Strategic Management and Strategic Competitiveness Globalization and technology Globalization and technology changes have impacted General Motors significantly. In the last seven decades of their global business operations the organization has been one of the prominent names in the global automobile industry. The organization is having its manufacturing facilities across the 33 countries of the world. In 2013 the organization recorded revenue of US$ 155.42 billion. Despite the glorious history of the company the Detroit based organization has faced significant pressure due to the globalization and technological advancements. Globalization has brought significant opportunities for General Motors (Steger, 2010, pp.
45-47). It has helped the company to expand its business internationally. The organization has able to cut down its costs by producing their products in the foreign countries. It is being observed that, in developed countries automobile industry has come to a state of saturation. On the other hand developing countries with their huge untapped domestic markets have opened the door of business for the organization. It has helped the organization to increase its market share and customer base. Technological changes have impacted the organization enormously.
With the advent of electric self-starter the organization started its journey of technological advancement. The organization invented four wheel breaks and air bag in 1924 and 1973 respectively. All these above technological changes have given significant global recognition to the company. According to The Patent Board, GM is one of the top ranked innovators in the automobile industry. But recently the organization has not been able to cope with the changing technologies in the automobile industry. To keep pace with the changing technologies the organization has restructured its R&D department.
It has reduced the number of R&D employees from 400 to 300. All the above factors are clearly articulating that, globalization and technological changes have impacted the organization both in positive and negative ways. Industrial organization model and the resource-based model Industrial organization model GM can earn above average returns with the help of Industry organization model. At first the organization has to study the external environment of the automobile industry. In this step the company has to assess the general environment, industry specific environment and competition in the industry.
In this step understanding the global automobile industry is significantly important for GM. Then organization should select an attractive segment of car which has the potential to give above average returns. It can be a green product with less pollution. Then the organization can create strategy to realize the idea of new segment of car. After strategy formation the organization can develop their assets and skill bases to implement the strategy. Then GM can implement the strategy of making green cars with the help of their strengths i. e.
superior R&D department and talented workforce. In this way the organization can get above average returns with the help of IO model. Resource based model In case of resource based model the organization has to identify the resources of the firm. Strengths and weakness of the firm has to be judged on the basis of its competitor firms. The organization has superior R&D capabilities and talented employees which is better than its rivals. The organization can utilize these capabilities. Superior R&D and talented work forces will help the organization to gain significant competitive advantages as far as the manufacturing process and the operating expenses are concerned.
In the modern era of global warming the organization has a significant opportunity to come up with environment friendly cars. This opportunity can be easily exploited with the help of superior R&D and talented employees. Then the organization has to engage all the above strengths to formulate and implement the strategy to come up with an eco friendly car. Proper implementation can result in the above average return for the company. In this way resource based model can help GM to earn above-average returns.
Vision statement and mission statement Vision and mission statement of General Motors have influenced its overall success significantly. The overall success of the organization is comprehensively driven by its mission and vision statements. In their mission statement the organization has given significant importance towards the various stakeholders. Company’s overall success is undoubtedly dependent upon the value creation of the various stakeholders. Over the years the organization has tried to create value for its stakeholders (Holstein, 2010, pp. 23-26). This has impacted the overall success of the company.
Business related operations of the global automobile giant have closely evolved around its mission and vision statement. In their mission statement the company has given enough focuses towards product quality and customer experience. The Detroit based organization has always tried to create suitable and comfortable customer experiences which has added into its success story (GM, 2014). According to the vision statement, continuous innovation holds a key position in their business philosophy. This has helped the organization to come up with a world class R&D. This R&D has helped the organization to come up with different successful innovative ideas.
All the above discussions and arguments are clearly indicating that both mission and vision statements of the company have significant impacts on the company’s success. Stakeholder impacts All the stakeholders have significant impacts on the success of GM. Engagement of various stakeholders have helped the organization to get success. Talented and committed employees of the organization have able to increase the productivity and efficiency of the company. It has helped the organization to reduce its operating expenses slightly and has given the platform of continuous innovation.
Production output of the company increased in 2013 and it became 9,714,652 vehicles. Dealers across the world have supported the company to restructure its distribution systems (Barofsky, 2010, pp. 56-57). As far as the distribution pattern is concerned dealers across the world have helped the organization to increase the visibility of the GM products. Suppliers and vendors have supported the company with the supply of quality raw materials which has assisted the company to reduce its lead time and inventory turnover. After the recession, investors have once again kept their faiths on the company which has helped the company to improve its situation.
Total equity of the company increased and it became US$ 42.60 billion in 2013. References Barofsky, N. (2010). Factors affecting the decisions of general motors and chrysler to reduce their dealership networks. New York: DIANE Publishing. GM. (2014). GM Sustainability. Retrieved from: http: //www. gm. com/company/aboutGM/gm_sustainability. html. Holstein, W. (2010). Why gm matters: inside the race to transform an American icon. New York: Bloomsbury Publishing USA. Steger, M. (2010). Globalization. New York: Sterling Publishing Company, Inc.