Gm_Swot_Analysis

Capstone Buss 460JR1 Week 3 Summary Jacqueline Gray This week we worked on a SWOT Analysis for GM. GM SWOT ANALYSIS Strengths Name Recognition Corporate Strategy Quality improvements & perception there of Opportunities Cut production overseas, cut some health care costs Concentrating on smaller more efficient cars Expansion of their global presence Weaknesses The decline of market share High pension obligations & healthcare costs Lack of differential products Unfocused product line Unresponsive corporate culture Too much investment in SUV’s & Trucks Threats Intensify of rivalry among competitors worldwide Weak consumer confidence and tight credit The volatility in fuel prices Government legislation (J. Geesman, 2008) Marketing Strategy Development Modify the company’s US product Portfolio, towards more fuel efficient cars “Reduction in brands, name plates, retail outlets, to focus available resources and growth strategies on the company’s profitable operations.” (GM case, 2009) “Renew marketing strategies and processes Have more reliable customer profiles Better collaborate with R&D, production Increase customer demand and satisfaction” (Market research, 2009, p.1) Products & Development Apply to the mature US market Add on differentiation to existing products Generate more demand for the market Close or sell some of GM brands, Pontiac, Buick, Saturn, Saab, GMC, and the Hummer They should keep Cadillac, and Chevrolet Gm can save billions if they cut back to two brands that represent the soul of GM. With fewer brands, GM would no longer have to maintain as many dealerships. By doing so, GM’s distribution strength in rural areas, which is a significant competitive advantage, will be largely preserved. Strategy for Cadillac; Full-line, edgy-styled high volume luxury brand that competes directly with BMW and Mercedes-Benz. (GM Case, 2009) Chevrolet: Remains GM’s high volume brand, mainstream oriented offering vehicles in every major segment Launch high mileage, efficient cars and crossovers. Outsourcing This could reduce costs Gain advantage from excellent suppliers Have more focus on core competencies Restructure of Employee Benefits Renegotiate with the union and restructure it Better control on labor costs Reduce operating costs Reduce legacy costs (GM Case, 2009) “GM is working on better technologies to improve efficiency, and performance, energy diversity and emissions.” (GM.com, 2010) GM is making their vehicles more fuel economy as well as better for the environment. Promotion Pursue a “green” promotion strategy that addresses global energy and climate issues to improve its overall corporate image. They can propose a cost-effective campaign, focused on direct marketing, publicity, and Internet web page. Suggest that the company partner with an environmental icon, and sponsor environmental awareness campaigns. (GM.com, 2010) Innovation Maximize R &D technologies, and experience Seek differentiation Stay as a product leader Head to new technology emergences Concentrated Growth Pressure growth in China Capture profit from the fastest growth market Reduce risk in US market dependency Brenda Lorenzo responded to my posting; how GM has cut hundreds of jobs. Vicki speaks about the job losses and the economy, and Mary agrees with me that smaller and more fuel efficient vehicles, as well as environmentally are better for our communities. In our other discussion regarding someone lying in the workplace; Michelle asks me if I ever ran into this situation, I explained to her about an employee that worked at Subway with me, whom was always defiant and lied. Carrie talks about the tension that can happen in the workplace, as well as the morale being low with lying. When a person lies they cannot be trusted, and this will affect everyone in the workplace. There is no place for liars in the place of employment. 2.) This effects everyone, because everyone will not believe or trust the employee, and know if he/she is being truthful in anything that they say. This can bring tension among employees as well as the morale being low. 3.) If this is unaddressed, the lies can keep building up and cause many problems between employees and even more if it hits sales and services. 4.) I would take the employee to the side and explain that the lies he/she is telling is effecting everyone in the workplace and this cannot be tolerated no longer. I would tell the employee if there were anymore lies told then there would be severe percussions that could lead to suspension or even termination. "Lying feels like a benefit to a liar, because it reduces the immediate distress of the person doing it. The effects of lies on business, effects poorly on the company as a whole. Negative experiences are more likely to spread to others then positive ones, thereby tarnishing the image and reputation of a company (sales & services as well) in the eyes of the general public. Constant lying can decrease the morale, creating an environment of distrust. Lying to co-workers in order to gain leverage in the workplace can often hinder friendships that they have made." (K.McCullen, 2009) Many topics were covered through Leadership Bootcamp; Effective Decision Making, , as well as the Systematic Approach. With decision making, when we evaluate all the potential alternatives it is time to choose a decision and determine a possible solution. The end results depends upon what matters the most to you and how you are willing to pay for it. In conclusion; Problem identification and analysis is focused on describing the nature of the problem and determining the effects, symptoms, and causes. The problem resolution process is used to determine the most effective solution. Decision making criteria are the conditions that should be met by a given solution. Decision criteria ratings measure the level on importance of each condition. Every decision has an associate risk and cost when implemented. The most effective decision or the best solution should be implemented considering all the facts. References; J. Geesman, (2008) Green Energy War: retrieved 3/15/10, from: http://greenenergywar.com/2008/06/04/general-motors-the-consequences-of-strategy GM.com (2010) General Motors Official Web site: retrieved 3/15/10, from: http://www.gm.com/ Kenya McCullin (2009) The consequences of lies in the workplace; retrieved 3/15/10, from; http://www.examiner.com/examiner/x-13521-SF-Workplace-Communication Market Research.com (2009) General Motors Corporation Swot Analysis; Datamonitor; retrieved 3/15/10, from: http://marketreserach.com The GM Case (2009) retrieved 3/15/10, from: http://tulip.bu.ac.th/~nisit.m/gmcase.ppt=2009