The subject of this paper is the General Motors. It is a company incorporated in the U.S and has a long history of about 100 years in the automobile industry. The Philosophy behind this long-term success can be likened to Clausewitz (1984) philosophy on war. The company views business competition as war. Founded on September 16, 1908 by William ‘Billy’ Durrant, its first endeavor was to manufacture horse-drawn vehicles. Same way Clausewitz (1984) advocates for use of strategic maxims in war, the company has applied the same inform of strategies to reach where it is today.
Sun Tzu (2008) advocates for wining a war without fighting. Similarly, General Motors has adopted the same principle. The company’s vision is stated, “We are passionate in designing, building and selling the world’s best vehicles”. This is an indirect tactic of fighting rivals in the competitive automobiles industry through the production of quality vehicles. Consequently, the company has grown tremendously over the years, earning the 19th slot in the Fortune 500 list.
The Mission of General motors is to be the producer of the vehicles that people want, in addition to effectively fulfilling the needs of all stakeholders in the industry.
The General Motor has rebranded itself into New General Motors, focused on designing and building the world’s best vehicles. Some of the company’s objectives include:
Delivering safe and quality products. Safety at GM is a priority and a lot of efforts go to ensuring that the cars and trucks are produced safely.
GM is passionate about building and maintaining a good relationship with customers. They make efforts to deliver products of high quality so as to win the loyalty and confidence of customers.
Innovation is given a priority at GM. This is aimed at ensuring that the automobile manufacturer maintains the position of the market leader in the industry.
Another objective is that of achieving long-term investment value for shareholders. It aims at ensuring the financial soundness is achieved to help propel it to greater levels.
General Motors also strives to make a positive difference in both the workplace and worldover at large. This also entails being socially responsible and taking into consideration all stakeholders’ needs.
General Motors SWOT Analysis
Sun Tzu (2008) proposes that for effective win of a battle, one should know the enemy and own personal strengths and weaknesses. Similarly, General motors’ trades on its strengths to counter competitors such as Toyota and Ford.
GM takes pride in a long and rich History it has built since its inception in 1908.
According to Clausewitz (1984), the military genius of Napoleon was a result of mix of qualities such as courage, knowledge and thirst for honor. This can be likened to General Motors day-to-day operations. The company has recruited and developed a highly skilled and professional workforce. This helps in achieving the company’s vision.
The company has gained customers’ loyalty and confidence through delivering quality products over the years.
GM has a very strong balance sheet which ensures that substantial investments can be made to further fuel their growth.
A heavy market presence as it has established itself in around 6 continents.
The main weakness of GM is that of having a large number of vehicle models under its name. This has the effect of negatively hampering quality improvement as much effort is put on the large variety of models other than on the quality.
General Motors has a high opportunity of expanding given that the automobile industry is not yet saturated. The demand for vehicles is still very high even in countries which were earlier thought to be poor. In addition to that, there is a high demand for luxury vehicles in the world today, and the company has potential of doing very well in this sector.
The highest threat that faces General Motors is competition. Some companies in the industry are investing heavily in the manufacturing of relatively cheaper cars. This can have a drastic negative effect on GM’s performance if not taken into proper consideration.
Clausewitz, C. V. (1984). On War. Princeton, N.J.: Princeton University Press
Sun Tzu. (2008). The art of war. Radford: Wilder Publications