General Motors Company, commonly called as GM is one of the largest automobile manufacturers in the world. It is an American multinational corporation headquartered in Detroit, Michigan. It has business operations in more than 157 countries around the Globe. It was founded in 1908 as General Motors Corporation; and renamed as General Motors in 2009. The top brands of the company include Chevrolet, Isuzu, GMC, Jie Fang, Cadillac, Vauxhall, Baojun, Buick, Holden, Opel, and Wuling. General Motors operates through fully-owned subsidiaries and joint ventures outside the United States. It has currently employed more than 212,000 individuals from different nationalities and regions that work in 396 different facilities and sections (General Motors, 2013).
General Motors is the largest automaker in the world on the basis of sales volume. It has around 21,000 dealers and business associated in all the six operating regions of the world. General Motors enjoys strong brand equity and high level of appreciation by the international community. Its strong focus on quality, innovation, and performance of vehicles has made it the world's best automobile brand (General Motors, 2013).
The Theses Statement
This essay will analyze the internal and external business environments of General Motors using SWOT and PESTLE analysis; the organizational strategy and structure; type of leadership and motivational techniques used by its managers, the control system, organizational culture, human resource management, risk management, quality management, and information management policies and practices. The purpose of these analyses is to evaluate how the organization follows the related management theories, models, and concepts in different aspects of its business operations and policies.
1. Analysis of the General Business Environment using PESTLE Analysis
The general business environment of a company constitutes all those forces which can impact its operations, sales, and financial performance in a positive or negative way (Frederic, Agnes, & John, 2011). The forces which collectively form the external business environment for General Motors include political and governmental forces; economic forces; social, cultural, and demographical forces; technological forces; legal forces; and environmental forces (Blythe & Megicks, 2010). These forces can be analyzed using PESTLE Analysis.
i. Political and Governmental Forces:
General Motors operates in 157 countries around the Globe. Every country has its own political and governmental infrastructure which significantly impacts the local and international firms operating in that country. Being a multinational corporation, General Motors has to face different political and governmental environments in different target countries. If there is political instability, poor governance, or unfavorable behavior of the regulatory authorities towards foreign firms in some country, General Motors observes negative impacts on its performance. Therefore, it has to carefully analyze the political and governmental forces in every target country before setting up its business in its automobile markets.
ii. Economic Forces:
Economic forces are the second most critical forces in the automobile manufacturing industry. The economic situation, inflation, unemployment, costs and availability of raw material, interest rates, exchange rates, industry patterns, GDP growth rate, and various other economic factors of target countries impact the business operations, profitability, and policies of General Motors (Jobber, 2009). When all these economic indicators are in favor of manufacturing businesses, General Motors can confidently pursue growth strategies for its business operations.
iii. Social, Cultural, and Demographical Forces:
Social, cultural, and demographical forces impact the earning and spending patterns of the general public. These forces include income levels, life styles and preferences, social classes, age groups, population density, etc. (Cadle, Paul, & Turner, 2010). General Motors produces all types of vehicles like sports cars, personal and family cars, luxury cars, trucks and heavy weight vehicles, etc. Therefore, it targets different age groups, income classes, and consumer segments in every country. The social, cultural, and demographical forces also have a leading impact on the sales performance of General Motors.
iv. Technological Forces:
Being one of the largest and the most competitive automobile manufacturers in the world, General Motors has to give special focus on the quality and innovation in its business processes. Technology is the most significant factor that leads to competitiveness and sustainability in the global automobile industry. Therefore, General Motors has to keep an eye on the technological advancements in the automobile sector and mold its manufacturing operations and capabilities to match these advancements. Some recent innovations by General Motors include the introduction of hybrid and electronic cars, fuel efficient engines and power equipments, and environmental friendly production plants in different regions of the world.
v. Legal Forces:
Legal forces include governmental laws and regulations, tax rates, duties, and other restrictions and acts imposed by the local governments. Being a multinational...
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