final report on G.M

8/6/2019 final report on G.M

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Topic: General Motors

Subject: Strategic Management

Submitted to: Sir Shahid Mehmood

Submitted By:

M.Asif Javed.85

M.Asharaf.98

Ahsan-ur-Rehman.83

M.Nadeem Abbas.95

M.Zubair Amjad...59

M.Junaid...52

M.Com 4th (Evening) 2009-2011Department Of Commerce


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Revenue US$135.592 billion (2010)

Operating income US$ 5.737 billion (2010)

Net income US$ 6.503 billion (2010)

Total assets US$ 138.898 billion (2010)

Total equity US$ 37.159 billion (2010)

Employees 209,000 (2010)

Divisions

ChevroletBuickCadillacGMC

Subsidiaries

OnStarAdam Opel AGGM Holden LtdGM FinancialVauxhall MotorsGM KoreaGeneral Motors do Brasil

Website GM.com

History of General Motors

General Motors, also known as GM, is the world's second largest carmanufacturerbased on annual sales. Founded in 1908, in Flint, Michigan, GM employs approximately

266,000 people around the world.With global headquarters at theRenaissance Centerin Detroit, Michigan, United States,GM manufactures its cars and trucks in 35 countries. In 2008, 8.35 million GM cars andtrucks were sold globally under the brands Vauxhall, Daewoo, Buick,Cadillac,Chevrolet,GMC, Holden, Pontiac, Hummer, Saab, Wuling.[2]Saturn and Opel.

GM's headquarters from 1923 until 1996, a National Historic Landmark, is now CadillacPlace state office building. General Motors was founded on Wednesday, September 16,
http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Division_(business)http://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/OnStarhttp://en.wikipedia.org/wiki/Adam_Opel_AGhttp://en.wikipedia.org/wiki/Holdenhttp://en.wikipedia.org/wiki/GM_Financialhttp://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/GM_Koreahttp://en.wikipedia.org/wiki/General_Motors_do_Brasilhttp://www.gm.com/http://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Flint,_Michiganhttp://en.wikipedia.org/wiki/Renaissance_Centerhttp://en.wikipedia.org/wiki/Renaissance_Centerhttp://en.wikipedia.org/wiki/Detroit,_Michiganhttp://en.wikipedia.org/wiki/Detroit,_Michiganhttp://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/GM_Daewoohttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Holdenhttp://en.wikipedia.org/wiki/Pontiachttp://en.wikipedia.org/wiki/Hummerhttp://en.wikipedia.org/wiki/Saab_Automobilehttp://en.wikipedia.org/wiki/SAIC-GM-Wuling_Automobilehttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-GM_Media_Online-1%23cite_note-GM_Media_Online-1http://en.wikipedia.org/wiki/Saturn_Corporationhttp://en.wikipedia.org/wiki/Opelhttp://en.wikipedia.org/wiki/Cadillac_Placehttp://en.wikipedia.org/wiki/Cadillac_Placehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Division_(business)http://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/OnStarhttp://en.wikipedia.org/wiki/Adam_Opel_AGhttp://en.wikipedia.org/wiki/Holdenhttp://en.wikipedia.org/wiki/GM_Financialhttp://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/GM_Koreahttp://en.wikipedia.org/wiki/General_Motors_do_Brasilhttp://www.gm.com/http://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Flint,_Michiganhttp://en.wikipedia.org/wiki/Renaissance_Centerhttp://en.wikipedia.org/wiki/Detroit,_Michiganhttp://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/GM_Daewoohttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Holdenhttp://en.wikipedia.org/wiki/Pontiachttp://en.wikipedia.org/wiki/Hummerhttp://en.wikipedia.org/wiki/Saab_Automobilehttp://en.wikipedia.org/wiki/SAIC-GM-Wuling_Automobilehttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-GM_Media_Online-1%23cite_note-GM_Media_Online-1http://en.wikipedia.org/wiki/Saturn_Corporationhttp://en.wikipedia.org/wiki/Opelhttp://en.wikipedia.org/wiki/Cadillac_Placehttp://en.wikipedia.org/wiki/Cadillac_Place


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1908, in Flint, Michigan, as a holding company forBuick(then controlled by William C.Durant).

Durant's company, the Durant-Dort Carriage Company, had been in business in Flintsince 1886, and by 1900, was producing over 100,000 carriages a year in factories

located in Michigan and Canada. Prior to his acquisition of Buick, Durant had severalFord dealerships. With springs, axles and other key components being provided to theearly automotive industry by Durant-Dort, it can be reasoned that GM actually beganwith the founding of Durant-Dort.[3]

Durant acquired Oldsmobile later in 1908. The next year, he brought in Cadillac,Cartercar, Elmore, Ewing, and Oakland (later known as Pontiac). In 1909, GeneralMotors also acquired the Reliance Motor Truck CompanyofOwosso, Michigan, and theRapid Motor Vehicle Company ofPontiac, Michigan, the predecessors ofGMC Truck. ARapid became the first truck to conquerPikes Peakin 1909. In 1910, Welch and Rainierwere added to the ever-growing list of companies controlled by GM. Durant lost control

of GM in 1910 to a bankers trust, due to the large amount of debt (around $1 million)taken on in its acquisitions.

Durant left the firm and co-founded the Chevrolet Motor Companyin 1911 with LouisChevrolet. After a brilliant stock buy back campaign, he returned to head GM in 1916,with the backing ofPierre S. du Pont. On October 13 of the same year, GM Companybecame incorporated as General Motors Corporation[4] (reverting to General MotorsCompany[5] upon emergence from bankruptcy in 2009). Chevrolet entered the GeneralMotors fold in 1917; its first GM car was 1918's Chevrolet 490. Du Pont removed Durantfrom management in 1920, and various Du Pont interests held large or controlling shareholdings until about 1950.

In 1918 GM purchased the McLaughlin Motor Car Company ofOshawa, Ontario,Canada, manufacturer of theMcLaughlin-Buickautomobile since 1908 as well asCanadian versions of Chevrolet cars since 1915. The company was renamed GeneralMotors of Canada Ltd., with R.S. "Colonel Sam" McLaughlin as its first president and hisbrother George as vice-president.[6]

GM's headquarters were located in Flint until the mid-1920s when it was moved toDetroit. Its building, originally to be called the Durant Building, was designed and beganconstruction in 1919 when Durant was president, was completed in 1923 (Sloan becamepresident that year) and officially dedicated as the General Motors Building in 1929.[7]

GM maintained this headquarters location, now called Cadillac Place, until it purchasedthe Renaissance Centerin 1996.[8] The Buick Division headquarters remained in Flintuntil 1998 when it was relocated to the Renaissance Center.[9]

