General Motors is a large multinational automaker headquartered in Detroit, Michigan. The document outlines GM's vision, mission, brands, global sales, models, pricing, environmental analysis, competitors, SWOT analysis, and financial results. It was presented to discuss GM's management style, marketing strategies, and distribution network.
Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
General motors
1. General Motors
Group members
• Binod Hyoju
• Suman Baniya
• Shaurya Challana
• Aruna Thakur
• Gaurav Govinda
• Jayant Basnet
Presented to
• Dr. Lokesh Jindal
2. • Analysis of the challenge faced by the multinational
organization, in maintaining, growing or divesting its business.
(as per requirement of the EBM 587)
• To make audience aware of the General Motors (Management
style, marketing strategies, distribution network etc.)
Objective of the presentation:
3. contents
• Introduction
• Vision of the company
• Mission of the company
• Brand of the company
• List of countries by motor vehicle production
• Global sales of GM (2008)
• Model of Chevrolet available in market
• Pricing
• Environmental Analysis
• Competitor’s Analysis
• SWOT Analysis
• Porter’s Five-Forces Analysis
• Core Competence
• Financial Results
4. Introduction
• The world’s second largest auto
manufacturing company.
• Situated in united state with its
head quarter at Detroit, Michigan.
• About 209,000 people are
employed in the company in the
major region.
• The business has been speeded in
about 120 countries.
• The General Motors installed the
world's largest rooftop solar power
at their Zaragoza Manufacturing
Plant in the fall of 2008.
• The Zaragoza solar covers about
2,000,000 sq. ft. of roof besides, it
comprises about 85,000 solar
panels.
5. Brand of the company
• Baric
• GMC
• Chevrolet
• Cadillac
• Daewoo
• Holden
• Isuzu
• Jiefang
• Opel
• Vauxhall and Wuling
6. Vision of the company
“GM’s vision is to be the world leader in transportation
products and related services. We will earn our
customers’ enthusiasm through continuous
improvement driven by the integrity, teamwork, and
innovation of GM people."
Mission of the company
"G.M. is a multinational corporation engaged in socially
responsible operations, worldwide. It is dedicated to
provide products and services of such quality that
our customers will receive superior value while our
employees and business partners will share in our
success and our stock-holders will receive a
sustained superior return on their investment."
8. General Motor Company in different
continental
1. North America
• GM is primarily focusing on Chevrolet, Cadillac, Buick, and
GMC in North America which are its core brand.
2. Asia
• The Buick brand has a strong market in China.
• In 2004, the Cadillac brand and Chevrolet in 2005 were
exported to China.
• GM and the Chinese company SAIC had a joint venture on
March 25, 1997 and the company manufactured the
vehicles locally in Shanghai.
• But the Shanghai GM plant officially opened on December
15, 1998 and the first Chinese-built Buick came off the
assembly line.
9. • The sales were increased by GM in China in March
2010 by 68 percent to 230,048 vehicles. Besides, GM
increased the sales in U.S. by 22%. And it was noticed
that the company would be able to sell more than 2
million vehicles in China in 2010.
3. Africa
• In 1920, General Motors was established in Egypt with
the purpose of assembling the cars and light pickup
trucks for the local market.
• At about the mid of 1950, the GM withdrew from the
Egyptian market. But the year later, the Ghabbour
Brothers, till 1990, started to assemble Cadillac,
Chevrolet and Buick models.
• The General Motors Egypt was founded in 1983 by GM
and Al-Monsour Automotive Company.
• It is currently only the manufacturer of traditional GM
branded vehicles in Egypt.
