General Motors Company Challenges

Categories: Business Car Company Vehicles

Essay, Pages 3 (546 words)

Views

452

Culture reflects an organization and what the company is all about, thereby an importance of culture and cross cultural communication is to be realized. Thereby as a strategy to make great changes, to revolutionize and innovate, cultural change is one of the best strategies that are to be implemented by General Motors in order to anticipate great changes. In addition to winning international markets, cross cultural understanding leads to an increase in work performance.

One of the greatest challenges that are currently being faced by GM is to make changes at an organizational level that can help in improving performance of employees inside the workplaces.

Don't use plagiarized sources. Get your custom essay on

“ General Motors Company Challenges ”
Get custom paper
NEW! smart matching with writer
In case of international market capture, improved strategies are required in order to gain attention of customers.

These strategies were initially based on hierarchical culture being followed inside GM responsible for launching products that were based on collaborating with international manufacturers. These days there is a need to improve markets across borders by keeping in mind the culture of international countries (Hitt, Ireland, Duane, and Hoskisson 45).

Management Challenges: Strategy, Structure, and Entry Mode

In order to increase the global culture of GM, it has been realized that there is a need of a fleet of brand names from which the consumers can choose instead of having a single brand name.

This same strategy has been used by Ford Motors as well. This strategy will provide an edge to GM for entering into international markets thus having a stronger entry mode.

Authorities at GM believe that in order to make successful entrance into international markets that cover the area from former Soviet Union stretching from the Atlantic to the Pacific, there is a need of broad recognition that cannot be achieved by the help of a single brand name. For this there is a need of a multi branded portfolio. Thereby a set of marketing strategies that are adopted by GM in order to make entries in different countries have focused on different brands working on different levels.

Chevrolets have been introduced in Eastern and Western parts of Europe for entry level car buyers.
Loaded with advanced technology of safety, Opel and Vauxhalls have been introduced in many European countries for the middle level car buyers.
Based on market research, Cadillac has been introduced for a richer class of automobile buyers in Russia.
Hummers are being sold and marketed in every country as there is a lot of appreciation for this automobile thereby there is an international marketing strategy being adopted in case of Hummer (Peng 67).

These four marketing targets have caused an increase in the sales volume of GM in 2009 and these sales slightly climbed higher as compared to the sales volume of Toyota.

These strategies have helped in an improvement in sales of GM in North America helping in a 9% increase of sales in Europe by selling more than 3 million cars and in Asia there was a 15% increase by selling more than 1 million vehicles. Thereby needs and demands of the customers have been kept in mind while making an entry in international markets. In the case of GM trucks, most of the sales have been reported in Middle East as compared to any other country, reaching a record number of 30,000 truck sales in 2009 indicating a 6% increase in sales of trucks.