In 1925, GM bought Vauxhall of England, and then in 1929 went on to acquire an 80%stake in German automobile manufacturerOpel. Two years later this was increased to100%. In 1931, GM acquired Holden of Australia.
http://en.wikipedia.org/wiki/Flint,_Michiganhttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/William_C._Duranthttp://en.wikipedia.org/wiki/William_C._Duranthttp://en.wikipedia.org/wiki/Durant-Dort_Carriage_Companyhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Oldsmobilehttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Cartercarhttp://en.wikipedia.org/wiki/Elmore_(automobile)http://en.wikipedia.org/w/index.php?title=Ewing_(automobile)&action=edit&redlink=1http://en.wikipedia.org/wiki/Oakland_automobilehttp://en.wikipedia.org/w/index.php?title=Reliance_Motor_Truck_Company&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Reliance_Motor_Truck_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/Owosso,_Michiganhttp://en.wikipedia.org/wiki/Rapid_Motor_Vehicle_Companyhttp://en.wikipedia.org/wiki/Pontiac,_Michiganhttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Pikes_Peakhttp://en.wikipedia.org/wiki/Pikes_Peakhttp://en.wikipedia.org/w/index.php?title=Welch_Motor_Car_Company&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Rainier_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Louis_Chevrolethttp://en.wikipedia.org/wiki/Louis_Chevrolethttp://en.wikipedia.org/wiki/Louis_Chevrolethttp://en.wikipedia.org/wiki/Pierre_S._du_Ponthttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-3%23cite_note-3http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-4%23cite_note-4http://en.wikipedia.org/wiki/McLaughlin_automobilehttp://en.wikipedia.org/wiki/Oshawa,_Ontariohttp://en.wikipedia.org/wiki/Oshawa,_Ontariohttp://en.wikipedia.org/wiki/McLaughlin_automobilehttp://en.wikipedia.org/wiki/McLaughlin_automobilehttp://en.wikipedia.org/wiki/General_Motors_Canadahttp://en.wikipedia.org/wiki/General_Motors_Canadahttp://en.wikipedia.org/wiki/General_Motors_Canadahttp://en.wikipedia.org/wiki/Samuel_McLaughlinhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-5%23cite_note-5http://en.wikipedia.org/wiki/Alfred_Sloanhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-6%23cite_note-6http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-6%23cite_note-6http://en.wikipedia.org/wiki/Cadillac_Placehttp://en.wikipedia.org/wiki/Cadillac_Placehttp://en.wikipedia.org/wiki/Renaissance_Centerhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-7%23cite_note-7http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-8%23cite_note-8http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-8%23cite_note-8http://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/Adam_Opel_AGhttp://en.wikipedia.org/wiki/Adam_Opel_AGhttp://en.wikipedia.org/wiki/Holdenhttp://en.wikipedia.org/wiki/Flint,_Michiganhttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/William_C._Duranthttp://en.wikipedia.org/wiki/William_C._Duranthttp://en.wikipedia.org/wiki/Durant-Dort_Carriage_Companyhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-2%23cite_note-2http://en.wikipedia.org/wiki/Oldsmobilehttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Cartercarhttp://en.wikipedia.org/wiki/Elmore_(automobile)http://en.wikipedia.org/w/index.php?title=Ewing_(automobile)&action=edit&redlink=1http://en.wikipedia.org/wiki/Oakland_automobilehttp://en.wikipedia.org/w/index.php?title=Reliance_Motor_Truck_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/Owosso,_Michiganhttp://en.wikipedia.org/wiki/Rapid_Motor_Vehicle_Companyhttp://en.wikipedia.org/wiki/Pontiac,_Michiganhttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Pikes_Peakhttp://en.wikipedia.org/w/index.php?title=Welch_Motor_Car_Company&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Rainier_Company&action=edit&redlink=1http://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Louis_Chevrolethttp://en.wikipedia.org/wiki/Louis_Chevrolethttp://en.wikipedia.org/wiki/Pierre_S._du_Ponthttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-3%23cite_note-3http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-4%23cite_note-4http://en.wikipedia.org/wiki/McLaughlin_automobilehttp://en.wikipedia.org/wiki/Oshawa,_Ontariohttp://en.wikipedia.org/wiki/McLaughlin_automobilehttp://en.wikipedia.org/wiki/General_Motors_Canadahttp://en.wikipedia.org/wiki/General_Motors_Canadahttp://en.wikipedia.org/wiki/Samuel_McLaughlinhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-5%23cite_note-5http://en.wikipedia.org/wiki/Alfred_Sloanhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-6%23cite_note-6http://en.wikipedia.org/wiki/Cadillac_Placehttp://en.wikipedia.org/wiki/Renaissance_Centerhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-7%23cite_note-7http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-8%23cite_note-8http://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/Adam_Opel_AGhttp://en.wikipedia.org/wiki/Holden


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In 1926, GM created the Pontiac as a "companion" to the Oakland brand, an arrangementthat lasted five years. The companion outsold its parent during that period, by so muchthat the Oakland brand was terminated and the division was renamed Pontiac.

GM surpassed Ford Motor Company in sales in the late 1920s thanks to the leadership of

Alfred P. Sloan. While Ford continued to refine the manufacturing process to reduce cost,Sloan was inventing new ways of managing a complex worldwide organization, whilepaying special attention to consumer demands. Car buyers no longer wanted the cheapestand most basic model; they wanted style, power, and prestige, which GM offered them.Sloan did not neglect cost, by any means; when it was proposed Chevrolet shouldintroduce safety glass, he opposed it because it threatened profits.[10] Thanks to consumerfinancing viaGMAC (founded 1919), easy monthly payments allowed far more people tobuy GM cars than Ford, as Henry Ford was opposed to credit on moral principles.(Nevertheless, Ford did offer similar credit arrangements with the introduction of theModel A in the late 1920s but Ford Credit did not exist until 1959.)

At one time each of GM's automotive divisions in the United States was targeted to aspecific market segment, and, despite some shared components, each distinguished itselffrom its stablemates with unique styling and technology. The shared components andcommon corporate management created substantialeconomies of scale, while thedistinctions between the divisions created (in the words of GM President Sloan) a "ladderof success", with an entry-level buyer starting out with a "basic transportation" Chevrolet,rising through GMC, Pontiac, Oldsmobile, Buick, and ultimately to Cadillac.

On May 30, 2009, it was announced that a deal had been reached to transfer GM's Opelassets to a separate company, majority-owned by a consortium led bySberbankof Russia(35%), Magna International (20%), and Opel employees (10%). GM is expected to keep a

35% minority stake in the new company.

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However, GM delayed acceptance of the dealpending other bids, notably a proposed 51% stake by Beijing Automotive. By early July,a decision had not been made, but Magna remained confident and scheduled a meetingfor July 14 to announce its acceptance.[43] After months of deliberation, however, GMdecided on November 3, 2009 to retain full ownership of the German carmaker Opel,thus voiding the tentative deal with the Magna consortium.[44]

In June 2010, the company established General Motors Ventures, a subsidiary designedto help the company identify and develop new technologies in the automotive andtransportation sectors

Recent developmentOn February 24, 2011, General Motors reported its first full-year profit since 2004. Theautomaker suffered $103.7 billion in losses from 2005 through 2009. It avoids payingtaxes on the $4.7 billion it earned in 2010, and on future profits for years to come,because of a favorable government ruling in 2010 on previous losses. The Wall StreetJournal estimated the tax break, including credits for costs related to pensions and otherexpenses, can be worth as much as $45 billion over the next 20 years.
http://en.wikipedia.org/wiki/Oakland_(automobile)#General_Motors_.22Companion_Make.22_Programhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Alfred_P._Sloanhttp://en.wikipedia.org/wiki/Laminated_glasshttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-9%23cite_note-9http://en.wikipedia.org/wiki/GMAChttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/History_of_Ford_Motor_Company#Post-World_War_I_developmentshttp://en.wikipedia.org/wiki/Ford_Model_A_(1927-1931)http://en.wikipedia.org/wiki/Ford_Motor_Credit_Companyhttp://en.wikipedia.org/wiki/Economy_of_scalehttp://en.wikipedia.org/wiki/Economy_of_scalehttp://en.wikipedia.org/wiki/GMChttp://en.wikipedia.org/wiki/Pontiachttp://en.wikipedia.org/wiki/Oldsmobilehttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Opelhttp://en.wikipedia.org/wiki/Sberbankhttp://en.wikipedia.org/wiki/Sberbankhttp://en.wikipedia.org/wiki/Magna_Internationalhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-41%23cite_note-41http://en.wikipedia.org/wiki/Beijing_Automotive_Industry_Holding_Corporationhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-42%23cite_note-42http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-43%23cite_note-43http://en.wikipedia.org/wiki/Oakland_(automobile)#General_Motors_.22Companion_Make.22_Programhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Alfred_P._Sloanhttp://en.wikipedia.org/wiki/Laminated_glasshttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-9%23cite_note-9http://en.wikipedia.org/wiki/GMAChttp://en.wikipedia.org/wiki/Henry_Fordhttp://en.wikipedia.org/wiki/History_of_Ford_Motor_Company#Post-World_War_I_developmentshttp://en.wikipedia.org/wiki/Ford_Model_A_(1927-1931)http://en.wikipedia.org/wiki/Ford_Motor_Credit_Companyhttp://en.wikipedia.org/wiki/Economy_of_scalehttp://en.wikipedia.org/wiki/GMChttp://en.wikipedia.org/wiki/Pontiachttp://en.wikipedia.org/wiki/Oldsmobilehttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/Opelhttp://en.wikipedia.org/wiki/Sberbankhttp://en.wikipedia.org/wiki/Magna_Internationalhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-41%23cite_note-41http://en.wikipedia.org/wiki/Beijing_Automotive_Industry_Holding_Corporationhttp://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-42%23cite_note-42http://en.wikipedia.org/wiki/History_of_General_Motors#cite_note-43%23cite_note-43


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Introduction to Report

This report will carry out an analysis of General Motors with reference to its currentstrategy. In order to do so we have used a series of frameworks in the report.Porters five force theory and PEST analysis will be used to conduct an externalanalysis while the financial position, culture and structure will be used to conduct aninternal analysis.

In the latter part of the report a SWOT analysis will be conducted to assess thestrengths, weaknesses, opportunities and threats faced by GM. This report will alsoanalyse the possible choices of strategies GM had and will look into theimplementation issues GM would face following its decision to withdraw from the

European market and the subsequent reversal of that decision.

