Introduction General Motors is a US-based manufacturing company with over a hundred years of operation. On the general scale, the company has produced over 450 million vehicles universally. The company operates internationally and therefore has covered a wider global market in terms automobiles. Although the company has had a remarkable improvement in its market scale globally, the United States of America remains the largest market for this corporation. The company’s strategic power lies in the fact that it supports a large community of the US in terms of employment (Kang, N., et al.
2001, p. 69). The company is the backbone of the US economy through employment of 1 out of 10 people employed in the country as well as being the chief purchaser of the country’s steel, aluminium, iron, copper, and plastic among other materials used in the manufacture of automobiles. Despite the fact that the corporation has gained reputation over a number of years, it is not an exception when it comes to struggle resulting from increased universal competition. This competition basically emanates from foreign manufacturers in the sector of lower wages, healthcare and compensation costs.
These costs have cost the company over 100 billion dollars over the past 15 years. As a result, the costs have constrained investment in more complex manufacturing and vehicle technology. In addition, the company’s balance sheet has been weakened over time (Hill, C. & Jones, G., 2009, p. 112). However, the current annual report indicates that the company has made remarkable progress in reducing the gap with competitors in form of automobile quality, productivity and fuel efficiency. For the purpose of long term investment, the company has put in place plans to go international in countries like China, Latin America, and Russia.
On the general scale, this company has never failed in meeting a congressional mandate in significant sections of fuel effectiveness and vehicle emission. This has set the company into the green manufacturing industry based on its environmentally friendly operations and social responsibility. Internal and External Environment In any business undertaking, it is imperative to take the environmental analysis of a company for purposes of profitability. This helps in the establishment of the corporation in terms of its current position and how strategic management can be transformed to sustain the company within the market.
This may involve the establishment of competition from other key players in the business. This analysis will consider industry analysis, economic analysis, competitive analysis and social analysis of General Motors Industry AnalysisThreat of new entrants: considering the level of maturity for general Motors, it can be said that the company has little vulnerability of threat from new entrants. In most cases, incidences of threats as a result of new entrants emanate from start-up capital, strain in accessing dissemination channels, unavailability of good leadership styles, and extensive research and development costs necessary for product innovation (Kang, N., et al.
2001, p. 69). Power of suppliers: The entire automobile industry has a lower level of the bargaining power of suppliers as a result of the saturated market. It is clear for the General Motors Corporation that there are other automotive part suppliers for vehicle manufacturers. This causes manufacturers a chance to change suppliers if needed.