GM Corporation is among the market leaders in the auto market. For more than seven decades, the corporation has established a market portfolio that has positioned it well in the auto industry. Currently the GM Corporation has a market share of more than 30 percent of the auto market. The Corporation has a worldwide operation. This gives the corporation a chance to transfer products which have been successful in one market to the other emerging market. The corporation is able to build special cars upon request with specific directions given by the customer.
GM Corporation has good human resource policies which have ensured the growth of the corporation in a recent 2006 survey GM corporation was ranked the 1st overall greatest place to work. The corporation has been improving its ranking in the recent past for the last 30 years. All over the world the corporation employs more than 300,000 employees operating in the corporation world wide. (David, 2004) One of the most important factors in the overall growth of the corporation has been heavy investment in technology.
Through innovation the corporation has placed new brands in the market which ensures reduced cost of production. Investment in the new technology has ensured the growth of the corporation in the market. The corporation has a strong management team with a strong centralized management structure. This ensures that there is standardization of operations procedures in all its departments. The corporation also has put in place effective corporate management structures which ensure timely disclosure of information on the performance of the corporation.
This is important for the overall financial management of the GM Corporation. The company’s share has been fairing well in the market that has enabled the company to have a lead and call more investors to invest in the company. GM, unlike other major companies and groups in the industry, its known for high dividends compared to its major competitors. Since the introduction of the company’s share in the stock market, the share prices have been shooting up and this have been contributing to the improved profits to the company. (Vincent, 2004) (ii) Weakness
The corporation has not been able to standardize its operation in all the departments. For example while the Toyota and Ford auto makers have strong market share in Africa and other emerging market, its market share in the established market seems to decline. Its American market share is strong enough to guarantee its market leadership. The GM’s corporation new model are associated with high prices as compared to Toyota Prado, Lexus and Nissan Xtrail, this has contributed to reduction in sales as most people would go for most executive and cheap cars. This has contributed to the company’s falling on loss in the year 2007.
(People’s Daily Online, 2008), Internal and external analyses In the internal environment of the company, the company has several structures that help the company to have a smooth running of its businesses. The leadership structure is one of the cornerstones of the company’s success; the good leadership in the company has been a result of the company’s success. The company has also involved itself in the use of technology that has on the other hand has propelled the company to greater heights as a result of high quality and more products produced by the company.
GM has well laid policies that enable workers leaders’ interrelation and this helps the company to have smooth running and motivated workers. The use of IT has on the other hand helped the company to have a good consumer producer relation and also communication in the company. In the external environment, the company more major threats that are likely to arise besides the currently existing, there are threats of entrance of new companies in the market that are likely to add competition on the currently existing.
In this regard, there likelihood that customers are going to increase their bargaining powers as there is variety of products in the market to choose from. This will walk hand in hand with the increase of substitute products in the market thus posing a problem to the pricing of the product. As there would be high demand of low materials, there is likelihood that suppliers would increase the prices of their supplies thus increasing the cost of production that will in turn reducing the company’s revenues. This will all be added to the existing competition among the rivalry companies in the market. (John, 1995),
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