GM went on to become very successful during the post war era, and continued todominate the automobile industry. For most of the 20th century it held the title of thelargest automaker, until it was recently surpassed by Toyota (company info).

Strategic Direction:

Mission Statement:

"G.M. is a multinational corporation engaged in socially responsible operations,

worldwide. It is dedicated to provide products and services of such quality that our

customers will receive superior value while our employees and business partners

will share in our success and our stock-holders will receive a sustained superior

return on their investment."

Vision Statement:GMs vision is to be the world leader in transportation products and related

services. We will earn our customers enthusiasm through continuous improvementdriven by the integrity, teamwork, and innovation

of GM people.

Values StatementThe auto industry just like the global economy is going through tremendous change, dueto rising fuel prices, and environmental worries, such as global warming. GM must usethese threats as opportunities, and take advantage of changing consumer buying habits.GM needs to change consumer perception of the company, from a dull, poor quality,


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vehicles to innovative, quality, and environmentally friendly company. To do this GMmust portray an image that states that GM values what the consumer wants and what theenvironment needs. Listen to what consumers are saying directly and indirectly aboutGMs current products, and create innovative, green, vehicles that turn consumers intocustomers. At the same time provide GM stakeholders pride and financial incentives to

remain with GM.

General Motors leadership:

Chairmen of the Board of General Motors

Thomas Neal -- November 19, 1912 - November 16, 1915 Pierre S. du Pont -- November 16, 1915 - February 7, 1929 Lammot du Pont II -- February 7, 1929 - May 3, 1937 Alfred P. Sloan, Jr. -- May 3, 1937 - April 2, 1956 Albert Bradley -- April 2, 1956 - August 31, 1958 Frederic G. Donner-- September 1, 1958 - October 31, 1967 James M. Roche -- November 1, 1967 - December 31, 1971 Richard C. Gerstenberg -- January 1, 1972 - November 30, 1974 Thomas A. Murphy -- December 1, 1974 - December 31, 1980 Roger B. Smith -- January 1, 1981 - July 31, 1990 Robert C. Stempel -- August 1, 1990 - November 1, 1992 John G. Smale -- November 2, 1992 - December 31, 1995 John F. "Jack" Smith, Jr. -- January 1, 1996 - April 30, 2003 G. Richard Wagoner, Jr. -- May 1, 2003 - March 30, 2009 Kent Kresa -- March 30, 2009 - July 10, 2009 Edward ("Ed") Whitacre, Jr. -- July 10, 2009 December 31, 2010 Dan Akerson -- December 31, 2010 present

Chief Executive Officers of General Motors

Alfred P. Sloan, Jr. -- May 10, 1923 - June 3, 1946 Charles E. Wilson -- June 3, 1946 - January 26, 1953 Harlow H. Curtice -- February 2, 1953 - August 31, 1958 James M. Roche -- November 1, 1967 - December 31, 1971 Richard C. Gerstenberg -- January 1, 1972 - November 30, 1974 Thomas A. Murphy -- December 1, 1974 - December 31, 1980 Roger B. Smith -- January 1, 1981 - July 31, 1990 Robert C. Stempel -- August 1, 1990 - November 1, 1992 John F. "Jack" Smith, Jr. -- November 2, 1992 - May 31, 2000
http://en.wikipedia.org/wiki/Thomas_Nealhttp://en.wikipedia.org/wiki/Pierre_S._du_Ponthttp://en.wikipedia.org/w/index.php?title=Lammot_du_Pont_(the_second)&action=edit&redlink=1http://en.wikipedia.org/wiki/Alfred_P._Sloan,_Jr.http://en.wikipedia.org/wiki/Alfred_P._Sloan,_Jr.http://en.wikipedia.org/w/index.php?title=Albert_Bradley&action=edit&redlink=1http://en.wikipedia.org/wiki/Frederic_G._Donnerhttp://en.wikipedia.org/wiki/James_Roche_(General_Motors)http://en.wikipedia.org/w/index.php?title=Richard_C._Gerstenberg&action=edit&redlink=1http://en.wikipedia.org/wiki/Thomas_Murphy_(chairman)http://en.wikipedia.org/wiki/Roger_Bonham_Smithhttp://en.wikipedia.org/wiki/Robert_C._Stempelhttp://en.wikipedia.org/w/index.php?title=John_G._Smale&action=edit&redlink=1http://en.wikipedia.org/wiki/John_F._Smith,_Jr.http://en.wikipedia.org/wiki/John_F._Smith,_Jr.http://en.wikipedia.org/wiki/Rick_Wagonerhttp://en.wikipedia.org/wiki/Rick_Wagonerhttp://en.wikipedia.org/wiki/Kent_Kresahttp://en.wikipedia.org/wiki/Edward_Whitacre,_Jr.http://en.wikipedia.org/wiki/Edward_Whitacre,_Jr.http://en.wikipedia.org/wiki/Daniel_Akersonhttp://en.wikipedia.org/wiki/Alfred_P._Sloan,_Jr.http://en.wikipedia.org/wiki/Alfred_P._Sloan,_Jr.http://en.wikipedia.org/wiki/Charles_E._Wilsonhttp://en.wikipedia.org/wiki/Harlow_H._Curticehttp://en.wikipedia.org/wiki/James_Roche_(General_Motors)http://en.wikipedia.org/w/index.php?title=Richard_C._Gerstenberg&action=edit&redlink=1http://en.wikipedia.org/wiki/Thomas_Murphy_(chairman)http://en.wikipedia.org/wiki/Roger_Bonham_Smithhttp://en.wikipedia.org/wiki/Robert_C._Stempelhttp://en.wikipedia.org/wiki/John_F._Smith,_Jr.http://en.wikipedia.org/wiki/John_F._Smith,_Jr.http://en.wikipedia.org/wiki/Thomas_Nealhttp://en.wikipedia.org/wiki/Pierre_S._du_Ponthttp://en.wikipedia.org/w/index.php?title=Lammot_du_Pont_(the_second)&action=edit&redlink=1http://en.wikipedia.org/wiki/Alfred_P._Sloan,_Jr.http://en.wikipedia.org/w/index.php?title=Albert_Bradley&action=edit&redlink=1http://en.wikipedia.org/wiki/Frederic_G._Donnerhttp://en.wikipedia.org/wiki/James_Roche_(General_Motors)http://en.wikipedia.org/w/index.php?title=Richard_C._Gerstenberg&action=edit&redlink=1http://en.wikipedia.org/wiki/Thomas_Murphy_(chairman)http://en.wikipedia.org/wiki/Roger_Bonham_Smithhttp://en.wikipedia.org/wiki/Robert_C._Stempelhttp://en.wikipedia.org/w/index.php?title=John_G._Smale&action=edit&redlink=1http://en.wikipedia.org/wiki/John_F._Smith,_Jr.http://en.wikipedia.org/wiki/Rick_Wagonerhttp://en.wikipedia.org/wiki/Kent_Kresahttp://en.wikipedia.org/wiki/Edward_Whitacre,_Jr.http://en.wikipedia.org/wiki/Daniel_Akersonhttp://en.wikipedia.org/wiki/Alfred_P._Sloan,_Jr.http://en.wikipedia.org/wiki/Charles_E._Wilsonhttp://en.wikipedia.org/wiki/Harlow_H._Curticehttp://en.wikipedia.org/wiki/James_Roche_(General_Motors)http://en.wikipedia.org/w/index.php?title=Richard_C._Gerstenberg&action=edit&redlink=1http://en.wikipedia.org/wiki/Thomas_Murphy_(chairman)http://en.wikipedia.org/wiki/Roger_Bonham_Smithhttp://en.wikipedia.org/wiki/Robert_C._Stempelhttp://en.wikipedia.org/wiki/John_F._Smith,_Jr.