10. List of countries by motor vehicle
production
13,790,994, 29
%
7,934,516, 17%
5,711,823, 12%
5,209,857, 11%
3,512,916, 7%
3,182,617, 7%
2,632,694, 5%
2,170,078, 5%
2,049,762, 4%
1,557,290, 3%
China Japan United States
Germany South Korea Brazil
India Spain France
Mexico
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Series1
12. 2,981,000, 46%
1,095,000, 17%
549,000, 8%
384,000, 6%
359,000, 6%
338,000, 5%
300,000, 5%
212,000, 3%
133,000, 2%
117,000, 2%
United States China Brazil
United Kingdom Canada Russia
Germany Mexico Australia
South Korea
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Series1
13. Model of Chevrolet available in market
• Chevrolet Beat
• Chevrolet Spark
• Chevrolet Aveo U-VA
• Chevrolet Cruze LT
• Chevrolet Captiva LTZ AT
• Chevrolet Tavera
• Chevorlet Optra
14. Pricing
• Chevrolet Beat
Chevrolet Beat 1200 CC Available Models: 1.2 PS 1.2 LS 1.2 LT 1.2 LT
Options NRs 1,840,000
• Chevrolet Spark
Chevrolet Spark Available Models: 1.0 1.0 PS 1.0 LS 1.0 LT
NRs 1,650,000
• Chevrolet Aveo U-VA
Chevrolet Aveo U-VAAvailable Options: Aveo U-VA 1.2 Aveo U-VA 1.2
LS Aveo U-VA 1.2 LT NRs1, 895,000
• Chevrolet Cruze LT
Chevrolet Cruze Available in : LT LTZ MT LTZ AT NRs 4,500,000
• Chevrolet Captiva LTZ AT
Chevrolet Captiva LTZ AT NRs 5,900,000
• Chevrolet Tavera
Chevrolet Tavera Available in: Basic A/c and Heater A/c,Heater and Power
steering Triple A/c, Heater, Power steering and Window(9 Seater) Triple
A/c, Heater, Power steering and Window(7 Seater) Full Option(7 Seater)
Full Option(8 Seater) NRs 2,520,000
• Chevorlet Optra
Chevorlet Optra Available in: 2.0 Max TCDi 2.0 LS TCDi 2.0 LT TCDi 1.8
LS 1.8 LT NRs 3,520,000
15. Chevrolet promise
• Models Maximum Maintenance Cost for 3 yrs
(or 45,000 kms - whichever is earlier from date of vehicle delivery)
• Spark Rs. 15,999
• Beat Rs. 16,499
• Aveo U-VA Rs. 16,999
• Aveo Rs. 20,499
• Optra Magnum(Petrol) Rs. 21,999
• Optra Magnum(Diesel) Rs. 32,499
• Cruze Rs. 41,999
In case the cost exceeds this amount, you can
claim a full refund of the difference.
16. Environmental Analysis
• GM and the entire auto industry are currently
challenged with the perfect storm. The auto
industry is being hit by a weak US and global
economy, rising fuel prices, and social and
political environmental concerns and issues. In
order to overcome these potential threat, GM
should consider mass producing a range of
alternative fueled vehicles, i.e. fuel
cell, electric, and hybrid.
17. Competitor’s Analysis
• The major competitors of General Motors are
domestic companies like Damiler Chrysler &
Ford
• Motor and foreign companies like Toyota
Motor & Honda Motor
18. Total motor vehicle production by
volume
7,234,439, 17%
6,459,053, 15%
6,054,829, 14%
4,685,394, 11%
4,645,776, 11%
3,042,311, 7%
3,012,637, 7%
2,744,562, 6%
2,460,222, 6%
2,387,537, 6%
Toyota GM Volkswagen Ford Hyundai Kia
PSA Honda Nissan Fiat Suzuki
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Series1
19. SWOT Analysis
• Strengths
1. Large Market Share
• Although GM's market share in the US has dropped it is still very much competitive
at 26 percent. They also have an increasing share in the Chinese market.
2. Global Experience
3. Variety of Brand Names
• GM has been the automotive leader for the majority of the last century.
• A reason for that is the wide variety of quality brand names that appeal to all target
markets. The current GM brands include:
Chevrolet, GMC, Cadillac, Buick, Pontiac, Saturn, Hummer, Saab, Daewoo, Opel,
and Holden.
4. GMAC (General Motors Acceptance Corporation) Customer Financing Program
• Since its establishment in 1919 it has proven to be GM's most reliable source of
revenue.
5. On Star Satellite Technology
• Developed in 1996 On Star currently has over 3 million subscribers and is standard
on all GM vehicles.
• This technology allows the vehicles to be tracked in the event of an emergency or
theft.
