everywheres many different beas that pertain to the strategy of the commonplace Motors ranging from memoir to a swot anaylsis. History- the history of the firm will allow us to study how General Motors has functioned to save its mission in the past and thus give us clues to their early decisions. The history section of the profile basically lists all of the investments and divestment of GM since its lineage in 1909.The list is too long to put into this case, but the lists shows that GM is non by any means strictly a simple machine company. The list also shows that General Motors has been an international company for over 90 years. So strategically speaking GM is ccdly saved from both(prenominal) shocks, but as we saw in 2009, they are non protected from truly large global shocks to the go exertion. Products and Servi ces- The report also lists the rail motor simple machine types of cars (12) and brands (11) they produce.along with the finished automobiles they are actively involved in the inputs that are incumbent for the labor of the automobiles. They also provide a financial service for the automobiles. gross analysis- The revenue analysis section states the revenue figures for the company from the last devil years also showing the percent development. The section also breaks eat up these figures into different business concern segments much(prenominal) as GM North American and GM Asia.These more detailed figures can be holdd in conjunction with commercialize dower and vexth of entire securities labor to form a strategy plan for the company. For typeface if South Americas securities industry is largely made up of local brands and emergence at a very fast rate, it would be more beneficial for GM to concentrate their production and capital there instead of a consummate(a) food market like that of the United States. SWOT- This section included the most reading from a strategic stand point. It includes strengths and impuissancees as rise as opportunities and threats.An example of the firms strengths would be severe market position and brand portfolio. A weakness would be underfunded pension funds. Strengths and weaknesses are characteristics of the firm as unlike to opportunities and threats which are characteristics of the firms environment. One of GMs opportunities is increase demand for cars in BRIC nations, and one of their threats is intense competition. The SWOT framework is used ideally to strategically take advantage of a firms prospect with their strengths.For example, GM should use their strong brand image and profits from strong market positions approximately the world to fund a stronger entrance into Brazil, Russia, India, and china. as well as the converse of that strategy would be to avoid weaknesses and threats to the firm. Q3) Base d on the teaching provided, what are the three most important things you can say near your companys patience? 1) The effect of the financial crisis on the American Automobile market. Obviously the crisis had a major effect on the automotive market, but the effect is underestimated in the news.According to the attention report in the business source complete database the amount of passenger vehicle decreased by six billion units from 2006 to 2009, so even if the saturation level of the market is at the 2006 level which is very unlikely since the population has enceinte since then, the U. S. market has non reached the pre-crisis levels saturation. These levels paired with renewed customer confidence and the ease of attaining assurance will fuel an increase in the U. S. utomobile market. Although the increase may be gradual, it is still a realistic goal for an established brand such as GM. 2) The emergence of China as the largest automobile market in the world. As a result of increasing incomes paired with sales fillip and decreased tariffs caused by China joining the WTO has resulted in a boom automotive sedulousness in China. Even though the year-to-year yield of car ownership in the nation is over 30% the market has very low saturation levels.Only 35 people per 1000 own cars in China which compared to the United States, 600 per 1000, shows there is ample room for growth in the market. Most major car manufacture has a presence in the market, but political forces limit the penetration of these companies. According to report in contrast source complete, the Chinese governing body is even pressuring interior(prenominal) companies to grow and force out foreign competition. But this goal of the Chinese giving medication cannot be realized until the smaller local manufactures can somehow compound so they may compete with larger foreign firms. ) Environmental issues are also a main concern within the industry. This issues stems from two areas flatul ency and CO2 emissions. Gasoline a major portion pertaining not nevertheless to the consumption of cars but also the type of car that is demanded by consumers. plot of land the United States swasholine prices are relatively lower than other nations, car producers world-wide are still producing different cars in the wake of high shove along prices. The low emission car is the new fad in the industry and has reciprocally led to the production of the utility(a) resources cars.The combination of high gas prices and threat of damaging the environment from combustible engines has increased the consumers demands for automobiles to result off of alternative resources. This new development plays well into the strengths of GM because General Motors is already heavily devoted to R&D. Q4) Based on the discipline provided, how would you characterize the companys competitive situation? Well I think the best way to answer this question will be to separate each answer due to the three ques tions. ) The financial crisis closely crippled the entire U. S. automobile industry with the both GM and fording receiving bailout money for the United States government, but the crisis could have a created an opportunity for GM. As I stated earlier, car registration is down six million since 2006 but population has not decreased so there moldiness be a portion of the car market that wants a car but did not have the means during the financial down turn. GM may use this period of time to introduce the re-emergence of this demographic to gain market share in a semi-saturated market. ) Although China has become the largest automobile market in the world, I do not think that GM has a strategic position in the market. However, GM may be subject to be very profitable in because the market is growing so fast, but the fasted growing segments are luxury cars and SUV which do not create a strategic advantage for General Motors. Also, the Chinese government will heavily regulate the growth of the market as well as give every possible advantage to the domestic manufactures. 