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G. Richard Wagoner, Jr. -- June 1, 2000 - March 30, 2009 Frederick A. "Fritz" Henderson -- March 30, 2009 - December 1, 2009 Edward ("Ed") Whitacre, Jr. -- December 1, 2009 September 1, 2010 Dan Akerson -- September 1, 2010 present

Vice Chairmen of General Motors

Donaldson Brown -- May 3, 1937 - June 3, 1946 George Russell -- November 1, 1967 - March 31, 1970 Richard C. Gerstenberg -- April 6, 1970 - December 31, 1971 Thomas A. Murphy -- January 1, 1972 - November 30, 1974 Richard L. Terrell -- October 1, 1974 - January 1, 1979 Oscar A. Lundin -- December 1, 1974 - November 30, 1975 Howard H. Kerhl -- February 1, 1981 - December 31, 1986

Donald J. Atwood -- June 1, 1987 - April 19, 1989 John F. "Jack" Smith, Jr. -- August 1, 1990 - April 6, 1992 Robert J. Schultz -- August 1, 1990 - November 1, 1992 Harry J. Pearce -- January 1, 1996 - May 25, 2001 John M. Devine -- January 1, 2001 - June 1, 2006 Robert A. Lutz -- September 1, 2001present Frederick A. "Fritz" Henderson -- January 1, 2006 - March 3, 2008

Presidents of General Motors

George E. Daniels -- September 22, 1908 - October 20, 1908 William M. Eaton -- October 20, 1908 - November 23, 1910 James J. Storrow -- November 23, 1910 - January 26, 1911 Thomas Neal -- January 26, 1911 - November 19, 1912 Charles W. Nash -- November 19, 1912 - June 1, 1916 William C. Durant -- June 1, 1916 - November 30, 1920 Pierre S. du Pont -- November 30, 1920 - May 10, 1923 Alfred P. Sloan, Jr. -- May 10, 1923 - May 3, 1937 William S. Knudsen -- May 3, 1937 - September 3, 1940 Charles E. Wilson -- January 6, 1941 - January 26, 1953

Harlow H. Curtice -- February 2, 1953 - August 31, 1958 John F. Gordon -- September 1, 1958 - May 31, 1965 James M. Roche -- June 1, 1965 - October 31, 1967 Edward N. Cole -- November 1, 1967 - September 30, 1974 Elliott M. Estes -- October 1, 1974 - January 31, 1981 F. James McDonald -- February 1, 1981 - August 31, 1987 Robert C. Stempel -- September 1, 1987 - July 31, 1990 Lloyd E. Reuss -- August 1, 1990 - April 6, 1992
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John F. "Jack" Smith, Jr. -- April 6, 1992 - October 5, 1998 G. Richard Wagoner, Jr. -- October 5, 1998 - April 30, 2003 Frederick A. "Fritz" Henderson -- March 3, 2008 - December 1, 2009

Internal Analysis

Structure

General Motors operate s a multi-divisional structure. This model consists ofindependent divisions, each representing a separate profit centre. In the case of GM,these divisions consist of different automakers such as Cadillac, Chevrolet, Pontiac,Buick etc. Each automaker is operated separately and has its own hierarchy. Insimpler terms each of these brands are semi -independent products whose corporate

strategy is overseen by the headquarters. The competition between these divisionsand the lack of centralization has proved to be very costly to GM over the years.

Organizational Culture

General Motors operates a strict bureaucratic culture (New York Times). The topmanagement makes all the decisions with little involvement from the lower levelemployees. This would have lead to the dissatisfaction of employees. Also it can be seenthat GM lifers dominate the top management. Out of 12 executives 9 of them have beenwith organization for more than 20 years (GM culture).

GMs employees cover almost 6 continents, 192 countries. Therefore as of recently GMhad made it a priority to build a culture and business environment based on the inclusion,mutual respect, responsibility and understanding of their employees. To initiate thismission GM has introduced a company-wide programme called I am GM which wouldhighlight the value of each employee (GM website).

Core competence

Innovation is without a doubt a core competence of General Motors. GM has been usinginnovation in service and technology since as early as 1908. In 1911 it came up with a selfstarter engine which revolutionized the automotive industry. In 1996 GM introduced asatellite system called OnStar, which could track vehicles if stolen. It also enables usersto communicate with OnStar personnel. It now has over 2.5 million subscribers.

GM has also come up with night vision on Cadillacs five years ago and it has a highdemand even today. As of recently GM is investing on more eco-friendly vehicles such
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as the Chevrolet Cruse, and hybrid vehicles such as Chevrolet Volt. GM is also lookingat pioneering fuel efficient vehicles (GM core competence).

Financial position

By analyzing the financial statements of GM, it can be seen that the revenue of GM hasbeen decreasing since 2006. Also the net loss before tax has increased by a significantamount as well. The profit margin has also been decreasing since the last couple of years.GM seems to have a very high gearing. Liabilities were amounting nearly twice theamount of shareholders funds.

The total assets of GM also show a huge decrease. The assets have decreased by almostone third the amount in the previous year. GM was performing well in the stock market inthe previous decade until the early 2000s when the American government increased theinterest rate, causing a blow to

the share prices. The September 11, 2001 attack on the World Trade Centre alsocontributed to this decrease in share price, which has been on a decline since thenfor the past 7 years.

.

Products offered by GeneralMotors

Racing heritage

Chevrolet Cruze in the WTCC
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Corvette Racing Team at the Le Mans

Small cars

As part of General Motors Company development, it plans to revive one of its idled

U.S. factories for the production of a small car in Orion, Michigan, with the creationof 1,200 American jobs. This will be first time ever a large manufacture producing aSupermini vehicle in the United States. The new small car will add to a group ofsmall and fuel-efficient vehicles that the company is planning to roll out in the nearfuture. This retooled plant will be capable of building 160,000 cars annually,including both small and compact vehicles

Chevrolet Aveo Concept, later went into production as the Chevy Sonic

The 2011 Chevrolet Volt, a breakthrough vehicle for GM, is a plug-in electric vehicle.
http://en.wikipedia.org/wiki/Superminihttp://en.wikipedia.org/wiki/Chevrolet_Volthttp://en.wikipedia.org/wiki/Chevrolet_Volthttp://en.wikipedia.org/wiki/File:Chevrolet_Volt_WAS_2010_8852.JPGhttp://en.wikipedia.org/wiki/File:Chevrolet_Aveo_RS_concept_front.jpghttp://en.wikipedia.org/wiki/File:Corvette_4_LS.jpghttp://en.wikipedia.org/wiki/Superminihttp://en.wikipedia.org/wiki/Chevrolet_Volt


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This carruns on hot air

Hybrid electric vehicles

Chevrolet Tahoe Hybrid

In May 2004, GM delivered the world's first full-sized hybrid pickups, the 1/2-tonSilverado/Sierra. These mild hybrids did not use electrical energy for propulsion, likeGM's later designs. In 2005, the Opel AstradieselHybridconcept vehicle wasintroduced. The 2006 Saturn Vue Green Line was the first hybrid passenger vehicle from

GM and is also a mild design. GM has hinted at new hybrid technologies to be employedthat will be optimized for higher speeds in freeway driving.

,

GM worldwide 2010 vehicle sales

(thousands)

Rank

in GMLocation

Vehicle

sales

Market

share (%)

1 United States 2,981 22.1%

2 China (PRC) 1,095 12.0%

3 Brazil 549 19.5%

4 United Kingdom 384 15.4%

5 Canada 359 21.4%

6 Russia 338 11.1%

7 Germany 300 8.8%

8 Mexico 212 19.8%

9 Australia 133 13.1%

10 South Korea 117 9.7%

11 France 114 4.4%

12 Spain 107 7.8%

13 Argentina 95 15.5%

14 Venezuela 91 33.3%

15 Colombia 80 36.3%

16 India 66 3.3%
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Brand reorganization

Former subsidiaries

Frigidaire (19191979), sold to Ohio-based White Consolidated Industries Lotus (19861993), sold to Luxembourg-based A.C.B.N. Holdings S.A. Saab (19892010), sold to Dutch sports car manufacturerSpyker Cars N.V.

Former affiliates

Fiat (20002005), GM owned 20 percent at one time withput option[71] Fuji Heavy Industries, manufacturer ofSubaru (19992006), GM owned 20

percent at one time[72] Isuzu (19712006), GM owned 49 percent at one time[73]

Suzuki (19812008), GM owned over 20 percent at one time[74

Vehicle ServicesThe restoration of vintage vehicles requires a special degree of knowledge. Byproviding unique vehicle-specific production information for Canadian producedor Canadian sold GM vehicles, regardless of production location, we hope topass along that knowledge.

Restoring a Vehicle For Selling PurposesIf you are selling, we can provide proof positive identification for your vintagecar or truck, including special options that will make your car or truck morevaluable.

