In a 2- to 3-page Microsoft Word document, submit the following:
� Create and discuss your company’s SWOT analysis. Justify each item in your analysis.
Discuss the ethical implications of pursuing a social responsibility program in terms of your stockholders
and stakeholders. What is the personal framework you are using to make these ethical decisions for your
company?
Introduction
General motors’ Ltd is one of the omnipresent entities in the U.S that is overall to the
economy of the nation. General Motors (GM) is considered as the largest automobile
manufacturing plant established in 1908 and conducts its operation in close to 120 nations. The
company produces cars and trucks and provides employment to more than 250,000 individuals
globally. In order to sustain its competitive advantage in the automobile industry as a global
leader, the company needs to develop a strategic plan and ensure its social responsibility in the
industry. In this case, the entity needs to choose its opportunities to rely on, threats to overcome,
weaknesses to subdue and strengths to build on in achieving this goal.
General Motors Situational Analysis
GM’s situation analysis will consequently enable the company to identify the company’s
position in the market in order to adopt effective strategies in understanding its market position.
Strengths:
Huge Market Share
In as much as the company’s share value recently dropped in the US market, the
company still remains competitive in the global market (Adela & Monica, 2011). Currently,
IDENTIFYING STRENGTHS FOR FINAL PROJECT
GM’s share value stands at 25% and is significantly increasing in different markets such as
China, an aspect that depicts the fact that with the right strategic plans, the company will turn out
to be the market leader.
Wide range of Brands:
GM has several branches and is considered as a global leader for the primary purposes of
its wide range of brands, an aspect that has made it easy for the company to access different
types of markets (Adela & Monica, 2011). Currently, GM’s brands include GMC, Buick, Saturn,
Cadillac, Chevrolet, Daewoo, Saab, Holden, Opel, and Hummer.
Innovation and advanced technology:
NASA engineers and GM are currently working on modalities to launch Robonaut 2 as
one of the space shuttles in the International Space Station (Adela & Monica, 2011). The two
entities are collaboratively putting their efforts together different technologies in developing this
machine and other humanoid robots through the use of vision systems and advanced sensor, an
aspect that has maintained the organizations capacity to use technology in advancing its
productivity.
Customer Satisfaction:
GM has an outstanding reputation in the production of quality products as detailed in the
American Customer satisfaction index (General Motors Company SWOT Analysis, 2013). The
company’s innovative products such as Cadillac and Buick are currently ranked as the largest
products that satisfy the needs of the customers.
Weaknesses:
Unproductive Marketing Strategies
IDENTIFYING STRENGTHS FOR FINAL PROJECT
GM’s marketing strategies is considered as a failure since these approaches are restricted
within different countries since they do not suit all the countries the organization conducts its
businesses (General Motors Company SWOT Analysis, 2013). This requires the organization to
focus on a global trend and marketing strategy that fits in different markets.
Immense Energy Substitutes
GM is currently lagging behind in the market in substituting its current automobile with
energy efficient vehicles. This is widely seen in other brands that have resorted to the
manufacturing of hybrid vehicles that are friendly to the environment, an aspect that resulted to
GM’s loss of its market share and profitability (General Motors Company SWOT Analysis,
2013). The company needs to incorporate this technology in its production process.
Poor Relationships between the Employees and Management
GM has no profound relationship between its management team and employees, an
aspect that results in poor communication and conflicts between the personnel’s. The company
has considerably faced loses as a result of these challenges.
Over-reliance of the U.S Market
GM is known for its over-reliance and dependency on its country of origins market. In as
much as the company is taking efforts to expand its functions in different markets, much of its
quality products are not produced in these markets.
Opportunities:
Substitute Energy Approach:
IDENTIFYING STRENGTHS FOR FINAL PROJECT
It is consequently clear that GM has over time faced challenges in manufacturing energy
efficient vehicles. However, this is an opportunity for this company to ensure that it develops
fuel efficient vehicles through the use of hybrid technology in order to effectively compete in the
market (General Motors Company SWOT Analysis, 2013). To achieve this, the company needs
to incorporate the element of R&D on hybrid technologies for its products and innovatively
apply the required technologies in the manufacturing process.
Marketing Strategy:
GM should additionally initiate the right marketing strategies in order to attract its
customers, an aspect that would require the entity to incorporate advanced technologies and low
interest rates on its vehicles (General Motors Company SWOT Analysis, 2013). This approach
would be effective in increasing the organizations sales, thus requiring the company to analyze
the market and use customer suggestions and feedbacks in effectively developing strategies that
meet the needs of the market.
Threats
The Current Financial Crunch
Over the last few years, several organizations are struggling to sustain their market
positions as a result of the global recession, an aspect that has affected the operations of GM as
well (Roberts, 2016). In consideration of the slow progress in the global economy, several
changes have been experienced, especially in regards to consumer behaviors. Several consumers
have resorted to low end cars that are fuel efficient, thus affecting the production process of GM.
Competition:
IDENTIFYING STRENGTHS FOR FINAL PROJECT
GM has enjoyed the market as a global leader for a considerable amount of time.
However, the advent of other competitors such as Toyota, has highly affected the functions of
this organization in the industry (Roberts, 2016). Toyota has is currently developing fuel
efficient vehicles at competitive prices, thus supplying its products globally. In order for GM to
sustain its market position, it is essential for the company to develop financial programs and
offer huge discounts to its customers while also upgrading its brands in the market.
Pension Schemes and Health Allowances
GM’s pension scheme has resulted in several conflicts between the company and its
employees. This is in consideration of the fact that the company has not been in a position to
compensate its employee’s pensions and health allowances that have piled up over a period of
time. This has consequently tainted the image of the company in the market.
Ethical Implications of Pursuing a Social Responsibility Program at GM
Developing a social responsibility program in GM is an ethical element that institutes
objectives, values, and goals that are just and morally sound in guiding the functions of the
company. This aspect will be efficient in preventing expenses incurred of public and legal
relations, supplier and customer disappointments and stakeholder rejections within the company
(Zlatanović, 2015). On the other hand, this approach will enable GM to pursue strategies that
would result in its sustainability of ecological and social responsible practices. Lastly, this
approach will enable the entity to collaborate with the government authorities and local
environments to improve the entities understanding of the requirements of operating in different
markets.
Conclusion
IDENTIFYING STRENGTHS FOR FINAL PROJECT
As established, GM needs to ensure it pursues approaches of remaining competitive in the
market, an aspect that would require the company to develop a strategic plan and ensure its
social responsibility in the industry.
References
Adela, Z. L., & Monica, T. R. (2011). The Specific Market Research Methodology Used At
General Motor’s Europe. Annals of the University Of Oradea, Economic Science Series,
20(2), 209-214.
General Motors Company SWOT Analysis. (2013). General Motors Corporation SWOT
Analysis, 1-9.
Roberts, G. (2016). General Motors announces China growth strategy. Aroq – Just-Auto.Com
(Global News), 29.
Zlatanović, D. (2015). A Holistic Approach To Corporate Social Responsibility As A
Prerequisite For Sustainable Development: Empirical Evidence. Ekonomski Anali /
Economic Annals,
