Essays on Strategic Management and General Motor Company Case Study

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The paper "Strategic Management and General Motor Company" Is a wonderful example of a Management Case Study.   General Motors is one of the leading carmakers in the world. The company has 11 brands of vehicles in the market to date. The research below seeks to address the challenges the company faces in its pursuit to be ahead of its competitors, such as Ford motor company, Toyota, Fiat Hyundai to mention a few. It also seeks to address the world market the company has had its operations and those that it should exploit in its en devour to increase its sales volumes.

The research seeks to address some of the recommended marketing strategies it has to adopt especially in modernizing its brands in order to succeed in its plans of increasing the sales volumes Macro-environment The macro-environment is the broad spectrum of business factors that surround the operations of General motors. These factors range from internal factors that the company has control over, to those that the company has got no control over, for example, the political environment. Examples of macro-environments are economic environment, political environment, social environment, and technological environment.

The above-mentioned types of macro environment are discussed as follows Economic environment The company has contributed a lot globally in terms of employment opportunities, contribution towards Gross Domestic Product (GDP) of different countries and as a major player in the balance of payment of various countries. Tax payments from General motors have been a great boost to the budgets of different nations around the world. Competition is another economic-environment issue under which general motors operate. A strong emphasis is on product attributes linked to a total ownership package and financing method to buyer’ s needs.

General Motors’ urge to open up new car manufacturing plants in Eastern Europe and the Far East shows clear growth opportunities. Europe and China are the biggest grounds where General motors have been operating to enhance its growth capacity. India and Asian countries are also areas with great opportunities for the firm as long as government and structural reforms on entries are made. Investment strategies in 2007 have raised $17.1 billion which shows that the company is on the right track. (Value-based management, 2007) The economic life-cycle difference is on the concerns of the General Motors company because it creates demand fluctuations.

There is a great need to focus on flexibility and speed of response by the management. This should be based on accurate forecasting and market scanning. The product life-cycle can also be extended to emerging nations and therefore the company needs to invest heavily in emerging nations. Forward integration is the diversification strategy in use by the company. Added value is through financing, sale of spare parts and servicing. To overcome the mobility barrier and gain presence in upper luxury segments, General motors has adopted growth by acquisition with Daewoo being its latest acquisition and it is more focused on US markets. To reduce manufacturing costs, General Motors has adopted measures of buying components or sharing development costs with other players in the industry.

Collaborations on mutual needs are used by the company as a market strategy or in spreading costs. A new strategy in the industry surrounding General motors is the interchange of resources towards combining.


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