Our vintage vehicle package provides the option content of your vehicle.Information includes:

original paint colour and interior trim colour

Brand Year Markets

Buick 1903 North America, China, Israel, Taiwan

Cadillac 1902 Global (except South America, India, South East Asia, Australia)

GMC 1901 North America, Middle East

Chevrolet 1911 Global (except Australia, New Zealand)

Vauxhall 1925 United Kingdom

Opel 1929Europe (ex. United Kingdom), Middle East/Africa, Asia/Pacific, SouthAmerica

Holden 1948 Australia, New Zealand
http://en.wikipedia.org/wiki/Frigidairehttp://en.wikipedia.org/wiki/White_Consolidated_Industrieshttp://en.wikipedia.org/wiki/Lotus_Carshttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Saab_Automobilehttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Spyker_Cars_N.V.http://en.wikipedia.org/wiki/Spyker_Cars_N.V.http://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/General_Motors#cite_note-70%23cite_note-70http://en.wikipedia.org/wiki/General_Motors#cite_note-70%23cite_note-70http://en.wikipedia.org/wiki/Fuji_Heavy_Industrieshttp://en.wikipedia.org/wiki/Subaruhttp://en.wikipedia.org/wiki/General_Motors#cite_note-71%23cite_note-71http://en.wikipedia.org/wiki/General_Motors#cite_note-71%23cite_note-71http://en.wikipedia.org/wiki/Isuzuhttp://en.wikipedia.org/wiki/General_Motors#cite_note-72%23cite_note-72http://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/General_Motors#cite_note-73%23cite_note-73http://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/Opelhttp://en.wikipedia.org/wiki/Holdenhttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Buickhttp://en.wikipedia.org/wiki/Cadillachttp://en.wikipedia.org/wiki/GMC_(automobile)http://en.wikipedia.org/wiki/Chevrolethttp://en.wikipedia.org/wiki/Vauxhall_Motorshttp://en.wikipedia.org/wiki/Opelhttp://en.wikipedia.org/wiki/Holdenhttp://en.wikipedia.org/wiki/Frigidairehttp://en.wikipedia.org/wiki/White_Consolidated_Industrieshttp://en.wikipedia.org/wiki/Lotus_Carshttp://en.wikipedia.org/wiki/Luxembourghttp://en.wikipedia.org/wiki/Saab_Automobilehttp://en.wikipedia.org/wiki/Netherlandshttp://en.wikipedia.org/wiki/Spyker_Cars_N.V.http://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/General_Motors#cite_note-70%23cite_note-70http://en.wikipedia.org/wiki/Fuji_Heavy_Industrieshttp://en.wikipedia.org/wiki/Subaruhttp://en.wikipedia.org/wiki/General_Motors#cite_note-71%23cite_note-71http://en.wikipedia.org/wiki/Isuzuhttp://en.wikipedia.org/wiki/General_Motors#cite_note-72%23cite_note-72http://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/General_Motors#cite_note-73%23cite_note-73


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production/shipping dates quantity of same model produced for sale in Canada original engine number through late 1960's (if available) original selling Dealer and location (if available)

This information is combined with Engineering Specifications for your specificyear and vehicle line to provide a comprehensive package of productioninformation for each car or truck.

Option details are available from 1964 to the present for most vehicle lines.Available information from 1946 to 1964 is limited to:

colour trim production/shipping dates engine number quantities produced for sale in Canada

selling Dealer (after approx. 1957)

Only production numbers are available prior to 1946 (sorry, nothing from 1939to 1945), except for Chevrolet where Engineering Specifications are alsoavailable.

We can help identify engine numbers, and offer assistance in locating the partsyou need to restore your GM car or truck to its original form. An originalequipment car is much more valuable than a clone.

If you are interested in purchasing a specific vintage GM vehicle that wasoriginally produced or sold in Canada, you should be aware of the authenticity of

the vehicle before you spend your hard-earned cash. We can identify the low-production C.O.P.O., Z28, L78, M22, or other special interest optioned carsbefore you pay top dollar for a clone.

We also provide same-day call-back service for those who are contemplatingmaking a purchase but want to make sure of what they are buying.

Call us with your Vehicle Identification (Serial) Number toll-free (in Canada) 1-888-467-6853, between 8 a.m. and 5 p.m. EASTERN Time. (Outside Canada1-905-440-7689).

A nominal fee applies for the research service.

We can also help you with the documentation required to export your used GM

vehicle to the USA or overseas, and to import a GM vehicle to Canada.

Battery Maintenance


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You may need to replace your battery if:

Your vehicle has trouble starting The eye (if equipped) on your battery is dark or clear Your battery is more than 5 years old

Common battery failures include:

Loss of electrolyte due to age, under hood heat or overcharging Deep discharges (leaving your lights on) Misapplication or using an undersized battery Undercharging or loose alternator belt Excessive vibration (loose hold-down or mounting) Using tap water for electrolyte Corrosion Freezing

Brake Maintenance

Brakes are a normal wear item for any vehicle and will eventually need replacing.

Many factors affect brake wear, like driving habits, operating conditions and

vehicle type.

When to book an appointment:

Brakes work by creating friction to slow and stop your vehicle. Every time you

depress the brake pedal, the brake shoes or pads rub against the drums or discs,

causing wear. So it's essential to have your brakes inspected regularly usually

every six months or 10,000 km.

Most disc brake pads have built-in wear indicators that make a high-pitchedwarning sound when the brake pads are worn and new pads are needed. This

brake wear warning sound means that soon the brakes will not work well. Call to

have your vehicle serviced. Continuing to drive with worn-out brake pads could

result in a costly brake repair.


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You may need to have your brakes inspected if:

You hear noises when applying pressure on the brake pedal Your vehicle pulls to one side when braking Your brake pedal feels different than normal or if youve noticed any

change in the way your vehicle brakes The parking brake doesn't work The dash brake light or ABS light stays on

Taking Care of Your Tires

The key to prolonging the life of your tires is

properly maintaining them. This means

knowing when and how to look for problems.

Regular tire inspection is the best way to

increase your vehicle's fuel efficiency, reduce harmful emissions, save money

and most importantly, make your vehicle safer. It's also easy, here's how:

Check your tire pressure at least once a month with a good tire gauge.You can read more about tire pressure here. If there is unusual tire wear, vehicle pull or vibration is noticed, havealignment and wheel balance checked. Rotate your tires regularly. Monitor treadwear and replace worn tires. Visually scan tires whenever possible for foreign matter in the tread , orother objects that could cause leaks.

Our services also include:

Upfront, competitive prices GM tools and diagnostic equipment GM-approved parts Service only for what's required, when it's required Goodwrench Service dealers located across Canada
http://www.gm.ca/gm/english/services/goodwrench/tires/maintenance#a3%23a3http://www.gm.ca/gm/english/services/goodwrench/tires/maintenance#a3%23a3


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Key drop boxes Shuttle service

Preserve the integrity of your vehicle with genuine GMParts.

Whether you are doing repairs or restoration, your local GM Dealer has theparts specifically designed and engineered to make your vehicle look and feelgood.

Performance Parts

Get in the winner's circle with GM Performance Parts. Check out GMPerformance Parts for more information about our factory-developed,engineered and tested performance products.

Collision Parts

The best way to ensure a higher resale value and a higher degree of safetyafter an accident is by restoring your vehicle with genuine GM Collision Parts.

Vintage Vehicles

Restoring your favourite GM vehicle not only requires specialized parts. It alsorequires specialized knowledge. We can help.

Goodwrench ServiceHave your genuine GM parts installed by an expert. GM Goodwrench technicians are trained specifically to service your GM vehicle

Environmental Analysis

Factors affecting the Automotive Industry (PEST Analysis)

1. Political

Laws and government regulations have affected this industry since the 1960s. Almost all

of the regulations come from consumers increasing concerns for the environment and the

concern for safer automobiles.

2. Economic

The automobile industry has a huge impact on every countrys economy. According to

various studies this industry is the major user of computer chips, textiles, aluminum,

copper, steel, iron, lead, plastics, vinyl, and rubber. The study also showed that for every

autoworker there are seven other jobs created in other industries. These industries include

anything from the aluminums to lead to vinyl.
http://www.gm.ca/gm/english/shopping/parts/performance/overviewhttp://www.gm.ca/gm/english/shopping/parts/collision/overviewhttp://www.gm.ca/gm/english/shopping/parts/vintagehttp://www.gm.ca/gm/english/shopping/parts/goodwrenchhttp://www.gm.ca/gm/english/shopping/parts/performance/overviewhttp://www.gm.ca/gm/english/shopping/parts/collision/overviewhttp://www.gm.ca/gm/english/shopping/parts/vintagehttp://www.gm.ca/gm/english/shopping/parts/goodwrench


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3. Socio-cultural

Todays society judges people on the type of car you drive. Society does not like to admit

to this but it is very true. Manufactures know this happens and targets their markets by

these thoughts. Anyone who drives a nice vehicle is thought to be wealthy. No one wants

to be seen driving an unattractive piece of junk because of what other people will think ofhim or her. Consumers also just feel better when they are driving a nice or new car, if

makes them feel better about themselves.