3. ) The adjustment in demand due to environmental pressure is an interesting factor in the automotive industry.Toyota has been the market draw in electric and alternative fuels but that doesnt necessarily give them strategic leverage in the market. The environmental pressures will just create another segment of products for the industry much like SUV or Sedans so having experience with the technologies will not necessarily create a boost in Market Share. GMs commitment to R&D will enable them to compete, and the use of their strong brand and supply chain management will benefactor GM gain market share. Q5) What utilizable information is provided to help you understand the competitive situation of your company?The market research report listed in Business source complete was written by Marketwatch which is also the uniform company that produced the company profile used in the second question. kind of of a stagnant overview of the companies past this report deals with recent moves within the industry by all of the major companies within the industry. The report starts off with an industry update which is the details of new investments and operations of major automotive manufactures around the world. General Motors announced to invest $450 mil in additions to one of its plants in Argentina. MarketWatch Automotive) The investment seems like a good choice for the company since the orbit is growing so fast. However, the article also reports BMWs $200 mil investment into the same region so competition will be fierce in the future especially in South America. (MarketWatch Automotive) Along with the potentially bad news from BMW, the report also includes a call in from Toyota involving over 7 mil cars globally. The recall could signal to General Motors to act quickly, so they may be able to capture market share from Toyotas unsatisfied customers.After the industry overview, t he contiguous section is a chitchat on movement within the industry away from Navigation systems. The launch of free Google Maps paired with the popularity of the cell has severely decreased the demand from in dash and even after-market navigational systems. General Motors may be able to use this information and decrease the models in production with navigational systems, so sales are not affected by unwanted accessories. The next section is simply a report featuring some of the companies performances.General Motors metrics were not reported in this issue. The report mainly included foreign companies generally in Europe. For example, Audis sales increase 14%, BMW sales increase 12%, and Renault sales decrease 29%. (MarketWatch Automotive) These figures are very useful in understanding the competitive situation of General Motors because they allow the company to benchmark its success against its competitors. Q6) What three items did you find that are most interesting to you? Why? 1) Who may be responsible for the growth of the Chinese Automotive industry?Article from Manufacturing head more or less Chinese manufacturing was wrong, Chinas growth in production and consumption has grown faster than estimates and this could be fueled by western investment. Companies all over the world including GM wanting to capture market share in what is now the largest market for automobile in the. According GM Chinas pre statusnt, GMs plan to go into the market is to use Chinese researchers in China. (Nick Santhanam) I found this interesting because a side effect of the penetration into the market could be the training and development of domestic researchers within China.The two problems restricting Chinas automotive manufacturing industry growth are miss of graduate level researchers and a passing fractioned industry. Both of these problems may be solved by foreign joint ventures with Chinese companies. 2) I also found it strange how the market leader in this industry is the dumbest to change. The companies specialize themselves to the point where there products lack demand in the market, and their brand and market share lose value. hybridisation Motor Co. was the first company to mass produce the automobile and through and through this innovation captured the majority of the U.S. s market share. However, the overemphasis on mass production sacrificed choices for the consumer which allowed General Motors to penetrate the market. General Motors then gained almost 50% of the U. S. market share by the 1960s. But the entrance of the Asian manufactures decreased their market share slightly at first. General Motors first case was about the bankruptcy of general motors and the companies revival through a government buyout and an initial public offering which lead to a decrease in 40b in costs at the same levels of revenue.The case asks are these profit margins and growth figure naughty or are they just because the market is recovering and the compa ny is on a short leash. Another thing that is very interesting is how slow the companies respond to market changes especially when they are the market leader. The article was an interrogate with GM Chinas president. He describes how GM will penetrate the market by taking advantage of the talent from local universities. He believes that the best way to innovate in China is to use young local researcher to develop products for the Chinese market. General Motors Leading US Car shaping machine Emerges From Bankruptcy. (Cover Story). General Motors Leading US Car Maker Emerges From Bankruptcy(2012) 1-16. Business Source Complete. Web. 9 Apr. 2013. SPECIAL REPORT Automotive Manufacturing. (Cover Story). Manufacturing Engineer84. 6 (2005) 26-27. Business Source Complete. Web. 9 Apr. 2013. Nick Santhanam, et al. Automotive understructure In China The View From General Motors. Mckinsey Quarterly1 (2012) 85-92. Business Source Complete. Web. 9 Apr. 2013.