• It also allows the driver and or passengers the ability to communicate with On Star
20. weakness
1. Behind on Alternative Energy Movement
2. Poor Organizational Structure
• GM's organizational structure seems to be
too vertically integrated .
• lack of communication between
employees from top to bottom and may
have played a part in GM falling behind on
the alternative energy movement.
3. Overly Dependent on US market
• GM has become too dependent on the US
market and must take advantage of the
opportunity to
expand globally. The competition is
becoming too strong to focus on just one
country.
4. Overly Dependent on General Motors
Acceptance Corporation(GMAC)
Financing
• GM has become too dependent on its
financing program.
Opportunities
1. Alternative Energy Movement
• Hybrid technology is still very
much new giving GM the
opportunity to once again
become the automotive
industry's leader in innovation
and technology.
2. Continuing to Expand Globally.
• Recently GM saw an increase in
the Chinese automotive market.
• If GM can infiltrate these markets
and successfully grow along with
their continuing focus on the US
market they will be headed in a
positive direction.
3. Develop New Vehicle Styles and
Models
• GM should be attempting to
develop the automotive world's
most popular vehicles.
21. Threats
1. Rising Fuel Prices
With GM being a large producer in both trucks and SUV's, sales have drastically decreased due to
the lack of fuel efficiency.
The rise in fuel prices has played a significant role in creating the opportunity for development of
both hybrid and more fuel efficient vehicles.
2. Growth of Competitors
Toyota took the first step in the direction of hybrid technology and has since drastically grown and
become the questionable automotive frontrunner to start the 21st century.
3. Pension Payouts.
Part of this threat is their own doing and is simply unavoidable. GM is responsible for providing
generous pension benefits to its employees, which at the time seemed like a great idea, however
they are now experiencing problems as more and more people begin to collect.
4. Increased Health Care Costs
GM, like many large companies with quality employee health care benefits, is experiencing a large
financial hit that only gets worse as time continues.
5. Rising Supply Costs, i.e. Steel
this threat affects the entire automotive industry and forces each company to cut manufacturing
and production costs as much as possible, without taking away from the quality of the product.
22. Porter’s Five-Forces Analysis
• The competitive structure of an industry is
another important component of identifying
factors that are a threat to diminish profitability.
• Michael Porter's five-force analysis.
(1) rivalry between existing competitors,
(2) threat of entry by new competitors,
(3) price pressure from substitute or
complementary products,
(4) bargaining power of buyers,
(5) bargaining power of suppliers
23. Five forces Analysis
Force Threat to profit
Internal rivalry Strong
Entry Weak
Substitutes and complements Weak to moderate
Buyer power Weak
Supplier power strong
24. Core Competence
• The core competence of General Motors is innovation.
• In 1911, it conceptualized engineered and
commercialized the self-starter engine for the first
time.
• In 1926, its product Cadillac was the pioneer in
devising a nationwide service strategy.
• In 1996 General Motors introduced On Star satellite
technology.
• Other new car concepts include mini cars such as
Chevy Aveo.
• However in the case of hybrid vehicles, General Motors
was unable to keep up to the pace of the market
demand
25. Financial Results
• Based on the GM’s consolidate net sales and revenue, it shown that
General Motor Corporation revenue has been falling to $ 192.6
billion in 2007 from 193.5 billion in 2004. GM incurred a
consolidated net loss in 2007 of $ 10.6 billion, compared to net
income of $ 2.8 billion in 2004.
• In the last 1990s, GM had regained market share up $ 80 a share.
• In 2000, the interest went up by the Federal Reserve to quell the
stock market and a severe stock market decline following the
September 11, 2001 attacks. Due to this factor, it affected a pension
and benefit crisis at General motors and many other American
companies.
• The current stock market price of General Motor sare falling
between $28- $29 per share. It has been falling down gradually in
the past six years General Motors North America market share in
2007 fell to 25.5% compared to 26.7 in 2004.Decreased in market
share also due to sales declines in segment where GM has high
volume such as large, sport, utilities, mid-sized, utilities, and mid-
sized cars.
26. Product Mix (General Motors):
Product Item
Product Line
General Motors
Different brands
People in motion
Product