4. Technology

The internet has affected just about every industry in the world and has also had a huge

impact on the automobile industry. A study was conducted by J.D. Power and Associates

in 2002 and involved more 27,000 new vehicle buyers. The study showed that 60% of the

buyers referred to the internet before making their purchases and out of that 60%, 88%

went to the auto websites before going and taking a test drive. Business-to-businessmarketplaces have given the industry many opportunities because of the internet, such as

more efficiency and lower cost.

5. Demographics

For many years now, the baby boomers generation has been the main target market for

just about every product. As their generation is getting ready to retire and spend less

money, the automakers are looking at the younger generations. Right now, the focus is

starting to turn towards the baby boomers children (Generation X) who are in their mid

20s and 30s. According to Analysts, five years from now Gen X will account for at least

30% of vehicle sales.

6. Global

General Motors, Ford Motor Company, Daimler Chrysler, BMW, Volkswagen, Volvo,

Toyota, Mazda, and Nissan Motor Company come together to create a new trade

association created the Alliance of Automobile Manufacturers. The organization was to

replace the American Automobile Manufactures Association that only consisted of

American manufacturers, the goals of the associations were to work together on public

policy matters of common interest to provide credible industry information and data, and

seek consistent global regulatory standards

Environmental Analysis


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GM and the entire auto industry are currently challenged with the perfect storm. The auto

industry is being hit by a weak US and global economy, rising fuel prices, and social and

political environmental concerns and issues. In order to overcome these potential threat,

GM should consider mass producing a range of alternative fueled vehicles, i.e. fuel cell,

electric, and hybrid.

Competitors Analysis

General Motors' Strategic Analysis

The major competitors of General Motors are domestic companies like DamilerChrysler& FordMotor and foreign companies like Toyota Motor & Honda Motor.

Damiler Chrysler

As the number two auto manufacturer in total revenues DaimlerChrysler has positioned

itself as an industry leader, with this come many strengths. The DaimlerChrysler

umbrella covers many well- known brands such as Dodge, Chrysler, Mercedes Benz, and

Jeep. This means DaimlerChrysler has strong brands that are recognizable in almost

every part of the world.

Ford Motor Company

Ford Motor Company is a global company with two core businesses: Automotive and

Financial Services. The Automotive business consists of the design, development,

manufacture, sale and service of cars, trucks and service parts. Ford has been focusing oncutting costs to increase margins more than its competitors. It has used reverse

engineering in the development of their products. Thus Ford has been an innovator in the

auto industry.

Honda Motor Company

Honda motor company is not your average Japanese car manufacturer. Originally know

for motorcycles, Honda has managed to elude the dominate keiretsu system in Japan and

become one of the dominant automobile manufactures in the world. There are many

strengths to Honda. Honda has a reputation for producing high quality products from carsto motorcycles. Honda has won many awards for initial quality and customer satisfaction.

Their automobiles are reliable and generally fuel efficient. Their research has afforded

them competitiveness in innovative products.

Toyota Motor Corporation


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The Toyota Motor Corporation was incorporated in 1937 and has many strengths being

one of the industry leaders in the automotive industry. Toyota has three major brands

underneath the company umbrella; Toyota, Lexus, and Scion. By having these three

distinct brands, it lets the company reach many sectors of the globe in a choice of vehicle

for customers. Toyota has traditionally also been the leader in Total Quality Management

or TQM. By using the Kaizen theory of continuous improvement, Japan caught up theU.S. auto makers during the 1980s.

SWOT Analysis

Strengths:

1. Large Market Share

Although GM's market share in the US has dropped it is still very much competitive at 26

percent. They also have an increasing share in the Chinese market. With the right

decisions there is no reason for GM to not become the automotive leader it once was.

2. Global Experience

As explained above even with GM's recent decline they still have the market share and

the experience to bounce back. They have been a worldwide company for nearly a

century now and have established themselves as the global leader for most of them. If

you recall I mentioned above that a current opportunity for GM is to expand globally and

as we can see they already have the experience to do so. It is just a matter of the correctplanning and proper implementation of those plans that will decided whether or not GM's

goals are achieved.

3. Variety of Brand Names

GM as I mentioned has been the automotive leader for the majority of the last century. A

large reason for that is the wide variety of quality brand names that appeal to all target

markets. The current GM brands include: Chevrolet, GMC, Cadillac, Buick, Pontiac,

Saturn, Hummer, Saab, Daewoo, Opel, and Holden.

4. GMAC Customer Financing Program

Since its establishment in 1919 it has proven to be GM's most reliable source of revenue.

5. OnStar Satellite Technology

Developed in 1996 OnStar currently has over 3 million subscribers and is standard on all

GM vehicles. This technology allows the vehicles to be tracked in the event of an


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emergency or theft. It also allows the driver and or passengers the ability to communicate

with OnStar personnel at the click of a button.

Weaknesses:

1. Behind on Alternative Energy Movement

This is GM's biggest weakness. The alternative energy/hybrid trend has begun to take

place in the automotive industry and GM has been one step behind the competition in

terms of alternative energy vehicles. This has led to many problems including loss of

market share and a decrease in company profit. In order for any automotive company to

be successful from this point forward they must be Hybrid friendly and fuel efficient.

2. Poor Organizational Structure

As we can see in exhibit 1 of the case GM's organizational structure seems to be too

vertically integrated. This causes a lack of communication between employees from top

to bottom and may have played a part in GM falling behind on the alternative energy

movement.

3. Stagnant Profitability

Looking at GM's profit we see that they are certainly struggling with respect to the size oftheir company. Their profit margin was about 1.5% and the ROE has dramatically

decreased over the recent years dropping to 10% in 2004. This is a situation that

shareholders will not be pleased with.

4. Overly Dependent on US market

GM has become too dependent on the US market and must take advantage of theopportunity toexpand globally. The competition is becoming too strong to focus on just one country.

5. Overly Dependent on General Motors Acceptance Corporation(GMAC)Financing

GM has become too dependent on its financing program. Granted it is a great strength for

GM, however they once again cannot rely solely on financing in order to turn profit,

especially if they want to compete with Honda and Toyota who are rapidly growing.

6. Poor Credit Status


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GM's credit status has like everything else has been steadily declining. Their current ratio

is just barely above 1 and their acid test is even lower. Although, I don't see them getting

denied based on their credit at this point, the seriousness of the matter is certainly

apparent.

Opportunities

1. Alternative Energy Movement

It is obvious that GM was behind its competition with regards to the research and

development of hybrid vehicles. However hybrid technology is still very much new

giving GM the opportunity to once again become the automotive industry's leader in

innovation and technology.

2. Continuing to Expand Globally.

Recently GM saw an increase in the Chinese automotive market, which proves their

needs to be more emphasis put on foreign markets. If GM can infiltrate these markets and

successfully grow along with their continuing focus on the US market they will be

headed in a positive direction.

3. Low Interest Rates

With the right marketing strategy the low interest rates have the potential to generate an

immediateincrease in sales.

4. Develop New Vehicle Styles and Models

This is an opportunity that will never be satisfied, meaning that GM should always be

attempting to develop the automotive world's most popular vehicles, and as we know,

what is in today will be out tomorrow.

Threats

1. Rising Fuel Prices

With GM being a large producer in both trucks and SUV's, sales have drastically

decreased due to the lack of fuel efficiency. The rise in fuel prices has played a

significant role in creating the opportunity for development of both hybrid and more fuel


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efficient vehicles. As you will find with most threats, an equal opportunity will usually

emerge as is the case here with GM's opportunity mentioned above.

2. Growth of Competitors

GM no longer has the luxury of being the known leader in the automotive industry andfaces the reality that they are in serious trouble. As I mentioned earlier Toyota took the

first step in the direction of hybrid technology and has since drastically grown and

become the questionable automotive frontrunner to start the 21st century.

3. Pension Payouts.

Part of this threat is their own doing and the other is simply unavoidable. GM is

responsible for providing generous pension benefits to its employees, which at the time

seemed like a great idea, however they are now experiencing problems as more and more

people begin to collect.

4. Increased Health Care Costs

GM, like many large companies with quality employee health care benefits, isexperiencing a largefinancial hit that only gets worse as time continues.

5. Rising Supply Costs, i.e. Steel

Once again this threat affects the entire automotive industry and forces each company to

cut manufacturing and production costs as much as possible, without taking away from

the quality of the product.

