Business Process: 100 years have gone in this business of producing up to 450 million vehicles worldwide with the brand name General Motors. Also, the corporation is operating globally almost in every country on a virtual basis. However, presently GM has achieved its goal by earning revenues and sales outside US. But, a huge market for GM is the United States Market. GM is one of the biggest buyers for United States in terms of buying iron, steel, aluminum, copper, rubber, computer and electronic chips. The vision of the company is that to remain streamlined in the auto industry by providing fuel efficiency and quality when it comes to innovative design and utmost quality (Norton, 2013).
The company tries to follow all the legal and governmental rule as it will help in operating along with sustaining and restructuring its operations. Most of the researcher believe that an aggressive behavior has shown by the company by knowing product miss strategy. However, the competition and challenges are to build energy security and climate through consumption of petroleum (Anderson, 1995).
GM needs to follow three important business components that are: profitable, self-sustaining and fully competitive market for the other automobile industry. Also, GM main business tactic is to offer business necessity on the basis offering advanced vehicle technology The best way is to creating a benchmark that is mount of salary along with incentives on the basis of key performance (Bayou & De Korvin, 2008).
General Motors has considered to be one of the best automaker and world’s iconic corporation. Also, to drive the costs by lowering is only possible through if the company offers improvement in the operating boost and quality of the product (Bayou & De Korvin, 2008).
Structure: GM has a cycle process for its structure i.e. starting from the product development, pricing of the product, competitive positioning, and business nature is cyclical. The procedure of research, product development and intellectual property is a process of proper teamwork i.e. appointed based on their skills and expertise in automobile manufacturing business (Anderson, 1995).
GM strongly focuses on the operational and financial restructuring of the components that exist in plan to create a profitable business worldwide. However, the annual sales of the company are 12.5 to 13 million units. Following new strategy company is looking towards the transformation through adopting a business model that is existing for the past many years. The purpose is to produce fuel-efficient automobiles (Anderson, 1995).
Culture: “Regional Standards & Industrial Standards”: GM believes in following international manufacturing standards. For doing it, GM has to implement a strategy based on regional standards of development i.e. assigning pilot region wise to develop their operations successfully (Bayou & De Korvin, 2008).
Whereas, presence of compliance mandate is already available in few of the areas. Also, standardization to sustain the standards of quality has provided across the company. Industrial standards also refer to building a concept based on international standards when it comes to profitable and successful business for the company like GM (Bayou & De Korvin, 2008).
Environment: GM has a concept i.e. to follow energy consumption strategy. These days the highlighting thing is the focus on energy consumption strategy and generation which has given a huge attention in the automobile industry. Due to the manufacturing facilities offered by GM, it believes that they are leading in several aspects of energy generation. Moreover, it has seen that General Motors have become the future for the upcoming generation information networks i.e. associated for global manufacturing operations and its main purpose is to achieve 166% of the return on investments for the upcoming 5 years in the future. (Bayou & De Korvin, 2008).
Further, GM strongly believes in employment involvement and for this it has made effective strategy. It has provided alternatives for the employees that are working on the energy intensive procedure by offering workarounds to those who can create improvement in the efficiency of the workers, as well as their engagement towards work (Anderson, 1995).
Moreover, GM believes in Personal Health of the workers working with General Motors. It will help in sustaining the company. For example: GM executives being paid millions of dollars, therefore company needs to follow the modest compensation model to bring cost effective solution for the GM. Also, employees should have safety against their jobs i.e. occupational safety. The company’s workers are working hard and putting their best effort to make all possible solution for reducing injury rate (Anderson, 1995).
Business Strategy: The company strategy is to follow the concept of brand-restructuring. Main target of GM is to spotlight the restricting of the brand along with keeping the core business value in mind. Moreover, GM believes in providing best fuel efficiency. According to scientific research it has seen that the global warming and green technology effects have made the companies: realize the importance of making environmentally friendly atmosphere. For example, offering fuel efficiency options for the consumers such as electric, hybrid and flex fueled vehicles (Norton, 2013).
Therefore, the preferred choice for several consumers has become the option of fuel efficiency and environmentally friendly automobiles. However, GM is following the path of consumers preferred choice that is why for the future production GM is claiming to create flex fueled cars. Thereby 50% will be GM Flex Fueled automobiles to see on the road.
Marketing and Promotion Strategy: As, America’s one of leading brand GM needs to reestablish itself by using tools of advertisements and commercials. The concept of the promotional strategy will on fuel efficiency and sustainability developments. The best way is to creating a benchmark that up to $500000 will be given along with incentives on the basis of key performance (Norton, 2013).
Recommendations: Cost Cutting Strategy: The corporation can gain success in business if it starts saving up their cost by cutting through reduction of GM brands and models. Also, GM needs to make a reduction in the salary expense. Such as; millions of dollars paid to executives at GM, therefore company needs to follow the modest compensation model to bring cost effective solution for the GM (Norton, 2013).
The best way is to creating a benchmark that up to $500000 will be given along with incentives on the basis of key performance. Also, the corporation is operating globally almost in every country on a virtual basis. Moreover, if GM is looking forward to creating a reputation in the emerging market then it needs to establish manufacturing facilities that will open gates for jobless people as well as create a friendly relationship with their governments (Norton, 2013).
Further, GM can follow futuristic approach based on internet and technology that will help in providing cost saving and operational efficiencies for the company by introducing new technology incentives and enhancements in their business.
Bayou, M., & De Korvin, A. (2008). Measuring the leanness of manufacturing systems—a case study of Ford Motor Company and General Motors. Journal Of Engineering And Technology Management, 25(4), 287--304.
Norton, M. (2013). General Motors Business Strategy (pp. 2-5).
Anderson, S. (1995). A framework for assessing cost management system changes: the case of activity based costing implementation at General Motors. Journal Of Management Accounting Research, 7(1), 1--51.