Factors Affecting General Motors

Factors Affecting ecumenical Motors assiduity involved in the design, development, manufacture, market protrudeing and sale of motor fomites be cognise as automotive industry. More than million of motor vehicles, including cars and commercial vehicles were produced widely distributed in 2007. Figures show that in 2007, around 71.9 million new automobiles were make out worldwide in which 22.9 m s emeritus in Europe, 21.4 m in Asia-Pacific, 19.4 m in USA and Canada, 4.4 m in Latin America, 2.4 m in the Middle East and 1.4 m in Africa. Though the markets in North America and Japan were inactive but in southmost America and Asia markets grew very strongly. Russia, Brazil and China were the star who showed fast emergence compargon to others.In 2008, automotive industry were experiencing a combination of set pressures from raw material cost and neuters in consumer buying habits due to rapid rise in the price of crude. G.M and other automotive industries were also go well-ni gh external contestation from the public transport sector, as consumers re-evaluate their private vehicle usage. U.S is the worlds largest consumer market for light vehicles, passenger cars and light trucks which are conquered by deep 3 companies i.e. General Motors, Ford Motors and Daimler/Chrysler. But recently these three industries were started to recur their market share to other rivals within the industry. General Motors are set about huge competition by domestic accompany such as Ford Motors and Daimler/Chrysler and also by foreign companies such as Toyota Motors and Honda Motors who are able to produce car much cheaper cost than General Motors.In 2006, General Motors has been bankrupted and has been avoiding a filing for years. For years it has been using cars as razors to sell consumers a monthly package of razor blades- in the form of extremely profitable car loans. And the reasons for its bankruptcy are because they were concentrate mostly on their finance divisi on rather than it vehicle design operation. GM cars were ailing designed and build, likewisek long time to manufacture as compare to its toughest challenger Toyota who has break dance designed and high quality and cheaper. In past GM controlled half of North America vehicle market but instanter it has only 19 percent control as GM has been ignoring competition due to which Toyota and other industry took over the market share.Since General Motors were focusing on making profit from finance they did not care about building better vehicles. It was managing in bubble as GM rewarded those employees who followed the old way of doing things and those who praises CEO wisdom and carry out his orders.PEST abridgment(P)oliticalSince 1960, there were more powerful and strict laws and Government intervention that has change GM and other car industries. Mostly, all regulation was related to consumer change magnitude concern for environment and concern for the safer automobiles.(E)conomica lAutomobile Industries plays an important role on every countries economy. As Automotive industry are major substance abuser of computer chips, aluminum, textiles, copper, steel, iron, lead, plastics, vinyl and rubber. Research and study had shown that for every autoworker there are s change surface other jobs created in other industry which include aluminium to lead to vinyl.(S)ocioculturalTodays people are mostly concern about their billet and society judges on the basis of what type of car superstar drives. Manufacture takes advantage of this thought and target the market. Every one privation attractive and nice car which other people admires. Consumers feel better when they driving nice and new car.(T)echnologyInternet had played a portentous role in automotive industry. A study showed that about 60 % buyers referred to internet before making their purchase and out of that 60 percentage. 88 % buyer went to auto website before going and taking test drive. personnel and Weakne ss of General Motors.StrengthsHuge Market ShareAlthough General Motors market shares has dropped in United States but it still has very much free-enterprise(a) at 26 percent. On the other hand, it is increasing its share in Chinese market and world wide. They still believes that they cook an fortune to puzzle automotive leader once again as it was before.Global lastAlthough General Motors share have decline recently but they have capability of becoming leader once again due to abundant experience of almost 100 years. As GM period opportunity is to expound globally and it has got experience to do so.Variety of Brand callGeneral Motors had been leaders in the past and reason for that is wide build of quality brand names that distinctiate it from other automotive manufacturer. Its sure brands include GMC, GM Daewoo, Chevrolet, Pontiac, Saturn, Hummer, Saab, Holden, Buick, Cadillac, Opel, Vauxhall and Wuling.GMAC Customer Finance ProgramSince, General Motors bankers accepta nce Corporation establishment in 1919, it has proven to be GMs most current source of revenue.On Star artificial satellite technologyStar Satellite technology was developed in1996 with a subscriber of more than 3 million and it is the standard of all GM vehicles. The benefit of this technology is that vehicle sub construction be easily tracked at the time of emergency or theft. On the otherhand, it allows the driver as well as passengers to take place with On star personnel just in one domestic dog of button.WeaknessesBehind on Alternative Energy MovementThis is one of the biggest weaknesses of General Motors. The alternative energy/hybrid technology has already taken place in the automotive industry and GM has been one step john the competition in terms of alternative energy vehicles. As a result, GM faced lots of problem including loss of market shares and snuff it in company profit. Now days for any automotive company looking for success must be Hybrid friendly and give n otice efficient.Poor Organizational StructureThis is the second and significant weaknesses of GM. Its organisational structure seems to be too vertically integrated. As a result, there is overlook of communication between top take management and bottom level management and may have played a part in GM falling behind on the alternative energy movement. dead(a) ProfitabilityGeneral Motors profit has been certainly falling and they are fight with respect to the size of their company. General Motors profit margin was about 1.5 % and the hard roe has dramatically decreasing by dropping to 10 % in 2004. At this situation shareholders are not happy and they are becoming less(prenominal) interested.Fully Based on US marketFor any one who is concentrating on one particularr market cant be successful. This is what happened to GMs case, it fully leechlike on the US market. It must take advantage of the opportunity to expand globally. Due to high competition, it is becoming too strong to foc us on just one country.Over Dependent on General Motors acceptance Corporation (GMAC) FinancingThe other important weakness of General Motors is that it is too dependent on its financing program. Although, it is accepted that it is a great volume for GM, however it will be a problem if it solely cuss on financing and cant turn profits, in order to manage with Honda and Toyota who are rapidly growing.Poor Credit StatusGMs credit perspective is steadily declining same as everything else. It is losing credit in market and amongst the customer. Its current ratio is merely above 1 and its acid test is even lower.Poor strategies and lack of ForesightDue to increase in oil prices, consumers began to turn away from SUVs, but still General Motors predicted much of its operational success on its ability to sell newly unpopular vehicles. era companies like Toyota, were concentrating on light vehicle and in improving competency where GM assumed sales would continue in future.ALTERNATIVE FORMS OF face DEVELOPMENTOrganizational Development is a system which differs from other systems of nerveal change by putting stress/focusing on procedure rather than problems. In fact, change system focuses on identifying problems in an organization and then trying to alter the behaviour that creates the problem. OD is a methodology intended for use in complex situations to provide intervention outline for change management. OD finds the behavioural interactions and the pattern that creates or sustain problem. In fact, OD does not change the behaviours, but they focus on creating a behaviourally healthy organization that will automatically operate and prevents the problems. OD slackly considered long term effort that is of at least one to three years in most cases. In addition, it mostly focuses on feature management where manager and workers of different level communicate and unite to solve the problem. OD understands the fact that all organization is different and same o rigin cant put in every company. The other feature of OD is that it gives importance to team work and small group.The important features of OD programs is the change agent, that is group or individual which makes OD process much easier. well-nigh all change agent are consultant from outside who are experienced in managing OD programs but sometimes companies may habituate its inside managers. The benefits of consultant from outside are that they provide a different outlook and have a less biased view of the organizations problems and needs. The separate of outside change agents is that its lack an in depth of understanding of principal(prenominal) issues mainly one specific organization.