Porters Five-Forces Analysis

The competitive structure of an industry is another important component of identifying

factors that are a threat to diminish profitability. One of the most efficient ways to assess

competitive issues is to consider Michael Porter's five-force analysis. Porter (1980, 1985)

has highlighted five such factors: (1) rivalry between existing competitors, (2) threat of

entry by new competitors, (3) price pressure from substitute or complementary products,

(4) bargaining power of buyers, and (5) bargaining power of suppliers.

1. Rivalry between existing competitors

With the rise of foreign competitors like Toyota, Honda and Nissan in the 1970's and

80's, rivalry in the American auto industry has become much more intense. Firms

compete on both price and non-price dimensions. The price competition erodes profits by

drawing down price-cost margins while non-price competition (e.g., new car rebates and


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interest free loans) drives up fixed cost (new product development) and marginal cost

(adding product features). One of the other reasons there is such high rivalry is that there

is a lack of differentiation opportunities. All the companies make cars, trucks or SUVs.

The competitors are compared to one another constantly. In recent years there has been

significant market share variation, another indication of rivalry and its very strong threat

to profits.

2. Threat of entry by new competitors

The presence of new firms in an industry may force prices down and put pressure on

profits. There are, however, barriers to entry that tend to protect established firms. One

would expect the production of automobiles to require significant economies of scale, an

important barrier to entry. The new entrant would have to achieve substantial market share

to reach minimum efficient scale, and if it does not, it may be at a significant cost

disadvantage. While the evidence suggests that economies of scale in the auto industry are

substantial, there are also indications that large size may not be as important as commonlyassumed. Nevertheless, entry would represent a large capital investment to any new firm

and the body of research still indicates that economies of scale represent a substantial

barrier to entry. Consequently, entry is currently a weak threat to profitability.

3. Substitute or complementary products

While five-forces do not directly consider demand, it does consider two factors that

influences demand substitutes and complements. Although new cars generally are

slightly price elastic, suggesting few real substitutes (e.g., bus and rapid transit), the

demand for a particular model is highly sensitive to price because of the availability of

close substitutes for a given model. A change in the price of a complementary product

(e.g., gasoline, batteries, and tires) could have a significant impact on the demand for

automobiles. The rising price of gas, an important complementary product, is likely to

affect some firms more than others depending upon the vehicle composition. Recent

rising fuel prices are likely to have a greater impact on the big three (GM, Ford Motor

and Daimler-Chrysler) whose most profitable models are energy inefficient pick-up

trucks and sports utility vehicles. On balance, the overall impact on "industry"

profitability from substitutes and complements is weak to moderate.

4. Bargaining Power of Buyers

Buyer power refers to the ability of individual customers to negotiate prices that extract

profit from the seller. Individual consumers have some influence over price within a

given dealership, but little power over manufacturers. Customers can easily, and with

little cost, switch to other auto dealers. Furthermore, customers now have access to

market information (prices and costs) from the Internet that enhances their negotiating

power. But when you have many individual customers, each representing a small


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proportion of total sales, they will have little bargaining power with manufacturers and

therefore pose a weak threat to industry profit.

5. Bargaining Power of Suppliers

Auto manufacturers require inputs-labor, parts, raw materials and services. The cost of

these inputs can have a significant effect on profitability. Whether the strength of

suppliers is weak, moderate or strong depends on how much bargaining power they can

exert. The auto manufacturers have large supplier networks that appear to exert little

bargaining power. Nevertheless, the United Auto Workers (UAW), the only supplier of

labor, has historically exerted a great deal of leverage over the benefits and wages

provided by the big three. Because of this historical dominance by the UAW and the

uncertain results of their current negotiations with the big three, one has to characterize

supplier power, at least in this segment of the American market, as a strong threat to

profits.

The following table summarizes the results of a five-forces analysis of the automobileindustry.

Five-Forces Analysis

FORCE THREAT TO PROFIT

Internal Rivalry Strong

Entry Weak

Substitutes and Complements Weak to ModerateBuyer Power Weak

Supplier Power Strong

Core Competence

The core competence of General Motors is innovation. This is the driving force behind its

$190 above turnover. General Motors has been utilizing innovation in service ad

technology to secure itself a dominant position in the automobile industry, since 1908. In

1911, it conceptualized, engineered and commercialized the self-starter engine for the

first time. Then in 1926, its product Cadillac was the pioneer in devising a nationwide

service strategy. In 1996 General Motors introduced OnStar satellite technology whichallows equipped vehicles to be tracked in case of an emergency or theft and allows the

passengers to communicate with OnStar personnel. Other new car concepts include

minicars such as Chevy Aveo.

However in the case of hybrid vehicles, General Motors was unable to keep up to thepace of the market demand.


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Financial Results

Based on the GMs consolidate net sales and revenue, it shown that General Motor

Corporation revenue has been falling to $ 192.6 billion in 2007 from 193.5 billion in2004. GM incurred a consolidated net loss in 2007 of $ 10.6 billion, compared to net

income of $ 2.8 billion in 2004.

In the last 1990s, GM had regained market share up $ 80 a share. In 2000, the interest

went up by the Federal Reserve to quell the stock market and a severe stock market

decline following the September 11, 2001 attacks. Due to this factor, it affected a pension

and benefit crisis at General motors and many other American companies. The current

stock market price of General Motors are falling between $28- $29 per share. It has been

falling down gradually in the past six years.

General Motors North America market share in 2007 fell to 25.5% compared to 26.7 in

2004. Decreased in market share also due to sales declines in segment where GM has

high volume such as large sport utilities, mid-sized utilities, and mid-sized cars.

The unfavorable results of GMs consolidate net loss in 2007 were driven primarily bylosses atGMNA due largely to unfavorable volume and product mix.

Suggested Strategies

Below is a list of possible strategies General Motors could use to redirect profits and beable to maintain survival for the future.

Market Development

Market Penetration

Product Development

Restructuring

Retrenchment

Liquidation

Market Penetration


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One of the potentially available choice s as identified by the Ansoff Matrix is themarket penetration strategy. This involves increasing the existing market share in thecurrent market to achieve higher growth (Phil stone - eBook). GM would be able toattract more customers by making improvements in existing vehicles and selling atcompetitive prices. Further enhancements on vehicles such as fuel efficient engines,

and the latest in satellite navigation technology would be highly in demand bypotential customers. Furthermore GM could use this strategy to retain existingcustomers as it is much cheaper. As mentioned by Lynch R. (2003) companies likeToyota and BMW make great efforts to retain existing customers when they changecars.

This strategy also considers Withdrawal in order to downsize the company therebyincreasing the competitive advantage. This was the option GM has chosen. GM hasrecently announced plans to phase out the Pontiac brand by the end of 2010. Thedecision of eliminating the Pontiac brand was made so that GM will be able toconcentrate better on its main brands Chevrolet, Cadillac, Buick and GMC (market

penetration). GM has also unveiled plans of mo re job cuts by the end of 2014proving their intention of downsiz ing further.

Market development

Another option as identified in the Ansoff Matrix is the Market development strategy. Thisstrategy considers marketing existing products into new markets (Phil Stone). This hasproved to be a successful strategy in the past. GM had invested in China a few years back,and it is now the second largest automaker in China. This shows the potential of investingin a new market (opportunity China).

This strategy also involves re-evaluating the market, and positioning themselvesbetter. The approach GM is following at the moment seems to be failing miserably.The target market has changed its attitude towards GM recently. They no longer lookat GM as a manufacturer of Tradition al American vehicles. Therefore it is essentialthat GM select a specific target audience to whom they could cater to moreeffectively. For example GM might want to target the senior population , who still lookfor that traditional look in a vehicle for their vintage muscle vehicles, and the younggeneration for the more attractive sports vehicles.

Product Development

Product development is another possible option identified in the Ansoff Matrix. Thisstrategy considers significant new product development in an existing market (Philstone). This is a fairly suitable option for GM to regain its lost glory if they could comeup with a new product. Since the majority of potential customers are more interestedin hybrid and other eco -friendly vehicles, quite a lot of vehicle manufacturing giantshave invested heavily in the production of alternative fuel vehicles. This would


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ideally set the stage for GM to manufacture a hybrid model and capture the marketbefore competitors.

This strategy would also enable GM to consider other needs of potential customersand come up with a completely unique product that would stand out from

competitors. This is exactly what GM would want in a position they are in now, aproduct that would be more appealing than other competito rs.

