The paper "General Motors Internal and External Environment " is a perfect example of a business case study. General Motors is a US-based manufacturing company with over a hundred years of operation. On a 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 of 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, aluminum, iron, copper, and plastic among other materials used in the manufacture of automobiles. Despite the fact that the corporation has gained a reputation over a number of years, it is not an exception when it comes to struggling to result 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.
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Hill, C. & Jones, G., 2009, Strategic Management Theory: An Integrated Approach, Chicago, Cengage Learning.
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