Diversification

The final choice of available options the Ansoff Matrix identifies is Diversification.This involves moving away from the current products and markets, and entering newareas. This would involve a higher degree of risk, but if done p roperly, wouldgenerate higher benefits (lynch)

Under this strategy GM would have two choices. Either move into related markets, or

into unrelated markets. By moving into related markets, GM would be manufacturingproducts which is related to vehicles. Pos sible goods and services GM coulddiversify into are forward integrated, such as distribution and transport. Byeliminating the middlemen in between distributing and selling, GM might be able toincrease their already thin profit margins. GM could also div ersify into unrelatedmarkets where there is no relation with the core busin ess. GM currently operates aneffective financial service providing loan facilities to customers. GM could also makepartnerships with other companies outside the automobile industry in a similar way toItalian automobile maker Lamborghini who made a deal with computer giants ASUSto design laptops (lambo laptops).

Recommendation

Out of the above strategies the most suitable, feasible and acceptable would beproduct development. This is because, as mentioned earlier GM has an opportunityto come up with a hybrid vehicle before competitors. Since GM has the necessarytechnological capacity to make that happen, it is only logical to go for it

Implementations:

Recommended strategies for General Motors would start with product development then

market development, liquidation, and restructuring. Reasons for product development

being at the top of priorities is that GM has to create a type of Hybrid vehicle that will

allow it to keep up with the pace of the competitive environment, but must be a product

that stands out from the crowd at the same time. Prime example of their idea for a Hybrid

SUV, it fits the GM profile with maintaining the SUV portion, but allows the firm to stay

with trend patterns.


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GM must also re-evaluate the market they are trying to approach, because for so long

they have continued with a tradition outlook for automobiles, but now that times are

changing their original target market is not looking for what they once were. General

Motors needs to take a step back and take look at how they want to position themselves

and towards what market since what they have been doing is no longer in favor for the

company. An example of what GM could possibly do is produce a futuristic vehicle,which has been heard in rumors from Toyota about their next plan of action. If General

Motors could provide a "futuristic" vehicle before Toyota has the chance to hit the market

with theirs GM would be a step ahead of the competition. Liquidation is important to GM

because their assets are a lot higher than revenues, and if GM could turn assets into cash

then their would be more readily available funds and then GM would not have to depend

some much on their U.S. sales, which only include 2/3 of that market and their financing

tactic wouldn't be as much of a risk. Liquidation would clearly help out the financial parts

of the organization.

Last but not least is restructuring, which General Motors most desperately needs toreview possibilities. The company has taken a large hit in recent years and needs to find a

way back to the top. This is only going to be achieved if something drastic is changed.

Restructuring the product development pace would be a start as well as cutting back on

employees because the company is growing in size but not in profit, which causes a red

flag for GM. The company needs to be re- evaluated in many ways, but GM has been

strong for many years that it is very possible for the company to come above these issues.

Evaluation:

The biggest thing for General Motors is to develop a Hybrid vehicle that will maintainthe pace ofthe competition for the firm as well as one that will stand out from the crowd to make theproductnew and exciting. Creating a Hybrid SUV is a brilliant idea and if GM can pull that offby the end of 2007 the future could look very bright for them. The company has a hugebackground proving that they can maintain being number one, it's just a matter of productdevelopment being maintained and refocusing products to the correct target markets

General Motors corp. and

marketing strategy


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Marketing Strategy plays the one of the most important role to achievecompany goals and objectives. The main objective of the marketing strategy isCustomers satisfaction and increases the sales with less cost of the any productwith good quality as compare with the competitive market.

To more understand the concept of marketing strategy let we take GeneralMotors. GeneralMotor is the one of the best automobile company in the word. General Motorsmanufacturing the cars and trucks in the international market. GM brands ofvehicles are Chevrole, Buick, Holden, Opel, Wuling and Vauxhall, Cadillac. Dueto the presence of the lots of automobile companies, The General Motors isfacing very high completion.

Marketing Strategy is the balance way that is used by the company for increasingsales and profit with customers satisfaction and less expanses. Marketingstrategy of the General Motors mainly Used the segmentation, target and

positioning strategy.

General Motors segmentation strategy is main aim to target the differentgroups. In this GM think that the whole market is single market so the GeneralMotors design the car with the different range of cost and its design the strategyaccording to the Income, Age, Family, occupation. In the target strategy, the GMtargets the upper, middle and lower class group and sells the products tocustomers according to the need and income. The positioning strategy of thecompany is change time to time by the Upper management and its alwaysaccording to customers requirement.

In above we provide the basic principal of the market strategy of the GeneralMotors. Marketing Strategy is plays the very important in the business and thebusiness success and failure always depends upon on the marker strategy.

The General Motors Corporation emerged in 1931 as a leader in the US Auto

industry. GM represents brands such as Cadillac, Chevrolet, GMC, Pontiac, and

Hummer among others. In earlier decades, GM was responsible for introducing

the world to iconic cars like the Camaro, the Corvette, the Seville, the Firebird,

and most recently, the Escalade. The problem with these cars is that although

they are beautiful, they do not appeal to consumers that are feeling the effects of

the economic and environmental problems that we face in our current world.

GMs lack of focus on engine efficiency and keeping customers coming back hasfinally, after years of inattention to market focus and overall poor management,

has finally sent GM into a much publicized and very controversial bankruptcy.

Innovative and dependable car manufactures like Honda and Toyota have been

taking a large portion of their US market share for many years and the

bankruptcy is only adding to this long standing trend. The service, reputation,


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and quality of GMs cars in recent years have declined forcing loyal US buyers to

take their business elsewhere.

The bankruptcy was actually pre-packaged with history-making US Government

involvement including the forced resignation of the CEO. The new CEO claims

that GM has gained a new focus on customers, cars, and culture as clearpriorities of their new philosophy and market focus. Notably, the word

customers is mentioned first. To many Americans a new car is a luxury but it is

still a car buyers market as the auto industry is extremely competitive involving

both domestic and global competitors. GM needs to compete with both domestic

and foreign car companies who have shifted the paradigm back to originally

making the customer happy by providing reliable, cost effective and

technologically innovative features and designs. Dependable older model cars

still on the road today usually are not GM vehicles. The GM cars that are now

priceless collectibles were manufactured in a time where early mass production

was still balanced with quality and pride in craftsmanship. When a corporation istoo large and poorly managed, they forget about the cornerstones that allowed

the business to flourish. GM focused too much on wheeling and dealing in the

car show room than making the best cars available. Combine this with poorly

negotiated labor contracts that pay wages and benefits that are 50% higher and

you have the makings of disaster. Its like a GM salesman saying Yeah, our

cars are not as reliable but they cost more not a very appetizing value

proposition. All this happened while others emerging in the industry were

foreseeing the needs of today and were eager to advertise how they were plainly

more reliable, were less expensive to own (lower price) and less expensive to run

(higher gas mileage). Honda and Toyota have long marketed their cars andtrucks centered on dependability, high residual value, and durability that keep

money in their customers pockets.

The stereotype of GM is that of big powerful cars, big powerful gas guzzling

engines, and lack luster interiors. Most car ads are based on gas efficiency as

well as the design and comfortable interiors in even their lower end cars. In the

past, GM advertising has used celebrities in their commercials to remind

consumers of the old sentiment about riding in a Cadillac or Chevy. GM had a

big advantage over leading foreign car companies; they are an original American

car manufacturer. In general, most people favor this and using this argument in a

commercial like they recently have will prove successful. However, Americans

will only buy the cars that perform, prove to be dependable and provide a

superior overall ownership experience.

Marketing counts! Word of mouth is a major factor in all buying decisions and

buying your new car is no exception. The closest thing to word of mouth is the

internet. Other car companies like Honda have had successful viral marketing


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campaigns by posting their cool commercials on YouTube. Hondas focal point is

on communicating eco-conscious models that are affordable for everyone. To

engage a younger generation and re-introduce their brand, GM will need to use

internet marketing effectively including viral marketing, PPC, Social Media, and

even email marketing announcing sales and personal offer invitations to their

existing customers. Reaching their existing customers on a personal level willmake them feel exclusive and willing to do business again. Facebook would be a

good tool to keep customers engaged and aware of the new changes for GM.

Car Dealers are also going to have to clean up their act. They need to stop

being about deal making and hard closing techniques. Your local dealer will

need to become a valuable source of ongoing information using the social media,

email marketing and search engine marketing. By doing these things they can

be less about getting you into something today and more about establishing a

trusting relationship and someone who can be relied upon when the time does

come to get that new vehicle.

With their hoped-for new focus on customers, cars, and culture, GM could be

headed in the right direction. They already have outlined their main priorities.

Going forward, we will see how they use internet marketing and what the impact

will be for their sales in the upcoming years

TheEnd..
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